Automatic Merchandiser

OCT-NOV 2016

Automatic Merchandiser serves the business management, marketing, technology and product information needs of its readers including vending operators, coffee service operators, product brokers, and product and equipment distributors in print.

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AUTOMATIC MERCHANDISER EDITORIAL ADVISORY BOARD Anant Agrawal Cantaloupe Systems Brad Ellis Crane Co. Carl Moser Cardinal Canteen Food Service Chuck Reed Crane Payment Innovations (CPI) Elyssa Allahyar-Steiner Avanti Markets Inc. Jeff Whitacre Food Express Jim Carbone The Classic Group/Chicago Coffees & Teas Jodi Glimpse Camelback Vending Joe Hessling 365 Retail Markets Lee Hartnett Commercial Coffee Service/ Food Systems Inc. Michael Miller Mondelez International Paresh Patel PayRange Paul Schlossberg D/FW Consulting Sandy Thornton VendEdge Welcome To The Self-Serve Era Micro market success is something we should be thanking the Millennials for driving. CUSTOMERS are drawn to the personalized options. Facebook/VendingMarket @VendingMagazine http://linkd.in/VendingMarketWatch e have written a lot about the changing consumer. Their desire for snack variety, healthier fresh food and convenience has led to growth in the vending segment, especially in micro markets, which currently represent over 10 percent of operator revenues. What is driving micro market growth at this point is not just the ability to offer a greater number of grab and go SKUs, but the ability to offer the consumer a more customized dining experi- ence in the place where they spend the majority of each weekday. In a word — work. It's here that the abil- ity to enjoy their favorite drink and ideal meal was most elusive (unless it was brought from home). With micro markets, operators are able to get much closer to giving this ultimate per- sonalized dining to workers without the cost outlay for the employer of a cafeteria. Choose a salad and then your favorite dressing. Pick and choose different options to create your perfect lunch. Choose a hot beverage recipe from the specialty coffee machine in the micro market, and then customize it by size, strength and solubles. (This last idea is a key element in the new office coffee service program discussed on page 18.) A time to shine Consumers love micro markets. At no other time, with no other generation, would they have worked so well. The Millennials, the Baby Boomers and everyone in-between has adjusted to an on-the-go, snack centric eating style. Consumers are willing to pay for quality and healthier items (certain healthier items) in micro markets — especially when compared to vending. They are comfortable with self- checkout and indeed relish using technology to accomplish tasks once associated with manual processes and personnel. They've evolved the idea of breakroom refreshment with how they spend their money. That is why I argue we are in the micro market era, where we will see more of this type of service — perhaps double and triple in placements. However, it continues to be highly competitive, where successful operators must push the standards to stand out. It's a time when operators must review other relevant channels to see what is working and how they can best compete. In Look Outside To Improve Within, on page 24, we talk about which areas of each segment are most applicable and how operators can achieve similar benefits. Evolve or perish One thing that nature and business have in common is that times change, and so must those of us who wish to survive. Some operations are researching new equipment or services because they feel they need to — their competitors are offering it and they must also. While this is most certainly true, it will never produce the best results. New and evolving workplace refreshment solutions need to be driven by out of the box thinking and a proactive approach that will meet the needs of today's customer, and those of tomorrow. W 8 Automatic Merchandiser VendingMarketWatch.com October/November 2016 E D I T O R ' S N O T E B Y E M I L Y R E F E R M A T

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