Focus on Workers Pays Off Big For Mid-South

Challenging as the times may be for the vending industry, the independent operation is going to survive. Take it from a veteran who spent most of his career with a national operation before moving to an independent 14 years ago.

Larry Pugh, general manager at Mid-South Food Services in Aberdeen, N.C., insists that the family atmosphere at a medium-size company can more than make up for the advantages of an extra large company. He points to the length of service of most of his employees at his 11-route operation (the service manager is a 37-year veteran), not to mention the outstanding quality of dedication which he credits to the family atmosphere that only an independent can provide.

Case in point: Nina Williams, a 12-year veteran and the 2008 Automatic Merchandiser Route Driver of the Year.

Williams, in the accompanying article, cites the support she gets from Pugh and operations manager Jim Loftin for her success.

A NEW ERA FOR INDEPENDENTS?

In fact, in the current operating environment, with many companies cutting corners to save costs, Pugh thinks the independents have more opportunity than before.

“I feel the personal attention you get in a smaller company makes up for whatever prestige you lose,” he said.

“We’ve got a lot more time to be in front of the customers and give them the personal attention that they crave,” he added. “We’re large enough to take charge and small enough to take care. Most customers appreciate quick response.”

NOT AN ORDINARY INDEPENDENT

Mid-South Food Services is no ordinary independent. It boasts the only local commissary in Aberdeen, which is 100 miles south of Charlotte. It is also owned by a beverage bottler that is financially sound.

The vending operation, launched in 1963, shares some overhead with the beverage company, Aberdeen Coca Cola Bottling Co., which began in 1913. Both companies are owned by the Moon family and operate from a 24,850-square-foot building, an adjacent 6,000-square-foot refurbishing facility and another 2,000-square-foot office building.

Pugh recognized these advantages when he opted to leave Service America Corp. in 1994 to come on board as general manager at Mid-South Food Services. At the time, he was a 29-year veteran serving as the Asheville, N.C. district manager. (Service America Corp. was acquired by Compass Group in 1996.)

Pugh, with his background at a national operation, brought some new expertise to what was then a 5-route vending operation. He established the equipment refurbishing facility.

He also recognized the need to diversify the account base since the textile industry was declining. In the past 15 years, textile accounts have dropped from 90 percent to 25 percent of the company’s customers. The company has diversified with light manufacturing, schools, colleges, hospitals and food processing facilities.

COMPENSATION UPGRADE

Pugh also recognized the need to develop a more competitive compensation package for employees. The company pays 100 percent of individual employee health care, dental and life insurance as well as paid vacations and holidays, double pay for holiday work, plus a 401-k retirement plan and profit sharing. “It’s all designed for longevity,” he said.

He instituted a formal 2-week training program for route drivers with two additional weeks followup. After 90 days, he can usually tell who will and will not make it. “I think it takes a special person to be in the vending industry,” Pugh said. “If you like it, you do well at it. If you don’t, you don’t last very long.”

DEDICATED CASH COLLECTIONS