High-tech Vending System Grabs Placements

As the vending industry struggles to adapt to a changing business environment, signs of the future can be detected on the retail landscape.

While most vending operators have yet to invest in cashless readers and remote machine management, some machines being placed in traditional vending locations contain these features and more. Machines have been placed that offer digital thumbprint payment, interactive video touchscreens that include advertising, and promotional coupons printed at the point of sale – all in addition to cashless readers and remote machine management.

Hundreds of “Quickstore24™” machines have been placed in the past four years by a company with a strong track record in developing new technologies and bringing them to market.

Quickstore24™ consists of a glassfront beverage machine and glassfront snack machine connected by a colorful green enclosure that features point-of-sale graphics. The divider between the two machines contains the payment modules. Quickstore24™ has been popping up in different parts of the country for four years. It uses technology developed by Walker Digital LLC, a Stamford, Conn.-based company that was involved in developing priceline.com.

Industry sources note the Quickstore24™ machines are built by an established manufacturer and equipped with Quickstore24™ proprietary hardware and software.

Besides being technologically advanced, Quickstore24™ uses an unconventional vending business model. Instead of selling machines and software to operators, the company provides machines to operators in exchange for a fixed percentage of sales. The company is also active in soliciting accounts.

A knowledgeable source noted that the system is still in development, and the methods of going to market thus far are intended to meet development needs. Once the system is completed, the source said, it will be licensed.

The system uses a cellular network.

VendingMarketWatch.com first reported on Quickstore24™ in the fall of 2004 when a unit was placed at the Stamford, Conn. police department. A local newspaper reported that the machines offered two snacks, two drinks or a snack and drink combination for one dollar. The report noted that customers could get an “EZ™” code card so that they can have a prepaid account. They could register their code number online, in case they forget it.

Quickstore24™ officials did not wish to divulge information, but Automatic Merchandiser interviewed several operators who have used the machine and were willing to discuss their experiences. There is also a Website, www.quickstore24.com, that explains the system.

Operators like the visual merchandising

Vending operators who have seen the machine are impressed by its visual merchandising. They were less than enthusiastic about the “2 for $1” pricing and held mixed views on the business arrangement, whereby they must pay a set percentage of sales on a continuing basis and never own the machine.

Those who have used the system say it is easy to use, but it does require its own management software.

Some features, such as the interactive video touchscreen, the digital “Thumbpass™” and the promotional coupons printed on site, have not generated a lot of enthusiasm among operators who have used it. Most said these features are more beneficial as selling tools than in stimulating purchases. It must be kept in mind, however, that new features require customer education.

Multiple payment options

The Quickstore24™ Website explains that customers can check their credit Thumbpass™ or EZ Code™ balance online at the machine. Cash or a credit card can be used to recharge the account at the machine. The Website also explains that customers can set their account to recharge when the balance falls below four items.

Foley Food & Vending Co., based in Norwood, Mass., currently operates 13 Quickstore24™ machines, noted Ken Foley, route manager and buyer. He said he was impressed by the company’s association with priceline.com. “It was pretty apparent that this person was a serious entrepreneur; he had a track record,” Foley said.