VendingMarketWatch Blog

Given the state of the economy, does reading the news stress you out? Probably.
The news is stressful because times are hard. But it’s more complicated than that.
Most of us keep a close eye on the news because we are anxious for signs of change. Hence, we get more stressed.
Those of us who have been here before – such as the big early 1980s recession – already know that signs of progress are murky in the beginning of an economic recovery.
The economy is multi-faceted, and there are usually contradictory trends taking place simultaneously.
Today, for instance, we learn that U.S. banks posted their steepest decline in lending since 1942, which doesn’t bode well for the economy.
Last week, we learned U.S. manufacturing activity has been gathering strength, and major factories are gearing up to rehire workers, a positive economic indicator.
The stock market is moving up and down. One day corporate reports show great gains. Another day it’s losses.
Looking more closely at foodservice, the reports are anything but uniform.
Commercial foodservice continues to suffer as consumers remain cautious spenders. Whether that’s good or bad news for vending and onsite foodservice is a discussion unto itself; it depends on how the individual operator responds.

What can we do?
As a news editor, I feel some obligation to address the stress that these disparaging and disparate reports cause our readers.
One way to deal with the stress is to recognize what we can and cannot do, and make sure we pay proper attention to the former.
I find it helpful to make it a point to check in with friends and colleagues. On days when I’m feeling down, they share a bit of good news that improves my mood.
They, in turn, call me when they’re feeling down. I often find the reasons they are stressed are overblown, and I encourage them to put things into perspective. Doing this makes it easier for me to do the same thing.
Being organized also helps.
Setting goals with an action plan that organizes our time and making sure we stick to that plan are important.
And as part of that plan, reach out to friends and colleagues. 
 

The recession has driven the nation’s fast food chains to new strategies to win consumers. Their actions are instructive to refreshment service operators who face the same cost pressures in this recession.
One immediate lesson is that the big players have recognized the importance of good quality coffee.
Yesterday, Burger King announced it will add Starbucks Corp.’s Seattle’s Best Coffee to all its U.S. restaurants in a phased roll-out that begins this summer. The nation’s number two fast feeder is responding, belatedly, to McDonald’s McCafe offering, launched almost a year ago.
Chick-fil-A, Hardee’s and Subway have also switched to better coffees in recent months. Hardee’s and Chick-fil-A developed their own premium coffee blends, while Subway, like Burger King, is transitioning to Seattle’s Best Coffee.
Meanwhile, the fast food giants have struggled with one of their core offerings, their double cheeseburgers.
The price of a McDonald’s Double Cheeseburger recently went above $1 in many markets after the company replaced the item on its Dollar Menu with a double burger with just one slice of cheese.
Burger King also decided to raise the price of its $1 double cheeseburger to $1.19 starting in April. The chain’s franchisee association filed a lawsuit alleging that the company can’t require restaurant operators to sell the sandwich for $1 and that they are losing money at that price.
The big fast feeders have struggled to convince consumers to pay premium dollar for one of their core sandwiches. But they can win higher prices for premium coffee.
Refreshment service operators should know by now that high quality coffee is one core product for which they can charge a premium price.
McDonald’s has consistently delivered strong financial results during the recession. It has done so by providing and marketing value, consistently and aggressively.

Feeling confused about calorie disclosure mandates for vending machines? It’s understandable, but don’t let yesterday’s news distract you.
Yesterday was a busy news day on the calorie disclosure front. The President and the First Lady introduced their “Let’s Move” campaign to battle childhood obesity.
The beverage industry announced its commitment to make calorie disclosure clearer on 20-ounce bottles and to include calorie information on vending machine selection buttons.
In the meantime, we have been wondering when and how the government will require disclosure on vending machines in ALL locations.
The vending industry doesn’t like being in the public eye, especially when the mandates implicate vending for making consumers unhealthy.
Don’t be confused.
Calorie disclosure is still in the works.
Scott Brown’s recent Senate victory in Massachusetts slowed down the health care reform measure. This is the bill that requires vending operators who have at least 20 machines to post calorie information at the point of sale.
But the mandate is still coming.
NAMA has kept a close watch on this mandate, and NAMA reports that with health care reform less certain, federal lawmakers have added calorie disclosure to the food safety bill, which is currently in a joint House/Senate committee.
It remains uncertain how vending operators will be required to meet the requirement.
Vending operators will be facing calorie disclosure requirements, but the details are not yet clear. In the meantime, if you haven’t joined NAMA, the group that’s looking out for your interest, join. That’s the least you can do.

For several years, we have cited the country’s declining manufacturing base as one of the biggest challenges facing automatic merchandising, since these locations have long been the biggest and most profitable customers.
And while the manufacturing sector continues to decline, our magazine’s State of the Industry Report has noted that manufacturing remains the single biggest customer segment for automatic merchandising.
Yesterday’s Wall Street Journal carried an analysis of the state of U.S. manufacturing that sheds further insight on this key customer segment. The report noted that “heavy” manufacturing, such as automobiles and basic chemicals, has given way to higher-tech concerns such as computer chips. To access this article, go to: http://online.wsj.com/article/SB10001424052748703338504575041510998445620.html
The industries that have added capacity during the recession include: semiconductors, communications equipment, computers, electricity, and oil and gas.
Those that have cut capacity are: plastic and rubber products, motor vehicles/parts, furniture, printing and textiles.
The Wall Street Journal essentially notes that the recession has hastened some of the key changes taking place in the nation’s employer base.
What this means for vending is that many of the largest customers require a more professional service. The manufacturing concerns that are growing have more white collar workers, and these consumers are more demanding than their blue collar counterparts. Vending operators have to understand their needs.
White collar accounts typically give their employees more time for breaks and allow them to leave the worksite.
The white collar customer is often more health conscious than his or her blue collar counterpart, and often more quality conscious.
White collar workers usually want better coffee.
Growth will occur through improving customer satisfaction. This will require understanding the new customer.
It will also require using technology to better understand customer needs and to respond to customer needs faster.