VendingMarketWatch Blog

Our Machines And Products Are Made In America; Let’s Shout About It!

Elliot Maras — Wed, 01 Sep 2010 13:52:23 +0000

Everyone over the age of 40 can remember a time when you could buy a refrigerator, a washing machine or other appliance and feel confident that it would work properly for more than a few years. The products were made in the U.S. and consumers didn’t have to buy extended service contracts because they knew the manufacturers made reliable products.
Not so today.
Nowadays, you need an extended service contract for just about any appliance. With most appliances being made offshore, quality has declined because foreign labor is cheap and less educated.
It’s about time that the vending and coffee service industries reminded customers that American manufacturers can and do make reliable products. Today, vending machines and coffee brewers are among the few appliances that are still primarily made in the U.S. They are, coincidentally, among the only appliances that have become more and not less reliable.
This is an important message.
People frequently complain that “nothing is made in the U.S. any longer.” Their concern has not been lost on politicians, many of whom at least pay lip service to finding ways to restore U.S. manufacturing.
The vending and coffee service industries do more than pay lip service to supporting “Made In America.”
The vending industry in particular has worked hard over the years to improve its reputation for quality products and reliable service. The National Automatic Merchandising Association (NAMA) has launched a media relations campaign which included a segment on the History Channel’s “Modern Marvels” series in late 2008. That campaign continues.
The PR efforts have paid off. Consumer surveys have shown that perception of vending has improved in recent years.
Vending and coffee service operators can go a step further and remind customers that their industry supports the U.S. economy since most of the machines, besides being more reliable, are made in the U.S. and support the U.S. labor force and the U.S. economy.
Products sold in vending machines are also made in the U.S.
Besides helping the U.S. economy, products made in the U.S. also help the environment by reducing delivery routes.
These may seem like small things in relation to all the benefits our industry provides. But consumers are concerned about restoring U.S. manufacturing and helping the environment. The vending and coffee service industry has a good story to tell.
How about an industrywide “Made in America” campaign?

Won’t Spend $199 For Coffee Education? Unbelievable!

Elliot Maras — Wed, 25 Aug 2010 17:39:09 +0000

I recently received an email from a very successful coffee service operator saying he did not plan to attend the National Automatic Merchandising Association (NAMA) coffee show in Las Vegas Oct. 20 to 22. He said he was not planning to go because of the $199 fee.
I was shocked. I have known this individual for years, and he has been successful largely because of his devotion to learning his trade inside and out. He has been very successful with e-commerce, to which he devoted hundreds if not thousands of hours of personal study.
If anyone knows the importance of education, I believed he did. So I asked him if he didn’t think $199 wasn’t a fair price for an annual educational conference.
His responded that over the years, trade shows have been less rewarding since they offer fewer buying incentives.
What struck me was that he did not realize the full educational value of this event. Coffee service today has become incredibly specialized. The NAMA coffee show is the only educational event designed for coffee service operators.
Coffee service has become more competitive than ever, and the need for coffee specific education is greater than ever.
I couldn’t help but take this man’s position as a personal insult, since both Automatic Merchandiser and VendingMarketWatch have reported on the NAMA coffee shows in detail in the two years they have been held. This operator reads us regularly, so it mystifies me that he sees so little value in the material presented.
No operator should believe he knows more than what the presenters have to offer at the shows. No operator should believe he knows more than all of the attendees who are on hand at the networking sessions.
The operator noted that he continues to reinvent what he does five days a week, and knowing him as I do, I believe him.
I simply can’t for the life of me understand why he won’t spend a couple of days at a conference where he will have a chance to meet with the most progressive coffee service professionals in the country and learn many of the finer points of his trade.
Scores of veteran operators have told me over the years they never fail to gain at least one useful idea at trade events, which in their minds justifies the cost of attendance.
Operators are independent by nature, so it’s no surprise that some choose to “go it alone.” Strong individualism is one of the things I like the most about our industry.
But when it comes to education opportunities, those who fail to take advantage of it are making a big mistake.
In today’s coffee business, there is no such thing as being overqualified.

Ben Ginsberg Embodied The Entrepreneurial Spirit

Elliot Maras — Wed, 18 Aug 2010 15:38:12 +0000

Ben Ginsberg’s passing marks the end of an era in vending and coffee service. Ben embodied the entrepreneurial spirit that guided our industry for many years. He launched American Automatic Merchandiser with the late D.L. Mike Michael in 1958. This was a major growth period for vending, and Ben chronicled the work of many entrepreneurs who gave this industry its highly personal character.
He maintained that independent streak over the years. After selling American Automatic Merchandiser to Harcourt Brace Jovanovich in 1986, the trade publishing company where Gloria Cosby and I cut our teeth, Ben launched his second magazine in 1991, Sunbelt Vending & OCS, which later became Vending & OCS. He used his magazine as a platform to continue to observe the industry he loved.
I knew Ben mainly as a competitor. He was tough but fair.
When I was new to the industry, Ben was more than well established. It was intimidating at first to face him as a competitor, due to his longer seniority. But he did not abuse his seniority in any way that I was aware. He was personable and respectful.
I will never forget when a group of food manufacturers asked Ben to organize a meeting to discuss ways to improve food vending. Ben, playing an organizational role in this gathering, specifically invited me, a competitor, to attend. I viewed this as his acceptance of me personally, and it made a lasting impression.
Ben’s magazine focused on the industry’s personalities. His perspective was unique, and it represented the era in which he grew up.
He shied away from conducting industry research, which became more important as vending and coffee service matured.
As the industry evolves, it becomes more dependent on professional business management. We see this happening in many ways. More college educated people are managing vending companies. More sophisticated management software has emerged, requiring special skills. Not to mention the changes that new technology is bringing.
The old entrepreneurial spirit continues, but under the prism of sophisticated management practices.
For many of us, Ben Ginsberg embodied that entrepreneurial spirit.

Ben Ginsberg

Southeastern Vending Association Meeting Reveals Several Truths About Our Industry: Do You Have What It Takes To Succeed?

Elliot Maras — Wed, 11 Aug 2010 15:40:19 +0000

Are you committed to success? Do you know what it takes to be successful in business?
These might sound like simple questions, but the Southeastern Vending Association (SEVA) annual meeting in Destin, Fla. last week made me realize these questions are not as simple as they sound.
About 250 people, mostly vending operators from throughout the Southeast, showed up for this event. It wasn’t a party. It was a conference consisting of industry education and a chance to network with colleagues. It was a mid-week event, which didn’t lend itself to a weekend vacation.
It was encouraging to see there are still operators who find it worth their time and expense to attend a conference in a difficult economic time such as the present.
Business gurus unanimously agree that ongoing education and networking are pivotal to success.
Taking time away from work isn’t something anyone takes lightly these days. The return on investment for education is long-term. Students of business know that long-term thinking is important for success. The fact that people in our industry are taking a long-term view is encouraging.
The SEVA presentations addressed legislative issues and challenges such as school nutrition restrictions, and attendees discussed them in a positive way. Many operators seemed to recognize that with every challenge, there is opportunity.
One big opportunity nowadays is cashless vending. I moderated a presentation on cashless vending sponsored by Apriva Vend, Bank of America Merchant Services and MEI, partners in the National Automatic Merchandising Association’s new cashless vending initiative.
The legislative update from Ned Monroe, NAMA senior vice president of government affairs, was sobering. Monroe covered a host of issues that vending has to address: currency changes, vending machine reach height requirements, and calorie disclosure. He also gave a very clear and detailed summary of the new health care mandate, which affects all industry members and their customers.
There was also a session on meeting school nutrition restrictions, where operators from different states shared experiences on meeting this challenge.
It’s easy to be upbeat when times are good, but it’s when times are difficult such as the present that we find out if we have what it takes to maintain an outlook that will encourage our colleagues, as well as ourselves, to succeed.
Despite the challenges, our industry remains full of opportunity. For those who are committed to it, conferences and conventions play an important role, providing education and networking. Success in any business today demands these things.

Tired Of Nutrition And Budget Concerns? Maybe It’s Time For A Ball Game.

Elliot Maras — Tue, 03 Aug 2010 22:53:28 +0000

Tired of hearing about health and nutrition?
Tired of being told consumers don’t want to spend money in a recession?
It’s my job to write about it, so don’t be afraid to tell me about it. But, like you, I get tired of hearing about it. So last week I took some time off. I went to a ball game.
Living in Cleveland doesn’t offer many chances to get away from the hard realities of life. This is a tough place. It’s seen better days. A lot of people are out of work and those lucky enough to be working are worried about paying the bills and keeping out of trouble.
But it doesn’t mean we don’t have fun. Even living in the home of the world’s lousiest sports teams, we get out and have fun.
So last week, I went to see the Indians take on the New York Yankees. The night before, the Tribe had actually won the second game in the series, which at that point was tied at 1-1.
No sooner did I make it past the entrance gate than I was immersed in the thick aroma of steamed hot dogs, simmering chili and greasy French fries. All around me, people were scurrying about with tubs of nachos and cheese, popcorn, soda and beer.
It didn’t take long to get in the spirit of things. My wife and I decided to forgo our diets for the evening and headed for the concession stands.
Two kielbasa sandwiches (not large size, mind you) with sauerkraut cost $12.00. A tub of popcorn was $4.50. A bottle of water, $3.75.
No sooner were we seated when a trio of life-size Heinz branded condiment easy-squeeze bottles (ketchup, mustard and relish) tapped us from behind to shake our greasy hands before traipsing off to greet other fans.
All through the game, uniformed concessionaires called out their wares: Ice cream! Cold beer! Soda pop! Popcorn! Hot dogs!
Fans, mouths watering, readily splurged on these unbelievably overpriced items.
No doubt, the decadent concession fare provided a badly needed respite for an 8-0 shutout at the hands of the hated Yankees. By the third inning, the only thing keeping many of us in our seats was seeing if our Tribe would deny Alex Rodriguez his 600th career home run.
Hot dogs. Polish boys. Cheeseburgers. French fries. Soda. Everything about the experience flew in the face of what our medical and government leaders are telling us about the choices we should be making.
When it’s time to let loose, nothing can stop us.
Which raises the second point: what about the high cost of these indulgences?
A ball game is an entertainment experience, so our normal budget concerns take a holiday.
A day away from the grind helps put things in perspective.
As refreshment service professionals, we need to recognize consumer’s concerns about wellness. And we need to offer them good value for their money.
But if we can make their day at the office feel more like a day at the stadium, we’re more likely to make them happy doing business with us.
And Alex Rodriguez did leave Cleveland without hitting his 600th home run.

State Of The Vending Industry Podcasts Allow You To Learn More From Your Industry Peers

Elliot Maras — Wed, 21 Jul 2010 14:55:11 +0000

These past two weeks, VendingMarketWatch.com has presented a series of podcasts on the State of the Vending Industry Report. Six podcasts have already been posted, and if you haven’t had a chance to listen them, go to http://www.vendingmarketwatch.com/podcast/.
The podcasts offer a more intimate experience for our readers. They allow readers to hear operators, suppliers and consultants address the key issues they face.
There are a lot of individuals out there who want to succeed in today’s business environment. The audio podcasts let you hear them explain in their own words how they are doing this.
The operators interviewed in these podcasts are all serious minded individuals who love the vending industry and want to be successful. They offer different strategies, such as hiring outside consultants, diversifying into new services, investing in some new positions, and investing in new technology.
What strikes me about these podcasts is the honesty with which operators express their concerns about the vending market. There is no sugar coating the difficult challenges.
Some operators address the type of software they use in managing costs. Part of the discussion specifically addresses managing food costs, which is one of the most challenging areas.
Operators, when interviewed for an article, try to be positive when questioned about meeting challenges. In the podcast interviews, they pull no punches.
Managing costs has become the major initiative among operators in this economy.
The “no nonsense” approach that come across in these podcasts is what operators need to hear.

‘The Big Yaz Burger’ Sets The Bar Higher For Ohio’s Vend Food

Elliot Maras — Wed, 14 Jul 2010 17:19:19 +0000

We Ohioans have a long history with our burgers. It is an area in which we fancy ourselves as leaders. Before we had the Big Mac, there was the White Castle Slider, whose fame quickly expanded beyond the Buckeye state. Then came Wendy’s square burger. Dave Thomas generously shared it beyond our borders. Then came Pierre’s Big AZ burger, which, while born in Ohio, was always intended for nationwide consumption.

But none of them have anything on the “Big Yaz,” burger, which remains an Ohio phenomenon.The “Big Yaz” burger is a concoction of Firelands Food Systems in Sandusky, Ohio. Six ounces of barbecued hamburger covered with bacon strips and pepper cheese. It has been a favorite among the company’s customers for six years.

Company owner Steve Hall, Sr. has always worked hard to distinguish his food program among his heavily industrial customers. In search of a new and better burger, he tapped his associates – colleagues, employees and suppliers – for suggestions. One person whose opinion he knew he could trust in matters of taste was Bobby Yasinow of Vendors Exchange International Inc.

When Yasinow told him what makes a good burger, Hall knew he had a winner. Thus was born the “Big Yaz BBQ Bacon Burger.”

This creativity on Hall’s part is one of the reasons he has succeeded over the years. He continues to grow in a region that has been hammered by the recession. He has been a leader on the technology front from the very beginning. He was one of the first operators in the country to use glassfront beverage machines, and he has been a pioneer in cashless vending.

But one of his most important attributes is in recognizing the importance food plays in vending. As I’ve stated before, technology offers our industry a lot of promise, but if we cannot restore the food portion to its former prominence, we will continue to lose relevance in the consumer’s eyes.

As for future plans, Hall is playing it close to the vest with the “Big Yaz Burger.” Only Firelands Food Systems’ customers can get it. Marketing the product beyond his existing customer base might make Hall wealthier, but it would compromise the privilege of being a Firelands’ customer, and that’s the last thing Hall wants to do. Which is all fine and good. But I, for one, think the packaging doesn’t give the burger its due. I think most customers would agree that to do justice to the epicurean experience of “Big Yaz,” the packaging could be a little more exciting. Considering what personalities can do for a brand, I suggested a picture of Bobby Yasinow, with full smile. Hall remains unconvinced.What say the rest of you?
Steve Hall, Sr., left, of Firelands Food Systems in Sandusky, Ohio, serves a “Big Yaz BBQ Bacon Burger” to Bobby Yasinow of Vendors Exchange International Inc

As Record Summer Heat Hits, Be A Hero, Pour On The Bottled Water!

Elliot Maras — Wed, 07 Jul 2010 16:48:28 +0000

As the record summer heat sizzles on, consider what that cold bottle of water on your desk means to you. Look deep inside that invigorating bottle opening and envision the full depth of opportunities.
This past holiday weekend, those of us who attended outdoor gatherings plowed through the ice bucket in search of bottled water. At my gathering, the host found he was running low on water within the first hour. All the soda, beer, and juice became an annoyance as we reached for those precious bottles of water. Water won any imaginable taste test hands down!
Summer’s not over. Now’s the time to state your position, loud and clear.
State your case. The anti-bottled water forces don’t stand a chance. Those academic arguments against bottled water sound drier than the Sahara Desert. We humans are creatures in search of relief from nature’s cruel elements.
Since the beginning of time, our species has been on a perpetual quest to refine its environment. In 2010, we can shelter ourselves from our primordial need for basic sustenance (and maybe listen to those academic statements about bottled water) for most days of the year. But that sheltered existence only lasts so long, then poof! Summer arrives. Mother Nature strikes again! I’m thirsty, give me water!
Your moment has arrived. Grab your digital camera. Take a picture of someone in the pool or in the lake and email it to your customers. Take pictures of your kids throwing water balloons at each other. Then follow it up with a picture of someone emptying a bottle of the precious nutrient over someone else’s head. Courtesy of your company.
Believe in your mission. As a bottled water provider, you are a hero! There is nothing anyone can say or do to change that fact!

Toys Making Kids Fat? Get Serious, Listen To Mrs. Obama

Elliot Maras — Wed, 30 Jun 2010 16:58:42 +0000

The Center for Science in the Public Interest’s lawsuit against McDonald’s over its use of toys in promoting kids’ meals should remind us of the need for sanity in our nation’s discussion on childhood obesity. The lawsuit, which seeks to stop McDonald’s from using toys to promote its “Happy Meals,” is the work of a radical fringe that uses legal mechanisms and aggressive public relations to draw attention to itself. It should make every segment of the food industry recognize the need for a sane discussion.

Fortunately, the leadership of First Lady Michelle Obama has been exemplary on the issue of childhood obesity. Her sane leadership should not be taken for granted.

This year, the White House’s Childhood Obesity Task Force has sought input from the public and private sectors on how to address obesity, and its recommendations for public and private action are a sensible action plan. To download the full Childhood Obesity Task Force report, go to: http://www.letsmove.gov/tfco_fullreport_may2010.pdf.

The food industry has an obligation to do its part to fight obesity. Every company can and should do something to assist in this effort. Major foodservice industry organizations, including the National Automatic Merchandising Association, have endorsed Mrs. Obama’s “Let’s Move” campaign. But the support must be more than symbolic. Every company can and should do something to assist in this effort.

Recent studies have shown that a multi-faceted approach to wellness works better than any “one shot” solution, such as banning soda.

Yesterday, we reported that David Katz, director of the Yale-Griffin Prevention Research Center in Derby, Conn., told a conference that the best approach is one that involves several small steps to improve nutrition and encourage exercise.

Refreshment service operators have a unique opportunity to personally interact with customers in providing health and nutrition guidance. This can include supporting wellness programs in addition to offering “better for you” products and nutrition information.

The extremists like the Center for Science in the Public Interest aren’t going to go away. But they are looking more and more out of touch with the serious health and wellness dialogue taking place.

By now, foodservice operators should realize the need to be active both in the lobbying arena and in the public spotlight. Trade groups like the National Automatic Merchandising Association have done a good job in lobbying and public relations, and operators must continue to not only support these efforts, but take some action on their own.

Vending Needs To Resurrect Food To Regain Its Former Glory

Elliot Maras — Wed, 23 Jun 2010 17:18:54 +0000

In working on our upcoming State of the Vending Industry Report, it has become clear that good things are happening in today’s highly challenging business environment.

There is no doubt that new technology is creating a lot of excitement, even in a recession. And while I’m a big supporter of technology, I don’t believe that technology in and of itself will return vending to the relevant role it once played in consumers’ lives.

Coffee service, by contrast, has held its own during the recession. Why? Because today’s office coffee presentations are relevant to the consumer. Today’s brew-on-demand systems excite the consumer and beat the pants off of alternative retail options when it comes to overall value.

We as an industry must think long and hard about what this means to vending’s future.

Convenience has always been vending’s leading equity. But it has never been enough in and of itself to win the sale.

Once upon a time, vending banks offered lots of food selections. As economics have changed, the food machines have been removed, relegating vending to snacks and beverages. This isn’t enough to restore vending to its former glory.

Vending has a unique equity in the convenience it offers consumers. It needs to find a way to better leverage that equity, and the food business holds a big part of that puzzle.