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  • As Fast Feeders Struggle With Core Offerings, Premium Coffee Still Wins With Consumers
    By Elliot Maras - Thursday February 18, 2010
    The recession has driven the nations 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 nations number two fast feeder is responding, belatedly, to McDonalds 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...

  • Don’t Be Distracted By Obama’s School Initiative; NAMA Is Watching Closely
    By Elliot Maras - Wednesday February 10, 2010
    Feeling confused about calorie disclosure mandates for vending machines? Its understandable, but dont let yesterdays news distract you.Yesterday was a busy news day on the calorie disclosure front. The President and the First Lady introduced their Lets 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 doesnt like being in the public eye, especially when the mandates implicate vending for making consumers unhealthy.Dont be...

  • Recession Forces Change On U.S. Manufacturing Base, Pressing For More Professional Vending
    By Elliot Maras - Thursday February 4, 2010
    For several years, we have cited the countrys 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 magazines State of the Industry Report has noted that manufacturing remains the single biggest customer segment for automatic merchandising.Yesterdays 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...

  • Recession Further Diversifies Customer Demand: Don’t Jump To Conclusions
    By Elliot Maras - Thursday January 28, 2010
    A difficult business climate can challenge ones commitment to quality, which is something everyone in our industry claims to focus on. I recently had a conversation with a product supplier about the impact the economy is having on his business. He commented that the recession has made refreshment service operators more aggressive price shoppers than any time in recent memory.I argued that coffee service operators have learned from history the importance of not commoditizing their product, which is why coffee service sales have held up better than vending sales in the current recession.During the 1970s, many coffee service operators switched to lower pack weights to save costs. Their sales suffered, and it took years before they learned to...

  • Looming National And State Issues Face Vending Operators; Support Your Associations!
    By Elliot Maras - Wednesday January 20, 2010
    Back on 11-18-09, I asked vending operators to give me one good reason why they dont belong to a national or state vending association. Not one operator offered a reason.Association membership has hit an all-time low, and supplier members are picking up a disproportionate share of the tab.If any operator remains unconvinced of the need to support their associations, the Tri-State Automatic Merchandising Council meeting in King of Prussia, Pa. last week gave some strong reasons. Several speakers updated attendees on some critical national and state initiatives that have major consequences for vending operators.Pam Gilbert, manager of the National Automatic Merchandising Association (NAMA) eastern office, gave an update on how NAMA is...

  • Why We Gave A Forum To A Skeptic Of Vending Technology
    By Elliot Maras - Wednesday January 13, 2010
    Over the past two weeks, a veteran vending operator presented his doubts about vending technologies introduced in recent years. Dominic Finelli, owner of Custom Vending Services in Beltsville, Md., expressed doubts about pre-kitting, remote machine monitoring, item level reporting, tracking column sales and cashless vending.Based on the number of podcast downloads, many of you listened to what he had to say.Some of you operators and technology providers alike asked me why we hosted these interviews.If technology is important to the industrys future, shouldnt we all support it?Why should VendingMarketWatch give a forum to a skeptic?My answer is twofold:1) Dominic Finelli is an experienced, successful operator who pays careful attention...

  • Times Tough? Veteran Charlie Ray Studies Up And Makes It A Great Day
    By Elliot Maras - Wednesday January 6, 2010
    Adversity is part of being in business, but some people in our industry recognize it as a fact of business life. Talking to these people can invigorate you.I checked in with my old pal, Charlie Ray of Ray Coffee Service in Savannah, Ga. Charlie turns 69 this month and hes operated his two-man business since 1970 and hes weathered the ups and downs over the years.Charlie was on a roll last year before the recession pulled the rug from under his feet. His biggest account decided they no longer wanted to provide free coffee. Charlie had just placed a lot of single-cup brewers at this account. Then they decided to cut expenses. Charlies only option was to install payment mechanisms on these machines. This meant an added expense with the...

  • Free Shipping Of Dollar Coins Has An Extra Benefit: Credit Card Miles
    By Elliot Maras - Wednesday December 9, 2009
    Those of you unfamiliar with the U.S. Mints free coin delivery program might be missing out on an opportunity to earn credit card miles to pay for travel expenses.There are several Websites that share information about earning frequent flyer miles. One informative Website is www.flyertalk.com .The Mint offers Presidential dollar coins and Native American dollar coins in 25-coin rolls packaged in quantities of 10 rolls per box with a face value of $250. Customers can order a maximum of two boxes, for a total of 500 Native American dollar coins. The Mint pays the shipping and handling fees on orders delivered via standard shipping methods.Pat McAfee, director of the Mints Office of Dollar Coin programs, told me the vending industry has...

  • The ‘Red Menace’ Has Arrived! Are You Listening To Redbox?
    By Elliot Maras - Tuesday December 1, 2009
    For years, VendingMarketWatch has observed vending technology is being used to bring consumer products to market more efficiently -- Redbox has led the charge.Redbox and a few others such as Zoom Shops have been implementing cashless transaction capability much faster than the traditional vending industry.It's also been noted the growth of these innovations will make consumers more accepting of cashless transactions for small ticket items, which will support cashless vending purchases. That change is happening faster than many realize. Redbox has become known as The Red Menace in the movie entertainment industry. Three major motion picture studios have tried to block Redbox access to new DVDs. This past year, the number of Redbox machines...

  • An Afternoon At The Movies? I’m Calling The Food Police!
    By Elliot Maras - Monday November 23, 2009
    Leave it to the food police to spoil the fun of an afternoon at the movies.I happen to like watching movies; I always have. But as going to the theater got expensive over the years, I got into the habit of waiting for movies to come to my local library, where I can borrow them for free.I still go to the movies occasionally when I feel like treating myself. I rarely buy any popcorn, candy and soda because of the astronomical prices the theaters charge for these items, but I fully understand someone wanting to indulge. Everything in moderation, goes the saying from an era when there was such a thing as common sense. Do you know what it costs in calories? Does anyone not know that movie popcorn is packed with calories?Apparently not, judging...