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The divestiture went smoothly, with very little customer loss.

Ferguson and Endres then used the proceeds from the sale to fund their OCS growth and remodel their 14,000-square-foot building. “We love the coffee business; we have a passion for it,” Ferguson said.

The decision to focus on OCS proved fortuitous.

REFOCUSING ON OCS AND INVESTING IN SPECIALTY COFFEE

OCS was becoming more specialized. Specialty coffee retailers were educating consumers about better quality coffee, and single-cup systems and airpot brewers allowed OCS operators to offer better coffee in the office.

Southern Refreshment Services had already become one of the first Keurig distributors in Houston. Keurig offered more product variety that covered more day parts than glass pot brewers. The variety addressed the problem that OCS operators face when trying to get all employees at an account to like one type of coffee.

Single-cup became increasingly popular with customers, and Southern Refreshment Services witnessed strong single-cup growth through 2007. When the recession hit in 2007, customers wanted to reduce their expenditures, but they did not want to discontinue OCS.

Single-cup sales have continued to increase, even in the recession, Ferguson said.

The introduction of homeowner Keurig brewers and K-Cups has not had any adverse impact, Ferguson said. Customers can buy K-Cups over the Internet at a lower price, but if they do this, they risk losing the office Keurig brewer. Most customers do not want to lose this, he noted.

Single-cup coffee now accounts for 20 percent of the company’s coffee sales. Ferguson believes it could become as much as 30 percent.

SOFTWARE AND TECHNOLOGY BRING BENEFITS

The company’s use of management software has been one of its greatest strengths.

The company uses maintenance scheduling and invoicing software. All service calls are recorded and stored for future reference. This ensures that billing, warranties, and preventive maintenance on equipment are documented completely and accurately.

The ability to instantly send techs service tickets and other information directly to Blackberries ensures that the tech performing the repairs has the most up-to-date information possible.
The company also uses a satellite vehicle tracking system to guarantee quick response time.

OCS handhelds have proven to be a great time saver for both the drivers and the customers. “It basically made us paperless,” Ferguson said.