What OCS operators can learn from the state of the industry report
Every year, I look forward to Automatic Merchandiser’s State of the Industry report. The first report released this year focuses on vending, micro markets and the rapid rise of smart coolers. I ask myself one question: “What should an office coffee service operator take away from all of this?”
The State of the Industry report confirms what many of us have sensed for several years: Convenience services are evolving faster than ever.
Customers aren’t looking for individual products or isolated services. They’re looking for workplace refreshment solutions, and that creates tremendous opportunities for OCS operators who are willing to think beyond the coffee brewer.
Here are five lessons I believe every coffee service operator should take from this year’s report.
1. Customers don’t buy coffee: They buy solutions
One of the strongest themes throughout the report is that operators are becoming much more strategic about matching the right solution to each location. Smart coolers aren’t replacing vending machines or micro markets. 46% have no smart coolers, but 30% are making it a core component of their business. 54% are giving it a try, but less aggressively. Smart coolers are simply giving operators another option to provide solutions.
The same philosophy applies to office coffee.
Take a deep dive
- Read the latest Vending & Micro Markets State of the Industry report, exclusively for VendingMarketWatch.com members (but you can access it for free!)
- Watch our latest State of the Industry webinar and hear operators and equipment suppliers’ take on the data
- OCS operators, share your data to help us capture the 2025 State of the OCS Industry
2. The office breakroom is a big part of the employee experience
The report also highlights continued consumer demand for premium products and better-for-you options. Employees expect more than they did just a few years ago.
That expectation extends to coffee. If people willingly spend six or seven dollars for a premium beverage on their way to work, they notice when the office coffee consists of generic beans and powdered creamer.
Today’s coffee station says something about an employer’s culture. Forward-thinking OCS operators are helping customers create an experience.
3. Technology isn’t replacing relationships: It’s strengthening them
The survey shows that operators continue to invest in technology, including remote monitoring, management systems and route optimization.
That’s an important lesson for coffee service companies. Technology should never replace personal service. It should make great service even better.
Whether it’s equipment monitoring, automated ordering, route optimization or better customer communication, technology gives operators more time to focus on what matters - building stronger customer relationships.
4. Diversification creates opportunity
One chart in the report confirms that many “vending” operators now generate revenue from multiple business segments across the entire convenience services spectrum. Smart coolers, micro markets, office coffee service, pantry and water service are all in play.
That should encourage every OCS operator. Coffee can be the conduit to added business. Once you’ve earned a customer’s trust, opportunities naturally emerge to expand into pantry service, water filtration, snacks, breakroom supplies and other workplace refreshment solutions. The easiest customer to sell to is usually the one who already believes in you. Don’t leave those opportunities on the table.
5. Growth belongs to operators who continue investing
Perhaps the biggest takeaway from this year’s report is simple. Despite labor challenges, inflation and changing workplace dynamics, the convenience services industry continues to grow. The operators experiencing that growth aren’t standing still. They invest in technology, new equipment, sales and customer service.
The same mindset should apply to office coffee. The companies that continue investing in their people, their equipment and their customers will be the companies best positioned to grow over the next five years.
Read between the lines
If you’re an OCS operator, it would be easy to glance at the Vending and Micro Markets State of the Industry Report and assume it’s mostly about vending machines, micro markets and smart coolers. I think that would be a mistake.
The report is really about something much bigger. It’s about how workplace refreshment is changing and how operators are becoming more willing to invest in a variety of location-driven needs.
While you may have a love affair with the OCS business, the lines separating coffee service from the other convenience services business segments continue to blur. Customers don’t think in terms of business segments. They just want a partner who can create a compelling workplace experience, and in today’s convenience services landscape, being able to provide a complete suite of offerings is a true competitive advantage.
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About the Author

Bob Tullio
Bob Tullio is a content specialist, speaker, sales trainer, consultant and contributing editor of Automatic Merchandiser and VendingMarketWatch.com. He advises entrepreneurs on how to build a successful business from the ground up. He specializes in helping suppliers connect with operators in the convenience services industry — coffee service, vending, micro markets and pantry service specifically. He can be reached at 818-261-1758 and [email protected]. Tullio welcomes your feedback.
Subscribe to Automatic Merchandiser’s new podcast, Vending & OCS Nation, which Tullio hosts. Each episode is designed to make your business more profitable.


