Customer service is a family tradition at Smith Vending Canteen

In 1989, a new division was created in Maryville, Mo., but was moved to Clarinda, Iowa, just a year later. Rod ran the new Iowa division from 1992 until 2008, when he purchased the Clarinda division, which supported six routes with 10 employees and a newly erected warehouse. The portion of the company that Lyle retained was eventually passed to his son, Ron Smith, who ran it until the business was sold to Acme Vending.

“When I purchased the division of Smith Vending Company, I seized on the opportunities that the previous owner declined to pursue,” said Rod. “I was making strategic decisions because I knew we had a lot of growth ahead of us.”

One such decision was to become a part of the Canteen Franchise Group and rename the company Smith Vending Canteen in 2009. Shortly after, in 2011, Ashilyn graduated from Northwest Missouri State University and began working at SVC as a full-time employee. In 2021, when Rod retired and handed the reins to Ashilyn.

Ashilyn now heads SVC’s three Iowa branches — Clarinda, Denison and Ottumwa. Through the years, the company has expanded and today includes a mix of 15 vending routes, 60 micro markets, and a scattering of coffee service clients. They are tended to by 42 employees who all ensure that the company’s motto, “Quality products at fair prices with excellent service,” is evident to their customers.

The micro market advantage

Currently, vending and micro markets each account for about 45 percent of SVC’s business, with coffee service making up the last 10 percent. SVC’s micro markets range in size from the smallest, which serves 25, to the largest, which serves 1,400 people and boasts 24 feet of snack racking, four gondolas, six beverage coolers and four food coolers. However, SVC’s average micro market caters to about 300 customers.

SVC key clients include mostly manufacturing and food processing facilities, along with a few additional locations in the healthcare sector, college campuses, and K-12 schools.

In the state of Iowa, micro markets are considered unattended retail food establishments. As such, under state law, micro markets are not permitted in public spaces and may only be placed in locations with controlled access. Although this limits SVC’s micro market outfits to enclosed breakrooms that are not accessible to the general public, Ashilyn predicts that the micro market service will soon begin to pull a higher share of the company’s business.

SVC anticipates continued growth in this segment due to the many advantages of micro markets, according to Ashilyn. The first of which is, of course, the ability to provide prompt customer service in micro market environments.

“Micro markets make for a better customer experience. There’s a lot less friction, and they are so much easier for the customers to use. Additionally, we’ve received a lot of feedback about the ease of being able to quickly resolve any customer issues,” she said. “For example, if someone is double charged in a micro market, we can correct it immediately, whereas with a vending machine, if a selection gets hung up in the machine, it’s going to stay there until a driver or technician can get there.”

Having a micro market on the premises provides benefits to employers as well, said Alex Peterson, business development manager with SVC. “The human resources departments we work with tell us that having a micro market on site improves employee morale because they can give away coupons to celebrate milestones, or we can implement promotions such as market coupons,” Alex explained. “It also helps keep their employees on site, which improves workplace productivity.”

“We usually start out with a general plan, but based on the demographics of the location, we can change that plan, restructure it for seasonal changes, or personalize it for the population,” said Ashilyn. “For example, we have a few Japanese-based manufacturing plants and were asked to stock them with some Asian selections, so we tried shrimp chips for the first time, and they were a hit!

“The Avanti technology makes it easy to tailor items according to the population, what they like, and what sells. And, for us, it’s always a lot of fun to test and supply new items, especially when it’s something customers wouldn’t normally find in other locations,” she said.

Using technology to enhance operations

Embracing modern technologies to streamline operations and further enhance customer service is another vision both Rod and Ashilyn share. In addition to using the Avanti planograms tool to increase the efficiency of inventory planning in the micro markets, SVC utilizes Gimme Vending Management Software (VMS). “The software is great, and it’s portable. We use it as our route driver platform, and I use it to run reports, set service calls, look at our planograms and change schedules,” said Ashilyn. “It’s been key to helping us manage product and inventory in our warehouse and individual locations and to see what’s selling and what isn’t.”

She continued: “Back when I started, it was up to the drivers to stock whatever product they wanted to in the machines, but now we rely on reports to see our top sellers, our slow sellers, whether a location frequently sells out of a certain product between visits, or whether we need to remove a product and try something else. The ability to make data-driven business decisions gives us an edge in inventory and management, which, in turn, allows us to provide better service.”

Rod added that the right mix of customer-facing technology and back-end management software is key to an operator’s success. “Software helps us market the right products, get accurate financials and increase productivity, while micro markets are making purchasing easier and more convenient for the consumer. We use technology to ensure that we are doing whatever we can to make that ‘breaktime experience’ the best we can,” he said.

Industry engagement fosters a positive company culture

One of the ways Ashilyn continues to stay on top of the latest vending management technologies and trends is through active industry engagement with the National Automatic Merchandising Association (NAMA), another passion she acquired from her father. Sunderman is also the executive director and secretary for the Iowa Automatic Merchandising Association (IAMA).

“My father was and still is very passionate about industry associations. He was a NAMA board member and was involved in NAMA’s Executive Development Program, so as soon as I began moving into leadership roles, he encouraged me to get involved,” explained Ashilyn.

Through the years, Ashilyn has earned her NAMA Certified Executive (NCE) and Certified Coffee Specialist (CCS) credentials. “I’m so glad I listened to my dad,” said Ashilyn. “Not only does being active in NAMA and IAMA ensure that I have a great base of other industry professionals with whom I can network about the latest technologies and trends, but I truly believe that I wouldn’t be the leader I am today without all the knowledge that I gained through NAMA’s Executive Development Program.”

She continued: “I didn’t learn to be a ‘boss’ through the programs. Rather, the leadership development experience taught me how to grow a good team, which I now know is about more than just asking employees for what you need from them. Thanks to my involvement in the NAMA Executive Development Program, I learned how to talk to my team so they know what’s important to me, and I know what’s important to them. I want my team to feel cared about, so they want to come to work.”

“Developing this type of company culture is critical to SVC’s success, so I focus on taking care of my team and try to show them that I appreciate them. They do such a good job, which makes it easier for me to do mine,” said Ashilyn. “If you have a good team behind you, you are going to do great things. If employees are passionate and care about their job, it’s going to roll over into the effort they put in to make sure our customers are happy.”

Creating a legacy of great breakroom experiences

And, at the end of the day, that is not only what makes SVC successful, but also what makes both Rod and Ashilyn happiest. “I love that we provide a great break experience for people,” said Ashilyn. “For me, it’s such a fun thing to be there for people in the middle of their workday, to make their day just a little bit better.”

Rod agreed: “It’s all about remembering what counts…our clients (and their needs) and our team. We aren’t in this business for practice, and we don’t operate by being the cheapest, but by being a leader in our industry and making positive differences for our customers. We remain firm in our commitment to excellent service and to having loyal customers and a team that delivers on our promises.

“It is because of this vision and this commitment to customer service that we still have clients today from when I started in the late 80s and early 90s,” said Rod. “These folks matter to me, but the most important relationship I’ve developed during my years with Smith Vending Canteen is the one with my daughter. She carries on my legacy with the same passion and care that I did. I couldn’t be more proud of her.”