Why operations, not sales, may be the biggest lever for operator success in 2026

In a recent episode of Vending & OCS Nation, industry veteran and consultant Tom Bauer shared his perspective on operational efficiency and where convenience services operators should focus their attention as they plan for 2026.

Bauer’s viewpoint is shaped by a career spanning route-level execution and executive leadership, including time at Pepsi-Cola, Anheuser-Busch, Community Coffee, Standard Coffee and Farmer Brothers, where he served as chief operating officer and chief commercial officer. Today, he advises operators across the industry, with a particular emphasis on operational discipline and scalability.

Rather than chasing silver bullets or capital-intensive fixes, Bauer outlines five operational areas where focus, consistency and the right metrics can drive meaningful gains.

During the podcast, Bauer focused on five operational areas that consistently deliver results when managed with focus and discipline.

Modern routing tools allow operators to measure stops per day, cost per stop, delivery windows and route-level performance. Bauer also points to emerging trends such as AI-powered rerouting based on traffic and weather, mobile-first driver platforms and tighter integration with ERP and warehouse systems.

Beyond efficiency, Bauer emphasizes route profitability.

“It starts with account profitability,” he says. “Product gross margin, asset expense, delivery expense — you have to look at all of it. If the accounts aren’t profitable, the route won’t be either.”

Where do mid-sized operators struggle the most right now?

According to Bauer, inventory management remains one of the toughest balancing acts for mid-sized operators.

Supply chain volatility has made it harder to maintain optimal stock levels, while cost pressures have pushed many operators toward just-in-time inventory models that don’t always align with service expectations. The other major issue is a lack of visibility into route performance.

“Routes often just run,” Bauer says. “They load up in the morning, take off and come back. But we’re not always asking how efficient those routes really are.”

Without metrics, it’s difficult to know whether routes are optimized, or where opportunities exist to improve productivity.

How should operators be thinking about fleet and vehicles differently?

Fleet management is rarely exciting, Bauer admits, but it’s essential.

“Do we have the right vehicles for each route?” he asks. “Micro markets, rural routes, urban routes — they all have different needs.”

As routes evolve, operators should regularly reassess vehicle types, leasing versus ownership decisions and replacement timelines. Preventive maintenance, including daily pre- and post-trip inspections, can prevent costly breakdowns and unplanned downtime.

“It’s not sexy,” Bauer says. “But it’s a have-to-do.”

Service technicians are a major cost center. How can operators improve efficiency without hurting service?

Service tech efficiency starts with measurement, Bauer says. Operators should track cost per stop, stops per day and first-time fix rates, just as they would on the route side of the business. Accurate dispatch information is critical: technicians need to know exactly what problem they’re walking into and have the right parts on hand.

“There’s a cost every time a truck stops,” Bauer notes. “You’ve got to understand that cost.”

How do operators tie all five areas together?

For Bauer, it comes down to KPIs.

“You’ve got to establish key performance indicators for each of these areas,” he says. “And they need to meet the SMART criteria — specific, measurable, achievable, relevant and timely.”

When logistics, warehouse efficiency, route optimization, fleet management and service operations are all measured consistently, operators gain the clarity needed to improve performance and scale with confidence.

“You tie it all together,” Bauer says, “and it creates an opportunity for the organization to get better and forge ahead.”