Vending's Future Might Include More HR Partnerships

April 28, 2016

Do you ever wish you knew what was going to happen? Wouldn’t be it be great to know if a new product was going to sell? Can you imagine knowing a change in service needs was coming before it did, so you could be ready? Alas, there are no crystal balls, but I always like to ask operators about the future anyway. They really know their customer needs and many are attuned to the consumer as well.

A few weeks ago, I was talking to a vending operator who shared a unique perspective of the future. Instead of being in the grab and go, workplace refreshment business, he sees the industry’s future role evolving. It will soon (perhaps has already) be time for the industry to be in the human resources business.

Food as a benefit

More than ever companies have been coming to his operation because they can’t afford to pay their employees more money, but they know they need to do something to increase morale and retain staff. And it makes sense. For only slightly more money, and an amount that pales in comparison to costs like better healthcare coverage, the company can provide food, snacks and beverages on location – something everyone needs. Micro markets are especially sellable in this aspect since their design allows more options and an upscale look. Enhance the breakroom area further, or partner with the company’s HR to do it, and the refreshment area can be a substantial employee or guest benefit.

It’s also important to note that the sales data and reporting from micro markets can increase its value to an HR company. It allows operators to tailor the product selection using hard sales figures to a specific set of employees, so the market is customized. That makes the employees feel special, which is what the company wants in the long run.

Filling the pantry

The growth of other service types such as coffee and pantry service support this operator’s opinion. Pantry service was adopted by over 10 percent of OCS providers in 2014, according to the 2015 Automatic Merchandiser State of the Coffee Industry Report. Pantry service is an especially powerful employee benefit since all the food, snacks and beverages that were previously valued for their proximity and 24/7 quick purchase are now free and viewed as examples of a company’s appreciation of the employee (or at least that is the goal). 

While pantry service is usually reserved for OCS, I would say that a crossover, such as a subsidized vending machine or micro market, fits into this powerful type of corporate perk.

Coffee too can be an HR asset. Employees view premium and single-cup options as signs the company values them and is willing to spend a little more for better offerings. Whereas, the opposite can be true if the employees perceive the coffee offering to be “cheap.”

Studies such as Insights from MetLife’s 13th Annual U.S. Employee Benefit Trends Study, show that the more benefits employees have at work, the happier and more loyal they feel towards the company. Therefore refreshment providers can have a real impact on morale, employee retention, loyalty, etc. Things like specialty beverages and extra-large deli style salads could be sold to locations as a competitive advantage. It might be time for the vending, OCS and micro market business to add human resource partner to their list of services. 

About the Author

Emily Refermat | Editor

Emily has been living and breathing the vending industry since 2006 and became Editor in 2012. Usually Emily tries the new salted snack in the vending machine, unless she’s on deadline – then it’s a Snickers.

Feel free to reach Emily via email here or follow her on Twitter @VMW_Refermat.