Not every account is worth winning: Operator Taylor Vaughan on smarter growth

Taylor Vaughan, CEO of Culinary Express, SPG Vending and Company Coffee Shop, explains why growth isn’t always good growth, how independent operators can compete with national companies and what she learned building a coffee business from a single brewer.
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Taylor Vaughan didn’t plan on a career in convenience services. At 21, she found herself helping out at SPG Vending Solutions, where customers kept asking for coffee service. Tired of saying no, Vaughan put together a business plan, convinced the owner to invest in a single brewer and launched what would become Company Coffee Shop.

Today, Vaughan leads SPG Vending and the Culinary Express while continuing to run the coffee business she built from the ground up.

On this episode of Automatic Merchandiser & VendingMarketWatch’s Vending & OCS Nation podcast, host Bob Tullio talks with Vaughan about what it takes to build and lead a successful convenience services operation in an increasingly competitive and technology-driven marketplace.

Vaughan shares a philosophy central to her approach: not every growth opportunity is a good opportunity. She explains why operators need to protect margins, invest carefully and pursue what she calls “earned growth” rather than growth at any cost.

We also get into:

  • Why coffee and breakrooms create workplace culture
  • AI, smart coolers and the changing convenience services landscape
    Leading “from inside the boat, not from the shore”
  • Why there’s nothing passive about “passive income” in vending
  • Authenticity as a competitive advantage in an AI-driven world
  • How independent operators can compete and win against national companies
  • Her advice to the next generation of women entering convenience services

Taylor finishes the episode with one of our favorite answers we have heard from a guest this year — about building something sustainable while still having something left to give the people you love.

It’s an insightful conversation with one of the industry’s next-generation leaders and a reminder that sustainable growth isn’t necessarily about getting bigger. It’s about making better decisions.


No time to listen? Prefer to read? Here is an edited podcast transcript:

Bob Tullio: On this episode of Automatic Merchandiser’s Vending & OCS Nation, we’re talking to Taylor Vaughan. Taylor entered the industry almost by accident, at just 21 years of age. She saw an opportunity in office coffee, put together a business plan, started with one brewer, and never looked back. Today, she leads SPG Vending, now known as Culinary Express, while continuing to run Company Coffee Shop, the coffee business she built from the ground up.

What I really enjoyed about this conversation is Taylor’s perspective on growth. She isn’t interested in growth at any cost. She talks about what she calls “earned growth,” making sure new business serves the customer, the company, the employees and the bottom line. We also talk about leadership, company culture, competing against the national companies, AI and technology, the importance of authenticity, women in convenience services, and why there’s absolutely nothing passive about passive income when it comes to vending. It’s a great conversation with one of the industry’s next-generation leaders. Let’s meet Taylor Vaughan.

You have a couple of companies that you list under your title: the Culinary Express, SPG Vending. Explain where those two fit into the picture.

Taylor Vaughan: So, Culinary Express is essentially a rebrand of SPG Vending, so they are one and the same company. Company Coffee Shop is my coffee company that I started 16 years ago.

Bob Tullio: What’s that all about?

Taylor Vaughan: So, I was 21 years old, and I was essentially “voluntold” to help the founder of SPG Vending, because he was a friend of my now-husband, and to help out in the office. And so, I essentially got into this industry accidentally, but I built my coffee company very intentionally.

And so I came in the office, I helped out, I answered phones, and SPG Vending was just that — just vending. And we would have customers call in and say, “Hey, can we do coffee service?” Sean, the founder of SPG Vending at the time, was definitely interested. But, he didn’t know anything about it [and] was still willing to just stay kind of in his lane and didn’t really want to expand it. Because what he was doing was working at the time.

And so, I got tired of saying no and started saying yes. And so, we started doing coffee service. I walked into his office and said, “You’re going to buy this brewer because your customer wants some coffee service, and that’s what we’re going to do.” Again, he was not really interested at first until it started making money, of course, and [he] realized that there was an opportunity there.

And he said, “If you are interested in this, then put a business plan together.” So I did — stayed up all night at 21 years old. And the next time that I came in the office, I had a full competitive analysis, traditional business plan on his desk. And he said, “Okay.” And I remember thinking, “Okay, what?” He said, “Okay, let’s give it a go.”

So, he gave me what now is minimal in the big grand scheme of things, money to start and helped to seed that capital for me. And I started with one brewer and created essentially what is now our coffee division and created the Company Coffee Shop.

So, we do a full turnkey coffee operation and pantry operation. And with his vending, of course, that’s evolved over the years. And essentially, I later on kind of went into leadership on the SPG Vending side as well. So now I am executive CEO of SPG Vending, and I am also running side by side my coffee company as well.

Bob Tullio: So, you refer to it as your coffee company. He gave you an ownership stake in that coffee operation.

Taylor Vaughan: Yes, it was like my own little mini version of Shark Tank, essentially.

Bob Tullio: Yes.

Taylor Vaughan: [He said,] “Hey, this is what percentage— what do you think about this for X amount of capital?” And I even told him, “I’m not even going to take a paycheck till it can afford to pay me.” And I didn’t work at the vending company at the time. He said “Okay.”

So, we built it from that one brewer, and just built it, and I kept paying it back, until we could essentially sustain on its own.

Bob Tullio: And this was what, about 2012, roughly?

Taylor Vaughan: It was.

Bob Tullio: That’s fantastic. So, you’ve really seen nice growth with it, obviously. Where’s it come from? Where’s the growth come from?

Taylor Vaughan: Honestly, we went from just doing one thing: just doing vending. That was the only focus. And I think before we were just selling products. I think that’s what really it was. Even back in 2012, vending was just about selling the goods. And I think that has evolved over the years into selling more of a breakroom experience. And so, we have gone from just vending to vending market, smart coolers, coffee service, pantry service. And so, it’s obviously evolved and grown over the years in that regard.

Bob Tullio: Do you have a sales team in place? How big is your operation?

Taylor Vaughan: Yeah, so we have 12 routes, and we have 36 employees. And so we have inside and outside sales. We have management. We have several, probably 10 people in the office. So, we have a pretty sizable operation, especially from, in comparison for where we started.

Sean actually started the vending company with one vending machine in college and grew it essentially the same way. So, he kind of bootstrapped the vending and grew it to what it was. And then the coffee service really just complemented that. And now we run side by side together.

Companies also are realizing that breakrooms aren’t an afterthought: they are an amenity.

Bob Tullio: I know it’s challenging to grow from ground zero with an operation. How challenging was it to get the capital needs that you required to be able to continue to grow and flourish, not be choking on your own growth?

Taylor Vaughan: For me at 21, and this is part of something that I’ve learned as I’ve matured in business and leadership, not every opportunity is a good opportunity. And I think I’ve learned that the hard way. I definitely think that just getting the capital, essentially working with what I had started with, and then reinvesting smartly was how I did it. was just one brewer, one at a time. The majority of our growth for both SPG Vending and Company Coffee Shop has been organic. We have not purchased any business. We have not necessarily gone with any management companies because we really had to be very particular about margin, and every dollar mattered. And so making sure that we made really good investments, whether that is brewer equipment and making sure that the customer essentially earns the equipment and making sure the ROI is going to be there.

Bob Tullio: What really attracted you to the whole concept of convenience services?

Taylor Vaughan: Why I stayed? [laughing] Because I had no intention of definitely staying in this industry.

I think for me, of course, I’ve always loved coffee. I mean, for me, who doesn’t love coffee? But what really attracted me to this industry as a whole is, it was beyond just the products. Coffee creates connections, and therefore breakrooms create connections. And for me, it’s what kept me here.

I’m a people person. I love the people. I love the conversations that happen around that. It essentially is a culture industry. And that’s really what we’re selling. We’re selling breakroom culture and break room experience. And that’s why I stayed.

Like I said, I didn’t really go into this and had no idea at 21 years old what this would turn out to be. I had no grand plan, but I have learned everything it could be and everything that I love about it.

Bob Tullio: As you look back now, would you say that all in all, it’s evolved even better than you expected over the 14 or so years that you’ve been involved with it?

Taylor Vaughan: Oh, absolutely. I think especially there’s been such a refresh on the focus on experience and company culture just in the workplace. And I think it has even helped foster that a little bit more, and our industry has helped foster, which has allowed us to expand. I mean, we went from just traditional vending machines to markets, and markets to pantry service, and pantry service to coffee service. So I think that has grown as well.

I think companies also are realizing that breakrooms aren’t an afterthought: They are an amenity. And I think that has allowed us to drive the success and growth of our industry as well. And I think it’s also helping the younger generation realize it’s more than just filling vending machines. There’s actually an industry here. There’s actually a career opportunity here. There’s lots of growth. It’s more than just stocking. It’s AI, it’s technology, it’s people. And there’s just a lot more to it than what people realize.

Bob Tullio: What would you say surprised you during the first year?

Taylor Vaughan: What surprised me most was, what happens after you say yes? I got tired of saying no, and then yes. And then it was like, “Okay, well now what? What happens now?”

There’s a lot to this industry, and it’s a lot more sophisticated. I think it’s disguised as very simple — that it can be. Like if you have a vending machine, you’re a vendor. If you have a coffee brewer, you can be in coffee service. And it’s beyond that. There’s way more to it. It’s very service-heavy. There’s a lot of technology and routing and pieces to it.

And so I think just— you know, I was a little bit drinking from the fire hose at 21, trying to figure it all out. And so, I think for me, the first year was just realizing how many components there were to running a successful operation.

Bob Tullio: What misconceptions do you think people have about this industry?

Taylor Vaughan: That it is just that: That it’s simple. That it’s a, you know, I’ve heard the, “Oh, it’s a get-rich-quick scheme,” or “You can make a good site—”

Bob Tullio: Passive income.

Taylor Vaughan: Passive income. I hate that. There’s nothing passive about vending and coffee service. And I think that gets thrown around a lot.

Like I said, it’s definitely sophisticated. It’s not simple. There’s a lot to it. You know, one of my mentors actually told me one time, you know, “Anybody who has a paintbrush is an artist, and anybody who has a lawnmower can be a landscaper.” That is just not— and essentially, while they can be, that is not the ins and the outs of what differentiates somebody who’s a successful operator in this industry and who’s not.

Just because you have a vending machine and a coffee brewer doesn’t mean that you’re automatically going to be successful. And there’s a lot of work that goes in it. And this is truly about harboring relationships, not just with your clients, but your vendors and your employees. And there’s just a lot to this industry. And I think that’s a huge misconception is that, “Oh, I can just go out there and do it as a side hustle.” And it’s anything but.

Bob Tullio: What advice, as you look back, would you have given your younger self?

Taylor Vaughan: I don’t have to prove anything. I don’t have to confuse sacrifice with success. And growth isn’t automatically healthy.

And I think at the time, I would get desperate of like, “Oh yes, I’ll take that client. It’s an absolute yes. I’ll do anything for the business.”

But is it a business that’s going to serve my people well, serve my business well? And so, I think learning that, was one of the things that if I could go back and tell my younger yourself, “Don’t just say yes to say yes. Because not every growth opportunity is a good one.”

Bob Tullio: You know, there’s a point too, I’m sure the first thing you did with the OCS opportunity was go to your existing locations and see where that opportunity was. So that was a nice way to jumpstart it. But, then there’s a point, you start landing business. What do you think is that tipping point that suddenly makes it possible for your company to start landing some really big locations? What is it that takes you there? What advice would you give to people?

Taylor Vaughan: Don’t give up. You’re never too small to land some of those big accounts. Keep trying. I mean, it took us so many nos before we got a yes. And I think just having that resilience and continuing to do what you do best.

I think it’s really, there’s not just one thing. I think it’s doing a lot of 1000 different things consistently well.

Bob Tullio: How have customer expectations changed since you’ve been in the business?

Taylor Vaughan: Oh my goodness. I think just with technology as a whole, things arrive faster. They are, there’s so much technology. Everything is at everybody’s fingertips. Knowledge, information, deliveries. And I think making sure that we bridge the gap between reliable service, speed, execution and now authenticity. I think that’s huge, especially with AI entering in. So, I think that the conversations and entry has evolved a lot since 2012.

Bob Tullio: Oh, absolutely. You know, you have a wide scope of services. What’s your favorite part of the business?

Taylor Vaughan: Coffee. It’ll always be coffee.

Bob Tullio: Yeah.

Taylor Vaughan: Coffee connects people. Coffee is where conversations happen. It’s where things make a difference. It’s the only — maybe besides alcohol — it’s the only drink in the world that people get angry about, they get upset about. I mean, if there’s no coffee, it’s an outrage.

Bob Tullio: Do you do a lot of tastings? Has that become part of your approach again now post-pandemic? I know that a lot of companies are telling me they’re finally getting back out there and brewing coffee for prospective customers. Is that part of your approach now?

Taylor Vaughan: Absolutely. We love coffee tastings, coffee demos. It’s definitely advantageous for us and for our business model. We love doing blind taste tests, especially against the coffee that they currently have. Most of the time, people are very surprised at what they like. They think they know what they like, and what they actually taste and like is totally different. So definitely out there, our sales team and myself included, will still go out there and participate in coffee tastings.

Bob Tullio: That’s certainly a differentiator, but what would you say is the number one differentiator that gives your company a real competitive advantage?

Taylor Vaughan: So for us, we don’t sit there and say, hey, pick plan A, B or C. That’s not really how we operate. We truly tailor custom programs to our clients and build something that’s going to work for them. We build relationships and partnerships versus packages. And that’s something that really sets us apart. We’re not going to sit here and say, you have to have this, and this, and that’s it. We truly hear what they have to say and then come back with a proposal or a plan that fits what they’re wanting, not necessarily my equipment lineup.

Bob Tullio: So you listen to them and respond. It’s a good approach.

Where do you see the biggest opportunity right now? Obviously, coffee is always an opportunity. I find that it’s a real conduit to get into a location. It’s certainly the easiest way to get more excited about coffee than vending.

Taylor Vaughan: I think that there’s something for everyone. And I think before, there’s a lot of vendors who were like, I only do one thing, I only do another. And I think right now the biggest opportunity is the fact that we can truly be a one-stop shop for everyone.

With smart coolers coming into the place, if you’re not traditional vending and you want something more elevated, you can go to a market. If you’re worried about theft, we can do AI coolers.

So I feel like you don’t have to be everything to everybody, but there’s something for every client, whether that’s coffee or pantry. I feel like with the evolution of vending and breakroom services, there’s really an opportunity that you can provide them something.

I’ve always told my team that if we were in a rowboat together, I am going to lead from inside the boat, not from the shore. We are all rowing together in the same direction.

Bob Tullio: Who are your big technology partners? And I mean from an equipment standpoint, from a software standpoint. Who do you really rely on? Who’s really helped you out along the way?

Taylor Vaughan: Vending side and market side, we use 365. They’ve been a great partner for us, especially from their— we use their Parlevel VMS. We do their 365 kiosk, and they’ve been a great viable partner for us.

As far as the coffee is concerned, we have several different lineups. Probably the one that we have worked with most would be Evoca Group for some of our bean-to-cup equipment, and then Lavazza has been really great. And they actually have a new showroom here in Dallas. So, it’s been fabulous to be able to host some of my clients out there as well. So they’ve been a great partner.

As far as technology is concerned, we also just got involved with ZippyAssist, and that’s been really great, honestly revolutionary for our clients. And I think that has helped bridge a gap and help our customers feel that they’re being responded to in a timely manner. And it’s really just changed our customer service side. So. I would say like off the top of my head, those are the top three right now that are kind of been at the forefront.

Bob Tullio: You mentioned that you liked hosting clients at the Lavazza showroom. Is client entertaining something that you believe in and, talk to me about the importance of that events.

Taylor Vaughan: It’s something that’s been newer, honestly. And I think that now that there is an opportunity for it, and that people are willing to get out and make a visit, I absolutely believe in it wholeheartedly.

Giving clients the space to be able to come and see your work or see your equipment or the equipment that may be in their space, makes huge differences. It’s an opportunity to build those relationships because I feel like AI and technology have created the sameness, right? And this helps differentiate and create that rapport and those relationships and just kind of foster that a little bit further.

Bob Tullio: What does leadership mean to you?

Taylor Vaughan: I’ve always told my team that if we were in a rowboat together, I am going to lead from inside the boat, not from the shore. We are all rowing together in the same direction.

And so for me, I lead and help give guidance, but I also let people own their own work and also champion their own success. I am less about building business and more about building the people, and we all build it together. And so, for me, that is something that has been super important in my leadership style. I definitely buy respect over fear, for sure.

Bob Tullio: Sounds like a good philosophy. How important is corporate culture to you within your own organization, and how do you promote that within your company?

Taylor Vaughan: Culture for us is what happens when leadership’s not in the room, and when we’re not here. And so, for me, it was taking care of our people, and they take care of us, and they take care of our customers, building the relationships and building the respect with our employees and our clients. Because culture’s contagious, essentially. You know, one person can be a cancer, and it can spread like wildfire. And I think really making sure that we hold people accountable to their integrity and their character, and building and fostering those respectful relationships is where it starts.

Bob Tullio: You must deal with a lot of big companies in your market, of course. Does that intimidate you, or do you think you can go head-to-head with those guys and almost want to relish that type of competition?

Taylor Vaughan: I relish it. I love it. We definitely, you know… We have some big competitors. Most of us all play nice in the sandbox, I like to say, but I really welcome it. I think that there is a place for everybody and there’s going to be some of those accounts that are going to go with national companies because that’s just, it is what it is.

But there’s definitely a place for independent operators like myself, or I would say mid-size operators in order to serve well. I love it, and I feel like there is a lot that we can offer that sometimes the big conglomerates can’t.

We actually do all the coffee service for the Dallas Cowboys, and it’s a relationship that I’ve built, and we do it, and we do it well. And so, we’ve been able to foster that, and now we’re partnered with Black Rifle, and we’re giving back and building relationships, and starting the OCS side with Black Rifle. So, I feel like there is nothing that we can’t do. They might be able to outspend us, but they can’t necessarily outcare us, if that makes sense.

Bob Tullio: Sure, And you’ve got Taylor Vaughan, they don’t.

Taylor Vaughan: Correct.

Bob Tullio: That’s right. How important do you think is LinkedIn and video and social media? Is that something that you’ve built into your organization and your plan?

Taylor Vaughan: For sure. I actually just this year started really making more of a LinkedIn push, and really get myself out there.

I definitely think that our real story matters, and especially in this AI-generated world now. I mean, you get very generic emails, you get very generic marketing. And so, AI can definitely help where it’s needed, but it can’t tell and take our story from us. And I think it’s super important to share.

I also think it’s super important for us to share when we are going to try to get people in the industry. And we can’t complain about the younger generation not joining our industry when we don’t show them what it actually is about.

Bob Tullio: So, you think authenticity itself, whether it be in person or through social media, is really starting to become a competitive advantage?

Taylor Vaughan: I do. I think people want to hear the stories. Of course, they’re gonna want the great service, but I think relationships matter. I think in this world that the realness of people in real companies with real people and real stories matters. I’m hearing it more and more every day.

Bob Tullio: Obviously, this is an industry that traditionally has been dominated by men, no question about that. Seems to be changing to an extent, certainly with people like you on the scene. What advice would you give to young women who are considering entering the industry?

Taylor Vaughan: Do it. Don’t hold back. Don’t be scared. Know your business. Don’t wait until your 40s to realize you don’t have to sacrifice your entire life to make sure you’re serious about your career. And I think that that’s something — that work-life balance — I thought it had to be either or, and it doesn’t. It can be and in both. You can still be a wife and a mom, and still be a serious career professional. And I’ve done it and it’s very rewarding and very successful. And I highly recommend that women don’t hold back.

Bob Tullio: Did you have any mentors on either side, male or female, that helped you along the way, would you say?

Taylor Vaughan: Absolutely. Of course, my business partner, Sean, I mean, he took a chance on me when I was 21 years old. And so, I will always be grateful for that opportunity. And then not only that, he entrusted me with his own business. And so, he’s definitely taught me a lot of business lessons, life lessons along the way. And so, I definitely respect him for that.

Bill Barrett, honestly, of White Bear helped me out a lot. I’ll never forget. He had invited me out to Michigan to do a coffee cupping and was going to help teach me about coffee. And he had a class. And so, he said, “If you buy a flight up here, come up here, and I’ll teach you what you need to know.” So of course, $600 for flight, last minute, was definitely not on the radar as I was starting out, and trying to, just scrape by everything I had to start this business. But I did it, because I believed in what he was doing, and I believed in the industry, and I believed in what I could produce. And so, I got up there, and at the end of the class, he goes, “How much did you pay for that ticket?” And I told him, he goes, “Okay,” and he wrote me a check. And I said, “Why are you doing that?” He said, “I wanted to make sure you had skin in the game.” He believed in me when— and gave me a chance and an opportunity and taught me a lot of what I know about coffee. And so it was, he also said, “I wanted you to believe in you too, that it was worth it.” And so, it was something that I definitely have taken with me.

Bob Tullio: What would you say is the aspect of the business that keeps you up at night?

Taylor Vaughan: What keeps me up at night is just making sure that we don’t lose ourselves in the process. I’m essentially responsible for 36 people’s livelihoods and my decisions. So that definitely keeps me up at night, making sure that the decisions that we’re making in the direction that we’re going is going to be for the benefit of our people.

Bob Tullio: What accomplishment are you personally most proud of?

Taylor Vaughan: I started something with one brewer at the age of 21. I am very proud of that I’ve built a company that employs people — and good people — and we have incredible clients, and I created opportunities I would have never dreamed of at 21.

I think I’m also proud the fact that I’m learning that success isn’t just about how much I can build, but rather building something sustainable, taking care of the people who’ve entrusted in me, and still having something left to give the people I love.

Bob Tullio: You know how to end a podcast. Good job, Taylor.

Taylor Vaughan: Yay.

Bob Tullio: That’s it for now.

Contributors:

About the Author

Bob Tullio

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.

 

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