Capital Provisions was planning to launch as an entity back in March of 2020. Even though COVID-19 got in the way of its initial plans, the company has been moving full speed ahead with a combination of acquisitions and organic growth. A major focus: micro markets.
While the company has not been around for very long, they are certainly making their presence known. Woody Kassin is the company’s CEO. As Kassin pointed out, his team has been busy.
“We acquired just under 300 machines. Century Vending had two businesses, one in Orange County, CA, and then one in San Diego. We acquired the San Diego piece. After that, we were off and running. Recently, we closed a few more deals – Luxury Vending, Diamond Vending and then most recently, San Diego Healthy Vending,” said Kassin.
Capital Provisions has completed five transactions to date and Kassin said there are multiple deals pending under a letter of intent across southern California. “The goal is to complete several of those before moving into Los Angeles this summer,” he said.
With every new account, Kassin’s team looks to increase performance. “Our primary focus is to see if there is an opportunity to convert any accounts to a market – we love to do that. In some cases, we upgrade the machine, we put readers in – we enable for Vagabond and vīv technologies.”
After the acquisition – a proactive approach
“We definitely do not remain static with what we acquire, we feel our secret sauce is optimizing not only the account but the relationship,” Kassin said. “Milking an account after we acquire it is really not in our DNA. We get in there; we do a proper assessment, and we make quick changes. A lot of the machines that we inherit do not have enough product, or the product isn't priced properly or the machines haven't been serviced and they don't have readers. They certainly do not have touchless technology. We have a very specific playbook that we use when we take over to make sure that these assets are well-positioned for how we want to do business.”
Strategic supply relationships
From a technology standpoint, Capital Provisions uses Vagabond's backend platform for inventory management, product merchandising, service scheduling, truck routing and financial reconciliation. Vagabond’s workplace payments app, called vīv, eliminates the kiosk, lowering Capital’s cost structure and allows them to effectively serve smaller locations, typically underperforming vending locations. “Without the kiosk, we can better use the footprint in the location to bring in a vīv Fixturelite market,” said Frank Conley, markets program manager at Capital Provisions.
When choosing a company to supply fixtures, coolers, accessories and design support, Conley said Fixturelite was the obvious choice for two reasons. “They have enjoyed a successful and longstanding partnership with Vagabond. We also did our own independent analysis of other providers out there and Fixturelite always came up as best in class,” said Conley. “They are clearly the best option for us in view of our strategy.”
Quality products and reliable support
“The support Fixturelite provides has been outstanding. Whether I am doing an install or had a question on the instructions, I can get somebody on the phone right away and they take care of everything. The follow up from Troy (CEO and cofounder of Fixturelite) is outstanding. Sometimes, I will send him a picture and some measurements, and we work together using the design tool to put together a couple of designs that I can show to the client. It is a business relationship that works.”
With plenty of support from Fixturelite on the initial micro market installations, Conley said his team is now installing markets with ease. “It is like anything else. Once you get over the learning curve, the installation is simple,” he added.
A different approach that works
Conley is experienced with acquisitions, but said that typically a company goes on the defensive after buying an account. Not so with Capital Provisions. “We're going in day one and saying, ‘Hey, we're the new guys, great news. We are here to make sure that you get better service. We can upgrade your account. What do we need to do to make things better for you?’ That kind of communication is well received, and it has been successful,” he said.
Each acquisition made is rebranded as Capital Provisions and from all indications, the expansion will continue beyond southern California. “Due to some of the press releases, I have received calls from multiple markets. I think we have enough to chew on here in southern California for the immediate future, but I expect places like Phoenix, Las Vegas, the Pacific Northwest, Utah and Colorado to be on our radar,” Kassin said.
“I'm also very mindful of not trying to grow too quickly. We really want to make sure that the acquisitions that we do are well-positioned to be successful,” he added. “We have a very long-term time horizon. The plan calls for three to five years, I think that is on the low side. We are here for the long-term and I think this is a five-to 10-year build.”
For Steve Orlando and Troy Geis-Hernandez, cofounders of Fixturelite, the way Capital Provisions does business gives them confidence about the future of the industry. “These guys get it,” said Orlando. “They are committed to the customer experience and we are happy to help them succeed.”
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ABOUT BOB TULLIO
Industry consultant and contributing editor Bob Tullio (www.tullioB2B.com) is a content specialist who advises operators in the convenience services industry on how to build a successful business from the ground up. Tullio recently launched a YouTube channel, b2b Perspective, designed to “elevate your business in two minutes” and is currently developing an online course, Leverage the power of LinkedIn to grow your business.
As he is a recognized industry expert in business development and sales, NAMA retained him to write and narrate the new online course, “Selling Convenience Services,” which is now available. Use discount code B2B10 for an instant discount and for free access to upcoming Q&A Webinars from Tullio in the coming months. Here is a free sample of the course.