STATE OF THE OFFICE COFFEE SERVICE INDUSTRY COVID Erases 75% of OCS Sales in 2020 10.4% 17.2% 72.4% 9.1% 22.9% 68.4% 2015/16 10.4% 17.2% 72.4% As the federal and state governments imposed strict shelter-at-home orders for nonessential workers last 2015/16 year, office refreshment services abruptly came to a standstill and the telecommuting culture took hold. 10.4% 17.2% By Nick Montano, Editor 72.4% S 17.2% 9.1% 22.9% % 9.1% 22.9% 68.4% 10.4% foodservice, traditionally has been tied to employment, but the relationships between these service segments and their clientele changed in 2020. 72.2% 9.1% 22.9% 16.7% 72.4% 68.4% CHART 1: OCS revenues - 10-year history 2015/16 2016/17 2 3 4 5 6 2016/17 1 11-12 12-13 13-14 11.1% 4.12 68.4% 4.33 4.50 16.7% 4.75 4.96 5.120% 8% 72% 72.2% 1.5 2017/18 14-15 15-16 16-17 2018/19 17-18 2019/20 18-19 19-20 20-21 2020/21 90% 90% 2017/18 5.4 5.71 5.97 10% 8% ales in the office coffee service channel declined from $5.9 billion in 2019 to $1.5 billion, or 75%, in 2020. COVID-19's cataclysmic impact on office worker populations effectively reversed decades of growth of a continually advancing segment of convenience services. The performance of OCS, as well as vending, micro markets and contract 8% 2015/16 2016/17 11.1% 20% 16.7% 72.2% 2017/18 2018/19 10% 2019/2 2% 8% 9.1% 22.9% 68.4% 16.7% 72.2% 2016/17 11.1% 20% 8% 72% 2017/18 2018 10% 16.7% 7 2016/17 11.1% 20% 8% 2017/1 CHART 2: Operator sales change, 5-year review ● Sales rose ● Sales declined ● No change 11.1% 72% 90% 2018/19 2019/20 2020/ 2% Images: 144511430 | Nataliya Smirnova| Dreamstime 106604874 | Rawf88 | Dreamstime 10 Automatic Merchandiser * September 2021 199593083 | Enrico Mantegazza | Dreamstime 151298315 | Serezniy | Dreamstime.com BILLIONS OF DOLLARShttp://www.Dreamstime.com