Automatic Merchandiser - 19

For vending, the "other" category
experienced the largest gain, from
7.7% to 22.8%, further suggesting that
operators are diversifying their revenue
streams - not just in services offered,
but in the types of products they're
selling, including non-edible items. At
least one respondent noted that they
are selling CBD, which could have an
impact on this category. Micro markets
experienced similar product category
shifts as vending; the "other" category
also increased in micro markets, by
4.3% (chart 7B), and respondents said
this included items such as sundries
and medicine (aspirin, cold and flu).

(OCS). "Other" is on the rise again, this
time from 1.4% to 8%, including repair
services, delivery, honor system snack
boxes (which may also be classified as
pantry service) and paper supplies.
Pantry, which was one of the most
talked-about service categories over the
past year, experienced gains, along with
bulk vending, music and janitorial supplies. Pantry service was popular with
employers to attract and retain employees during the strong economic period
with low unemployment experienced
in 2019. Outside of "other," manual
foodservice and games experienced the
most growth over the previous year.

NOW TRENDING: OTHER

LOOKING FORWARD

When asked for a breakdown of sales
by service category (chart 7C), survey
respondents reported decreases in
the three largest categories: vending,
micro markets and office coffee service

While 2019 was another record-breaking year for operators, 2020 has been
challenging. Much uncertainty remains
about how the American economy will
recover from the COVID-19 pandemic,

Methodology
The Automatic Merchandiser State of
the Industry report is compiled from a
survey sent to operators in the spring.
It includes small, medium, large and
extra-large full-service operations
as well as snack and soda operators.
Last year's survey had an extremely
low response rate, which may have
exaggerated trends. Great care should
be used when comparing numbers
from last year to this year.

but operators have the potential to
come back stronger than ever. As one
survey respondent noted, "Increased
attention = increased revenue. We made
changes, paid attention to the needs of
customers and we are going to do even
more after COVID-19." Rebuilding
from the effects of COVID-19 will take
perseverance, diligence and creativity,
but this industry has recovered before,
and it will recover again. ■

Operators:
Now is the time to
reinvent your business

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Call Mark Sutton at 714 396-6410
or email mark@electrontogo.com

June/July 2020 * VendingMarketWatch.com

19
http://www.VendingMarketWatch.com
Automatic Merchandiser

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