november2023 - 11

Recher strongly believes that operators need to be
in specialty coffee, creating that breakroom experience.
" We've seen ourselves trying to work our way out of being
a commodity. Creating that moment in the breakroom for
your clients, employees or their guests is really what we're
trying to sell, " he said. " A lot of these folks are asking us
'How can you replicate or make it better than it was when
they were working at home?' " Recher added that if an office
is trying to get people to come back to the office, operators
need to create a much better experience in the breakroom.
" If you know the coffee you are serving isn't on par with
the expectations of the employees or the clients, then you're
probably going to end up losing out at the end of the day. "
because we were probably six months behind with that idea, "
he said. " People were already established, and we were just
somebody new trying to enter the market, and it wasn't our
bread and butter. We tried C stores and that helped out, but
that wasn't really our bread and butter either, and C stores are
notoriously poor payers, but it was good while it lasted. "
Ultimately, Welch took the direction that many OCS
operators have chosen. " We retooled ourselves to build
up our pantry business, and that has helped out because
it really took off, " Welch said. " We're also getting better
at micro markets. We're learning fast because we're still a
small company, and we're taking trips to the NAMA Show,
reading all the articles and listening to the podcast to learn
from industry experts, because we don't want to make too
many mistakes. " Welch added that 365 Retail Markets and
Panoptyc have been very supportive.
SERVICE CHALLENGES
C.J. Recher of Five Star Food Service said his company is
dealing with plenty of new service challenges caused by the
fluctuating office populations but believes the key to success
comes from communication and expectation setting. " I
think that's the biggest key or one of the biggest keys these
days with clients - making sure that you understand what
they expect of you and then also what they can expect in
return from us as operators, " Recher said. " Since 2019, we've
got a lot of requests that would never have come before in
terms of service, and we have a 'yes' mindset first, so we try
to figure it out. If it's a net benefit on both sides, we'll make it
work, " he added.
NEW THINKING REQUIRED
Associated Services in the San Francisco Bay area is another
iconic OCS operation that felt the lingering negative impact
of the pandemic and continues to face challenges related
to the workplace population. " We've had to make a lot of
changes, post pandemic, " said Tom Stueber, president. " The
problem we have now is that our customers are still adapting
to the hybrid work schedule. " For Associated Services, that
can make service a guessing game, since some clients aren't
exactly sure who will be in the office and when.
Kimberley Lentz, director of sales and procurement for
Associated Services, said the company is often called upon
to go above and beyond, adapting to sudden upsurges in
employee count and a need for special service. It's just part
of the new normal, and as Lentz points out, " We are here
to support our customers, and we can use the incremental
jump in sales, which makes it worthwhile. "
Like so many operators, Stueber is not taking any
possibility off the table. With a large amount of tech
accounts, his company has done well in the pantry service
business, but he is starting to see more budget consciousness
in that sector, which could require a move into micro markets.
" There is starting to be more of a call for things that might
not be free - not provided by the employer for free, but
maybe provided on a subsidized basis, so we're looking for
opportunities in that area, " he said. " We'd like to grow back
to where we were before, but it's going to take some new
thinking to get there. " ■
About the author
VendingMarketWatch.com contributing
editor and industry consultant Bob Tullio is a
content specialist who advises operators in
the convenience services industry on how to
build a successful business from the ground up
and advises suppliers on how to successfully
connect with operators. Tullio's YouTube channel,
b2b Perspective, is designed to " elevate your business in two
minutes. " Visit www.tulliob2b.com or email bob@tulliob2b.com.
November 2023 * VendingMarketWatch.com 11
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november2023

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