Automatic Merchandiser – August 2024 by Endeavor Digital Editions

HOW BUFFALO STRIVE THRIVES

For 13 years, New York-based Buffalo Strive Vending has built a successful business centered on a relentless pursuit to serve others.

12 Technology boom adds smart tools for operators

Convenience services for vending, micro markets and workplace beverages

Success Story

Features

OCS Update: Beyond pantry service: Is it time to jump on the next big thing?

An increasing number of OCS operators have added pantry service to their o erings, especially since o ce population growth is slow and steady at best. What’s next?

An

operator’s

guide to smart market options

Much like the initial slow acceptance of micro markets themselves, operators are “kicking the tires” when it comes to smart market technology. As the revenue reports come in, it is only a matter of time before this AI-driven equipment takes over for U.S. operators. It has in many parts of the world already.

Technology boom adds smart tools for operators Technology to help operators mitigate the , implement promotions, integrate data and process payments can reduce loss, cut labor costs and streamline operations.

On the cover: Jon and Jen Corto, founders of Buffalo Strive Vending. Cover photo by Colleen Parana

Visit vendingmarketwatch.com for more on hot topics in vending, micro markets and office coffee service

Interviews, Expert Insight & Tips

OCS Operator

Orrin Huebner on vending, OCS and micro markets

Bob Tullio

AFTER 50 YEARS IN THE VENDING BUSINESS, CONsultant Orrin Huebner joins VMW’s Bob Tullio for our Vending & OCS Nation podcast to talk about the state of the automated merchandising industry and what it takes for operators to succeed in today’s business climate. Huebner talks about sales, training, managing people, the importance of giving back, ways to increase profitability and lessons he has learned along the way.

VendingMarketWatch.com/55091150

State of the Industry | Get vending and micro market insights with our on-demand webinar

Will vending continue to hold a significant presence as micro market growth surges? Our on-demand webinar on the State of the Vending & Micro Market Industry Report shares practical insights you can put to work in your business. Register and watch now. VendingMarketWatch.com/55091871

Equipment | Beveragehandling tote simplifies pre-kitting

An operator from Kansas City, Dean Prather was faced with the industry-wide problem of dealing with beverages that come in many sizes. He went the extra mile to find a solution, and it’s now being widely adopted by operators to address the problem of variably sized beverages.

VendingMarketWatch.com/55091006

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Micro Market

Automatic Merchandiser (USPS Permit 017-280, ISSN 1061-1797 print, ISSN 1948-5697 online) is published 6 times per year in February/March, April, June/July, August, September/October, and November by Endeavor Business Media, LLC. 201 N Main St, 5th Floor, Fort Atkinson, WI 53538 Periodicals postage paid at Fort Atkinson, WI, and additional mailing offices. POSTMASTER: Send address changes to Automatic Merchandiser PO Box 3257, Northbrook, IL 60065-3257. SUBSCRIPTIONS: Publisher reserves the right to reject non-qualified subscriptions. Subscription prices: U.S. $47.50 per year; Canada/ Mexico $81.25 per year; All other countries $116.25

AVS Companies will market and promote Innovative DisplayWorks’ coolers for micro markets and frictionless retail applications to the vending operator market.

VendingMarketWatch.com/ 55093736

Editorial

Advisory Board

Nick Montano Contributor

Joe Hessling 365 Retail Markets

Josh Rosenberg Automated Retail Technologies

John Reilly Avanti Markets

Elyssa Steiner Cantaloupe Systems

Carl Moser Canteen Corporate

Evan Jarecki Gimme

Michael Miller Mondelēz International

Paresh Patel PayRange

Jeff Deitchler Prairie Fire Coffee

Leaning into the convenience services industry

AS THE NEW EDITOR-IN-CHIEF OF AUTOMATIC MERCHANDISER

and VendingMarketWatch.com, I know I have a lot to learn about the convenience services industry, but there is no question it will be fun learning it. The industry has been uniquely welcoming to me during my short tenure, and I so appreciate it.

For those that don’t know me, I’ll provide a brief background. I joined Endeavor Business Media in 2023 after more than 20 years spent writing about the essential role of process heating and cooling. For those of you not experts on industrial processes, heating and cooling are transformative steps in the manufacturing process of myriad goods — including food production. Drying a cookie or cracker to the proper moisture content level, and heating aseptically packaged goods such as drinks and soups to a high enough temperature to inhibit bacterial growth: the results of effective process heating and cooling are within every shelf-stable product marketed in the convenience services industry.

I’ve begun to connect with some industry leaders already thanks to my work on our 40 Under 40 feature, appearing in our September issue. The profiles are inspirational for the innovative thinking, verve and intuition that have helped our award winners be recognized by their peers.

If your colleagues inspire you every day, now is the time to celebrate their contributions. Nominations are open for our Pros to Know. Visit surveymonkey.com/r/2024ProstoKnow.

As I wrap up this issue, I am looking forward to the NAMA Fly-In and Industry Summit. Two days on the Capitol, learning about key issues facing the industry as well as meeting with congressional members, will provide a great opportunity to learn and network. NAMA has sessions planned on:

• How to address food access issues for Supplemental Nutrition Assistance Program (SNAP) beneficiaries while at work, and how to integrate SNAP into convenience services operations.

• How potentially expiring provisions from the 2017 Tax Cuts and Jobs Act (TCJA) could affect the convenience services industry. Top tax policy professionals will discuss these provisions and why their extension is important.

• How the Small Business Administration can support business owners in the convenience services industry.

I’ll apply and share what I learn with you. Look for more coverage on the event on VendingMarketWatch.com.

As my predecessor, Molly Rogers, noted in her final column, my new mission is to serve as a vital voice for vending, micro market and OCS operators. I look forward to serving you.

TOP NEWS

[ MERGERS ]

Aramark acquires Tomdra and SunDun, expands micro market and vending reach

ARAMARK REFRESHMENTS

acquired “substantially all of the assets” of Tomdra Inc. and SunDun of Washington Inc.

Tucson-based Tomdra was established in 1966 as a familyowned business. The company was an important vending and micro market provider in southwest Arizona, serving more than 300 clients in the valley.

SunDun, family-owned and operated out of Beltsville, Md., has 31 years of experience in the vending and micro market business. It serves more than 1,000 clients in the greater Washington, D.C. area.

Aramark Refreshments noted that Tomdra and SunDun were known for their techsavvy approach to vending and micro market solutions.

Among other technologies, the operators offered their clients cashless payment options, mobile app integration and real-time inventory monitoring.

Aramark Refreshments said it expects to integrate both companies’ innovative approaches and technology to enhance its technology structure, increase product offerings and expand its footprint.

Fresh Potential

NuVue foods is a fresh change of pace for the vending machine market, micro market and business center dining; offering delicious made-by-hand foods that keep customers coming back for more. We make it simple and easy—all you have to do is give us a call and we’ll ship fresh food directly to you.

Shoppers want a cheaper fast food alternative, and you’ll be ready to serve.

At NuVue Foods, it’s all about quality. Our expert team hand-prepares each sandwich, salad and side with care and craft—ensuring each bite satisfies. It’s a winning recipe that has made us a trusted name in business for nearly 40 years.

Our operation is wide-reaching and professional, offering a unique capability to meet diverse needs with service that’s next to none. NuVue foods also offers a unique white labeling program allowing you to personalize select offerings with your own brand.

No labeling or bulk food service packs. Flexibility is key, so we can work together on your vision.

Bring something delicious to your machine today. You’ll love how easy it is, and your customers will love the fresh alternative on the go.

Visit NuVuefoods.com or call 1-800-498-DELI to place your order today.

Decorum Vending upgrades to Cantaloupe card readers

Decorum Vending completed an upgrade of 630 vending machines to Cantaloupe card readers. The deployment includes Cantaloupe’s P66 contactless payment device and its P100 digital screen card reader, which accepts contactless and contact payments.

As a result of the upgrade, Decorum Vending — a company with most of its machines in train stations and other travel sectors throughout the United Kingdom — will use Cantaloupe’s cashless payment solutions exclusively. The new card readers integrate with Decorum’s vending management system (VMS) and help the company enhance overall operational efficiency.

“Decorum’s confidence in Cantaloupe’s products and services underscores our commitment to expanding and supporting our

building trust outside of our core North American market,” said Jeff Dumbrell, chief revenue officer of Cantaloupe Inc.

For Decorum Vending, a key feature of the Cantaloupe solution was the ease of integration with Televend and Vendo machines, according to the company, which has enabled Decorum to manage machine performance, track basket sales and drive convenience on their routes. The reliability of Cantaloupe’s system helps Decorum maintain continuous service — an essential feature for customer retention and satisfaction. On average, a U.K. route traveler has three minutes to complete a purchase at a train station or transit hub, so payment system speed and efficiency are important. Also, Cantaloupe’s technology supports basket vends, which allow customers to purchase multiple items in one transaction.

Settlement times for Decorum

switching to the Cantaloupe system, enhancing operational efficiency and financial management. The cashless devices simplify the refund process, allowing for single-item refunds within a basket transaction. This feature, combined with better performance tracking of each vending machine, enhances customer service and operational transparency, according to the company.

“Partnering with Cantaloupe not only streamlined our operations but also significantly enhanced our bottom line,” noted Declan Sewell,

SATISFACTION IS ALWAYS ON THE MENU

What’s your business hungry for? NuVue Foods is proud to offer everything from high-quality handmade sandwiches, to white label custom order foods that best serve your customer.

Street Fresh

18th Street Fresh has been servicing business dining customers with premium sandwiches, salads, sides, and desserts for nearly 40 years. Our fresh products are packaged and designed with our vending and micro-market customers in mind.

Street Fresh - Frozen

Our thaw and serve Premium Sandwich and Hot Box Breakfast lines, sold across the nation, have the perfect ingredients for Convenience Store success!

NuVue Foods

Our “White Label” program allows personalization of your brand. Offering private labeling, no labeling, or bulk food service packs, this program offers high quality products and packaging that can be tailored to your brand needs.

Gettin’ Fresh Logistics

Gettin’ Fresh is the name of the Logistics arm of NuVue Foods. Our fleet of late model refrigerated trucks partnered with LTL frozen shipping allows us to service customers nationwide.

18th

Beyond pantry service: Is it time to jump on the next big thing?

An increasing number of OCS operators have added pantry service to their offerings, especially since office population growth is slow and steady at best. What’s next?

by Bob Tullio

AS

AN OPERATOR, MY COMPANY did everything over the years — and I mean everything. Jukeboxes, pool tables, pinball, video games, cranes, darts, pay telephones, cigarette machines, snack vending, beverage vending, food vending, micro markets, point-of-use water, pantry service and, of course, the one channel that truly propelled us to success: coffee service. Admittedly, it took us a while to find our niche. Maybe some of you can relate.

Along the way, I ran into operators who were stubborn about what they would and would not do. The vending operators who refused to think about coffee service because “I hate the idea of receivables.” Or the many OCS operators who would ask me to service the vending in their accounts because “I don’t want the hassle of dealing with coin, cash, repairs and all those single products.” Without naming names, on both the vending and OCS side,

these were major players, most of whom are still around today.

SAYING YES

Things have changed. As Mark Stein of Mark Vend in Chicago explained, “We are a company that says ‘yes,’ and we have the infrastructure, so we are always chomping at the bit to do more for our customers, especially if it is something that will truly meet their needs,” he said. Clearly, OCS operators are learning to say yes. But, maybe it won’t matter that much because OCS will come back strong as the office population grows. Stein expressed the sentiment of every operator I have spoken to about the state of the office workforce: “It is continuing to trend in a positive direction, but not as quickly as we would like to see.”

WORK FROM HOME: SOME POSITIVE NEWS

An April 2024 study by USA Today provided the following key statistics, trends and attitudes relating to working from home:

“Just over half (51%) of respondents also said their company requires some or all employees to be in the office. 39% of respondents said this would be the case for their organizations by the end of 2024 while only 8% planned for this to happen by 2025 and beyond. Out of respon-

Tetiana Mykhailenko / iStock / Getty Images

Sweet & Creamy Puddings

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Pudding is really popular, with nearly half of all households purchasing.1 It pays to offer single-serve Snack Pack puddings in your micromarket to meet the craving. Now labeled and bar-coded for individual sale, they’re shelf-stable, compact and stackable to maximize shelf efficiency. Great as a treat or dessert — Snack Pack puddings are ready to grab, go and gratify!

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dents who said their companies planned a return to office in 2024, just under one-fifth say employees will be required to work in the office five days a week. 28% of respondents said those who don’t comply with a return-to-office policy will be threatened with termination of employment by their company.”

“In a survey by Gallup, four in five chief human resources offices of Fortune 500 companies said remote work flexibility was there to stay for at least the next 12 months,” the report went on to say.

THE NEXT BIG THING: SMART COOLERS

In 2024, companies are apparently finally ready to define their work-athome programs, but clearly, workat-home is here to stay. For OCS operators, this means diversification is necessary beyond water, cold brew and even pantry service. OCS operators need to find the next big thing.

There is a newly expanded offering on the market that every OCS operator should be taking on soon, especially those operators who are generally averse to dealing with vending and those who may be reluctant to offer micro markets. I’m talking about smart coolers and smart markets.

My take: Smart markets will be the next big thing.

Elsewhere in this issue, take a look at my article, “An operator’s guide to smart market options.” It’s a must-read, and while researching and writing the article, I became a true believer in smart cooler technology.

“I would define a smart cooler as a system that can manage its own inventory, sales and take payments, which funny enough, sounds a lot like a vending machine,” said Evan Jarecki, co-founder of Gimme, an

“I would define a smart cooler as a system that can manage its own inventory, sales and take payments, which funny enough, sounds a lot like a vending machine.”

Evan Jarecki, co-founder of Gimme

industry software company that builds management, delivery and invoicing tools for micro markets and vending operators. Unlike vending, noted Jarecki, smart coolers can mitigate theft using weight sensors or video technology, and customers can touch and inspect their selection before they make the purchase.

One thing you will learn in that article is that currently, there are plenty of smart coolers to choose from. Turn to page 20 to get the full story.

CAPTURE THE TERRITORY WHILE YOU CAN

For an OCS operator, smart coolers and smart markets (soon to be more common, featuring ambient temperature compartments and even hot-food capability) offer tremendous openings to new revenue streams and business opportunities.

While those who are already highly invested in vending and traditional micro markets take their time and “kick the tires” before jumping in, progressive operators and even newcomers should seize the opportunity to capture as much territory as possible by adding this new technology to their arsenal.

A TWO-FOLD BENEFIT

Arthur Sillar, senior vice president of operations and business development at Evergreen Refreshments, has extensive experience operating smart

coolers. He said the impact of smart coolers is two-fold. First, it allows for the ability to operate in public locations where a micro market would not work due to security concerns. Second, the revenue performance of smart coolers is impressive.

“On the sales side, as we replace traditional equipment that has been in a location for a long time — bringing in this newer technology — we are seeing a two to three times sales lift,” he said.

Siller noted that this sales lift is not a temporary thing. “It is proof that when you introduce new technology and it is attractive and easier for people to use, they will use it,” he added.

For OCS operators who are willing to step out of their comfort zone, the smart market could be the opportunity the industry has been waiting for — something that will launch the post-pandemic boom that every operator seeks. ■

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.

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A FOCUS ON MICRO MARKETS, FRESH FOOD AND STRONG CUSTOMER SERVICE HELP

BUFFALO STRIVE THRIVE

For 13 years, New York-based Buffalo Strive Vending has built a successful business centered on a relentless pursuit to serve others.

by Adrienne Klein

EACH MORNING WHEN JEN CORTO DRIVES UP TO THE PARKING lot of Buffalo Strive Vending in Orchard Park, N.Y., she has a feeling of disbelief. It’s surreal for her to see that the vending company she and her husband, Jon, started in 2011 has grown into a 40,000-square-foot warehouse space; that the dozens of vehicles in the parking lot belong to the 70 people now working there; and that the fleet of 20 delivery trucks belongs to Buffalo Strive Vending and carries products to customers each day.

In just 13 years, Bu alo Strive Vending has grown from about $170,000 in 2012 to $16 million in annual revenue — all through its embrace of micro markets, a focus on fresh food and a relentless pursuit to serve others.

Photos courtesy of Buffalo Strive Vending

FROM FOOTBALL TO VENDING

Jon and Jen Corto got their start in the vending industry rather unexpectedly. e couple, from Orchard Park, N.Y., had been succeeding in their respective careers: Jen as a certi ed public accountant, and Jon as a safety for the Bu alo Bills football team. In his role as a professional football player, Jon was involved in the NFL Play 60 initiative, which encourages kids to be physically active for at least 60 minutes per day. He would travel to schools and talk to children about how to make healthy food choices.

But then he noticed something contradictory — the school vending machines did not o er healthy options to kids. “We couldn’t believe there weren’t healthy food choices in the vending machines, so we started talking about how we could change that,” said Jen. e duo went to their alma mater and presented the idea to place six vending machines with healthier options. In March of 2011, Bu alo Strive Vending was born. e pair continued to work their full-time jobs while Jen took training and education classes to

Jon Corto had successful career with the Buffalo Bills in the late 2000s, playing safety for the NFL team. Working with the NFL Play 60 initiative helped him realize that though he was teaching school children about healthy eating and activity, their schools’ vending machines often did not include healthy options. He and his wife, Jen Corto, decided to start a vending business to fill the gap.

learn how to stock, repair and re ll the company’s vending machines.

e following year, Jon le the NFL, Jen le her job and they decided to grow their vending business. Over the years, Bu alo Strive Vending has expanded from just six to more than 350 vending machines, primarily growing through word-of-mouth. One of its biggest growth areas, however, has been the company’s introduction into and expansion of micro markets.

MICRO MARKETS AND TECHNOLOGY

Several years a er launching their vending business, Jen and Jon learned about micro markets at a NAMA show and knew it was a segment they needed to enter. “ e micro market is the perfect solution for businesses that want more than vending but aren’t big enough for onsite food service,” said Jen.

Bu alo Strive began targeting that side of the business and present-

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ing the micro market concept to current and potential clients. “People just love micro markets,” added Jen. The company began working with 365 Retail Markets from the beginning, which Jen says has been a valuable partnership. “We do all of our micro market, equipment and software kiosks through them.”

Jen and Jon particularly like the fact that the 365 Connected Campus allows customers to stay connected on one system. “We can offer an allinclusive food and beverage program through one software, one system and one market card, which has allowed us to be this one-stop-shop for some of our larger customers,” said Jen. This technology offering not only appeals to customers, but it is also important to the advancement of the industry, the Cortos believe. “Vending companies can’t stay stagnant in this industry, because someone will step in with something bigger and better, so you’ve got to stay up on the technology,” Jen said.

Buffalo Strive began using Lightspeed Automation early on, which helped transform the warehouse by streamlining operations.

OPERATION PROFILE

Buffalo Strive Vending

Founded: 2011

Headquarters: Orchard Park, N.Y.

Number of Employees: 70

Number of Vending Machines: Over 350

Number of Micro Markets: Over 80

Number of Routes: 11

They also integrated VendSys vending management software in 2015 to bring the company’s data into one convenient place. Both Lightspeed and VendSys have allowed Buffalo Strive to grow and expand. When she thinks about how she picked routes in the early days, Jen laughs. “I think we started with technology that pulled up one route at a time and you could print a packing slip,”

she said. “That’s so different from today where everything connects. All of the technology talks to each other now. It’s amazing. I think without technology in this industry, you’re not moving forward,” she added.

Technology has been important to Buffalo Strive since the beginning because they have always wanted to give customers multiple ways to pay. “We wanted to do vending in a new light, with innovation and technology,” Jen said. Since 2011, the company has offered credit card readers on every machine and has included other forms of digital payments as they’ve become available. “Jon goes to the NAMA Show every year to see what’s out there and to see how we can do things better, bigger and how can we ‘wow’ people with the newest technology out there,” Jen added.

One of the newest technological additions to the company has been the integration of ZippyAssist, which allows operators to provide immediate refunds to customers. A form of artificial intelligence (AI), ZippyAssist automates customer service by sending a customer complaint or product request directly to a

Offering fresh food in its micro markets, prepared by its chefs in a large onsite commissary at its facility, is one of the ways Buffalo Strive differentiates itself from other companies — and delivers the customer service it values. “Customers can tell when a sandwich is frozen, thawed and put in a cooler, and it doesn’t taste as good as one made fresh that morning,” said Jen Corto.

Buffalo Strive wins prestigious foodservice award

In early 2024, Jon and Jen Corto of Buffalo Strive Vending received the International Foodservice Manufacturers Association (IFMA) Silver Plate Award, which recognizes professionals who have demonstrated extraordinary food service leadership, and who have made impactful contributions to the advancement of the industry. Of the eight food-away-fromhome categories, Buffalo Strive won in the Grocery, Convenience & Specialty Retail category. The award ceremony took place on May 18 in Chicago.

customer service email. If a customer needs a refund, the technology will automatically send the refund via Venmo, saving the vending company time and money. “It has been a huge game-changer for us,” said Jen. “The customers no longer have to call us and go through prompts and wait days for a refund. Now, they get a refund in seconds. ZippyAssist has automated the entire process.”

Although ZippyAssist is the first AI technology Buffalo Strive has integrated, it has a company goal to incorporate more of these automated systems into operations in the next year or two. “People want things done faster and more efficiently,” Jen continued. “The more automated we can make things without losing that service component is huge and customer service is a big area AI can help, whether that’s answering phones or connecting to service technicians.”

MICRO MARKETS LEAD TO A FOCUS ON FRESH FOOD

As the company’s micro market segment continued to grow, Buffalo Strive found itself expanding into another unexpected area: fresh food.

Fresh food sales in its micro markets continued to be a hit with customers, so the Buffalo Strive team thought about ways in which

they could provide the fresh food themselves. “Customers can tell when a sandwich is frozen, thawed and put in a cooler, and it doesn’t taste as good as one made fresh that morning,” said Jen.

The company decided to invest in fresh food and started by hiring several chefs and opening an offsite space where they could prepare fresh food for their micro markets. In the last several years, the kitchen has moved into a large onsite commissary in the company’s 40,000-square-foot facility. “What sets us apart from our competitors is our fresh food and how we make it every day,” said Jen. “Our bakers and chefs are constantly coming up with new ideas and rotating menus. When we go to sell a micro market to a customer, we bring our fresh food to every meeting. That’s what makes us different.”

She notes that while the snack rack in most micro markets is going to look the same, the Buffalo Strive fresh food coolers are going to be vastly different.

The company’s commissary has been so successful that they have had outside businesses asking to buy and sell their products in other markets. Beyond vending and micro markets, Buffalo Strive is now working on creating a wholesale fresh food division

to sell its food to other channels that are not current customers such as airports, convenience stores and gas stations. “It’s a new venture for us, so we can do more with our commissary,” said Jen. In 2024, the company hopes to become USDA certified.

SUCCESS BASED ON SERVICE

Over the last 13 years, Buffalo Strive has seen an immense amount of growth. Despite this growth, the company has never lost sight of its main focus: its customers. “We thrive on service, so during the moments when we felt like we were losing that component, that’s when we would realize we needed more help,” said Jen. “Being a local family-owned business, we have always wanted to be that company where customers are immediately getting the service they need.”

Customer service is so important to the company that they wanted to include it in their name. As they were brainstorming names early on, the Cortos kept coming back to the word “strive.” “I think that word embodies who we are,” said Jen. “We have a ‘whatever it

COVID comeback

As with many other vending operations, the COVID-19 pandemic hit Buffalo Strive Vending hard. The company had just closed on its new facility when it had to lay off all but four of its 22 employees at the time. “We had to figure out what we could do to keep ourselves alive and running,” said Jen.

Rather than hunkering down to survive the storm, the Cortos got to work. They reached out to hospitals and began providing meals, snacks and snack boxes to frontline workers. “We [as a business] found ways to get through COVID, and we came out stronger than before,” said Jen. Once businesses began requiring more employees to return to work, Buffalo Strive was able to bring back many of the employees it had laid off during the early days of the pandemic. Since then, it has more than doubled its number of employees.

takes’ mentality. We will do whatever it takes to give our customers what they’re looking for.”

As the company has grown, it has gotten better at knowing when to bring on more staff. As the clientele increases, Buffalo Strive has had to hire more drivers and warehouse packers. For every five to 10 employees, the company has hired personnel to manage the workers. Today, the company has an operations manager, warehouse manager and commissary manager, to name a few positions. “Our mantra is ‘A relentless pursuit to serve others,’” said Jen. “We have that tagline hanging in our facility, and that’s what we represent and live by.”

Because service is what the company strives to provide, it’s the indicator of whether they need more help. “Anytime we feel like our service is lacking, that’s when we know we need to step it up and hire some good people,” Jen added. “We try to hire and train our staff to be the best there is.”

Despite receiving requests for service from outside its service area, Buffalo Strive is not ready to expand its radius quite yet. “We thrive on our food and service, and if we go too far outside of our current service area, we would lose those components, and that just takes away from who we are,” said Jen.

Going forward, Buffalo Strive has brought on a salesperson to pursue more local locations, and the company is preparing for even more growth in the coming year. “It’s crazy to see that 13 years ago, we started in this small little office space, and today we are in a huge warehouse and we are bursting. It’s surreal to see how much we’ve grown,” Jen reflected.

Currently, the company has more than 350 vending machines, 80 micro markets, 70 employees and 11 routes, all built from the ground up. “We didn’t come from this industry,” Jen added. “We just started with an idea and have worked hard and watched it grow to what it is today.” ■

Over the last 13 years, Buffalo Strive has seen an immense amount of growth, from a few vending machines in a single school to more than 350 vending machines and 80 micro markets. A focus on strong customer service helps Buffalo Strive thrive.

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An operator’s guide to smart market options

by Bob Tullio

AT THE 2024 NAMA SHOW IN DALLAS IN early May, smart coolers were a popular topic of conversation among operators. What makes a cooler smart?

“I would de ne a smart cooler as a system that can manage its own inventory, sales and take payments, which funny enough, sounds a lot like a vending machine,” said Evan Jarecki, co-founder of Gimme, an industry so ware company that builds management, delivery and invoicing tools for micro markets and vending operators.

Unlike vending, noted Jarecki, smart coolers can mitigate the using weight sensors or video technology, and customers can touch and inspect their selection before they make the purchase.

“I do believe they are a game changer for the industry right now,” Jarecki added. “ ey combine the best of markets and the best of vending. It allows the product variety of a market and the security of a vending machine. ose are two challenges that continue to pop up in vending locations and for micro markets.”

Not surprisingly, the buzz surrounding smart coolers and markets has created a new landscape for operators. ey now have numerous options when it comes to selecting these smart devices, a fact that was evident on the convention oor at the 2024 NAMA Show.

SMART COOLERS ARE THE SOLUTION

Ryan McWhirter, vice president of product development at 365 Retail Markets, a smart cooler manufacturer, said the competition will be healthy for the industry. He expects to see more smart coolers and markets available

in the future. “Having attended Vend Italia in Milan, Italy, right a er NAMA, we know that for every smart cooler here in the USA, there are ve in Europe. It’s clear from the conversations we have with operators that they are yearning for the perfect marriage of markets and vending to increase same-store sales and reach. Smart coolers are the solution,” he said.

365 Retail Markets introduced its PicoCooler in 2020, which McWhirter said the company likes to lovingly call their “dumb cooler.” at was followed by PicoCooler Breeze one year later, which used weighted shelves to detect product movement. “Everything changed with Stockwell, our rst computer vision solution launched at NAMA 2022 in Chicago,” McWhirter said. “ en this year, we launched PicoCooler Vision, another step in our incremental innovation that builds on the past to create the best solution for operators.”

Smart coolers and markets use AI-driven technology to monitor product selections and charge for only what is taken.

AI TECHNOLOGY ADDS

VIRTUAL OPERATOR VISION

Elyssa Steiner, chief marketing o cer at Cantaloupe, said her company’s introduction of their Smart Cafe system at the 2024 NAMA Show was received enthusiastically by operators. “We have the Cooler Cafe, which has been out for years, using our Smart Lock Connect technology to keep the unit locked until a selection is made,” Steiner said. “Our new Smart Cafe uses AI dynamic camera vision technology to know exactly what the consumer buys.”

“Our Smart Cafe is, I’d say, the next level of advancement in technology and is a seamless consumer experience. When they walk up to the unit, they have a 10-inch tablet where they can browse the plano-

gram if they want to view items before they actually grab them. Otherwise, they just tap their card to start the transaction. e unit unlocks automatically and then it uses those AI cameras to know exactly what’s coming in and out of the cooler,” Steiner explained. “What’s really cool is if I put an item back in the wrong spot, it doesn’t matter because Smart Cafe knows that the item went back inside the unit regardless of where it was placed. Once I grab all my items, I close the door, it waits a couple seconds, then it locks. Once it locks, it shows me all the items on the screen that I’ve removed and it charges my card automatically,” she added.

Steiner said the Smart Café is currently being tested by several

For over fifty years, AVS Companies has been a leader in the vending / micro market, amusement, and gaming industries. As a nationwide distributor, our success stems from providing topnotch equipment and exceptional service support, ensuring customers have access to the latest and most reliable products. Our product

lineup includes advanced vending machines, amusement equipment, and video slot machines from all the premier manufacturers. What sets us apart is our dedicated service team, which ensures every piece of equipment is expertly installed, maintained, and serviced along with all the necessary parts. This commitment to excellence

operators and will be readily available by fall, through either direct purchase from Cantaloupe, or from a reseller like AVS, who integrates Cantaloupe’s technology, along with others, onto their coolers.

has established AVS Companies as a trusted industry partner. Introducing AVS Connect, our newest subsidiary, marks a significant milestone. AVS Connect offers innovative bundled market solutions for operators, providing a comprehensive suite of technology services and products that streamline operations, enhance efficiency, and boost profitability. As we move forward, AVS Companies remains committed to delivering superior products and exceptional service, continuing our legacy of innovation and leadership in the industry. For more information about our company, please visit avscompanies.com.

Customers unlock the smart cooler via a tablet that displays product information and serves as the point of sale.

Cantaloupe Inc.

NAVIGATING THE LANDSCAPE

Tom Vogt, vice president of sales at AVS Companies, said his company is well-positioned to help operators navigate the changing landscape and the multiple smart choices that are now available. “Most of our sales team have been on the operator side at one point or another in their life,” said Vogt. “Our team can absolutely help an operator understand which market solution is the right choice. Our sweet spot is the complete solution. When a customer needs to put together a market, they have to source their cooler, their xtures, their glides, everything that goes into a micro market, including the right technology choice.”

A PACKAGED SMART-STORE APPROACH

Yang Yu, CEO and co-founder of Atlanta-based Micromart, is a so ware engineer, a technology entrepreneur and a successful Toronto-based operator. His team developed a smart market solution that is now in its fourth generation, and he projects it will be in 200 U.S. locations by year-end in addition to the systems he is operating in Toronto.

Yu said his company o ers a plug-and-play AI-driven smart market solution that uses what he called “hybrid digital sensors” within a modular design that o ers refrigerated, frozen, ambient and hot food products, digital price tags, a payment solution and digital ad displays.

“Most operators just want something plug-and-play. ey want something that makes money and just works. Technology is great, but it needs to be transparent. It needs to be invisible to the consumer. So, we want it to bring something that is invisible to the consumer but very easy to use for the operator,” Yu said. “ e Micromart solution to an operator is literally a smart store that someone can purchase, plug it in, upload their product list, and they can get up and running the next day. Everything is included, including the smart coolers.”

Yu added that Micromart is especially focused on o ering quality hot food selections by providing heating towers as part of the system, and induction heaters that heat up and

cool down quickly. His company has seen success sourcing meals from a local provider to use with Micromart and generating signi cant revenue that would normally be lost to food delivery services.

A SMART MARKET VIA WEIGHT SENSORS

Weight sensors in smart coolers and markets is another option for operators. As a co-founder of Redbox in 2002, Mike DeLazzer knows a thing or two about unattended retail and scaling a company with multiple products. Now, as a co-founder of Instant Systems USA, which uses a weigh-sensor approach, DeLazzer has been distributing his smart systems to Selecta, a European company. “ ey currently have about 4,000 locations where they are using our equipment. Here in the U.S., we just started to deploy units as of last year,” said DeLazzer. “ ese systems are extremely accurate.”

don’t want, and with Shekel’s product-aware technology, you can see all of that in real time,” Moshe said.

“ e one that has the most traction is our 600 cooler, and we always basically put them in a two-door con guration so that you can do cold and ambient in with the same user interface. You can also do cold and frozen, and we’re developing a hot hold unit,” he explained.

A SMALL-STORE SHOPPING EXPERIENCE

Israel-based Shekel has been doing global weight solutions for the last 50 years. Guy Moshe, the company’s chief technology o cer, said Shekel allows operators to o er a great small-store shopping experience not only in trust-based locations but in more public locations with Shekel’s AI security system. “Shoppers can take products, browse them, look in the ingredients, return them if they

“We have our cooler that is built all around the solution. Not only the weight kit but also the system integration and the screen — and everything attached to the whole smart cooler operation,” Moshe explained. “We are leveraging the raw data of our sensors to generate a unique weight signature for every SKU in the system. So basically, we can di erentiate between the weight signature of very similar products such as Coke and Fanta.”

Moshe believes the market for smart coolers such as Shekel’s, which are currently available in the United States, is huge. “We’re seeing strong demand, and we plan to ful ll this with hundreds of units by the end of this year,” he said.

COMBINING WEIGHT SENSORS AND VIDEO

Fred Kahn, a co-founder and CEO of Kooick, said his AI-driven smart market system is di erent from the others on the market, combining weight sensors and video. “You have weight only, you have video only, and the video only tends to be cameras that are on the door frames that are

looking at products, either on the diagonal or horizontally as they go in and as they come out of the system. What we’ve done is we’ve combined static cameras, video cameras, and weight in a way where the system has a lot of accuracy as a result and redundancy as opposed to a single sensor solution.”

Kahn said that the video component allows the smart cooler to di erentiate between brands such as Diet Coke and Coke, both in 20-ounce bottles. It’s early in the game for Kooick, currently engaging in pilot programs with operators, but Kahn notes that he’s working with Due North as his cooler supplier. He has 25 units ready to go with an eye on selling units in the rst quarter of 2025.

SMART RETAIL REFRIGERATION

Due North is the cooler choice for many of the smart market developers. “We lead the industry in integration. It’s just the nature of our business,” said Randy Skyba, vice president of sales and marketing at Due North. Skyba said the performance of smart coolers points to rapid growth. “Many of the machines that are out there and in the vending world, typically a lot of consumers will walk right by, they’re not going to buy a sandwich from that vending machine,” Skyba said. en you look at a cooler and for whatever reason, it has the persona that it is fresh, that it is current, and I’m more willing to look at and buy something from it. I think it’s de nitely replacing vending machines in a large way. Will it ultimately ever replace all vending machines? I don’t know. Time will tell on that one.” ■

A plug-and-play smart market approach can include refrigerated, frozen and hot food products, digital price tags and a payment solution as a package.

Micromart

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TECHNOLOGY BOOM adds smart tools for operators

Technology to help operators mitigate theft, implement promotions, integrate data and process payments can reduce loss, cut labor costs and streamline operations.

by Bob Tullio

WHILE COFFEE SERVICE AND VENDING —

the longtime pillars of the convenience services industry — were not typically associated with progressive technology, the introduction and acceptance of micro markets in the last decade has certainly altered the industry’s image. As it turns out, micro markets are just the tip of the technology iceberg. Mac Bolak, founder of Panoptyc, said the technology acceleration in the post-pandemic world was inevitable. “ ere are so many smart people and researchers experimenting with di erent technologies and obviously, LLM [Large Language Model], the new AI cutting edge that has changed the game recently, I think once you bring all of this data together and you bring the smartest people together, we’re going to continue to get better at an accelerating rate with AI, which is really exciting for our industry,” said Bolak.

THEFT-MITIGATION TECHNOLOGIES

Panoptyc provides the -mitigation technology driven by AI. Bridger Keally, the company’s sales director, said operators come to Panoptyc for di erent reasons. “ e most prominent issue is that they’re struggling with the , obviously. When you’ve got a self-checkout, it’s an inherent risk. And we’ve seen the industry average at around 6% across the board recently, and it’s obviously tough seeing that pro t slip away,” Keally said. “Second reason is labor. e operators are super busy working on growing their business, managing accounts, all that stu , and it’s frustrating when they have people sitting and reviewing footage for hours, managing shrink, instead of working on growing the business.”

Pro Watch Solutions launched its the -mitigation product, ARMS, at the NAMA show in Dallas. “We are using surveillance video and applying AI and other analytics to identify the and other lost sales opportunities. We are providing that to the operator in an easy-to-use and actionable format, allowing for good conversations with their customers,” said Mark Kronenberg, founder of Pro Watch Solutions about its automated retail management system. “Our vision is to have controls for the and to capture lost sales opportunities for micro market operators, increasing their pro ts.”

PROMOTION VIA MICRO MARKET DISPLAYS

Advana, a 365 Retail Markets company, sends advertising and promotional messages to more than 15,000 screens in micro markets across the United States. “Advana is a consumer engagement opportunity for an operator, and the side bene t of that: it is revenue generating,” said Jacob McNulty, chief customer o cer with 365 Retail Markets. Advertisers want access to the workplace demographic and are willing to pay for it, McNulty noted.

Operators are compensated on di erent levels. One level involves general advertising and is not related to the micro market itself. Another level involves product launches and working directly with speci c consumer packaged brands. Installing additional digital signage also can increase revenue.

Another promotion opportunity that Advana can facilitate is developing a communications package between the operator’s client and their employees, promoting employee wellness programs or other important messages. McNulty said that the amount of money an

operator receives each month varies, depending on the promotional level, the location and other factors that can be important to advertisers.

This summer, Cantaloupe Inc. will launch the Cantaloupe Advantage Program, an advertising and consumer engagement program. “We are really excited about Cantaloupe Advantage, a digital advertising program, where we leverage the footprint of not only our micro market kiosks, but also our engaged devices, which are card readers that have digital touchscreens on them for vending operators,” said Elyssa Steiner, chief marketing officer. “It is about ad space and ad revenue. What we want to do is make it as easy as possible for the operator to sign up and then for us to just create, manage and deploy it for them.”

PRE-KITTING

Pre-kitting — the process of preparing in advance the products necessary to service locations — has been around for quite some time, of course. Improved technology has accelerated its use.

“Lightspeed Fast Track is the pre-kitting technology that we offer for an operator’s warehouse, and they were a fantastic company for a long time before they joined the 365 family,” said Ryan McWhirter, vice president of product development at 365 Retail Markets. “Since then, we’ve been able to integrate them even more deeply into our back office and of course our VMS.”

Although Lightspeed has been on the market for 10 years, many operators still haven’t tried it. “When they see it in action, and they see the amount of labor, time savings and accuracy improvement that comes with it, they wonder why they hadn’t been using this all along,” McWhirter said.

Cantaloupe’s Steiner acknowledged that pre-kitting solutions have been centered around one supplier in the past. “Our goal is to be a one-stop shop for operators, so I’m really excited about our warehouse picking solution, Seed Pick Easy. We showcased this at the NAMA show. We now have some operators actively using it, and we’re adding new implementations every week,” Steiner said. “It was built as a mobile-first kind of strategy around warehouse picking. We really look to leverage the way they have their warehouse organized to build the mobile picking solution around the operator’s current warehouse, so there’s very little change they need to make,” she added.

INTEGRATING MULTIPLE TECHNOLOGIES

As technology advances, integrating a vending management system (VMS) from a company that is not associated with a specific piece of new hardware such as a smart cooler would seem to be a potential challenge. Evan Jarecki, co-founder of Gimme, said his company has solutions.

“Our tools provide a suite of software to help operators of any size, and we do provide all of the core functionality that an operator needs — micro markets, vending, delivery, reporting.”

“We provide integrations with the major hardware providers — that’s on the cashless side, like kiosks and pre-kitting hardware,” he said. “We also have software for the additional functions like online OCS ordering or enterprise-level reporting with some of the groups that are out there.”

“As far as integration with the major providers, 365 and others, as these companies build tools like smart coolers, a Pico, on their existing platforms, the integrations are available right away to operators through VDI integrations,” he added.

Pete Carmain, vice president of enterprise sales for Nayax, said he has an increasing number of conversations about integration each week. “We always look at any project as a payments facilitator. So, we may not be making machines, but we want to be involved in the payments and the data that comes out of that,” he said. “If we can get a payment on a machine and we can get data sent to where it needs to be, that’s where we as a company want to be. We develop solutions that make our payment solution integrate with a machine.”

Carmain added, “If there’s a machine that needs cashless payment on it, we’re going to design something that fits.” ■

READY TO SELL YET?

Mike Ferguson has over 34+ years Vending & OCS industry experience, as an ex-operator and owner turned intermediary business broker to assist you in selling your business. I speak fluent Vending and Office Coffee.

Vertex PureWaterCoolers

California-based Vertex Water Products is celebrating its 26th anniversary. Founded in 1998 by Hank and Hal Voznick, the multigenerational, family-owned company manufactures quality Point-of-Use bottle-less and bottled water coolers; reverse osmosis filter systems; traditional ion exchange water softeners; and other water purification products.

Vertex is an industry leader in water cooler innovation, and offers a wide range of products and technologies to serve their customers’ needs. They have many

different water cooler options, features and price points that make choosing the right combination easy. Their new Sparkling water dispenser enlivens any breakroom experience and their Ice and Water dispensers make up to 20 pounds of ice a day for ice-cold refreshment. Their touchless coolers with a proximity sensor to operate the dispenser, keep users safe from pathogens. The PureChillTM line uses a chill-on-demand design to eliminate an open reservoir so there is no need for costly in-tank sanitation. They have both Pointof-Use and bottled water models that look great, and have been engineered and built to provide years of service in the field.

Since water is the key to life, Vertex’s motto “Pure Water for Everyone” is especially meaningful in today’s ever increasing water quality problems. Vertex believes they can help Vending and OCS Operators use water to expand their business with their full line of PureWaterCoolersTM because water coolers are an easy add-on to existing business.

Vertex’s National Sales Manager John Miller cites the conclusion of a 2012 study conducted by the National Automatic Merchandising Association (NAMA) – “WATER should be the “TIP OF THE SPEAR” for every company offering break room services!!,“

Some key findings of that study are:

• 100% of the companies surveyed want high quality drinking water in their break rooms.

• 80% of the respondents specifically want FILTERED water as opposed to bottled water.

• Point-of-Use water solutions saved customers as much as 60% over traditional bottled water.

• Savvy OCS operators turn that savings into additional sales of break room products and services.

A Vertex Point-of-Use water dispenser is easy to maintain, with recommended maintenance only twice a year. And the typical Returnon-Investment is less than a year. The result is an unending supply of great tasting water “where you need it, whenever you want.”

Vertex assembles and tests their products in-house to ensure the highest quality products. They stock a large inventory of systems and replacement parts for quick response to customers needs, as well as world-class customer support. They are opening a warehouse in Virginia this fall to reduce lead times for the east coast. Vertex’s motto: Pure water for everyone.

PRODUCT FOCUS

You can find all of these products in the Product Guide at VendingMarketWatch.com/directory.

[ HEALTHY SNACKS ]

Crispy Green unveils new addition to its lineup of freeze-dried fruit snacks

Piña Picante Chili Chili dried pineapple snack is the newest flavor in Crispy Green Inc.’s line of Crispy Fruit, a freeze-dried fruit snack brand. Piña Picante starts with premium pineapple from Costa Rica.

Infused with spicy, bold flavors before drying, Piña Picante Chili Chili blends two different types of chili, cayenne and habanero, to give it an extra kick of spiciness paired with the natural sweet-and-sour pineapple taste. The snack has no added sugar.

Piña Picante has three other bold and spicy flavors: Chili Lime, Ginger Lime and Coco Chili Tamarindo. The creation of Piña Picante was a passion project of Angela Liu, the founder and CEO of Crispy Green, to develop a unique snack line inspired by Latin culture. The premium pineapple snack is available in a single 1.76-oz bag.

Crispy Green

Country Archer Jerky

Packaged in a compact 1-oz size, Country Archer Jerky is handcrafted in small batches using 100% grass-fed beef and real spices. Delivering a mouth-watering flavor in a high protein snack, the jerky is free from additives such as nitrites, nitrates and MSG. The company believes that the best snacks are healthy snacks, so Country Archer Jerky uses only real ingredients and real food.

Country Archer

GoMacro MacroBars

GoMacro MacroBars are organic, plant-based nutrition bars made from simple, sustainably sourced ingredients. Available in 16 delicious flavors, all MacroBars are Certified Organic, vegan, gluten-free, kosher, non-GMO and soy-free. MacroBars’ combination of plant-based ingredients serves as a nutritious and delicious way to stay fueled throughout the day.

GoMacro

Planters Nut Duos in 3 Flavors

Planters Nut Duos snacks from Hormel Foods Corp. combine two complementary types in a single 5 oz resealable bag. Three craveworthy options include Planters Buffalo Cashews and Ranch Almonds, with the zesty taste of Buffalo-sauce flavor combined with the cool, tangy taste of ranch. Planters Cocoa Cashews and Espresso Hazelnuts pair espresso-dusted hazelnuts and sweet cocoa cashews. Planters Parmesan Cheese Cashews and Peppercorn Pistachios team a creamy Parmesan cheese cashew with a peppercorn pistachio.

Hormel Foods Corp.

Protein Poppers

Offered in natural flavors of Hickory BBQ, Cheddar, Birthday Cake and Chili Lime, Protein Poppers are a salty, healthy snack. The tasty chips are gluten-free, non-GMO, kosher, vegan and allergen-free. Protein Poppers are packaged as 0.5 oz, 1 oz, 4 oz and 12 oz packages. A 1-oz serving has 120 calories and 9 grams of protein.

104 Sales Group

ADVERTORIAL COMPANY PROFILE

At McKee Foodservice, we bring together a variety of beloved brands under our umbrella, offering delicious snacks that cater to diverse tastes, preferences, and vending channels.

Little Debbie® Vending, America’s Favorite Snack Cakes*, offers a variety of delicious bakery items perfect for your vending needs. Our products come in colorful, display-ready caddies for quick shelf display in Micro Markets or Pantries. We provide Fit Pick qualified products for customers seeking better-for-you snacks, and K-12 vending. Individually wrapped, these snacks are great for on-the-go snacking, impulse purchases, and combo offerings.

Fieldstone® Bakery offers flavors stacked in your favor with individually wrapped bakery snacks for every eating occasion. Many of our products are foodservice versions of national best-selling items, including the delicious Honey Bun 4.0 oz, and the Fig Bar that meets FitPick requirements. We also offer loose granola in individually wrapped pouches and bulk that meet most school nutritional guidelines.

Sunbelt Bakery brings the goodness of whole-grain oats and incredibly delicious flavors to the vending channel with their Chewy Granola Bars, made fresh in their family bakery. Our products come in display-ready caddies for quick shelf display in Micro Markets, Pantries, or Vending Machines. With 3 irresistible flavors to choose from, Sunbelt’s Chewy Granola bars are great for on-the-go snacking, catering, impulse purchases, and boxed meals.

Learn more - https://mckeefoodservice.com/

*Nielsen ScanTrack, Total US – Convenience, 52 Weeks Ending 12/30/23. Baked Sweet Goods Category.

Oh Snap! Cranberry Sweeties

Dave’s Killer Bread Bars

An irresistible blend of taste, texture and nutrition makes a distinctive healthy snack in convenient grab-and-go bars. From organic bread brand Dave’s Killer Bread, the snack bars are offered in three flavors: Cocoa Brownie Blitz, Trail Mix Crumble and Oat-Rageous Honey Almond. Non-GMO and USDA organic, Dave’s Killer Bread makes products that deliver on taste and organic, whole-grain nutrition.

Flowers Foods

Healthy goodness is possible with real, naturally sweetened fruit in a single-serve pouch.

Oh Snap! Cranberry Sweeties start with plump cranberries, from which the tart juice is removed before the fruits are infused, using a proprietary process, with real fruit juices and natural flavors. The Cranberry Sweeties are gluten-free, fat-free and vegan, and they have 50 calories per serving for guilt-free snacking. For consumers seeking healthier and better-for-you options, the Sweeties are a great snack on their own or as a tasty compliment to salads, yogurt, oatmeal and more.

Oh Snap!

SOCIAL HUBS

Knowing the requirements for sales tax, including who must pay, how to collect it and when it is due, is a key aspect of effective management of a #vendingmachine or #micromarket business. https://bit.ly/3W26Y9I

An interactive Pepsi can design and a Gatorade AI-enabled hydration coach are just two of the engaging ways PepsiCo is keeping the long-standing brand fresh for its fans. https://bit.ly/3zN8O78

Powerhouse sales professionals outside the convenience services industry offer advice on how to go from an idea to checks in the bank. https://bit. ly/3WuUxog