Automatic Merchandiser – June/July 2025

40 Under 40 Awards Page 18

Convenience services for vending, micro markets and workplace beverages

Customer care FAMILY BUSINESS IS THE

STATE OF THE INDUSTRY

Annual Vending + Micro Market Report Page 26

Snacks with benefits Page 34

June/July 2025

From childhood ride-alongs to company leadership, Ashilyn Sunderman continues her father’s legacy of delivering top-tier breakroom experiences at Smith Vending Canteen, powered by people, service and smart technology.

Page 12

Congratulations to the 2025 Award Winners!

McKnight Carr MCM Vending

Michelle Lopez-McKay 365 Retail Markets

Bradley Charles 365 Retail Markets

Turn to page 18 to see the full list of winners.

CONTENTS

JUNE/JULY 2025

Meet the 2025 40 Under 40: Honoring the future of convenience services

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From vending and micro markets to office coffee service and unattended retail, these individuals represent the next generation of leadership, bringing fresh ideas, innovative thinking and a deep commitment to service and community.

Features

Success Story 12

Customer service is a family tradition Ashilyn Sunderman grew up learning the vending business from her father. Now, as CEO of Smith Vending Canteen, she’s building on his vision — combining personal service, smart tech and a passion for great breakroom experiences.

On the cover: Ashilyn Sunderman leads Smith Vending Canteen with a strong focus on customer service

Follow us at Facebook/VendingMarket

@VendingMagazine

linkedin.com/ company/2233840

instagram.com/ vendingmarketwatch

26

State of the Industry: Technology and convenience fuel growth

As technology enables operators to explore locations beyond business and industry, the industry has continued its upward trend.

34

38

Snacks with benefits

Learn more about snack foods that prioritize healthier ingredients, functional properties and bold flavors to satisfy consumers who hunger for more than just a quick bite.

Endurance: Defining the operator’s experience with one word

Endurance isn’t just a trait: It’s a way of life for operators. Inspired by the Endurance expedition, this article explores how grit, leadership and relentless determination define the people who keep convenience services going, no matter what.

Departments 4 Online exclusives 6 Editor’s Note June/July 2025 • VendingMarketWatch.com

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

Interviews, Expert Insight & Tips

Vol. 67, No. 3

Business Staff Sales Director, Vending Kris Collins (312) 350-0452 | KCollins@EndeavorB2B.com Multimedia Account Manager Jennifer Stephens (404) 861-1516 | JStephens@EndeavorB2B.com List Rental InfoGroup Michael Costantino Michael.Costantino@infogroup.com (402) 836.6266

OCS Operator

Kevin Collopy Kevin.Collopy@infogroup.com | (402) 836.6265

Coffee badging creates an opportunity for OCS operators

European Sales, Sales Director Julian Maddocks-Born +44 (0)1442 230033 | julian@itsluk.com

Bob Tullio

Representative ITSL Media, Sales Manager Benedict Hume, +44 (0)1442 288287 | benedict@itsluk.com

COFFEE BADGING AROSE IN 2023, AND WITH

Editorial Staff

increasing calls for workers to return to the office, it is a stillgrowing office trend. OCS operators need to think about how to keep workers around for that second cup and hopefully, a visit to the pantry service or the micro market for lunch.

Contributing Editors Bob Tullio, Joy LePree, Nick Montano and Adrienne Klein

vendingmarketwatch.com/55267453

Play VENDL | A weekly word game from VendingMarketWatch Are you a vending veteran? A micro market maven? Or just passionate about the convenience services industry? Put your knowledge to the test with VENDL, the weekly word puzzle that’s as addictive as a perfectly stocked snack machine.

Visit the VENDL archive to play puzzles you may have missed. vendingmarketwatch.com/55293931

Podcast | From the 2025 NAMA Show: Operators weigh in on the show, and what drove the record attendance With all the consolidation this industry has seen, what drew huge crowds to the NAMA Show? Bob Tullio highlights technology and trends that resonated with attendees. vendingmarketwatch.com/55291452 and vendingmarketwatch.com/ 55292688

Green Minded

Sustainability as a competitive edge: Operators can lead with purpose Convenience services operators have an opportunity to differentiate themselves through sustainability, said Cassandra Hoover, manager of nutrition and sustainability at Nestlé Professional Solutions. vendingmarketwatch. com/55289012

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Automatic Merchandiser • June/July 2025

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EDITOR’S NOTE

Growth, grit and a new generation ANYONE WHO ATTENDED THE 2025 NAMA SHOW IN MAY

Linda Becker Editor-in-Chief

lbecker@endeavorb2b.com

Follow us at Facebook/VendingMarket @VendingMagazine linkedin.com/ company/2233840 instagram.com/ vendingmarketwatch

6

cannot be surprised by the results in our State of the Vending and Micro Market Industry report. Record attendance, packed aisles, countless new technology and product introductions — opportunities in unattended retail abound.

Respondents to our annual market survey offered nothing but positive signs. In 2024, vending and micro market sales increased by 30%, from $26.04 billion to $33.85 billion, as the post-pandemic resurgence continued. Those gains further pushed the industry sales beyond pre-pandemic levels, indicating that operators have successfully moved forward.

Elsewhere in this issue, we celebrate the 2025 class of 40 Under 40. The vibrant 2025 class includes members who bring fresh ideas, new perspectives and energy to the industry. These young leaders often drive significant change — implementing new technologies, creating customer-focused models, expanding micro-market footprints, or launching AI-based solutions — in whatever role they serve in the industry. In recognizing those under 40 who are shaping the future of vending, micro markets and office coffee service, we also look to the future with promise.

Leaders of any age within our industry possess one attribute above all others: Endurance. In “Endurance: Defining the operator’s experience with one word,” our Bob Tullio shares perspectives on endurance, drawing on historical figures as well as insights from industry veterans, who share how they see the industry overcoming hardship and adversity.

In our operator profile, we showcase Smith Vending Canteen.

Second-generation owner Ashilyn Sunderman grew up riding along on service calls and learning the value of personal, responsive care. Today, she leads a growing team that serves clients across three Iowa branches with 15 vending routes, 60 micro markets and a focus on quality service backed by technology.

A strong advocate for industry involvement, Ashilyn is deeply engaged with NAMA and IAMA and believes in building a positive company culture where employees feel valued — an approach that, like her father’s legacy, continues to shape the company’s success and client loyalty.

Finally, we examine snack trends driven by consumers seeking healthier options. Workplace and on-the-go snackers prioritize options that offer benefits such as energy, focus, satiety and gut health — driving demand for protein-rich, clean-label and portable products.

Automatic Merchandiser • June/July 2025

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

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OCS UPDATE

Lessons from a pre-NAMA Show ‘retreat’ with three industry leaders While they were probably reluctant to invite me after I told them that whatever was said during our time together in Mesquite would be “on the record,” the trip turned out to be memorable and informative. © Endeavor Business Media

By Bob Tullio, Contributing Editor

AS SOMEONE WHO COVERS

convenience services, one of the reasons I love the NAMA Show is that it gives me an opportunity to gauge the temperature and direction of the industry by interviewing operators and suppliers, large and small.

The 2025 NAMA Show was a bonus when I was invited to golf with three popular and well-known industry figures: Rick “The Duke” Dutkiewicz, David “Hollywood” Henchel and Jim “Dutton” Evans. I asked them a fundamental question: Five years after the start of the pandemic, what do operators need to do to succeed?

“THE DUKE” Rick Dutkiewicz (7 handicap) is the supplier in the group and is president of National Coffee from Deerfield Beach, Fla. His company consults with and represents several products in every channel of convenience services.

His number one piece of advice for operators: “They need to think about differentiating themselves from others, bringing to market and to their customer base the latest exciting things in our channel that suppliers offer,” he said. “We obviously all 8

Automatic Merchandiser • June/July 2025

Just before the 2025 NAMA Show, Bob Tullio enjoyed a golf retreat with three titans of the convenience services: Rick Dutkiewicz, David Henchel and Jim Evans.

know what single serve is, and we’ve all been a part of that in our business for decades. We have seen the explosion of bean-to-cup — we’ve seen it become a leader in the single-serve format — but pod brewers like our AquaCafe models are continuously gaining momentum. The soft pod is still the best cup of coffee in the format, with the best extraction and quality. Of course, the environmental aspect of pods is more important than ever,” he added.

Set yourself apart. “Bottom line — don’t be attached to one type of single-cup brewer,” Dutkiewicz said. “At the same time, take a long look at the coffee you are offering. Think about the demographics in today’s workplace when you consider coffee selections. Make a dramatic move on the coffee selection, like our Death Wish brand. Set yourself apart.”

Dutkiewicz notes that operators sometimes get hung up on pricing and are afraid to sell products

at the higher end of the price scale, like Death Wish Coffee. “There is demand. Don’t decide for the customer. Give them options and you will be surprised. Again, it is about differentiation,” he said.

Commit to cold brew. According to Dutkiewicz, operators should be making a strong commitment to cold brew coffee.

“I think cold brew is what folks in the office really want. We’ll see cold brew coffee starting to surpass hot coffee down the road, especially with the younger audience. There are so many offerings now, including readyto-drink (RTD) in cans and readyto-drink in a three-gallon box, for instance, with some great equipment to dispense it. Whether it’s nitro or flat, there are incredible options out there.”

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Dutkiewicz has a solution.

“Consider &Back Coffee, a woman-grown, woman-owned company. They talk the talk and walk the walk. They truly show the end users how proceeds get back to the community — to the families and the farmers,” he said.

“HOLLYWOOD” David Henchel (7 handicap) is president and CEO of Corporate Coffee Systems in the greater New York area. He is a 40-year industry veteran who has some amazing stories to share. As for the fundamental question that I asked, Henchel said it is critically important for operators to get the pricing they need.

“Customers are far less resistant to price increases today than they were

before 2020. They understand the volatility in the world, from tariffs, to shipping, to commodity price fluctuations, to high labor costs,” he said.

“If you wait — if you are slow when it comes to price increases — that’s a big mistake.”

“DUTTON” Jim Evans (17 handicap) is the owner of Evans Quality Coffee, Vending and Micro Markets, also serving the greater New York area. He said operators must not hesitate to charge for their services.

“We have been giving so much away for so long, that as an industry, it almost feels uncomfortable to charge for services — whether it is filter changes, delivery charges, machine moving, minimum revenue

guarantees, maintenance on a beanto-cup brewer or a cold brew system — there are so many ancillary income opportunities that we cannot afford to pass up,” said Evans.

“Clients expect exceptional service, and the only way we can deliver it is to charge them appropriately.” ■ 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.

The Annual S TAT E O F T H E I N D U S T RY

COFFEE SERVICE I Coffee Service Is Growing – Tell Us How Much

We are asking for your participation in our annual Office Coffee Service Industry Survey.

The State of the Coffee Service Industry report will be presented in the Sept/Oct issue of Automatic Merchandiser.

Your chance to win a $125 Amazon Gift Card

To begin the survey, visit

bit.ly/OfficeCoffee Survey2025

Complete by 100% completion of the survey qualifies as an entry for the gift card.

July 31

OPERATOR PROFILE

Customer is a family tradition at Smith Vending Canteen

By Joy LePree, Contributing Editor

N

OT EVERY VENDING COMPANY OWNER CAN SAY

they’ve been responding to service calls since they were a toddler, but Ashilyn Sunderman, who took over Clarinda, Iowa-based Smith Vending Canteen (SVC) from her father, Rod Nester, in 2021, sure can.

“We have a customer that’s been with us since 1989 who remembers me as a little girl in pigtails riding along with my dad to service their machines,” said Ashilyn. “I’m so grateful that I grew up visiting customer sites with my father because it taught me a lot about the importance of excellent customer service in this industry.

“Watching him work hard to keep his customers happy was a truly valuable lesson because all vending companies are essentially selling the same bags of Cheetos and the same bottles of Pepsi, so the best way to set yourself apart from the competition is by developing a team of drivers and technicians who provide high levels of service to the customer,” continued Ashilyn. “What Smith Vending Canteen really brings to the table is the experience that the customer receives. We aim to deliver not just snacks but excellent customer service and a great breakroom experience.”

Rod’s vision for responsive and dependable customer service is a legacy Ashilyn strives to continue as the current owner and CEO of the growing company, which has a long-time presence in the vending industry.

A HISTORY DATING BACK TO THE 1970S Smith Vending Company was originally started in 1976 by Lyle Smith in Hiawatha, Kan. In 1988, Rod was hired by Lyle to run all the company’s routes in northeast Kansas, southeast Nebraska and northeast Missouri.

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Automatic Merchandiser • June/July 2025

In 1989, a new division was created in Maryville, Mo., but was moved to Clarinda, Iowa, just a year later. Rod ran the new Iowa division from 1992 until 2008, when he purchased the Clarinda division, which supported six routes with 10 employees and a newly erected warehouse. The portion of the company that Lyle retained was eventually

service

passed to his son, Ron Smith, who ran it until the business was sold to Acme Vending.

“When I purchased the division of Smith Vending Company, I seized on the opportunities that the previous owner declined to pursue,” said Rod. “I was making strategic decisions because I knew we had a lot of growth ahead of us.”

One such decision was to become a part of the Canteen Franchise Group and rename the company Smith Vending Canteen in 2009. Shortly after, in 2011, Ashilyn graduated from Northwest Missouri State University and began working at SVC as a full-time employee until 2021, when Rod retired and handed the reins to Ashilyn.

The Denison team services many of SVC’s clients, including manufacturing and food processing facilities, college campuses and K-12 schools.

June/July 2025 • VendingMarketWatch.com

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Ashilyn now heads SVC’s three Iowa branches — Clarinda, Denison and Ottumwa. Through the years, the company has expanded and today includes a mix of 15 vending routes, 60 micro markets, and a scattering of coffee service clients. They are tended to by 42 employees who all ensure that the company’s motto, “Quality products at fair prices with excellent service,” is evident to their customers.

THE MICRO MARKET ADVANTAGE Currently, vending and micro markets each account for about 45 percent of SVC’s business, with coffee service making up the last 10 percent. SVC’s micro markets range in size from the smallest, which serves 25, to the largest, which serves 1,400 people and boasts 24 feet of snack racking, four gondolas, six beverage

OCS manager Jeff Skeripski, service technician Seth Ward, service manager Brian Thompson and business development manager Alex Peterson each work to ensure SVC’s customers are satisfied.

14

Automatic Merchandiser • June/July 2025

coolers and four food coolers.

However, SVC’s average micro market caters to about 300 customers.

SVC key clients include mostly manufacturing and food processing facilities, along with a few additional locations in the healthcare sector, college campuses and K-12 schools.

In the state of Iowa, micro markets are considered unattended retail food establishments. As such, under state law, micro markets are not permitted in public spaces and may only be placed in locations with controlled access. Although this limits SVC’s micro market outfits to enclosed breakrooms that are not accessible to the general public, Ashilyn predicts that the micro market service will soon begin to pull a higher share of the company’s business.

SVC anticipates continued growth in this segment due to the many advantages of micro markets,

Tausha Maher (left), market coordinator at SVC, recommends products to Katie Purdy, NSK HR manager.

according to Ashilyn. The first of which is, of course, the ability to provide prompt customer service in micro market environments.

“Micro markets make for a better customer experience. There’s a lot less friction, and they are so much easier for the customers to

use. Additionally, we’ve received a lot of feedback about the ease of being able to quickly resolve any customer issues,” she said. “For example, if someone is double charged in a micro market, we can correct it immediately, whereas with a vending machine, if a selection gets hung up in the machine, it’s going to stay there until a driver or technician can get there.”

Having a micro market on the premises provides benefits to employers as well, said Alex Peterson, business development manager with SVC. “The human resources departments we work with tell us that having a micro market

TOP: The Ottumwa team serves the eastern region of SVC’s operation.

RIGHT: Industry advocacy is important to Sunderman (on left), who is active in state and national trade organizations.

Tausha Maher, Mackenzie Riley and Alex Peterson also represent SVC at such events.

O P E R AT I O N P R O F I L E

Smith Vending Canteen Website: www.smith-vending.com Founded: 1976 Founder: Lyle Smith Current leadership: Ashilyn Sunderman since 2021 Headquarters: Clarinda, Iowa Offices and locations: Clarinda (main office and warehouse), Denison (warehouse), Ottumwa (warehouse) Number of employees: 42 Number of acquisitions: over a dozen Services: Vending, micro markets, office coffee service Routes: 15 OCS locations: 266 Self-checkout and micro markets: 67 Vending machines: 956 Filtered water locations: 10 Technology and equipment providers: Gimme (VMS), Avanti Markets (micro markets), Lightspeed Automation (pre-kitting) Distributors: Vistar, Farner Bocken (Div. of Core-Mark), Omaha Pepsi, Chesterman Coke, Atlantic Coke, American Bottling (KDP), Anderson Erickson Dairy, Kitchen Fresh Foods

on site improves employee morale because they can give away coupons to celebrate milestones, or we can implement promotions such as market coupons,” Alex explained.

“It also helps keep their employees on site, which improves workplace productivity.”

Most of SVC’s micro markets are in partnership with Avanti Markets, and Ashilyn said the SVC team utilizes the Avanti Market System (AMS) technology to ensure that their micro markets are always wellstocked with personalized inventory and offerings tailored to the customers at each location.

“We usually start out with a general plan, but based on the demographics of the location, we can change that plan, restructure it for seasonal changes, or personalize it for the population,” said Ashilyn. “For example, we have a few Japanese-based manufacturing plants and were asked to June/July 2025 • VendingMarketWatch.com

15

stock them with some Asian selections, so we tried shrimp chips for the first time, and they were a hit!

“The Avanti technology makes it easy to tailor items according to the population, what they like, and what sells. And, for us, it’s always a lot of fun to test and supply new items, especially when it’s something customers wouldn’t normally find in other locations,” she said.

USING TECHNOLOGY TO ENHANCE OPERATIONS Embracing modern technologies to streamline operations and further enhance customer service is another vision both Rod and Ashilyn share.

In addition to using the Avanti planograms tool to increase the efficiency of inventory planning in the micro markets, SVC utilizes Gimme vending management software (VMS). “The software is great, and it’s portable. We use it as our route driver platform, and I use it to run reports, set service calls, look at our planograms and change schedules,” said Ashilyn. “It’s been key to helping

Ashilyn Sunderman took over SVC from her father, Rod Nester, in 2021.

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Automatic Merchandiser • June/July 2025

us manage product and inventory in our warehouse and individual locations and to see what’s selling and what isn’t.”

She continued: “Back when I started, it was up to the drivers to stock whatever product they wanted to in the machines, but now we rely on reports to see our top sellers, our slow sellers, whether a location frequently sells out of a certain product between visits, or whether we need to remove a product and try something else. The ability to make datadriven business decisions gives us an edge in inventory and management, which, in turn, allows us to provide better service.”

Rod added that the right mix of customer-facing technology and back-end management software is key to an operator’s success.

“Software helps us market the right products, get accurate financials and increase productivity, while micro markets are making purchasing easier and more convenient for the consumer. We use technology to ensure that we are doing whatever we can to make that ‘breaktime experience’ the best we can,” he said.

INDUSTRY ENGAGEMENT FOSTERS A POSITIVE COMPANY CULTURE One of the ways Ashilyn continues to stay on top of the latest vending management technologies and trends is through active industry engagement with the National Automatic Merchandising Association (NAMA), another passion she acquired from her father. Sunderman is also the executive director and secretary for the Iowa Automatic Merchandising Association (IAMA).

“My father was and still is very passionate about industry associations. He was a NAMA board

member and was involved in NAMA’s Executive Development Program, so as soon as I began moving into leadership roles, he encouraged me to get involved,” explained Ashilyn.

Through the years, Ashilyn has earned her NAMA Certified Executive (NCE) and Certified Coffee Specialist (CCS) credentials.

“I’m so glad I listened to my dad,” said Ashilyn. “Not only does being active in NAMA and IAMA ensure that I have a great base of other industry professionals with whom I can network about the latest technologies and trends, but I truly believe that I wouldn’t be the leader I am today without all the knowledge that I gained through NAMA’s Executive Development Program.”

She continued: “I didn’t learn to be a ‘boss’ through the programs.

Rather, the leadership development experience taught me how to grow

The Clarinda SVC team ensures that the company’s motto, “Quality products at fair prices with excellent service,” is evident to their customers.

SVC’s fleet is essential to servicing vending routes, micro markets and OCS.

a good team, which I now know is about more than just asking employees for what you need from them.

Thanks to my involvement in the NAMA Executive Development Program, I learned how to talk to my team so they know what’s important to me, and I know what’s important to them. I want my team to

feel cared about, so they want to come to work.”

“Developing this type of company culture is critical to SVC’s success, so I focus on taking care of my team and try to show them that I appreciate them. They do such a good job, which makes it easier for me to do mine,” said Ashilyn. “If you have a good team behind you, you are going to do great things. If employees are passionate and care about their job, it’s going to roll over into the effort they put in to make sure our customers are happy.”

CREATING A LEGACY OF GREAT BREAKROOM EXPERIENCES At the end of the day, that is not only what makes SVC successful, but also what makes both Rod and Ashilyn happiest. “I love that we provide a great break experience for people,” said Ashilyn. “For me, it’s such a fun thing to be there for people in the

middle of their workday, to make their day just a little bit better.”

Rod agreed: “It’s all about remembering what counts…our clients (and their needs) and our team. We aren’t in this business for practice, and we don’t operate by being the cheapest, but by being a leader in our industry and making positive differences for our customers. We remain firm in our commitment to excellent service and to having loyal customers and a team that delivers on our promises.

“It is because of this vision and this commitment to customer service that we still have clients today from when I started in the late 80s and early 90s,” said Rod. “These folks matter to me, but the most important relationship I’ve developed during my years with Smith Vending Canteen is the one with my daughter. She carries on my legacy with the same passion and care that I did. I couldn’t be more proud of her.” ■ June/July 2025 • VendingMarketWatch.com

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Meet the 2025 40 Under 40

Honoring the future of convenience services Each year, Automatic Merchandiser recognizes 40 exceptional professionals under the age of 40 who are making an impact in the convenience services industry.

The 2025 class of 40 Under 40 reflects the breadth and energy of a rapidly evolving industry.

STEPHANIE BEERMAN

costs. Jared has also led efforts to standardize internal systems, documentation and service manuals, improving training and installation consistency.

Stephanie Beerman is the western regional sales manager for Barcel USA and has spent the past 14 years in the industry building a reputation as a resultsdriven leader with a passion for driving growth. With experience in CPG and unattended retail, Stephanie combines sharp, strategic insight with a collaborative spirit. Navigating a field rich with experienced professionals, she approaches this recognition with humility and gratitude for the mentors who have helped shape her journey. Known for her relentless drive and forward-thinking approach, Stephanie is committed to pushing boundaries, challenging norms and creating a meaningful and measurable impact. This honor not only reflects her dedication and accomplishments but also strengthens her resolve to continue growing, innovating and leading with purpose in an industry she loves.

Stephanie Beerman

JARED BLACK

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Automatic Merchandiser • June/July 2025

B. McKNIGHT CARR IV Jared Black

Jared Black is the lead engineer at Everest Ice and Water Systems, where he oversees all aspects of product design and manufacturing innovation. Jared is the architect behind Everest’s most advanced vending models, including the Avalanche and Ascent machines, each designed for improved efficiency, durability and customer usability. His work introduced patented features such as automatic bagging and Clean Vault UV technology, which helped Everest machines last longer, use fewer materials and reduce operating

McKnight Carr is president of MCM Vending in Muscle Shoals, Ala. Growing up, his father worked in the manufactured housing industry. He understood the value of vending, but most importantly, great service. At 16, McKnight’s father purchased 15 vending machines from an online ad as a hands-on way to teach his son about sales, customer service and money management. After a few years working under his father’s guidance, McKnight was able to save $10,000 and,

Mac Bolak

MAC BOLAK Mac Bolak has been starting companies in the artificial intelligence space since he was a teenager, including a venture capital-backed company that used AI to edit basketball footage autonomously for basketball coaches. In 2019, he founded Panoptyc, a micro market theft detection and security company. In 2025, its Sentry AI-powered walkout detection solution earned top honors in the Readers’ Choice Products of the Year Awards in the security category. Panoptyc works with industry leaders and is in more than 6,000 micro markets across the United States, Canada and Europe.

Panoptyc uses AI software and smart cameras to decrease theft in micro markets and save operators time reviewing footage. Bolak knows the industry inside and out and is continuously looking to improve Panoptyc’s services while also exploring new opportunities within the industry.

on October 1, 2014, purchased the machines himself. He operated the business from his parents’ garage, driven by a “can-do” attitude and a passion for serving others. Over the years, McKnight and his team have grown MCM into one of Alabama’s largest independent vending companies. Today, MCM operates as a full-line vending service, providing snacks, beverages, water and coffee services to approximately 20,000 people daily in manufacturing facilities across Alabama and Mississippi.

B. McKnight Carr

for his hands-on approach and innovative mindset, Shaun enjoys being a “guinea pig” for new equipment and technologies. He actively participates in beta programs, offering valuable feedback from an operator’s perspective. Shaun has made a significant impact on every aspect of the business and is committed to continuing the family legacy alongside his cousin.

BRADLEY CHARLES

Bradley Charles

Bradley Charles is a dynamic leader in the industry, distinguished by his unwavering customer-first mindset and passion for operational excellence, serving as an enterprise account manager at 365 Retail Markets.

Brad has a proven track record of driving performance through handson leadership, empowering teams and fostering collaboration to ensure a seamless customer experience at every touch point. Brad’s strategic vision and proactive approach enable him to anticipate market trends, implement innovative solutions and elevate service standards.

Deeply committed to team development and customer satisfaction, he inspires a culture of accountability, adaptability and continuous improvement.

Brad’s influential leadership and dedication make him a trusted and figure in the fast-paced unattended convenience environment.

Shaun Dayton

Daniel Fox is a partner at Cumberland Convenience Services, a family-owned company providing breakroom refreshments to the Greater Nashville area. He got his start in the industry in 2018, when he and his father purchased a vending route from a local operator. Since joining the company full-time in 2020, Daniel has helped grow the operation to over 250 machines, 30 markets and more than 20 OCS stations. While providing exceptional customer service will always be the company’s primary focus, Daniel has led the push into new technologies that have helped position Cumberland Convenience Services as an industry leader.

Daniel Fox

DANIEL FOX

SHAUN DAYTON Shaun Dayton is a third-generation vending operator at Canteen of Northern California, which was founded in 1970 and is currently the oldest operating Canteen franchise in the United States. Shaun grew up immersed in the family business — sweeping the warehouse, assisting with deliveries and running routes during the summer. Nine years ago, Shaun took on a more formal role within the company. Since then, he has led key modernization initiatives, including upgrading routes to tablets, installing credit card readers, implementing a new VMS and, most recently, integrating Smart Stores into the operation. Known

Thomas Denardo

THOMAS DENARDO Thomas Denardo serves as the national service manager at Everest Ice and Water Systems, where he oversees the company’s service operations and nationwide support infrastructure. With a background in technical service leadership, Thomas has built Everest’s service department into a technicianled team responsible for maintaining the company’s customer satisfaction. Under his direction, Everest achieved a 99% customer favorability rating and scaled its support efforts to match growth in the micro market and convenience retail space. He led the rollout of service support for major accounts and helped onboard national service providers, including PepsiCo, Newco and Tech24. Thomas also partners cross-functionally to standardize training manuals and video content, ensuring a smooth owner experience from install through ongoing service.

LUCAS GOODENOUGH Lucas Goodenough is the head of sales and operations at &Back Coffee, a purpose-driven coffee company committed to sustainability and impact. A founding team member, Lucas has played a pivotal

June/July 2025 • VendingMarketWatch.com

19

KAYIN KELLY Kayin “Pepper” Kelly is the founder of Vendture Group. With a sharp eye for innovation and a passion for operational excellence, Kayin has helped scale Vendture Group into a thriving enterprise, emphasizing datadriven decision-making and customer-first service models. He is also the co-founder and co-host of The Vendtelligence Podcast, a platform that spotlights emerging trends, technologies and voices in unattended retail. Through this podcast, Kayin has fostered community and thought leadership across the industry. His entrepreneurial spirit and forward-thinking approach have positioned him as a rising leader shaping the way operators think about automation, analytics and the future of vending.

Bobby Hites

BOBBY HITES Bobby Hites drives innovation and growth as national director of business development at Naturals2Go. Based in Savannah, Ga., Bobby brings sharp strategy and operational expertise to healthy vending and unattended retail, helping expand the company’s reach and influence. His journey began hands-on as he built one of Pennsylvania’s largest unattended retail businesses, gaining deep insight into what it takes to scale in this competitive space. Known for his collaborative leadership and vision, Bobby continues to shape the future of unattended retail through forward-thinking strategies and a commitment to healthier, more sustainable solutions.

MIKE JAMISON

20

Automatic Merchandiser • June/July 2025

MICHELLE LOPEZ-McKAY Michelle Lopez-McKay is a senior project manager at 365 Retail Markets, where she guides projects from intake through development, pilot and release. She works across departments to seamlessly transition initiatives from concept to launch, supporting teams at every stage. She played a key role in launching the MM6, part of 365’s popular micro market product line. Today, she leads large, high profile projects with major customers in the vending and micro market industries. Michelle is known for her steady leadership and ability to deliver results that matter to stakeholders and customers. She earned her degree in economics from Oakland University and, drawn to the creative side of technology, transitioned Michelle Lopez

Mike Jamison

Mike Jamison is the founder and CEO of NewAge Refreshments, a rapidly growing company based in Middle Tennessee, specializing in micro markets, pantry services, office coffee and modern vending solutions. Since launching in 2024, Mike has transformed NewAge from a small operation into a full-service unattended retail partner trusted by Class A offices, co-working spaces and commercial real estate groups. Mike also serves on the NAMA Emerging Leaders Network Steering Committee, contributing to the future of the industry at a national level. His mission is clear: to upgrade the breakroom experience across Middle Tennessee, replacing outdated setups with fresh, modern amenities.

Kayin Kelly

Blake Johnson has been with Pot O’ Gold Coffee for nine years, starting as a driver and working his way up to managing the drivers, routes and customer experience. His hands-on knowledge and understanding across multiple roles have allowed him to develop a deeper understanding of operations across multiple departments. Blake specializes in route optimization and operational efficiency, ensuring the team consistently delivers top-quality service. His leadership is driven by a strong commitment to doing the job right and maintaining the customer-focused values that define Pot O’ Gold Coffee Service.

Blake Johnson

BLAKE JOHNSON

Lucas Goodenough

role in growing &Back Coffee’s footprint, leading the company’s expansion into more than 500 locations across North America. The company is dedicated to women’s empowerment through responsible sourcing while helping businesses achieve sustainability, inclusion and employee engagement goals through coffee. Lucas has spearheaded strategic partnerships and led the creation of &Back Coffee’s ImpactQRC platform, a tool that connects customers to the farmers behind their cup. A proud member of the LGBTQ2S+ community, he advocates for inclusive representation and is deeply engaged with women coffee farmers at origin.

into development before finding her passion in project management.

John Malley

JOHN MALLEY

KELLY MEADOWS Kelly Meadows is a seasoned sales leader in the office coffee service (OCS) industry, currently serving as the director of national accounts for OCS at Lavazza Group. With more than 15 years of experience in national account management, Kelly has held key roles at Lavazza and Mars Drinks, where he led strategic growth initiatives across the United States. Kelly is actively involved in industry leadership as a member

Kelly Meadows

John Malley is a dynamic technology leader and software engineer with a track record of innovation, security and strategic growth in the unattended retail and technology sectors.

As the technology lead manager at ProWatch Solutions, John plays a pivotal role in developing and optimizing ProWatch’s Automated Retail Management System (ARMS), a platform designed for loss prevention and security monitoring in micro markets. With expertise in full-stack development, AWS infrastructure management, AI and cybersecurity, John has successfully designed, implemented and scaled digital solutions that drive efficiency and enhance customer security. His work at ProWatch Solutions is helping businesses protect assets, optimize theft prevention, and streamline operations.

always been passionate about sports and health, which naturally influenced his vision for MarcheNYC and is why the company offers options that prioritize wellness without sacrificing convenience or quality.

As COO, Brandon focuses on ensuring seamless operations while curating products that align with his clients’ needs and values. By blending industry expertise with his dedication to health and innovation, he is proud to help transform workplaces with better refreshment solutions.

Billy Mandile

BILLY MANDILE Billy Mandile is the co-founder and CEO of MarcheNYC, a company focused on redefining micro market and OCS experiences. Billy grew up working in his father’s traditional vending business, where he developed a deep understanding of the industry and watched it evolve, especially with the growth of office coffee services (OCS). When his father sold the business, Billy and his brother saw an opportunity to build something new. They combined their experience and passion to create MarcheNYC. At MarcheNYC, Billy prioritizes innovation, convenience and exceptional service to provide businesses with modern breakroom solutions. Leading this journey has been an incredible experience, he says, and he is proud to help shape the future of the industry.

Congratulations Stephanie Beerman WESTERN REGIONAL SALES MANAGER

Brandon Mandile

BRANDON MANDILE Brandon Mandile is the co-founder and COO of MarcheNYC. Growing up in the vending industry, Brandon has been immersed in the business his entire life as his journey began in his family’s traditional vending business, where he developed a strong foundation in operations and customer service. Outside of work, Brandon has

barcel-usa.com

June/July 2025 • VendingMarketWatch.com 2507AUTM_BarcelUSA_REV.indd 1

21 6/4/25 10:28 AM

McCants Plymel

McCANTS PLYMEL

DAVID PRINCE

NATALI POPOVAC-PETERS Natali Popovac-Peters has built a career on breaking barriers in male-dominated industries, from trucking to financial services. In 2017, she transitioned into franchise consulting, quickly establishing herself as a leader in Canada’s vending industry. At Naturals2Go,

22

Automatic Merchandiser • June/July 2025

JAMES ROSS WINSTON David Prince

David and Natalie Prince are the cofounders of VendTastic, Northern Michigan’s fast-growing vending company, redefining convenience. In less than two years, they have expanded VendTastic to more than 60 locations, proving that innovation and determination fuel success in the industry. With the bold slogan “Crave.

Vend. Repeat.” VendTastic delivers seamless, satisfying vending experiences tailored to modern consumer needs. Their leadership and strategic vision continue to propel VendTastic forward, making them standout entrepreneurs in the vending space.

Gilbert Ramirez

GILBERT RAMIREZ JR. Gilbert Ramirez Jr. is the brand marketing manager for Everest Ice and Water Systems, leading strategic growth, creative direction and customer engagement. With a master’s degree in architecture, Gilbert brings a unique “master-planning” mindset to marketing, treating every campaign like a blueprint with clear intent and scalable impact. He played a lead role in launching Everest’s latest machine, the Avalanche, helping reshape the way ice vending is marketed and sold. Gilbert also built Everest University, a digital onboarding platform for new owners, and developed a testimonial program that showcases customer success in their own words.

Ross Winston is Panoptyc’s vice president of operations and serves as the senior connector between Panoptyc’s product, engineering, sales, finance and support organizations. Under his leadership, Panoptyc identifies hundreds of thousands of unattended retail thefts annually and deters countless more. Joining the team in 2023, Ross made an early and sizable impact and was the driving force behind Panoptyc’s theft deterrence solutions. Ross overhauled Panoptyc’s finance department, reducing invoicing and other finance errors that hyper-growth companies often experience.

At Panoptyc, Ross has a primary focus: delivering unparalleled value to customers. An avid pilot, Ross enjoys traveling the country to visit clients and colleagues. Ross is an Eagle Scout and the former Blue Devil Mascot at Duke University.

James Ross Winston

McCants Plymel is a third-generation vendor at Variety Companies. The company currently operates around 90 micro markets and more than 500 vending machines, and it serves around 500 coffee and tea customers. Since assuming leadership of Variety Companies, in addition to rebranding and growing the business, McCants has facilitated warehouse changes for efficiency, rearranged the customer service schedule and route fleet to maximum efficiency, executed aggressive pricing objectives, directed a loss prevention program that cut shrink by more than 50 percent, optimized the company’s fresh food offerings, assisted the team with launching hot food catering, and launched a promotion program within the company’s micro markets. McCants notes that his success with Variety Companies could not have been achieved without the leadership, groundwork and hard work instilled in him by his father and grandfather.

Natali thrived in a historically maleled environment, growing the account management team and championing inclusivity. In 2024, she took on one of her biggest challenges yet, leading both the locating and account management teams. Under her leadership, the teams tripled in size, processes were streamlined and efficiency soared, increasing output by 50%. Natali’s success is fueled by her ability to earn trust, build strong relationships and deliver resultsdriven solutions. A dedicated mentor and advocate for women in business, she continues to inspire others while balancing a thriving career and family life.

Natali Popovac-Peters

of the Industry Advisory Board for the Society for Hospitality and Foodservice Management (SHFM), reflecting his commitment to advancing workplace amenities and foodservice innovation. Kelly is known for his client-first approach, collaborative leadership, and ability to drive sustainable growth in the OCS and workplace beverage sectors.

Automatic Merchandiser 40 Under 40

Russ Russell

RUSS RUSSELL Russ Russell serves as the regional sales director in the west at Cantaloupe Inc., where he helps fastgrowing and enterprise-level vending, micro market and OCS operators discover growth opportunities through technology and operational enhancements. Joining Cantaloupe in December 2022 as a business development manager, he leveraged his background in sales, finance and customer service to make a swift transition into the vending and unattended retail sector.

In a short time, Russ has expanded his industry network through conferences, trade shows and operator meetings. With a strong entrepreneurial mindset, he is dedicated to pushing boundaries and implementing innovative technologies that align with Cantaloupe’s vision of leading self-service commerce globally.

Russ frequently shares his insights on the future of technology in the industry through presentations at conferences.

Brad Charles Enterprise Account Manager

Andrew Shelly

ANDREW SHELLY Born into the industry, Andrew began his career at an early age, working alongside his father and grandfather at Tremont Vending Inc. In 2011, he became vice president of sales and operations, and during his tenure, Andrew revitalized the company by managing a portfolio of over 400 accounts, spearheading key technology upgrades, implementing VMS and markets and leading two successful acquisitions. In 2023, his leadership culminated in the successful sale of Tremont.

Andrew then joined Just Baked, where he oversaw national sales for major industry partners and played a pivotal role in accelerating the company’s growth.

Today, Andrew serves as senior manager, national OCS key accounts at Cimbali USA, where he is driving the expansion of the Cimbali portfolio across the U.S. and Canadian OCS markets.

Brad Charles is a dynamic leader in the convenience industry, known for his customer-first mindset and focus on operational excellence. With a handson leadership style, he empowers teams, drives performance, and fosters collaboration to deliver a consistent customer experience. Brad’s forwardthinking approach and strategic vision allow him to anticipate trends, implement practical solutions, and raise service standards—all while cultivating a culture of accountability and continuous improvement.

Michelle Lopez-McKay Senior Project Manager

Steven Small

STEVEN SMALL As the IT and business systems manager at BostonbeaN Coffee Co., Steven Small leads technological initiatives to support and evolve workplace café and pantry services.

He manages the company’s infrastructure, optimizes business platforms and ensures that every system contributes to smoother

365 Retail Markets is proud to recognize Brad Charles & Michelle Lopez-McKay

Michelle Lopez-McKay is a Senior Project Manager at 365 Retail Markets, known for guiding complex initiatives from concept to launch. She played a key role in the rollout of the MM6 and now leads high-impact projects with major vending and micro market partners. With a background in economics and a passion for the creative side of technology, Michelle brings steady leadership, cross-functional collaboration, and a clear focus on delivering results that matter.

June/July 2025 • VendingMarketWatch.com

23

SHANE SWANSON

operations and improved client experiences. Steven has introduced solutions that reduce manual processes, enhance data security, and maintain reliable performance as a one-person IT department.

Before stepping into this field, he spent nearly a decade as a middle-school science teacher, which taught Steven how to stay adaptable, communicate clearly and think critically under pressure.

Shane Swanson

ZACHARY STOMEL

24

Automatic Merchandiser • June/July 2025

Ashilyn Sunderman

ASHILYN SUNDERMAN As the CEO of Smith Vending Canteen (SVC), Ashilyn brings more than 16 years of experience in the vending industry, with the last four years dedicated to leading the company. Under her guidance, SVC has grown from a small operation with just 10 employees and five routes to a thriving business with 42 employees and 15 routes, all while fostering a strong company culture. A graduate of Northwest Missouri State University with a degree in business management, Ashilyn has also earned her NCE and CCE certifications and completed NAMA’s Executive Development Program. Beyond her professional achievements, Ashilyn is a dedicated mother of two active children and a supportive farmer’s wife. Passionate about giving back to her community, she serves on several boards, including the Cardinal Fund, Clarinda Foundation, and CRHC PFAC.

Brittany Tresemer

BRITTANY TRESEMER Brittany Tresemer is a dynamic leader, currently serving as the director of marketing and commercial excellence at Franke Coffee Systems.

With more than 13 years in the foodservice industry, she drives growth through innovative category insights, customer marketing and product development. Her leadership has earned Franke seven prestigious industry awards in North America over the past four years. Brittany is dedicated to continuous learning and growth, aligning strategies with evolving consumer needs. A regular at major trade shows, conferences and networking events, she stays ahead of industry trends and is a trusted source, quoted in over 10 publications. Passionate about mentorship and team development, Brittany fosters a culture of inclusion and empowerment.

PASCAL UFFER The CEO and co-founder of Boost Inc. since 2020, Pascal Uffer began his vending career in 2015 as Group COO of Selecta, Europe’s largest operator, where he led the acquisitions of Pelican Rouge, Argenta and Express Vending, and oversaw the rollout of telemetry and cashless payments across 200,000 machines.

He also launched Foodie’s micro markets, pioneering unattended retail in Europe. Pascal also led the development of Vendlive, the first fully cloud-based, hardware-agnostic operating system for vending.

Under his leadership, Boost has expanded into over 10 countries, serving more than 400 customers and

Pascal Uffer

Zach Stomel serves as director of operations at a leading vending and office coffee service company, where he brings a data-driven mindset to daily operations and long-term strategy. With degrees in mathematics, statistics and economics, Zach leverages analytical thinking to streamline logistics, optimize route efficiency and enhance customer experience. His approach blends operational excellence with innovation, helping modernize traditional vending through technology integration and service refinement. Zach’s leadership has played a key role in driving consistent growth, improving team performance and expanding service capabilities across markets. Known for his attention to detail and deep understanding of both numbers and people, he builds systems that work and relationships that last.

Shane Swanson is a forward-thinking sales and customer service manager at Coley Canteen, specializing in micro markets and advanced vending technologies. With over 10 years of industry experience, Shane bridges the gap between customer needs and cutting-edge self-service solutions, helping businesses modernize their breakrooms and retail spaces. Shane has played a key role in driving the adoption of smart vending systems, mobile payments and customized micro market layouts for a range of clients, from corporate offices to manufacturing facilities. His deep understanding of consumer behavior and emerging retail tech enables him to design tailored solutions that improve user experience and boost client ROI.

generating over €20 million in revenue. Pascal also founded Boostbar, Switzerland’s fastest-growing operator, and Hofmanns2Go, Europe’s largest frozen food vending network.

social media content, product launches, technical training and testimonial storytelling. Alvaro’s creative direction has helped Everest achieve more than 1 million monthly views on YouTube. His work has been instrumental in the success of Everest’s free machine contest, product marketing and educational video resources for owners and service teams.

JASON VINCENT As the chief product and technology officer as well as co-founder of Boost Inc., Jason Vincent is a technology entrepreneur with more than 15 years of experience leading innovation in unattended retail, vending and blockchain. As founder of Aeguana and now CPTO at Boost Inc., formed via a strategic merger with Boostbar AG, Justin has reshaped how operators manage vending, micro markets and self-serve coffee. He developed Vendlive, enabling real-time, cloud-based management and integrated e-commerce functionality. Jason has forged key OEM partnerships with global manufacturers to enhance machine capabilities and drive system-wide innovation.

Jason Vincent

Heather Ulich

HEATHER ULICH Heather began her journey at Office Libations as a sales representative, quickly earning trust by listening closely to clients and effectively matching solutions to their needs. Over the years, she’s worn nearly every hat, leading sales, marketing, operations, onboarding and even stepping in to run delivery routes and warehouse shifts when needed. Her “no job is too small” mindset and high standards have shaped the culture and operational excellence of the entire company. As chief customer experience officer, Heather leads a team that solves client issues rapidly and empathetically. Her upbeat, unflappable attitude is a constant source of calm and clarity, no matter the challenge. Office Libations’ survival — and post-pandemic growth — is a direct result of Heather’s tireless commitment to doing right by clients, her deep operational knowledge and her ability to lead with heart.

Antares Vargas

Antares Vargas is the founder and CEO of Keep That Vending, a modern vending and micro market company based in Los Angeles. Combining innovation, design and technology, Antares has built a new model for convenience services. As Hollywood productions have slowed significantly, Antares has made it a mission to provide jobs for creatives affected by the entertainment industry’s downturn. Her team of vending operators consists entirely of artists, filmmakers and storytellers who maintain financial stability while continuing to pursue their passions. Under her leadership, Keep That Vending has experienced rapid growth, securing high profile partnerships, including multiple Greystar residential properties.

We also recognize the following honorees: JUSTIN EPPINGER, A&M Equipment Sales; JAIME IBANEZ, Vending Bites; NAKIA WHITE-HAZEL, CEO of Life’s Sweet & Savory Vending; and SHANE WISE, account executive with Panoptyc.

Alvaro Velasquez

ALVARO VELASQUEZ Alvaro Velasquez is the creative engine behind Everest Ice and Water Systems’ digital presence, serving as the company’s digital media specialist. He leads all videography efforts across departments, encompassing

Alp Yorston is an equipment specialist at Everest Ice and Water Systems, where he has spent the past five years helping entrepreneurs and operators launch successful vending businesses. Known for his customer service and technical expertise, Alp consistently ranks as one of Everest’s highest-producing sales professionals. Beyond sales, he has been a key driver behind internal improvements, often integrating new software and technology tools to streamline operations company-wide. Alp played a central role in launching Everest’s BlueBox C-Store Programs and serves as an informal technology advisor, as well as a mentor to fellow sales team members.

Alp Yorston

ALP YORSTON ANTARES VARGAS

June/July 2025 • VendingMarketWatch.com

25

ANNUAL REPORT STATE OF THE INDUSTRY

TECHNO L OG Y A CONVE ND FUEL GR NIENCE

OWTH

As technology enables operators to explore locations beyond business and industry, the industry has continued its upward trend.

by Linda Becker, Editor-in-Chief

CHART 1B:

CHART 1A:

33.85

30

21.60

22.0

2023

26.04

24.20 19.40

21.70

13.30

15

2024

36%

20

57%

20.90

23.50

36.84%

25

2016

2017

2018

2019

2020

2021

2022

2023

2024

CHART 2:

Operator sales REVENUE RANGE

% OF 2024 OPERATORS

PROJECTED 2024 SALES

% OF 2024 SALES

Small

under $1M

52%

$2.67B

7.90%

Medium

$1M–$4.9M

28%

$6.33B

18.70%

Large

$5M–$9.9M

10%

$2.78B

8.20%

Extra large

$10M +

10%

$22.07B

65.20%

Automatic Merchandiser • June/July 2025

Growing:

Staying the same

Declining

The vending and micro market industry climbs

30%

2023

2022 in total revenue.

36.84%

26

SIZE

Growing

91%

2015

89%

0

0%

5

7%

9%

10

Image: 55920974 © Millena12 | Dreamstime.com; lvcandy / DigitalVision Vectors / via Getty Images

35

91%

Micro market 2-year review

Industry revenue in billions

I

CHART 3A: Machines by location N 2024, VENDING AND

micro market sales increased by 30%, from $26.04 billion to $33.85 billion, according to our exclusive research in the State of the Vending and Micro Market Industry report, marking the continuation of the post-pandemic resurgence.

Many of the same drivers behind 2023’s gains carried into 2024: • Growth of locations as workers return to the office.

• Revenue gains from new accounts.

• Increasing prices.

• Adding new services for existing customers.

• Implementing new equipment 37% and technology.

At the same time, easing inflation and labor concerns have removed some pressures on operating costs.

● Manufacturing ● Offices ● Retail sites ● Hotels/motels ● Elementary,

● Hospitals,

nursing homes

● Universities, colleges

● Correctional ● Military bases ● Restaurants, bars, clubs

3.6%

10.4%

10%

of the businesses.

22% 2022

76%

2023

70%

2024

60%

6%

2024

19.2%

9.0%

24%

9.9% 6.8% 6.7%

42%

2020

20%

Consolidation effect:

of the industry’s revenue is made up of

2%

18.6%

10.4%

21% NEW OPERATOR INFLUX Again in 2024, new operators entered 4% the vending space, drawn by the promise of “passive income” touted by social media influencers. While small26% 70% 2021 operators, which are defined as those CHART 3C: with less than $1 million in annual Micro markets by location revenue, account for 52% of the numManufacturing ● ● Hospitals, ber of operators, they drove the smallnursing homes ● Offices est percentage of sales in 2024, at 7.4%. ● Universities, ● Retail sites colleges As small operators continue to scale up in future years, it is anticipated that 84 ● Hotels/motels ● Correctional facilities ● Elementary, increased they will account for a larger share. middle, Military bases ● 16 high schools remained ● Restaurants,

65%

● Increased ● Remained the same ● Decreased

facilities

middle, high schools

5.6%

CHART 3B: Number of locations served

20%

CHART 3D: Number of micro market locations served ● Increased ● Decreased ● Remained the same 16%

bars, clubs

7.5%

2023

84%

2024

36%

6.4% 28.6%

7.8%

7% 2024

7.9%

12.4%

10.2% 6.9%

7.9%

57%

4.3% June/July 2025 • VendingMarketWatch.com

27

CHART 4A: Percentage of each type that makes up placed vending machines 6.3% ● Cold beverage ● Hot beverage ● Glassfront ● Refrigerated food ● Frozen only

CHART 4D:

Average shrinkage rate in micro markets

9.4% 38.7%

2024

40.6% 4.9%

2021

2022

2023

2024

0%

0.5%

2%

3%

0%

1%

6.5%

7%

8%

7%

2%

8.5%

8%

9%

10%

3%

15%

22%

23%

18%

4%

31%

30%

28%

32%

5%

15%

13%

14%

15%

6%

15%

11%

10%

6%

>7%

7.5%

6%

5%

7%

I don’t know

1%

1%

0%

5%

CHART 4E:

Most common loss prevention techniques

CHART 4B: Active micro market locations

55,770 42,900

23,681 25,339 26,094 23,746 25,750

30,385

17,806

2022

2023

2024

Regular market inventory

67%

64%

72%

Hired loss prevention employee

16%

28%

12%

Working with a lossprevention consultant

11%

16%

14%

Screens showing canceled orders

75%

68%

57%

Signage about theft in micro market area

60%

56%

51%

Camera feed displayed above kiosk

55%

60%

60%

Estimated total vending machines 2017

2018

2019

2020

2021

2022 2023 2024

2,175,756

2,059,612

1,740,604

2,203,784

1,971,600

2,336,011

in 2019

CHART 4C:

Smallest location where a micro market is currently placed ● 2020

● 2021

● 2022

● 2023

● 2024

in 2020

in 2021

in 2023

in 2024

46%

40%

in 2022

37.5%

Automatic Merchandiser • June/July 2025

5.2% 3.5% 3% 4% 14.3%

5.3% 2.0% 2.5% 2.5% 14.3%

10.5%

100-150 employees

10.5% 9% 5% 6.5% 14.3%

50-100 employees

20.6% 20.5% 16% 12% 14.3%

had the highest increase in 2024.

14.3%

16%

28

50 to 100 or fewer employees

31%

33.5% 36% 29% 28.6% Less than 50 employees

The number of micro markets placed in locations with

150-200 employees

200-250 employees

250 or more employees

Images: 201946082 | Background © Инна Харламова | Dreamstime.com; HCavid | Shutterstock

2016

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A300 Fresh Brew

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*The National Coffee Association of USA, 2024 National Coffee Data Trends (NCDT), Spring Edition

18%

of operators said they acquired business in 2024.

8%

CHART 5A:

Technology rankings, averaged ● Great Investment–ROI

said they divested part of their business.

Cashless payment

84% 5% 46%

Prekitting

At the same time, industry consolidation continues, as long-term operators seek to cash out and retire.

National and regional operators were often best positioned to acquire these businesses, which is reflected Cashless in the fact that extra-large operators — those with revpayment 5% Cashless payment enue exceeding $10 million per year — represent 10% 5% 46% of the total operators but 65.2% ofPrekitting the 2024 sales.

46% 25% Prekitting Vending Management Vending System Management

25%

56% 56%

25% VENDING MACHINES STILL System 25% 63% Remote DOMINATE B&I LOCATIONS monitoring 63% Remote 13% monitoring 13% While modern vending solutionsWarehouse such as smart 43% pick to light Warehouse 43% 54% coolers are displacing both vending machines pick system to light 54% system 57% and micro markets in some locations, vending LED lights 57% 17% LED lights machines still serve numerous unattended business 17% 51% QR code on machine and industry locations. While manufacturing 17% and 51% QR code on machine 17% Video offices still account for the largest segments of 31% the screens 31% Video 58% vending machine location pie, gainsscreens in schools and 58% universities, medical and long-term care facilities, and correctional facilities were notable.

Operators had an estimated 2.3 million vending machines in locations, representing a 7% increase from 2023. Cold beverages and glass-front machines continue to dominate.

MICRO MARKET GROWTH CONTINUES As operators gain penetration in new locations such as large residential complexes and continue to convert vending locations to micro markets, the number of micro market locations increased in 2024 to 55,770, from 42,900 the previous year — a 30% increase. Operators pointed to the addition of

70% 96% 30

of survey participants said 90%-100% of their machines were equipped to accept cashless payments in 2024. of survey participants said cashless payment technology is a great investment.

25%

Vending Management System

84% 84%

Remote monitoring

56% 25% 63% 13%

Warehouse pick to light system

43% 54% 57%

LED lights QR code on machine

● Don't use it/like it

17% 51% 17% 31%

Video screens

58%

CHART 5B: Vending data collection trends ● Telemeter or cashless device remotely/using the cloud ● Manual process (such as paper and pencil) on location ● Handheld device on location ● Smartphone or tablet (Apple or Android) on location 16% 16% 9% 9%

2023 2023

48% 48%

24% 24% 2024 2024

50% 50%

13%

202

48% 13%

25% 25%

13% 13%

CHART 5C: Vending management systems ● Use a VMS

● Don't use a VMS

81% 81%

73% 73%

2023 2023

2024 2024

19% 19%

27% 27%

81%

Automatic Merchandiser • June/July 2025

202

77%

CHART 6:

Best-selling better-for-you products in micro markets

Jerky snacks

15%

Fresh food

15%

Fruit snacks

14%

Nuts/trail mix

8%

Baked salty snacks

7%

Cereal bars

new business, improved product offerings, and the use of technology as key drivers. At the same time, the introduction of smart coolers, which virtually eliminate the risk of shrinkage, allowed operators to create micro-stores in locations not secure enough for a traditional micro market.

Product introductions that will extend the use of smart markets were a key focus of the 2025 NAMA Show. It will be interesting to see whether smart coolers and micro stores substantially replace vending machines and micro markets in 2025.

Manufacturing locations claimed the largest share of micro market locations in 2024, with 28.6%, followed by office at 12.4%. Micro market locations at hospitality, medical facilities and schools and universities all increased again in 2024. As a result, for the first time, the combined manufacturing and office locations did not represent more than half of the convenience services demographic.

5%

CHART 7A: Vended share of sales by product category ● Cold beverages ● Snacks ● Candy ● Confections ● Healthy ● Food ● Hot beverages ● Ice cream ● Frozen food/ meals

2.1% 4.1%

8.7%

2024

17.6%

12%

Images: I380187495 © Zahadur Rahman | 371008904 | © Koythethree | 99665489 © Amonrat Rungreangfangsai | Dreamstime.com; tanyabosyk | shutterstock

4.4%

non-edible items)

CHART 7C: Share of sales by service category, combined services

16.6%

CHART 7B: Micro market share of sales by product category

● Ice cream ● Other (includes

25%

8.3%

non-edible items)

meals

1%

4.6%

● Other (includes

● Cold beverages ● Food ● Snacks ● Confections ● Healthy ● Candy ● Hot beverages ● Frozen food/

of operators say they offer healthy products in their vending machines.

36%

Energy bars

0.2%

6.6%

20.5%

7.5% 8.7%

2024

16.4% 9.3% 10.4%

16%

2022

2023

2024

Vending

59.0%

56.2%

39.9%

Micro markets

20.0%

22.6%

18.5%

OCS

9.1%

9.1%

8.7%

Water service

2.0%

2.0%

4.8%

Other

1.3%

1.3%

2.3%

Pantry service

2.0%

2.2%

5.2%

Bulk vending

0.4%

0.4%

1.9%

Manual foodservice

3.2%

3.3%

6.3%

Music

1.0%

0.9%

5.2%

Games

1.1%

1.1%

3.8%

Janitorial supplies

0.9%

0.9%

3.4%

June/July 2025 • VendingMarketWatch.com

31

63%

of survey respondents report having more than one kiosk in each of their micro markets.

LOSS PREVENTION SOLUTIONS Micro market theft remains a concern for operators.

Respondents to the State of the Vending and Micro Market Industry survey report 4% shrink on average.

Thin margins and operating cost pressures due to fuel and labor costs demand attention to product theft and losses. Regular market inventory counts remain a key technique for gauging the amount of market theft.

Adding cameras to monitor the market and signage about theft in the micro market area serve as key on-site deterrent methods.

TECHNOLOGY INVESTMENTS The influx of new operators is reflected in the technology trends. Key vending technologies such as prekitting tools and using a vending management system declined vs. 2023. The largest drop was in VMS investment, with only 56% of respondents in 2024 viewing it as a “great investment with good ROI” vs. 81% the previous year.

Prekitting dropped from 69% in 2023 to 45% in 2024.

Such changes are likely to be cyclical, however, as new operators become better established and seek productivity enhancements to scale their operations.

Consumers’ demand for the convenience of cashless payments continues to be felt, and operators responded.

Accordingly, 96% of respondents said cashless payment technology is a great investment, and more than 70% of all machines are currently equipped to accept cashless payments.

DEMAND FOR HEALTHY PRODUCTS More than 75% of operators offer better-for-you products in their vending machines and micro markets, even as they grapple with consumers who seek better-for-you items but purchase sweet and salty indulgences in larger 32

Automatic Merchandiser • June/July 2025

quantities. Demand for better-for-you options, particularly in the morning, presents opportunities for operators, said Nicholas Banke, director, marketing and insights, at Vistar, a PFG Co., at the NAMA Show. Operators should lean into daypart product selection to optimize sales in micro markets.

In vending, top-selling better-for-you products include nuts and trail mix, energy bars, jerky snacks and baked salty snacks.

Most operators refresh their product mix at least monthly (42%) or quarterly (28%), likely keeping assortments fresh with limited-time offers and seasonal flavors.

TAKEAWAYS In conclusion, with the overall industry revenue at $33.85 billion, it should come as no surprise that less than 5% of all respondents reported sales had decreased year over year. In fact, nearly 10% reported sales had increased by 100% year over year. Primary drivers for such gains included increased locations and marketing, growth with existing clients, eliminating poorly performing locations and their related costs, route consolidation and expansion, and price increases.

For more than 50% of respondents, the number of micro markets they operated remained the same, even as emerging market requests, return-to-work mandates and new clients presented opportunities to shift to more profitable locations. At the same time, more than 42% of operators said their micro market sales increased vs. 2023. ■

Methodology Data in Automatic Merchandiser’s State of the Industry report are compiled from a survey sent to operators in the spring. It collects responses from vending and micro market providers, as well as snack and soda operations. The State of the Industry report looks at performance results in major product categories.

Image: Unitone Vector | Shutterstock

Overall, 60% of operators reported an increase in locations in 2024, while only 20% reported a decrease.

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FUNCTIONAL FOODS

Snacks

with benefits Today’s snack food products prioritize healthier ingredients, functional properties and bold flavors to satisfy consumers who hunger for more than just a quick bite.

By Joy LePree, Contributing Editor

34

Automatic Merchandiser • June/July 2025

proteins and clean-label products that fuel productivity.

“Further, workplace wellness initiatives have elevated the role of snacks in daily routines,” Farrar continues. “Employees increasingly associate healthy snacking with better energy and focus, and companies are responding by curating selections that reflect these priorities.”

HEALTHY SNACKS: MORE THAN A MIDDAY PICK-ME-UP In addition, as snacking has become a larger

CiboVita

A

S THE WELLNESS

c­ ulture takes root, today’s snackers demand more from their between-meal treats. As a result, traditional vending, convenience and office coffee service (OCS) grab-and-go options — think salty chips and sugary candy bars — are being replaced with better-foryou alternatives that satisfy hunger while delivering functional benefits throughout the day.

“Today’s snackers are looking for more than just a quick bite,” says Monte Farrar, national sales manager with Jack Link’s Protein Snacks. “They want snacks that support focus, energy and well-being, so there is a shift away from sugary or carb-heavy options toward lean

part of people’s daily routines, it’s no longer just a midday affair. Rather, people are taking multiple snack breaks throughout the day and crave indulgences that support on-the-go nutrition.

Glanbia Nutritionals’ Healthy Snacking Trends report reveals that snackers are noshing on a wider variety of occasions, such as after hitting the gym in the morning, during a work break, or when they’re relaxing in the afternoon. “Consumers are choosing snack times to meet a range of needs from providing morning energy to serving as a meal substitute,” notes the report.

Yaxin Fan, research and development manager with CiboVita/ Nature’s Garden, perceives the same trend: “Whether it’s a morning refresher to kick start the day, a midday energy boost or an indulgent, yet nourishing treat in the afternoon, functional benefits such as sustained energy, mental focus or gut health are increasingly important.

At the same time, there is a growing demand for convenient grab-and-go formats as they eliminate the need for morning prep and allow easy consumption any time of day.”

Michael Klitsberg, senior sales manager, strategic accounts, with Dole Packaged Foods, agrees.

“There’s a noticeable shift toward all-day snacking,” he says.

“Traditional mealtimes are being replaced with more frequent, intentional snacking moments. Consumers are seeking snacks that are not only delicious but provide energy, fullness and real nutritional value to help power them throughout the day.”

CRAVEABLE, HEALTH-CONSCIOUS CRUNCH “Wellness trends have shifted the way people think about snacking at work,” says Sammy Kestenbaum, cofounder and CEO of 7 Mile Brands.

“More consumers are making the connection between what they eat and how they feel, but the focus is less about restriction and more about feeling good throughout the day.

“People are snack-happier than ever, but they’re getting pickier,” Kestenbaum continues. “There’s

Choosing betterfor-you snacks that are energizing can contribute to higher productivity, greater focus and a more positive mood.”

Michael Klitsberg, senior sales manager, strategic accounts, with Dole Packaged Foods

7 Mile Brands

It seems consumers’ appetite for convenient but healthy options, combined with more frequent nibbling, is driving steady snack food market growth. Globally, the snack food market was estimated to be valued at over $490 billion in 2024 and is projected to reach almost $659 billion by 2032. At the same time, the North American snack product market — a significant portion of those figures — was worth $114 billion in 2024 and is expected to grow to almost $165 billion during the forecast period, according to Stratis Research’s Snack Food Market Size, Share & Trends Analysis Report, 2024 to 2032.

The report states: “Due to its fastpaced lifestyle, the United States is seeing an increase in demand for convenient and healthy snack food.

More extended workdays and busier lifestyles have caused customers to switch from expensive luncheons and meals to desk snacks and packaged food, increasing snack sales.”

Although busy people rely heavily on snacks, their munching is not mindless. “Growing awareness of the importance of health and wellness encourages consumers to seek healthier dietary options, including snacks,” according to Grandview Research’s Healthy Snacks Market Size, Share and Trends Analysis Report 2024 to 2030. “As people become more conscious of the link between diet and health, they actively seek snacks that offer nutritional benefits and support their overall well-being.”

In response, companies are launching portable, healthier versions of traditional treats in every category from crackers to proteins to fruits to sweets. Read on to sink your teeth into the flavorful and functional snacks filling today’s vending, micro market and OCS shelves.

June/July 2025 • VendingMarketWatch.com

35

36

Automatic Merchandiser • June/July 2025

We think promoting

as smart coolers, protein-packed dairy items like cottage cheese can now be offered in more workplace and other unattended markets, says Darin Copeland, public relations manager with Prairie Farms Dairy.

“Our 4-oz. ProPack Snack cottage cheese cups offer 12 grams of protein, so they are perfect for snacking and appeal to consumers who are interested in health and wellness and products that offer high nutritional value,” he says. “We think promoting a workplace culture centered on healthy behaviors and food offerings is a wise choice. Snacks like cottage cheese can help improve the physical and mental health of employees because they help with satiation and nutritional value.”

FUNCTIONAL, FLAVORFUL FRUIT-FORWARD OPTIONS Similarly, technology is making it easier to bring frozen and specialty items into workplace environments, says Dole’s Klitsberg. “With advancements in frozen vending, products like our Dole Smoothie and Açaí Bowls are making fruit-forward snacks more easily accessible to accommodate healthy snacking.

“These products are designed for the way people snack today. Food is fuel and consumers want to make sure they’re filling their tank with the right ingredients,” explains Klitsberg.

“More people are recognizing the direct connection between what they

a workplace culture centered on healthy behaviors and food offerings is a wise choice.”

Darin Copeland, public relations manager,Prairie Farms Dairy

Prairie Farms Dairy

PRIORITIZING PROTEIN Similarly, nuts are well suited for convenience services, especially micro markets and vending in workplace environments, because they offer protein, fiber and unsaturated fats for a trio of nutrients that may help snackers feel fuller for longer, a beneficial combination for bridging hunger between meals, says Diana Salsa, vice president of marketing

with Wonderful Pistachios. “Protein is a top benefit sought in snacks, and pistachios standout as the highest protein nut,” she says. “Wonderful Pistachios are a nutritious, satisfying snack that provide both flavor and function.”

Wonderful’s In-Shell flavors include Roasted & Salted, Sweet Chili and Salt & Pepper, among others. The No-Shells line includes traditional options like Roasted & Salted as well as unique flavors such as Jalapeno Lime and Dill Pickle.

Farrar with Jack Link’s agrees that while consumers gravitate toward high protein, they also want to explore bold new flavors. Although the company has been a widely recognized protein snack brand for years with their Jack Link’s Sticks, they continue to expand their portfolio with flavors such as Wild Frank’s RedHot chicken sticks and the new Jack Link’s Duos line of products that feature two flavors in one package, such as Buffalo and Ranch sticks made with chicken.

And, thanks to technologies such Wonderful

more emphasis on flavor exploration, nostalgic comfort and multitasking snacks that deliver joy in every bite.

That’s where our product’s flavor-forward lineup lives.”

He says, “Our Pretzel Pita Chips and Pretzel Crackers reflect what today’s snackers want: real ingredients, bold flavor and better-for-you swaps like oven-baked instead of fried. Made with non-GMO ingredients, the 2-oz. singleserve bags of Pretzel Snackers deliver a bold, craveable crunch in a portion-controlled format that’s ideal for grab-and-go workplace snacking.”

Rebecca Brady, CEO of Top Seedz, adds that crunch cravers are looking for savory options with bold, global flavors that offer health benefits such as fiber, protein and healthy fats while prioritizing clean ingredients and functional nutrition. She says Top Seedz cleanlabel seed crackers and roasted seeds satisfy these yearnings. “Our fiberrich, protein-packed organic seeds provide clean energy that supports focus and productivity in convenient, shelf-stable pouches that are ideal for grab-and-go snacking,” notes Brady.

eat and how they feel — especially during the workday. Choosing better-for-you snacks that are energizing can contribute to higher productivity, greater focus and a more positive mood.”

He says Dole’s Smoothie and Açaí bowls are dairy-free and topped with real fruit and crunchy granola, making them “a refreshing, better-foryou option for anytime snacking.”

Jack Link’s Dole

Meanwhile, other snack makers are combining the health benefits of fruit with functional ingredients for gut health in convenient, portion-controlled packaging.

“Functional benefits such as sustained energy, mental focus and gut health are increasingly important,” notes CiboVita/Nature Garden’s Fan. “Many consumers report feeling the positive impact of probiotics on their digestion and overall health, which in turn helps them improve focus and productivity at work.”

She suggests this is one of the reasons for the workplace popularity of the company’s Probiotic Yoggies, which are yogurt-­ covered fruit bites that offer 2 billion gut-healthy probiotics and 3 grams of dietary fiber per serving.

FUNCTIONAL INDULGENCE Wellness trends are also influencing tweaks in traditional indulgences like chocolate and granola bars so that they provide functional benefits such as energy and protein while satisfying a sweet tooth.

Adam Deremo, founder and CEO of Awake, says, “Today’s wellinformed consumers are more likely to select items that align with their personal health goals. This shift toward purposeful snacking has been a driver of Awake’s growth as our chocolate offers indulgence and a functional energy boost to promote productivity.”

According to Deremo, Awake Chocolate Bites are a hit in the micro market and OCS space. “Each 0.48oz. bite is crafted with premium, Fair Trade-certified chocolate and infused with 50 mg of caffeine — equivalent to about half a cup of coffee — making them an ideal pickme-up for the mid-afternoon slump or night shifts,” he says. “All Awake Chocolate products are certified gluten-free, offering a delicious, energizing, and convenient option for health-conscious consumers.”

Top Seedz

Yoggies are non-GMO, gluten-free certified, and contain no artificial colors or flavors, making them ideal for inclusive eating.

Kind, which has a long-standing presence in vending, micro markets, and OCS spaces with their Kind Classic Nut Bars, recently launched the new Kind Protein Max bars.

“They offer 20 grams of protein and zero grams of added sugar, hitting many of the benefits consumers are looking for,” says Kelly Dunn, senior director of growth channels with Kind.

“Additionally, consumers are looking for snacks to fuel their day, and that includes the afternoon slump many of us face during the workday,” Dunn says. “This specific insight led us to create Kind Healthy Grain Energy Bars, which are hitting the shelves now. These bars are made from 100% whole grains, are a good source of fiber, and come in flavors like Strawberry Banana and Mixed Berry, so they are just the snack boost people need.”

While it seems that consumers crave snacks now more than ever, today’s healthier snacking culture promotes physical and mental well-being through convenient, on-the-go options that provide nutritional and functional benefits, satisfying cravings for flavorful indulgence throughout the day. ■ June/July 2025 • VendingMarketWatch.com

37

ENDURANCE

ENDURANCE: Defining the operator’s experience with one word

Bob Tullio

As someone who’s spent decades in this industry, I’ve seen what it really takes to survive and thrive. Endurance isn’t just a trait; it’s a way of life for operators. This piece explores how grit, leadership and relentless determination define the people who keep convenience services going, no matter what.

By Bob Tullio, Contributing Editor Bob and Peg Tullio on the Shackleton Trail.

38

Automatic Merchandiser • June/July 2025

School professor and historian Nancy Koehn, have been written about the explorer, praising his leadership, optimism and courage in the face of despair, starvation and almost certain failure.

After years of searching, the wreckage of the Endurance was found by the Endurance22 team in 2022, led by Menson Bound. When I spoke to Bound in the Falkland Islands in January, he said that he was sure that Shackleton would be proud of the expedition.

nearly a decade, following 37 years as an operator, and having interviewed countless operators and suppliers in the convenience services channel, I have seen their determination

LEADERSHIP, OPTIMISM AND COURAGE Like Shackleton, convenience services operators must exemplify leadership, optimism and courage.

Having covered this industry for

These Double Deckers aren’t just for vending!

Bob Tullio

:

I

F YOU EVER TRAVEL TO

Antarctica, as I did earlier this year, you will learn a lot about an explorer named Ernest Shackleton. In December of 1914, a 28-man crew set sail from England on his appropriately named ship, “Endurance.” Their goal was to circumnavigate the entire continent of Antarctica, a feat that had never been achieved before. By September of 1915, the Endurance was crushed by the ice and sank. Ultimately, Shackleton led a group of five on an incredible journey by lifeboat and on foot to South Georgia Island, where he was able to arrange for the rescue of the rest of his men in August 1916.

Many business books such as “Ernest Shackleton: Exploring Leadership,” by Harvard Business

Double Decker Chocolate Chip Creme Pie Fresh: 89088 Net Wt. 4.4 oz | Case Ct. 54 (9/6’s) ( fe: 62 Days Fresh Shelf Life:

• Easy for catering offerings • Perfect grab-and-go for micro markets • Brightly packaged for impulse buys in cafeterias *The Nielsen Company, SCANTRACK, Total US - Convenience, 52 Weeks Ending 11/30/2024. Baked Sweet Goods Category, ranked on unit sales

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Double Decker Fudge Round Fresh: 89291 | FOA: 89491 Net Wt. 3.9 oz | Case Ct. 54 (9/6’s) Fresh Shelf Life: 60 Days

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5/22/25 3:59 PM

June/July 2025 • VendingMarketWatch.com

39

up close and have been repeatedly impressed by their endurance — their ability to overcome hardship and adversity.

90 years of endurance

“Let’s start with the fact that the industry is 90 years old,” noted Carla Balakgie, President and CEO of NAMA. “That’s pretty enduring, right? Some elements of it are as it always has been, but I don’t think the industry could have endured for 90 years by doing the same thing exactly the same way, which means that there’s an entrepreneurial and innovation spirit that understands that you must evolve to survive.”

Weathering the storms

Industry pioneer Jim Brinton, founder of Avanti Markets, said that

endurance is a strong and relational word in this industry.

“Over the years, there have been so many internal and external changes that could have given us a lot of reasons to not necessarily have wherewithal to weather the storms,” he said. “But the fact is, this industry is made up of the type of people who are attracted to the fact that it’s not always going to be a sunny day. And usually, at the end of that cloudy day or rainy day, better things are ahead.”

Multiple challenges in the Big Apple

“I think life is all about endurance, I mean, there are so many challenges that we all face in life. Health problems, financial problems, family problems, friend problems. In business, it’s no different. You’re faced

with lots of challenges,” said Judson Kleinman, founder and CEO of Corporate Essentials, who pointed to numerous business challenges that required a healthy amount of endurance. “9/11 obviously, the downturn in the economy, superstorm Sandy — that was scary and of course, the pandemic.”

“What can you do? You just have to keep going forward, and you just have to have the perseverance, the confidence, the determination, the team and the creativity to figure out a way to work through those things,” Kleinman said. “COVID was the worst of the worst, and I definitely don’t want to ever live through that again. That was bad.

And I reacted very quickly. In that first week, I laid off 115 of my 125 employees. There was no government package available in the beginning. PPP, without a question, saved us. I didn’t pay myself for a year and a half, not a dime.

That was rough. But all those things make me who I am as a person and as a business leader, and I know our company can face those challenges,” he added.

Long days and tough breaks along the way

Bob Tullio

Bob and Peg Tullio met Mensun Bound, leader of the team that found the lost Shackleton ship Endurance in 2022.

40

Automatic Merchandiser • June/July 2025

Ryan Harrington, founder and CEO of Oregon-based Royal ReFresh, said that plenty of endurance has been required during his journey as an operator.

“When I started Royal ReFresh out of my garage with just two vending machines, I never could have imagined the level of persistence it would take to grow the business to where it is today. You know, there were a lot of long days and tough breaks, and moments where quitting might have seemed like an option, but endurance is what carried me through.

The industry itself, I think, demands it,” Harrington observed.

“Operators have to navigate constant changes, shifts in consumer habits, supply chain challenges, labor shortages and economic ups and downs. In our case, transitioning from vending to micro markets, expanding into new regions and even dealing with unexpected hurdles like the fire we had at our warehouse last year, required a level of grit that only endurance can provide. More than anything, endurance isn’t just about surviving. It’s about staying committed to your mission — continuously improving and pushing forward when others might stop. That’s what separates operators who last from those who don’t,” he said.

Hershey Company, has a slightly different perspective on endurance.

“Endurance is a unique word, and as I think about the industry and nearly 30 years of being a part of it, I think why endurance is important is because the relationships that you create over the years transcend the business,” he said. “The reason that they transcend the business and endure through time is because there’s a mutual trust and respect that’s created between both parties.

And I think if you are able to create that trust and respect between both parties, I think it leads to a much more successful and enduring relationship over time. You’re able to have candid conversations. You’re able to get through the struggles and celebrate the successes along the way.”

“This is a unique business, and there’s a lot of legacy from a family perspective. There is an awful lot of heart and soul that the operator community, in particular, has put into these businesses to take care of their families and their communities, so learning to respect that and understanding the values that they create in their communities and the pride they take in creating that value is what makes for an enduring relationship,” he added.

Endurance on multiple levels

“I’m a lifelong endurance runner, so that word resonates with me deeply,” said C.J. Recher, vice president of marketing at Five Star Breaktime Solutions. “With respect to our

Certain qualities are required

Pete Tullio, my brother, former business partner and a past NAMA chairperson, reflected on our journey in business and the amount of endurance required to succeed.

“Endurance implies the ability to withstand hardship, adversity and possess certain staying powers to navigate the many issues that have confronted the convenience services industry over the last 30 to 40 years.

Issues such as government regulations, maintaining a strong, competent workforce, generating expansion capital, integrating new technologies, dealing with transportation and climate issues, and of course, that oncein-a-lifetime pandemic. To endure these issues, one had to possess qualities of fortitude, tenacity and the ability to pivot — all defining characteristics of our industry,” he said.

Enduring relationships

As a supplier, Mark Dieffenbach, director of specialty channels at The June/July 2025 • VendingMarketWatch.com 2507AUTM_LockAmerica_REV.indd 1

41

5/14/25 4:18 PM

Underwood & Underwood, Copyright Claimant, Hurley, Frank, photographer. Shackleton’s expedition to the Antarctic Endurance squeezed between an ice jam. Antarctica, ca. 1916. Photograph. https://www.loc.gov/item/2013646123/.

industry, I would absolutely say endurance is an appropriate word to characterize the people in our industry. The job of a route merchandiser is tough. I think it goes underappreciated a lot of the time, but they are our greatest asset — up and at it before the sun most days, and our best are out in the elements delivering service with a smile. They are working long hours, especially around the holidays.”

Like Shackleton, convenience services operators must exemplify leadership, optimism and courage.”

Endurance based on three pillars

“Operators and suppliers that are currently in the industry need to have endurance based on what I consider three basic pillars,” said Craig Hesch, now retired after 42 years as a successful operator. ‘First, you have the economic pillar — you have cycles of recessions, cycles of consolidation, and then the innovation aspect and cost of innovation. So, as an operator and a supplier, you have to get through those cycles,” he said.

“On the social side, you have a lot happening there, and a lot recently, such as social media that’s come out in the last 10 years to be very large, plus the shifts in workforce needs and workforce wants, as well as work from home versus return to

work — all of which have created challenges,” said Hesch. The other pillar is political, and, especially in today’s landscape, all of the uncertainty as far as tariffs, prices, costs.

Endurance is required — no question about that.”

PUTTING IT ALL TOGETHER “Endurance is super impactful as a characterization of the folks that work and represent our industry.

A couple of other words that come to mind would be grit, persistence, perseverance, consistency and reliability,” Recher added. “Those are all kind of similarly related to that concept of endurance, but I think it also

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adds some additional context to what endurance really means.”

We can also look to Shackleton for insights.

“Difficulties are just things to overcome after all,” he wrote in his diary in December 1908, following the Nimrod Expedition.

“Ship and stores have gone — so now we’ll go home,” Shackleton said to his men on the loss of the Endurance in October 1915. Even as he and his men watched the Endurance sink, Shackleton called upon his optimistic style of leadership in the face of hardship.

“Superhuman effort isn’t worth a damn unless it achieves results,” Shackleton said to his navigator Frank Worsley in 1916, according to Worsley’s account published in 1931. Worsley was one of the men — six in all — who accompanied Shackleton on the “against all odds” rescue mission.

To last in this industry, you definitely need endurance, but you also need that discipline, knowledge and awareness to deliver well and to succeed over the long run. ■

Automatic Merchandiser • June/July 2025

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