Automatic Merchandiser - June/July 2026

St a r t i n g@ $ 5 9 5 De s i g n e dT oSa v eYo uMo n e y Wi t hE f f i c i e n tBa c k L o a d i n g !

40 Under 40 Awards Page 18

Convenience services for vending, micro markets and workplace beverages

Audit-proofing your sales tax processes Page 34

Age verification: Beyond the checkbox

Built to Evolve

The mechanic-turned-operator behind one of Southwest Florida’s fastest-growing convenience services businesses

Page 38

June/July 2026

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Congratulations to the 2026 Award Winners!

Frank Pinto 365 RETAIL MARKETS

Michael Wood 365 RETAIL MARKETS

Patrick McGinty VENDVUE

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

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CONTENTS

JUNE/JULY 2026

Features 8

Now is the time to go all in on OCS while everyone else chases smart markets Questions are swirling in the heads of convenience services operators. Most notably, when it comes to AI smart markets: Where, when and how do I jump in? This distraction can lead to an opportunity for those who remain focused on the big picture.

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Meet convenience services’ 2026 40 Under 40 class

Each year, Automatic Merchandiser recognizes exceptional professionals under the age of 40 who are making an impact in the convenience services industry. The 2026 class of 40 Under 40 reflects the breadth and energy of a rapidly evolving industry.

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Smart coolers are no longer an emerging technology. The latest State of the Vending and Micro Market Industry report shows they are becoming a core component of operator growth strategies.

Success Story 12

Growth continues as smart coolers move mainstream

How Surpass Refreshments went from vending routes to smart markets Matthew and Paige Rainey spent a decade building a traditional vending business.

Then, Matthew completely changed his thinking and leaned into micro markets and smart coolers. The result? Growth.

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Tax traps for operators: The compliance challenge

Cashless payments have transformed unattended retail and increased tax scrutiny. Understanding product taxability, nexus rules and audit preparedness has never been more important.

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Age-verification in vending: Why focusing on compliance is not enough

Age verification may be costing you sales.

Here’s how to spot the hidden friction.

On the cover: Composite image of Matthew and Paige Rainey with a Surpass Refreshments route truck. / images courtesy of Surpass Refreshments

Departments

Follow us at Facebook/VendingMarket

@VendingMagazine

4 Online Exclusives

linkedin.com/ company/2233840

instagram.com/ vendingmarketwatch

6 Editor’s Note June/July 2026 • 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 NAMA Show 2026: Smart markets take center stage FOR OPERATORS, THE OPPORTUNITIES PRESENTED

by smart markets are undeniable, but so may be the challenges.

Bob Tullio worked the 2026 NAMA Show floor to get advice on choosing the right partner and selecting a long-term ecosystem. vendingmarketwatch.com/55373873

Podcast | Gary Arwin offers an independent operator’s view on AI coolers and staying competitive Gary Arwin shares the story of Gator Refresh’s growth and why AI coolers, pantry service and durable customer relationships are creating new opportunities for independent operators. vendingmarketwatch.com/55379927

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Management | Don’t skip using technology: Build a business you can sell Business intermediary Mike Ferguson shares 10 technology investments that will immediately make your business run better, operate more profitably, and create value when it comes time to sell the business. vendingmarketwatch.com/55379412

Management | Operator insights into growth, service and staying power

Workforce | Where hiring, retention and compliance break down for operators

Across four operator profiles, a common playbook emerges: grow with discipline, protect service quality, use technology with purpose and keep the breakroom experience centered on people. vendingmarketwatch.com/55380325

The biggest HR risks are no longer isolated to the back office. They show up every day in route operations, frontline supervision and how consistently — or inconsistently — employees are managed in the field. vendingmarketwatch.com/55369301

Automatic Merchandiser • June/July 2026

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Vol. 68, No. 3

Business Staff VP/Market Leader - Public Safety, Security & Vending Group Bill MacRae (732) 804-1732 | WMacRae@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 Kevin Collopy Kevin.Collopy@infogroup.com | (402) 836.6265

Operator Chat

Bob Tullio

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Automatic Merchandiser (USPS Permit 017-280, ISSN 1061-1797 print, ISSN 1948-5697 online) is published 4 times per year in February/March, April, June/July and September/October by Endeavor Business Media, LLC. 201 N Main St, 5th Floor, Fort Atkinson, WI 53538 Periodicals postage paid at Fort Atkinson, WI, and additional mailing offices. POSTMASTER: Send address changes to Automatic Merchandiser, PO Box 3257, Northbrook, IL 60065-3257. SUBSCRIPTIONS: Publisher reserves the right to reject nonqualified subscriptions. Subscription prices: U.S. $48.93 per year; Canada/Mexico $83.69 per year; All other countries $119.74 per year. All subscriptions are payable in U.S. funds. Send subscription inquiries to Automatic Merchandiser, PO Box 3257, Northbrook, IL 60065-3257. Customer service can be reached toll-free at 877-382-9187 or at circ.vendingmarketwatch@omeda.com for magazine subscription assistance or questions.

Printed in the USA. Copyright 2026 Endeavor Business Media, LLC. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopies, recordings, or any information storage or retrieval system without permission from the publisher. Endeavor Business Media, LLC does not assume and hereby disclaims any liability to any person or company for any loss or damage caused by errors or omissions in the material herein, regardless of whether such errors result from negligence, accident, or any other cause whatsoever. The views and opinions in the articles herein are not to be taken as official expressions of the publishers, unless so stated. The publishers do not warrant either expressly or by implication, the factual accuracy of the articles herein, nor do they so warrant any views or opinions by the authors of said articles.

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EDITOR’S NOTE

Smart markets step into the spotlight ANYONE WHO ATTENDED THE 2026 NAMA SHOW IN

Linda Becker Head of Content

lbecker@endeavorb2b.com

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

Operators increasingly deploy equipment, including smart markets, strategically to match the needs of each location.

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Los Angeles can attest: Smart technology has fully arrived in the convenience services industry. Need further proof? Consider this data, from the 2026 State of the Vending & Micro Market Industry Report: • 54.3% of respondents operate smart coolers • 30.4% identify smart coolers as a primary operating format • 33.5% of deployed equipment is now smart coolers Of course, the widespread adoption of smart markets is only part of the story. The State of the Vending & Micro Market Industry Report also makes clear that, though micro markets and traditional vending are still staples of the convenience services industry, micro market growth appears to be maturing.

• 52% reported no change in micro market locations • 38% reported increasing the number of micro market locations they operate At the same time: • 71% of operators increased the number of locations they serve • 65% reported revenue growth in 2025 Taken together, it suggests that convenience services operators see smart coolers, smart markets, smart aisles, even just-walk-out technology — all the flavors of access-controlled, AI-assisted unattended retail — as tools to be deployed strategically to match the needs of each location.

Need further proof? Turn to our operation profile, which features Matthew Rainey and Surpass Refreshments in Florida.

Until a few years ago, Rainey was committed to traditional vending. He had a sizable inventory of traditional vending machines, and his client base was happy with traditional vending offerings.

The 2024 NAMA Show made him reconsider his “never micro markets, not for me” mindset. Explosive growth followed, so much so that when he saw smart coolers at the 2025 NAMA Show, he moved quickly to embrace them as well. Does this mean he has abandoned his traditional vending machine base?

Of course not, but he strategically deploys the unattended retail solution that best fits each location.

Elsewhere in this issue, we celebrate the 2026 Class of 40 Under 40 winners. Look for a brief biography of each honoree in the issue, and some great perspective pieces on: • What’s one product you were sure would fail but didn’t?

• What’s one small change you made with a big impact?

As the 2026 Class shows, the future of the convenience services industry is in good hands. ■

Editorial Advisory Board Nick Montano Contributor

Joe Hessling 365 Retail Markets

Josh Rosenberg

Forward Thinkers

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

Now is the time to go all in on OCS while everyone else chases smart markets

There is no question about it: The convenience services industry is experiencing a defining moment.

Questions are swirling about in the heads of convenience services operators. Most notably, when it comes to AI smart markets, where, when and how do I jump in? This distraction can lead to opportunity for those who remain focused on the big picture.

By Bob Tullio

T

he conversation is centered on AI-driven smart markets, frictionless checkout, computer vision, weight sensors and data analytics — whether at the NAMA Show in Los Angeles, on LinkedIn, on VendingMarketWatch.com or during

webinars. The evolution driven by smart markets’ influence and innovation is exciting and worthy of the attention it is receiving.

Yet, all this attention creates an opening for operators who choose to take the road less traveled. When everyone is looking in one direction, opportunity often exists in the other.

That’s why there has never been a better time to go all in on coffee service.

AN OVERLOOKED GROWTH ENGINE OCS has always been a foundational part of the convenience services business, but in many operations today, it has quietly taken a back seat to micro markets and emerging technology. That’s understandable, but let’s not forget that OCS delivers something many operators are underestimating right now: predictable, high quality revenue with builtin expansion potential.

Growth doesn’t come from chasing trends: It comes from mastering the fundamentals. OCS is a fundamental core of our business. If your company has not embraced OCS, this is the perfect time to re-evaluate.

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RECURRING REVENUE Unlike many areas of convenience services, OCS tends to be highly durable. Coffee is a daily habit and a workplace expectation.

In past articles and on Automatic Merchandiser’s Vending & OCS Nation podcast, industry leaders such as James Evans of Evans Refreshments and Tom Steuber of Associated Services emphasize that when OCS is executed well, it

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THE MARGINS MATTER In a world where margins are under pressure, OCS remains one of the more attractive categories, especially for operators who fully embrace the model.

Revenue isn’t just tied to product. It comes from equipment, service, delivery and premium upgrades. Most operators I spoke to at the NAMA Show in Los Angeles tell me that clients understand value more than ever. They are willing to pay for quality, 10

reliability and a better workplace experience. This positive shift makes OCS more valuable today than it has been in years.

SELLING OCS 101 If you are new to OCS, or just need to remind your sales reps about best practices, here is a quick primer on selling OCS. Sell the experience, not the coffee. These days, incredibly, many employees judge their workplace based on their breakroom experience. Give them the experience they want: one that replicates the pleasures of the local coffee house.

Embrace personalization. Variety, flavors and options are expected. Local brands are often appreciated by clients, but strong name brands are valued by many. Don’t assume anything! Ask questions, identify preferences and deliver what they want. It’s that simple.

Lean into cold coffee. This is not a trend. It is a permanent shift. “We have a younger generation entering the workforce, and the reality is, those Gen Z consumers want something very different. They want everything cold,” said Dora Márquez Lema, director of brand marketing at Nestlé Professional Solutions, in a 2025 webinar. Many consumers under 30 now strongly favor cold coffee beverages over traditional hot coffee, she stressed.

Take a consultative approach.

The best operators are becoming partners. Don’t be afraid to ask the big question: “Thank you for having me in here to brew coffee and meet with your team. Just so we have a common ground for discussion, what do you need to see from me that would compel you to switch to my company?”

I know — this is uncomfortable for some, but not for high performers.

Once you have the answer, the sale is easy because you know exactly what you must do to earn the business. That is called selling, not just presenting.

Invest in your brand. Buyers are researching you before you walk through the door. Your presence on LinkedIn and social media, as well as your reviews, all matter. At the same time, there is no excuse for a sales rep to be anything but fully knowledgeable about their prospect.

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becomes woven into workplace culture. The result is steady billing, less revenue volatility and stronger longterm account stability.

More importantly, as an OCS operator, the greatest growth opportunity is often sitting right in front of you: your existing customers.

Retention and same-location growth are far more profitable than constantly replacing lost business.

As Orrin Huebner has shared on many occasions, OCS is built for retention and growth. OCS is the conduit to opportunity, opening the door to micro markets, water filtration, ice machines, beverage delivery, pantry service and yes — those shiny new AI smart markets.

Think about it. Who has the best chance of converting a location to an exciting new technology: The client’s beloved and trusted OCS operator, or an outside cold caller?

Early in the relationship, when you have momentum as an OCS operator, when you are enjoying a true honeymoon period — that is the best time to package a deal that may open the door to an AI smart cooler and so much more.

OCS gets you in the door. Your visionary selling skills expand the opportunity, execution keeps you there.

This all means higher profitability.

OUTMANEUVER THE COMPETITION Your competition is mulling over several tough questions: • Do we want to invest in smart markets and which is the best choice?

• How will we afford this switch to smart markets?

• Should we give smart markets to new accounts (proactive) or use them to save existing business (reactive)?

You are staying the course: • Selling top-tier OCS accounts.

• Getting in the door.

• Earning client trust.

• Enjoying steady, high margins and recurring revenue.

• Choosing the prime opportunities and the locations where a smart market can take your profitability to a higher level. ■ About the author VendingMarketWatch. com contributing editor and industry consultant Bob Tullio is a content specialist who advises operators in the convenience services industry on how to build a successful business from the ground up and advises suppliers on how to successfully connect with operators. Tullio’s YouTube channel, b2b Perspective, is designed to “elevate your business in two minutes.” Visit www. tulliob2b.com or email bob@tulliob2b.com.

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OPERATION PROFILE

Matthew and Paige Rainey, shown with one of their fleet trucks in this composite image, built Surpass Refreshments, starting with a single vending machine.

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How Surpass Refreshments went from vending routes to smart markets Matthew Rainey is an operator who spent a decade building a traditional vending business, then completely changed his thinking and leaned into micro markets and smart coolers. The result? Growth.

By Linda Becker, Head of Content

M

atthew Rainey is not afraid to admit when he was wrong.

The owner of Surpass Refreshments was once skeptical of micro markets. Then he went to his first NAMA Show and saw almost no traditional vending equipment on the show floor.

“I was anti-micro markets at the time,” Rainey said. “But when I went to NAMA, I’m like, ‘OK, that’s all that’s here.’ So, you’re going to do it and figure it out as you go — because the industry is evolving.”

That willingness to change course has helped shape Surpass Refreshments, a Southwest Florida convenience services operation that Rainey built, from one used vending machine in 2013 into a company with about 700 vending machines, 40 markets, 10 employees and four routes.

A MECHANIC DISCOVERS VENDING Before vending, there were cars.

After graduating from vocational school, Rainey built a career as an auto mechanic, working in dealerships and eventually developing a power window repair business. He still owns Surpass Power Window and occasionally takes on a repair job for long-time customers.

For years, automotive work was all he knew. Then a vending machine caught his attention.

Why vending? “I have no idea why,” Rainey said with a laugh. “It just caught my eye. It wasn’t ever my intention to be a full-time job.”

Images courtesy of Surpass Refreshments

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June/July 2026 • VendingMarketWatch.com

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

Surpass Refreshments Founded: 2013 Founders: Matthew and Paige Rainey Current leadership: Matthew Rainey, owner and president Headquarters: Fort Myers, Fla. Other locations: Southwest Florida service area Self-checkout and micro markets: 40 Smart vending machines/coolers: 50 Traditional vending machines: 700 OCS: Coffee offered through strategic partners when requested Employees: 10 Routes: 4, with expansion planned Acquisitions: 5+ completed acquisitions with continued growth through acquisitions Services provided: Traditional vending machines, smart vending machines, AI-powered smart coolers, self-checkout micro markets, workplace refreshment programs, healthy vending solutions; cold beverage, snack and fresh food programs; tailored solutions for hotel marketplaces, apartment communities, schools and college campus Key market segments: Manufacturing, healthcare, education (K12 schools and universities), automotive dealerships, hotels and hospitality, government facilities, recreation centers and parks, media and broadcasting, distribution and warehousing, corporate offices, apartment communities Special features and offerings: Cashless payments, mobile wallet acceptance, real-time inventory monitoring, AI smart cooler technology, healthy product programs, customized product mixes, loyalty and rewards capabilities, local family-owned service, fast response times, data-driven product selection Technology and equipment providers: Cantaloupe Systems, 365 Retail Markets, Graphics That Pop, ZippyAssist Distributors: Vistar, Coke Florida, Pepsi Beverages Co., local food and beverage distributors Website: surpassrefreshments.com

Rainey initially viewed vending as a side business that could generate some extra income. He bought a used machine and convinced a dealership to let him place it in a corner of the building.

The location wasn’t particularly strong. The machine certainly wasn’t generating life-changing revenue. But something about the business clicked.

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“It gave me motivation to keep going,” he said.

He bought used machines, leaned on Facebook and personal connections to find early locations, and built from there. In the beginning, he and his wife Paige bought products at night and stored them in their apartment.

“Our living room was like a warehouse,” he said.

Within a year, as machine counts increased along with revenue, the side business had grown from a hobby into Rainey’s full-time work.

“There was a lot of cash back then,” Rainey said. “It became overwhelming…so, it became like, ‘It has to be legit.’”

Rainey calls himself a workaholic, and it’s that work ethic, along with plain old hard work, that helped him grow in the early days, in a part of Florida without a major metropolitan base to serve up large accounts.

One of his earliest accounts, a John Deere farm equipment location, was won thanks to a high school friend who worked at the dealership at the time. The account, which consists of a single beverage machine, is still with Surpass today.

“Yeah, it’s just a drink machine,” Rainey said. “I love it.”

Rainey bought out very small vendors — sometimes with only about 10 machines — and used each acquisition as another step forward.

While the business grew steadily, Rainey said he never felt like he had everything figured out. In fact, he still doesn’t. While experience and trial and error have taught Rainey a lot, he also relies on advice from a handful of industry veterans who served as mentors.

S

GROWING FROM VENDING TO MARKETS TO SMART COOLERS A meeting at Cantaloupe University a few years ago served as a tipping point.

“I met a guy there who was just teaching me the ropes. And I think the main thing is like — I didn’t have a warehouse to even do picking. We were working out of a couple of storage units where our orders were getting delivered to it,

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and whatnot. So, we didn’t even have a warehouse,” Rainey said.

Rainey realized that if he wanted to grow, he needed the room to grow into, and the tools to make it happen.

He moved into his first warehouse and invested in technology solutions, including Seed by Cantaloupe.

“First, you need the warehouse, which is expensive. Then you need all the racking, which is expensive. And then you have to have an employee to pick everything. So, it was a lot involved. And not only that, to get everything inside of Seed was a lot of data. It took hours and hours and hours and hours to input all those coil counts, all those machines, make sure all the machines DEX, make sure that they keep DEXing. It was a lot.”

Rainey and his wife traveled to that fateful NAMA Show in Dallas in 2024.

For an operator who was largely a traditional vending machine operator, the absence of vending machines on the show floor — and how unattended retail was evolving — was surprising.

Visibility and presentation are key elements of every Surpass installation.

Their markets attract attention and drive sales.

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“When I went to NAMA in Dallas, I didn’t know what to expect, but what I did see was that there were no vending machines there,” Rainey said. “It was very, very, very eye-opening.”

EMBRACING MICRO MARKETS Rainey went home and looked at his strongest vending locations, then took the best and converted those into micro markets immediately.

The move helped Surpass stand out in a region where many customers had never experienced a workplace micro market before.

“All these locations had no idea what a micro market is. You’re trying to sell something that in my area nobody has even seen,” Rainey said. “When you describe it, they’re like, ‘Oh yeah, those are what’s at the airport.’ And I’m like, ‘Well, they are at the airport, but that’s not the only place where they’re at.’”

In the area Surpass serves, he said, a successful micro market location does not always require 200 or more employees. Rainey has launched profitable micro markets in locations with 60 to 80 employees because vending performance had already demonstrated demand.

“If they had already high vending sales, we knew that there was very, very high potential for a micro market,” Rainey said.

The company still has a large base of traditional vending equipment, but Rainey is clear about where he wants to grow next: micro markets, smart stores and smart coolers.

“We’re trying to make ourselves different,” he said. “If we come in with smart stores or markets, it kind of gets their attention.”

“The real rapid growth has been in the past three years,” he added.

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FROM MICRO MARKETS TO SMART COOLERS Rainey said he is still learning as he goes. “I didn’t go to college for business. I have no background in business,” he said. “I’m just pretty much learning as I go.”

When Surpass began moving into smart coolers, that willingness to learn as he went helped Rainey again. At first, he did not believe the format made sense, even as he couldn’t help but notice that they were everywhere at 2025 NAMA Show in Las Vegas.

“At NAMA in 2025, I said the same thing: I will never ever, ever get involved with smart stores.” While he understood that they could sell more, they didn’t have the capacity of a BevMax, one of the bread-and-butter machines in so many of his locations.

How could the added sales potential offset the lower capacity compared with a traditional beverage machine?

Then he tested one location: an auto dealership. “I took the two machines out of there, and I put that in there,” Rainey said. “It was very, very eye-opening.”

The sales, he said, were about three times higher.

Smart stores have become especially attractive, and in some environments, the customers expect something that looks more modern than a traditional vending machine.

That is particularly true in dealerships — locations Surpass serves well.

“We just installed a brand new dealership, where one of the things that was required was they had to be smart coolers — not vending machines.

Where they got this information from, I have no idea, but I was on board, and I was like 100%. You know, this dealership is beautiful,” Rainey said.

“Some dealerships don’t allow vending machines on their showroom floor,

and I believe it’s because they don’t like — they don’t want — the look of a vending machine on their showroom floor with their brand new cars. But if they knew what these smart stores look like, and could look like, I believe they would change their mind.”

“My smart stores are sometimes [worth] more money than the cars on the showroom floor,” Rainey added.

EMBRACING TECHNOLOGY TO POWER GROWTH Today, when Surpass evaluates a new location, Rainey often thinks first about whether it could support a market, smart store or smart cooler rather than a traditional vending machine. He said experience has taught him when to walk away.

“Every time I take a location, and I’m like, ‘I know this is not going to be a good location,’ it has never been a good one,” he said.

The company is now targeting larger accounts, including opportunities about an hour north of its original territory, as well as auto dealerships and universities. Rainey said he has had less success with residential properties, especially when he’s asked to place markets in low visibility spaces that residents are unlikely to use.

For Surpass, visibility matters.

So does the look of the installation. He appreciates products such as Graphics That Pop’s deep-capacity chip shelving and the clean,

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Rainey worked with Vine Digital Studio to develop a marketing plan for his business. Among the changes were a refreshed logo and unified graphics for his fleet, location signage and website. Because micro markets are a new concept at many of his locations, he includes a pop-up display at new launches to help customers get comfortable with the format immediately.

professional look of the fixtures developed by GTP owner Robert Liva. “It actually makes sense instead of just looks [good],” Rainey said.

Rainey said his highest-end smart markets are placed where customers and guests will see them, not hidden away in a back breakroom.

That approach makes the installation part of the customer experience and harder for competitors to replace.

Surpass moved into VMS-driven operations only recently, after years of running without a full picking system. Now, the company is moving into a larger warehouse and plans to add Lightspeed. It also uses tools, including Panoptyc and ProWatch to monitor markets for theft, and ZippyAssist for service communication.

Even with his investments in warehousing and technology over the last three years — all of which have improved his efficiency — customer service remains the biggest advantage of being independent and family-owned, Rainey said.

“I am so on with customer service — answering my phone, answering emails. If there’s an issue, fix it immediately. It doesn’t have to go through 50 channels of people to get that done,” Rainey said. “A lot of people we deal with love it that it’s familyowned. It’s more of a relationship for us versus just another customer.”

“I take it very seriously in everything that we do,” Rainey added. “Even our smallest clients, I’m still as handson as with the bigger people.”

Customer service also extends into market merchandising. Rainey expects markets to look reset after each service, with products facing forward and photos taken through Seed Driver once the work is complete.

“Everything has to be on point,” Rainey said. “I’m very OCD about how things are placed and look.”

As he grows, Rainey looks for opportunities to improve the operation. For example, after recently acquiring another business, he asked his drivers for their input on the best way to revamp the routes.

“If I were a route driver, and I had to do vending machines all day, and then I had to go fill this ginormous market, that would probably wear my nerves out all day long.

And I would probably hate going to there,” Rainey said. “That’s just my feeling. I’ve asked my employees about that. They told me no, but I don’t think... I feel like the markets are very, very mentally hard.”

With four trucks now running, he is considering dedicating one route primarily to micro markets and smart stores, with nearby vending stops added to fill out the route.

Fresh food remains a challenge.

Rainey said Surpass has tried it multiple times, but shelf life, low margins and limited account size have made it difficult. Refrigerated Uncrustables, however, have been a standout in smart stores.

“That’s one product that stands out from everything,” he said.

Rainey is already thinking beyond workplace refreshments.

One idea on his list is an unattended convenience store in his downtown area, where he sees demand for snacks and drinks but few convenient options outside restaurants. “It has to be unattended,” he said, pointing to labor costs.

For an operator who once said he would never move into micro markets, then said the same about smart stores, Rainey seems poised to make it happen.

Rainey’s story is not only about building a business from one machine. It is about knowing when to let go of old assumptions.

“There are a lot of operators that are stuck in old times,” he said. “My advice is, stay in old times, and we’ll take over.” ■ June/July 2026 • VendingMarketWatch.com

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Meet convenience services’ 2026 40 Under 40 class Each year, Automatic Merchandiser recognizes 40 exceptional professionals under the age of 40 who are making an impact in the convenience services industry. The 2026 class of 40 Under 40 reflects the breadth and energy of a rapidly evolving industry.

KEVIN ALVES With more than 15 years of experience in workplace refreshment and beverage sales, Kevin Alves has held key roles throughout his career. Most recently, he served as director, field sales, with Keurig Dr Pepper, where he led numerous strategic growth initiatives across the United States.

Earlier in his career, he was named Global Sales Achiever while serving as a national account manager at Mars Drinks, and he began his career as an energized Red Bull student brand manager. Kevin’s leadership style is rooted in collaboration and transparency, and he is active in major industry organizations like NAMA, World Coffee Research, the Specialty Coffee Association and the National Coffee Association. He believes long-term success is built through partnership and a shared commitment to delivering exceptional experiences.

RICHARD AMUNDSON Richard Amundson was nominated for his role at C&S Vending, a provider of workplace refreshment services throughout the Minneapolis–St. Paul area.

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TAYLOR BARTHOLOMEW-BIBIKAN Taylor Bartholomew-Bibikan is a seasoned leader in the convenience services industry with more than 13 years of experience in convenience services, food service and automated retail, driving growth, innovation and strategic partnerships.

Throughout her career, she has played a key role in expanding customer relationships, scaling operations and supporting emerging technologies. Taylor is recognized for her ability to combine operational expertise with a strong focus on customer experience and business development. She currently serves as chairperson of NAMA Women in the Industry (WIN), where she is passionate about supporting mentorship, leadership development and greater opportunities for women across the industry. Taylor was also honored as one of the 2026 Most Influential Women in Convenience Services, recognizing her impact and leadership. Through her work with Automated Retail Technologies – Just Baked, she continues to advocate for innovation, collaboration and the advancement of the convenience services community.

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MARCUS BESS Marcus Bess is a value stream manager with eight years of manufacturing experience, focused on operational improvement, innovation and team development. At Crane Convenience, Marcus is known for his collaborative approach and problem-solving skills. Marcus has led Kaizen events, JDIs and cross‑functional improvement initiatives to improve efficiency across operations, finance and pricing processes. He also helped bring new products to market, including Paypod solutions and a panelized cabinet, accelerating speed‑to‑market by working closely with engineering, manufacturing and hourly operations teams. Marcus also supported Paypod RD prototype deployment, working hands‑on with engineering and operations to meet customer commitments. As a leader, Marcus mentors his team through questioning that encourages collaboration, creativity and ownership. He reinforces this approach through daily huddles, town halls and regular cross‑shift engagements. Marcus holds a bachelor’s degree in mechanical engineering, an MBA in project management and Six Sigma Green and Black Belt certifications.

NAOMI BOOK Her peers nominated Naomi Book for her role as ROC regional manager at Next Level Refresh, VendTech’s operating division that provides vending, micro markets, smart coolers, office coffee and pantry service.

earned a degree in finance and data analytics while competing as a pitcher on the university’s baseball team. Outside of work, Kevin is an outdoor enthusiast.

He recently completed his first half-Ironman (70.3) in Orlando and plans to compete in another 70.3 in June, followed by a full Ironman in October. He also enjoys travel, skiing and other outdoor pursuits.

DARNELL CHISHOLM His peers nominated Darnell Chisholm for his role on the marketing team at Naturals2Go, a company that helps launch convenience services businesses.

MCKEE CHRISTIANSEN McKee Christiansen is a senior financial planning analyst at Crane Convenience, where he has spent seven years supporting data‑driven decisions across sales, product and operations. One of McKee’s most significant accomplishments was helping to create a centralized data warehouse that integrated data from three enterprise resource planning (ERP) systems. This initiative streamlined data collection, improved reporting accuracy and sped up analysis for corporate, sales and product teams. Expanding that project, McKee led an overhaul of customer groupings and sales representative assignments, simplifying reporting and eliminating manual workarounds. At Crane, McKee facilitates monthly business performance reporting and coordinates quarterly forecasting and annual planning across teams. By empowering teams with accessible financial data and forward‑looking models, he enables smarter, faster decisions.

KEVIN BRINTON Kevin Brinton is the vice president of operations for Evergreen Refreshments, based out of the company’s corporate office in Renton, Wash. In his role, Kevin oversees four distinct distribution centers — Seattle, Olympia, Portland and Spokane — and leads the supporting functions across the organization such as procurement, product management and data analytics.

Beyond Evergreen Refreshments, Kevin actively contributes to the operation of the broader family of Brinton companies as the organization transitions to its next generation of leadership. Kevin is a graduate of Anderson University in South Carolina, where he

RASHAD D. CLEVELAND Rashad D. Cleveland is a Washington, D.C., native and Lake Conroe, Texas, resident with more than 12 years of experience in project management, technical operations and business development. A certified project management professional, Rashad is known for his disciplined approach to solving operational challenges and improving business performance in his role. His career highlights include leading multicountry vendor deployments and directing crossborder teams from planning through implementation.

He has developed operational frameworks that standardize workflows, reduce escalations and improve consistency across large account portfolios. He is June/July 2026 • VendingMarketWatch.com

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also committed to helping owner-operators grow their businesses through technical support, hands-on training, seminars and field service. Currently serving in the vending and unattended retail industry with Naturals2Go, Rashad has become a trusted resource for operators navigating complex equipment deployments, vendor integrations and operational challenges across national and international markets.

Outside of work, Rashad is passionate about helping others and enjoys spending time with family and friends near and on the lake.

EMMA COATS With more than a decade of experience in healthcare and food service leadership, Emma Coats currently serves as director of nutrition services at Whitman Hospital & Medical Clinics. Her career began as a dietary aide and progressed into leadership roles through a commitment to innovation, operational excellence and exceptional customer service. She holds bachelor’s degrees in food and nutrition, exercise science and health from the University of Idaho.

Throughout her career in long-term care and rural healthcare, she has led initiatives to improve dining services, reduce waste, mentor staff and expand food accessibility, including launching a successful 24/7 grab-and-go market for hospital employees and visitors. Known for her strong leadership, hands-on work ethic and ability to build high performing teams, she is passionate about creating nutrition services programs that positively impact patients, staff and the broader community.

ADAM COOK Adam Cook is the director of OEM and channel sales at Cantaloupe, where he leads strategic partnerships and channel growth initiatives. A combat veteran and former noncommissioned officer who served with the 10th Mountain Division as an infantryman, Adam brings leadership, accountability and mission-focused execution into his professional career. Adam’s primary focus is on integrating OEM technologies into the company’s payments and SaaS ecosystem, enabling operators to manage vending, micro markets, smart stores and emerging AI-powered retail solutions through a connected platform. He works closely with manufacturers, software developers and technology

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partners to accelerate integrations that improve operational visibility, payment acceptance and scalability. Adam works closely with technology providers worldwide to accelerate the adoption of connected commerce solutions. He is recognized for his expertise in unattended retail payments, enterprise partnerships and operational technology strategy.

TOM DAY With more than 14 years of operational leadership experience, Tom Day has built a career centered on improving performance, efficiency and team development. He started his leadership career as a retail manager focused on improving customer experience while driving sales growth. He joined Casco Bay Food and Beverage as a warehouse supervisor and quickly advanced to operations manager, demonstrating a strong ability to streamline processes and deliver results in a fast-paced environment. Known for his hands-on leadership style, he has developed teams, optimized operations and aligned day-to-day execution with broader business goals.

Throughout his career, Tom has been recognized for leading through change, solving complex challenges and delivering measurable outcomes.

YUXIN DENG Yuxin Deng currently serves as internal operations administrator at Next Level Refresh (formerly Naturals2Go Plus), overseeing internal operations across six regional centers.

Over the past four years, Yuxin has built experience in operations management, supplier coordination and vending technology, with a strong focus on improving efficiency through automation and system optimization. One of her main areas of expertise is vending operating systems. She is actively involved in improving her company’s vending management system by providing operational insights and recommendations from the operator’s perspective. She also works closely with suppliers and crossfunctional teams to support daily operations and long-term process improvements. She is passionate about using technology to simplify operations, solve practical challenges and help teams operate more efficiently in a fast-growing environment.

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ADRIANA DOMINGUEZ Naturals2Go/Next Level Refresh was launched as a startup in El Paso, Texas, in 2025. As one of the company’s first hires, I played a key role in helping grow the business to $1.4 million in revenue within its first year. In the startup phase, I wore many hats and took on responsibilities across multiple departments, including warehouse operations, account management, purchasing, cash accountability, kitchen operations and equipment installation and repair. Working in a fastpaced environment allowed me to develop a broad skillset and contribute wherever needed.

As the company expanded and operations scaled, I earned the opportunity to step into my official role as warehouse manager. This growth and success would not have been possible without the dedication, collaboration and support of the incredible team I worked alongside.

MEGAN FINNERAN Megan Finneran is an accomplished sales professional with more than 10 years of experience in the vending industry. Having grown up in a family-owned vending and food service business, she developed an early understanding of the industry and built a career spanning multiple channels, including broker, distributor and manufacturing. In 2023, she joined Kitchen Fresh Foods, a USDA-approved manufacturer and distributor of fresh, prepackaged foods, as regional sales manager. With her operator experience and distributor expertise, Megan connects customers with solutions that combine quality, flexibility and reliable service and drives growth across the Midwest. Megan remains actively engaged in the industry by attending numerous NAMA shows, CTW events and professional seminars. She also served as a board member of the Mid-America Automatic Merchandising Association (MAMA) from 2017 to 2018.

Automatic Merchandiser 40 Under 40

365 Retail Markets is proud to recognize Michael Wood & Frank Pinto

Michael Wood Senior Manager Product Management

Frank Pinto Regional Sales Representative

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Michael is an experienced Product Management and Analytics professional with a passion for product at a tactical and strategic level. Driven by a customer-centric approach to every solution, Michael applies an innovative and analytic mindset to tackle challenges and opportunities in the market. Currently based in the London, UK office as Senior Manager of Product Management, Michael is recognized by colleagues for consistently going above and beyond to support team members internationally. His dedication, responsiveness, and commitment to helping others make him a highly valued member of the 365 Retail Markets team.

Frank Pinto brings a unique operator-first perspective to his role, drawing on his experience as a former operator to better understand the challenges and opportunities his customers face every day. Known for his willingness to support operators of all sizes and experience levels, Frank builds strong relationships through trust, responsiveness, and practical expertise. His ability to advocate for customers while providing valuable feedback to internal teams helps ensure 365 Retail Markets continues to develop solutions that drive operator success. Colleagues recognize Frank for his dedication, industry knowledge, and unwavering commitment to helping customers achieve their goals.

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CAROLINE HOLDEN

GAGE JOHNSTON

Caroline Holden is the director of office coffee services at All Star Services in Port Huron, Mich. After graduating from Western Michigan University in 2009 with a bachelor’s degree in business administration, she moved home to work alongside her brothers, Duncan and Devin Smith, and her husband, Jon Holden, at All Star.

Together, the four are integral parts of operating the family’s third-generation business. In addition to providing exceptional pantry, coffee, Bevi and water services to All Star’s valued clients, Caroline manages the product portfolio and supplier partnerships while continually seeking to enhance operational efficiency and elevate customer experiences. Caroline has won awards for Most Influential Women in Convenience Services (2023), Pros to Know (2024) and Best Lunch Packer from her son’s third-grade class.

Gage Johnston is a product marketing and market insights manager with Franke Coffee Systems Americas. He leads market insights, product launches and thought leadership initiatives that help operators adopt advanced solutions by leaning on his previous hands-on operator experience across specialty coffee and hospitality.

Having been a prior director of coffee and beverages, he oversaw end-to-end beverage strategy, sourcing, training and multi-channel program development.

Earlier in his career, he built roasting and productinnovation programs and contributed to specialty coffee processing and farm-level quality control. By combining data-driven strategy with practical field experience, Gage delivers actionable insights that help operators improve efficiency, elevate quality and grow sustainably across unattended retail.

EVAN JARECKI

CHAD JONES

In 2014, Evan Jarecki co-founded Gimme out of Georgia Tech’s Create-X, convinced that unattended retail deserved better technology. He spent the early years in the trenches: working out of a spare equipment warehouse, grinding through support tickets and learning from operators. Over a decade later, Gimme VMS, Field, Mobile Pick and Key Pro power millions of DEX transactions and machine images across the country, helping operators tighten inventory accuracy, route efficiency and cash accountability. Evan says he is most proud that the team built Gimme on empathy, grit and treating customers like actual partners. Evan has been named to Automatic Merchandiser’s Pros to Know four times. He is an active mentor with Georgia Tech’s Create-X. He is a fundraiser and advocate for Breakthrough T1D, a cause he lives personally.

Gimme’s been Evan’s life’s work, and he believes the journey is far from over.

Chad Jones is a mechanical engineer at Pyramid Technologies Inc., Mesa, Ariz. An Ohio native, Chad attended ASU, where he received his bachelor’s degree in criminal justice and mechanical engineering, with an emphasis in robotics. At Pyramid Technologies Inc., he supports new product development and sustaining engineering for bill acceptors, printers, kiosks and embedded payment systems. With more than six years of mechanical engineering experience, he specializes in product design, design for manufacturing (DFM), SolidWorks, SolidWorks PDM, geometric dimensioning and tolerancing (GD&T), prototyping, production tooling and electromechanical assemblies. He is proud to contribute to an industry focused on reliable unattended retail and payment technology using an engineering approach that emphasizes practical design, manufacturability and continuous improvement.

ASHLEE JEWELL

Juan Jorquera entered the industry in 2011 as a co-founder of Vagabond, the VMS and vīv touchless payments platform provider, which he helped grow and manage as chief revenue officer and chief marketing officer for 12 years until its sale to PayRange in 2023. Juan joined the Tech 2

JUAN JORQUERA Her peers nominated Ashlee Jewell for her role as vice president of growth at Next Level Refresh, VendTech’s operating division that provides vending, micro markets, OCS and pantry services.

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Success team shortly thereafter, where he works as a business development manager. Juan has taken part in numerous industry leadership roles, including serving on NAMA’s Emerging Leaders Network (ELN) steering committee for several years, serving as vicechair of the NAMA Education committee, and participating in many NAMA DC Fly-Ins. In addition to his work in the industry, Juan enjoys playing numerous sports, riding his bike around New York City and performing as a DJ at all kinds of events.

PATRICK MCGINTY Patrick McGinty is the founder of VendVue, a nationwide sales engine transforming how vending, micro market, office coffee and unattended retail operators grow their businesses. A recognized innovator in the convenience services industry, Patrick previously built and scaled a 2,000-machine vending operation before successfully exiting to a national company. Today, through VendVue, he helps operators secure enterprise-level opportunities across manufacturing, healthcare, education, hospitality and multifamily sectors through a nationwide sales engine. Known for his bold industry vision and relationship-driven approach, Patrick has become a respected voice in unattended retail and business growth strategy. Beyond business, Patrick is passionate about philanthropy, nonprofit leadership, cooking and creating meaningful experiences for his family. He and his wife, Kristine, are raising four boys, and much of his time outside of work is centered around family dinners, hosting gatherings and building strong traditions at home.

leads. Born in Brazil and educated in France, where she earned bachelor’s and master’s degrees in international business from the Sorbonne, Ana has also lived and worked in China and Canada. Those experiences help her communicate across cultures, adapt quickly and anticipate customer needs.

MURPHY MCCULLOUGH Murphy McCullough leads Cantaloupe’s push into the residential space, helping operators tap into a channel that’s long been underdeveloped. He’s put structure in place for how operators connect with property owners and management groups, giving them a clearer path to win business in apartments and multi-family housing. That work is already helping operators break into a segment that’s historically been difficult to access and build more stable, diversified revenue streams.

Murphy is just as comfortable in conversations with corporate decision-makers as he is working through

ANA MARTINS Ana Martins is a customer service team leader at Crane Convenience.

She leads frontline customer service teams and serves as a bridge connecting customers, field teams and operations to ensure clear communication and fast, effective issue resolution. During her five years with Crane, Ana has helped build high performing teams while improving workflows, ticket handling and reporting. Her efforts contributed to a 94% improvement in SLA response times, stronger first-contact resolution rates and ongoing gains in customer satisfaction. Her global background shapes how she June/July 2026 • VendingMarketWatch.com 2607AUTM_TreasureValleyCoffee_Qtr.indd 1

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the realities operators face daily. That range allows him to seize ownership-level opportunities and translate them into deals operators can win and support.

Murphy is pushing operators to think beyond their traditional footprint to expand into new environments.

ASHLEY MUTTER Ashley is a Grand Valley State University alumna, where she earned her degree in advertising. As digital marketing manager at G & J Marketing and Sales, Ashley has played a key role in growing the company’s marketing department and expanding the marketing solutions offered to its supplier and industry partners.

One of her most notable achievements was leading the launch of Showpad, G & J’s sales enablement platform, which streamlined internal workflows and strengthened how the sales team goes to market.

Before joining G & J, Ashley built her marketing expertise through social media and creative roles in the branded merchandise, fine art and wedding industries. That background fostered a strong appreciation for the brands she now supports. Ashley lives with her husband, Cody, and their energetic dog, Ruby.

JOEL MYERS With a background spanning finance, analytics and operations, Joel Myers serves as vice president of Treasure Valley Coffee, helping lead the company’s growth across Idaho, Oregon and Washington. A graduate of the University of Idaho with degrees in accounting and operations management, he began his career in fintech and healthcare, building expertise in financial analysis, operational strategy and data-driven decision making. At Treasure Valley Coffee, he has led key initiatives focused on technology adoption, custom reporting and process improvement to drive profitability and operational scalability. He has also overseen coffee sourcing strategy and pricing management through one of the most volatile coffee markets in industry history, developing proprietary forecasting tools to support purchasing and risk-management decisions. In addition, he has played a major role in acquisitions, divestitures, leadership development and the expansion into new product categories, helping position the company for long-term growth.

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LOGAN NEEL Logan Neel is a software engineer at Pyramid Technologies Inc. As a lead developer, Logan works on new cashless payment devices and technologies that have not yet reached the market. In addition, he manages the core development and maintenance of bill validator software to ensure transaction security. Beyond hardware integration, he also works with telemetry data, helping operators better understand sales trends and machine activity. By analyzing what sells and where, his work helps operators maximize their revenue and efficiency. Logan’s technical, forward-thinking approach to telemetry marks him as a standout innovator shaping the future of convenience services.

FRANK PINTO Frank Pinto is an account executive for the Southeast at 365 Retail Markets, a global leader in unattended retail technology solutions. In this role, he works with operators to help drive growth, improve operational efficiency and support business expansion through innovative retail technology. Pinto began his career with Parlevel Systems, where he specialized in vending management systems (VMS). Throughout his career, he has helped numerous operators streamline operations, improve visibility into their businesses and adopt technology to enhance efficiency and customer experience. Over the past four years, Pinto has built strong client relationships with a focus on new business and helping operators scale for the long term.

TANYA RAWAL Tanya Rawal is the global marketing manager for Crane Convenience, part of Crane Payment Innovations, where she leads marketing for self‑service retail solutions across vending, coffee, payments and software. With more than seven years of marketing experience, Tanya joined CPI in 2022 and worked across multiple business units before becoming marketing lead for Crane Convenience. One of Tanya’s key accomplishments was leading the rebrand of CPI’s vending business as Crane Convenience. She oversaw brand strategy, naming, trademarking and website development

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efforts, working closely with product, legal and executive teams. She also led the market launch of the new brand and its messaging. Through strong cross‑functional leadership, Tanya brings clarity and focus to marketing execution across the organiza‑ tion. She led the rollout of a new commercialization process for Crane Convenience, coordinating efforts across sales, strategy and customer excellence teams. She was also the first at CPI to use webinars as a lead‑generation tool, generating more than 300 leads in six months for another business unit.

Originally from India, Tanya holds an MBA from the University of Pittsburgh and brings a global perspec‑ tive to her work in the convenience services industry.

DYLAN REINER Dylan Reiner is the director of sales, foodservice and alternative channels at Odyssey Functional Energy, where he oversees the brand’s business across unattended retail, corporate pantry programs and other alternative channels. At just 26 years old, Dylan has helped build Odyssey’s business in these channels, establishing national dis‑ tribution and expanding the brand into thousands of locations. Over the past year, Dylan has played a key role in introducing Odyssey to a channel more famil‑ iar with established energy brands with longstanding distribution and shelf-space advantages. Through partnerships with operators and distributors, he has expanded Odyssey’s presence across unattended retail. Dylan is focused on expanding convenience services operators’ access to Odyssey’s functional energy products as consumer demand for better-foryou alternatives continues to grow.

inbound marketing and an active member of Tyler Morning Toastmasters. Elijah and his wife, Trinity, have been married since 2024 and have a ninemonth-old son named Sawyer.

MARIAH SILVA Mariah Silva is a partner at VendoSnacks, a Tampa-based vending and micro market company focused on delivering modern breakroom solu‑ tions. With a background in opera‑ tions, customer service and project coordination, she brings a structured, high-end feel to a traditionally transactional industry. Mariah has played a key role in the company’s rapid growth, expanding operations by 240% within the last year. Her work emphasizes elevating industry standards and meeting clients where they are with preferences and tap-to-pay options. Her dedication shines through a strong focus on client relations and a commitment to making a meaningful difference in daily operations.

ELIJAH SCHMUNK Elijah Schmunk is general man‑ ager of Moran Refreshments and a member of the National Automatic Merchandiser Association’s Emerging Leaders Network. He was recognized in 2024 as one of Automatic Merchandiser’s Top 40 Under 40 in the vending, micro market and office coffee industry. Elijah holds a bachelor’s degree in business administration from Portland State University. He is a graduate of the Dale Carnegie Immersion Program and the BPAA Service Industry Leadership Program. He is HubSpot-certified in June/July 2026 • VendingMarketWatch.com 2607AUTM_VendVue_Qtr.indd 1

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ARIADNI SKLIRI Ariadni Skliri is a global product manager at Crane Convenience, part of Crane Payment Innovations, with more than eight years of experience in product management, growth and innovation. She leads global product initiatives for connected coffee and vending solutions, managing product portfolios and cross-functional teams. She is currently leading the European launch of a connected coffee platform in June 2026. The platform provides operators with connected machine management, digital interfaces and access to operational data to inform decision-making. In addition to her role at Crane Convenience, Ariadni serves as chairperson of the European Vending Machine Manufacturers Association (EVMMA) and as a member of the executive committee of the European Vending Association (EVA). Her global product leadership and industry governance experience position her as a rising leader driving both business performance and the future evolution of the convenience services industry.

DYLAN SOGOR Dylan Sogor is vice president of operational excellence at Five Star Breaktime Solutions, the largest Canteen franchisee in the country. In this role, he is responsible for converting the company’s value drivers into sustained margin growth, EBITDA improvement and scalability across all lines of business. Before stepping into the VP role, Dylan served as a regional vice president, overseeing P&L performance, pricing strategy, shrink mitigation, operational execution and leadership development across multiple businesses. He started his career in frontline operations, and he has also owned and operated multiple companies outside of his corporate career. Dylan is currently completing his executive MBA at Duke University Fuqua School of Business, with a focus on finance, strategy and private equity.

His long-term interests center around operational transformation, value creation and scaling businesses through disciplined execution.

STANLEY TALLEY His peers nominated Stanley Talley for his role on the marketing team at Naturals2Go, a company that helps launch convenience services businesses.

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JAMES TRUETT James Truett has more than five years of experience in the foodservice industry, specializing in product management and marketing. He holds a Master of Business Administration from Middle Tennessee State University and a bachelor’s degree in marketing from the University of Tennessee at Chattanooga. In his current role at Franke, James manages the Fresh Brew line and leads the planning and execution of trade shows and industry events. He manages event budgets and marketing execution efforts to support business goals.

James has supported product launches and worked with teams across the organization to improve marketing and operational processes. He is passionate about delivering innovative solutions that align with evolving customer needs and industry trends.

JOE TURSO Joe Turso began in the convenience services industry as a 5-gal bottled water delivery driver at age 22. He worked in that role for a few years while exploring other roles in the warehouse and as a technician. Seeing an opportunity, he took a job as an OCS office coffee services route driver, where he developed an interest in both the management and vending sides of the business.

Looking to broaden his experience, he became a road service technician. Traveling to accounts when service was needed, Joe gained a new perspective on the business as he worked to fix customer issues and concerns. Next, he took on a dual role of technician and account manager/salesman. It was in that role that he began to thrive. As customers reached out to him with “every issue imaginable,” he gained a deep understanding of the industry’s challenges. Company leadership noticed that customers sought out Joe directly for his thorough, careful service. Leadership began looking for a role that could utilize Joe’s entire skillset, but in the meantime, the company was acquired. Joe began exploring new opportunities within the industry and spoke with several companies interested in bringing him on. When he met with Fox Vending, all things seemed to fall into place. He joined Fox Vending soon afterward. Since joining Fox Vending, he has helped support the company’s continued growth and operational improvements.

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ELIRAN VAKNIN Eliran Vaknin is the chief product officer and U.S. site manager at Shekel NA, where he oversees product development and North American operations for the company’s smart weighing and retail technology business. With more than nine years at Shekel, Eliran has helped guide the company’s evolution into a product-first, SaaS-oriented organization. Early in his tenure at Shekel, Eliran helped build the company’s smart cooler platform, including its product architecture, cloud management system and hardware stack that quickly recognizes products by weight and location. His hands-on experience spans smart coolers, micro markets and convenience stores. Prior to Shekel, Eliran co-founded Supersmart.me, a retail technology company focused on AI-powered autonomous checkout for brick-and-mortar stores. The platform enabled a frictionless, grab-and-go shopping experience.

The experience helped shape his passion for unattended and autonomous retail. Eliran continues to focus on technologies that simplify and improve the unattended retail experience.

ANTARES VARGAS Antares Villasenor is the founder of Keep That Vending, a luxury vending and micro market company redefining modern convenience through design, technology and curated retail experiences. A USC alumna, Antares began her career in entertainment as an executive producer and editor in unscripted television, contributing to projects for HBO, Amazon, Discovery Channel, the NFL and productions involving Oprah Winfrey, while also producing on the Primetime Emmy Awards. She brings that same cinematic eye for storytelling, aesthetics and audience experience into the convenience services industry. Under her leadership, KTV provides design-forward installations, a hospitality-driven approach and curated product assortments to modern retail.

Antares approaches each machine and micro market as more than a point of sale, but as an intentional extension of the environment it serves.

Serving luxury residential communities, workplaces and hospitality spaces across Southern California,

KTV has built a reputation for blending operational excellence with elevated customer experience. In 2026, Antares was recognized as one of the Most Influential Women in Convenience Services, an award that celebrates female leaders shaping the convenience services industry.

LUKE WEIR Luke Weir is a highly goal-oriented and results-driven professional who consistently demonstrates dedication to both his organization and the broader independent operator community. He initially joined Unified Strategies Group Inc. as marketing director, where he brought strategic vision and energy to strengthening member engagement and growth. More recently, he has taken on the role of purchasing director, further expanding his impact within the organization. In his current role, Luke has proven himself to be a skilled and tenacious negotiator. His ability to secure strong vendor partnerships and favorable terms directly benefits independent operators, helping them remain competitive in an evolving marketplace. He is committed to ensuring that members receive maximum value and support through the co-op. Beyond his professional capabilities, Luke is known for his approachable and friendly demeanor. He builds strong relationships across the industry and is deeply dedicated to advancing opportunities for independent operators. His contributions reflect both innovation and a genuine passion for the success of others.

MICHAEL WOOD Michael is an experienced product management and analytics professional with a passion for product at a tactical and strategic level. Driven by a customer-centric approach to every solution, Michael applies an innovative and analytic mindset to tackle challenges and opportunities in the market. Currently based in the London office as senior manager of product management, Michael is recognized by colleagues for consistently going above and beyond to support team members internationally. His dedication, responsiveness and commitment to helping others make him a highly valued member of the 365 Retail Markets team.

June/July 2026 • VendingMarketWatch.com

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ANNUAL REPORT STATE OF THE INDUSTRY

Growth continues as smart coolers move mainstream Smart coolers are no longer an emerging technology. The latest State of the Industry report shows they are becoming a core component of operator growth strategies.

By Linda Becker, Head of Content

R

evenue growth remained strong in 2025, but the biggest trend in this year’s data was the growing role of smart coolers.

More than half of respondents now operate them, and nearly one-third identified smart coolers as a primary operating format within their business. Micro market growth appears to be maturing, suggesting operators are increasingly using a mix of vending machines, micro

markets and smart coolers to match the needs of individual locations.

THE BIG PICTURE The convenience services industry continued its upward trajectory in 2025, with estimated revenue reaching $40.04 billion, an 18.3% increase from the $33.85 billion in 2024, according to research in the State of the Vending and Micro Market Industry report.

More than 65% of respondents reported revenue growth in 2025 while fewer than 20% reported revenue

CHART 1B:

CHART 1A:

57%

40.04

40

22.0

26.04

24.20 19.40

20

36%

21.60

23.50

21.70

2024

38%

33.85

35 30

52%

Micro market 2-year review

Industry revenue in billions

2025

13.30

15

7%

10 5 0

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Growing

Staying the same

10%

25

declines. More than 70% of respondents increased the number of locations they served. Micro markets remain an important part of operators’ businesses, but the pace of expansion has slowed sharply from the 2021-2023 boom. In 2025, 38% of respondents reported adding micro market locations, while 52% reported no change. That compares with 84% reporting growth in 2023.

What is driving growth in the convenience services industry? Increasingly, the answer is smart coolers.

Declining

% OF 2025 OPERATORS

PROJECTED 2025 SALES

% OF 2025 SALES

Small

under $1M

65.4%

$9.49B

23.70%

Medium

$1M–$4.9M

19.2%

$10.05B

25.10%

Large

$5M–$9.9M

0.0%

$0.00B

0.00%

Extra large

$10M +

15.4%

$20.50B

51.20%

*Among survey respondents

18.3% in total revenue. 2023

2022

36.84%

28

The vending and micro market industry climbs 91%

REVENUE RANGE

89%

SIZE

Automatic Merchandiser • June/July 2026

9%

2606_07AUTM_28-33_soti.indd 28

11%

Growing: 6/8/26 10:05 AM

Image: 107233374 K3Star | Adobe Stock

CHART 2:

Operator sales*

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

CHART 4A:

CHART 3A:

Average shrinkage rate in micro markets

Smart cooler adoption

● 0%

● Smart coolers are

a major operating format for the company. They’re not an experiment or a side offering. They are a core part of the business.

● 1%-4%

● 5%-9%

12.5% 46%

● The operator uses

smart coolers, but they are not a major part of the business.

Vending, micro markets or another format still drives most of the operation.

25%

30% 2025

25%

2025

37.5%

24%

● The operator does

● 10%+

not currently operate smart coolers.

CHART 4B:

CHART 3B:

Equipment mix

Most common loss prevention techniques

Percentage of each type that makes up placed equipment

● Cameras with

● Screens displaying

● Camera feed displayed

● Regular inventory audits ● Dedicated loss

monitoring service

39.4%

Cold beverage

above kiosk

● Signage warning

prevention employee

of theft

Smart cooler / ambient cabinet

● Other

33.5% 30.5%

Glassfront

25.8%

Combo vending Frozen only

9.5%

Refrigerated food

8.5%

Hot beverage

canceled orders

7.8%

25%

50%

13% 25%

2025

38%

25% 38%

Image: 107233374 K3Star | Adobe Stock

Smart cooler penetration

54.3% 30.4%

of respondents operate smart coolers

identify smart coolers as a primary operating format June/July 2026 • VendingMarketWatch.com

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CHART 5A: Vending/smart cooler locations

71.4%

operators increased the number of locations served

45.7%

operators reported a decline in locations served 30

● Manufacturing ● Offices/

● Healthcare ● Restaurants/

● Colleges/

● Hotels/motels ● Military bases ● Correctional

workspaces

bars

universities

● K-12 schools ● Retail

● Increased ● Remained the same ● Decreased

6%

facilities

24%

3.4%

7.6% 7.9% 8.1%

2023

70%

2024

60%

2025

72%

34.0%

13.9%

20%

2025

23.8%

14.3% 16.0%

16.7%

20%

14%

14%

CHART 6A: Micro markets locations ● Manufacturing/

● Hotels/

● Office

● Healthcare ● Distribution/

industrial

workspaces

● K-12 schools ● Retail locations ● Colleges/ universities

hospitality

CHART 6B: Number of micro market locations served ● Increased ● Decreased ● Remained the same 7%

logistics

● Military bases ● Correctional facilities

1.1%

3.6%

5.8% 6.0%

36%

2025

38%

57%

24.2%

10%

6.0% 6.5%

2024

2025

6.5%

21.5% 19.0%

52%

Image: 517075530 Golden Sikorka | Adobe Stock

SMART COOLERS MOVE INTO THE MAINSTREAM Anyone who attended the 2026 NAMA Show in April can attest: Smart coolers and smart stores dominated the show floor.

No longer are operators choosing only between traditional vending and micro markets. Smart coolers bridge the gap: functioning like a high-tech, secure, unattended vending machine, yet with an aesthetically and experientially marketstyle presentation. Moreover, smart coolers are creating a third option for locations that may be too small or too vulnerable to shrinkage for a traditional micro market.

Who are the operators leaning into smart coolers? Certainly, they include new operators who, without a stockpile of existing equipment, are moving directly into smart markets.

They also include established operators of all sizes who see smart coolers as yet another option to help them optimize their businesses.

The equipment mix data support that conclusion. Smart coolers accounted for 33.5% of the equipment deployed by respondents, nearly matching traditional glass-front vending machines. At the same time, cold beverage vending remained the largest equipment

CHART 5B: Number of vending/smart cooler locations served

Automatic Merchandiser • June/July 2026

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33.5%

of deployed equipment is now smart coolers category, underscoring that operators are adding formats rather than replacing them outright.

MICRO MARKET GROWTH SLOWS The rise of smart coolers coincides with respondents reporting a slower rate of micro market growth. While micro markets remain an important part of the convenience services landscape, more than half (52.4%) of respondents reported no change in the number of micro market locations they operate, compared with just 16% in 2023. Rather than replacing micro markets, smart coolers appear to be giving operators another way to serve locations that may not support a traditional market.

Operators are becoming increasingly strategic in how they deploy equipment, serve locations and build their business mix. The evolution of convenience services continues: the use of smart coolers as a mainstream operating format is the latest significant shift the industry has seen since the rise of micro markets about 10 years ago.

Meanwhile, on the product side, operators continue to respond to consumer demand for better-for-you options.

Protein-oriented categories dominated the better-for-you rankings. Jerky (27%), protein bars (18%) and fresh food (18%) accounted for 63% of responses. Yet, sweet snacks aren’t going anywhere: traditional indulgent categories such as snacks, candy and sweet baked goods still account for more than one-third of vending and smart cooler sales.

LOSS PREVENTION SOLUTIONS Micro market theft remains a concern for operators although the survey data suggests many have made progress in managing shrink. Nearly two-thirds of respondents reported shrink rates below 5%, while only 12.5% reported shrink exceeding 10%.

As operators continue to balance labor costs, product costs and thin margins, loss prevention remains a priority. The industry’s approach is also evolving. Cameras connected to monitoring services emerged as the most commonly reported deterrent, fol-

● Great Investment–ROI Cashless payment

84% 46% 56% 16% 25%

Vending management system

48%

24% 48%

Route pre-kitting

LED lighting

● Don't use it/like it

4%

Remote monitoring

Mobile wallet acceptance

Image: 2018893092 Ednardo | Adobe Stock

identify smart coolers as a primary operating format

24% 36% 12% 17% 16% 16%

CHART 7B:

Vending data collection trends ● VMS integrated with telemetry

● Manual process ● Smartphone/tablet

● Handheld route device ● Telemetry/cloud only ● Other

4.2%

24

8.3% 12.5%

37.5% 2025

2024

50%

16.7%

13%

20.8%

Image: Unitone Vector | Shutterstock.com

30.4%

CHART 7A:

Technology rankings, averaged

73%

June/July 2026 • VendingMarketWatch.com

31

2024 2606_07AUTM_28-33_soti.indd 31

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CHART8:

CHART 9C:

Share of sales by service category, combined services 27%

Jerky snacks Energy/ protein bars

18%

Fresh food

18%

Vending machines

61.7%

Smart coolers

36.3%

Micro markets

33.9% 22.9%

OCS Nuts/trail mix

14%

Low/zero-sugar beverages

14%

Baked salty snacks Other

5% 4%

Manual foodservice

9.7%

Water service

8.1%

Pantry service

7.7%

Bulk vending

7.5%

Other

CHART 9A:

1.2%

Vended share of sales by product category ● Cold beverages ● Snacks ● Hot beverages ● Candy and chocolate

1.2% 6.2%

Last year Energy bars dominated at

6.0%

6.7%

32.4%

● Sweet baked

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

goods

32

● Fresh food ● Nutrition/

better-for-you

7.2% 10.6%

lowed by displaying camera feeds above kiosks and using signage to remind consumers that theft is being monitored. Regular inventory audits also remain an important tool for identifying and measuring losses.

Smart coolers likely contribute to those lower shrink numbers. By controlling access to products and tracking purchases at the point of removal, smart coolers offer operators an alternative in locations where traditional micro markets may pose a greater theft risk. ■

18.3%

11.2%

CHART 9B:

Micro market share of sales by product category 3.3% 4.0%

● Cold beverages ● Hot beverages ● Snacks ● Fresh food ● Sweet baked

6.5%

● Candy and

8.8%

0.5%

6.4% 33.4%

goods

chocolate

2025

● Nutrition/

better-for-you

● Frozen items ● Nonfood items

Jerky was a distant second at

36% 15%

Jerky moves into the top spot in 2026.

2025

● Frozen items ● Nonfood items

Image: 107233374 K3Star | Adobe Stock

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

14.8% 22.1%

Methodology Data in the Automatic Merchandiser’s State of the Industry report is compiled from a survey sent to operators in the spring. It collects responses from convenience services operators offering traditional vending, micro market and smart cooler refreshment and sundry services, as well as snack and soda operations. The State of the Industry report examines performance results across major product categories.

Automatic Merchandiser • June/July 2026

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BUSINESS MANAGEMENT

Tax traps for operators: The compliance challenge Cashless payments have transformed unattended retail and increased tax scrutiny. Understanding product taxability, nexus rules and audit preparedness has never been more important.

By Scott Walters

Elnur | Shutterstock.com

F

34

or decades, the convenience services industry operated largely under the radar of state tax authorities, shielded by the anonymous nature of cash. A dollar or quarter feed into the machine left no digital footprint, and operators often relied on simplified, estimated calculations to report their obligations.

The modern self-service retail landscape, however, has undergone a massive transformation. The

rapid shift from cash to cashless payments — driven by credit cards, mobile wallets and mobile apps — has digitized the entire transaction history of unattended retail. Today, every candy bar, cold beverage and fresh sandwich sold leaves a permanent electronic trail.

As cash boxes vanish and digital transactions become the standard, state and local auditors are paying closer attention than ever to the revenue generated by vending machine, micro markets and smart markets.

CORPORATE STRUCTURE AND THE OBLIGATION TO COLLECT A foundational question for any operator is determining who exactly is required to collect and remit sales tax, and whether their internal organizational structure alters this liability. Legally, the obligation to collect tax rests squarely on the entity making the retail sale to the end consumer, regardless of whether you operate as a sole proprietorship, an LLC or an S-corporation. Your corporate

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structure does not shield the business itself from its tax obligations, but it does heavily dictate personal liability.

In the event of a severe sales tax audit deficit, state taxing authorities can pierce the corporate veil through “responsible party” laws. Because sales tax is considered a trust fund tax, money collected from the consumer is to be held in trust for the government. Owners, partners and corporate officers can be held personally liable for unpaid balances, making strict compliance a universal requirement across all business types.

THE INCONSISTENT TREATMENT OF VENDING VS. TRADITIONAL RETAIL One of the most frustrating hurdles for self-service operators is

the highly inconsistent treatment of product taxability when comparing vending sales to traditional brick-and-mortar retail.

In a standard grocery store, an individual item like a prepackaged granola bar or a bottle of water is often classified as an exempt grocery food item.

However, place that exact same SKU into a vending machine, and many states instantly reclassify it as a “prepared food” or a luxury item subject to full state and local sales tax. These arbitrary distinctions mean that unattended operators cannot simply apply traditional retail tax matrices to their inventory. Failing to recognize that a snack item becomes taxable simply because of how it was dispensed is one of the leading causes of costly compliance errors in the industry.

COMMON PITFALLS FOR UNATTENDED OPERATORS When attempting to manage these unique tax variations, operators frequently stumble into dangerous operational traps.

The most widespread error is the “blended rate” pitfall, where an operator applies a uniform sales tax percentage across an entire multi-county route rather than geocoding rates to specific physical machine locations.

Another common blind spot involves misclassifying “sin tax” products. Operators often lump snacks, candy and sweetened beverages under general food exemptions, completely missing the fact that states are aggressively carving out these specific categories for standard or elevated tax rates.

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Additionally, as companies expand into office coffee services or place smart coolers across state borders, they often trigger “nexus” thresholds, legally obligating them to register and file in neighboring states.

Unaware operators can trigger this without realizing, creating a massive back-tax liability. Operators should not confuse traditional “nexus” rules (i.e., physical presence) with “economic nexus.” Doing so can create substantial problems.

MICRO MARKETS VS. VENDING MACHINES: ARE THEY TREATED EQUALLY? As operators transition locations from traditional vending banks to modern micro markets, they frequently assume the tax rules transfer seamlessly. In reality, state tax departments often view micro markets and vending machines through entirely different lenses.

36

Because micro markets mimic an open-market grocery or convenience store environment, some states allow certain prepackaged food items sold within them to qualify for general food tax exemptions that are explicitly denied to vending machines.

Conversely, other states view the micro market kiosk as a functional equivalent to a cafeteria, taxing every single transaction at the highest prepared-food rate.

Operators must evaluate the specific regulatory definitions within their operating footprint. Treating a micro market the same as a vending machine can lead to systemic underor over-collection of taxes.

While an operator may understand their baseline state tax rate, they are often blindsided by the localized surcharges imposed by counties, cities and special transit districts.

Furthermore, filing requirements and frequencies vary dramatically by location and volume. Some jurisdictions require operators to file monthly while others permit quarterly or annual reporting. To complicate matters, states are increasingly lowering the revenue thresholds that trigger accelerated filing cadences, meaning that expanding a route by just a few miles over a county or state line can suddenly subject an operator to an entirely new set of deadlines and administrative rules.

NAVIGATING THE PATCHWORK OF STATE AND LOCAL JURISDICTIONS Sales tax compliance is rarely a uniform, statewide affair; instead, it is a complex patchwork that varies widely across states and local tax authorities.

STATUTES OF LIMITATIONS AND RECORD-KEEPING REALITIES If an operator falls behind or miscalculates their obligations, the financial fallout is governed by the sales tax statute of limitations, which is closely

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tied to record-keeping requirements.

In a typical scenario where sales tax returns are filed on time, states generally operate under a three- to four-year statute of limitations for auditing and assessing back taxes.

If an operator fails to file a return entirely, or if fraud is suspected, however, the statute of limitations remains open indefinitely.

To defend against an audit, operators must maintain rigorous records, including detailed transaction history: • Telemetry system • Credit card processing statements • Register files • Exemption certificates Retain these for at least as long as the audit window remains open.

In the digital age, relying on messy

spreadsheets is no longer sufficient.

Maintaining audit-ready electronic logs is the only true defense against catastrophic retroactive assessments.

PROTECTING YOUR BOTTOM LINE IN A CASHLESS WORLD The transition from anonymous cash boxes to transparent digital transactions has permanently shifted the compliance landscape for convenience service operators.

What once flew under the radar is now completely visible to state and local auditors who are actively expanding the tax base to capture revenue from automated and selfservice retail. Operating blindly with a “blended tax rate,” misclassifying micro market inventory or

failing to realize when you have crossed into a new local tax jurisdiction can result in devastating retroactive assessments. In an industry that operates on thin margins, sales tax compliance can no longer be treated as an afterthought or a minor administrative chore. ■ About the author Scott Walters is the co-founder and CEO of TacsSoft Inc. Scott has worked for over 30 years with a focus on sales and use tax. He has extensive experience in the implementation of tax technology to simplify the accounting process. Scott’s background includes multiple roles at leading tax technology companies as well as a director at the Tier 1 accounting and consulting firm PWC. Contact him at 978979-3400 or scott_walters@tacssoft.com.

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TECHNOLOGY

Age-verification in vending: Why focusing on compliance is not enough Age verification may be costing you sales.

Here’s how to spot the hidden friction.

By Tamara Schweigler

L

osing a willing customer who is ready to buy is a costly failure in any industry. In unattended vending, however, this problem is, by nature, almost invisible and therefore usually ignored. This becomes especially relevant in the context of age verification.

Since their inception, age-regulation solutions have almost exclusively been evaluated by standardized regulations, hard metrics and a single goal: successfully preventing underage purchases of regulated products.

Was a sale to an underage customer prevented? Success, next customer please.

Unfortunately, this narrow view ignores the far more common outcome of legitimate customers being denied, 38

delayed or even discouraged from starting a purchase.

We have to ask ourselves why compliance has become a customer problem in unattended vending. The core challenge is not preventing the wrong customer, but facilitating the right one.

WHAT E-COMMERCE ALREADY KNOWS In practice, we see that age verification is often a fork in the road: a critical point where customers either complete the purchase seamlessly or pause to re-evaluate the demand-reward ratio of their intended purchase.

And more than that, in unattended retail, they are left alone in their decision-making. There is no sales clerk to intervene, nobody to answer questions or

ease uncertainties. Each additional step in the process directly reflects on the conversion rate.

Let’s take a look at e-commerce: Checkout studies have consistently shown how sensitive users are to friction. According to the Baymard Institute1, the average documented checkout abandonment rate is around 70%, with users giving very similar reasons: • Processes that are too long or too complex • Forced account creation • Error messages or unclear feedback during the process

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goffkein.pro | Shutterstock.com

While this is not directly transferable to vending, these studies highlight a principle that, even though not revolutionary, applies just as strongly: The higher the perceived complexity, the lower the likelihood of purchase completion. From a business perspective, this means that a system can appear efficient while silently reducing total revenue.

What is interesting here is how differently this problem is treated across industries. In e-commerce, checkout optimization is a constant topic. Entire teams are working

on reducing friction, simplifying flows, testing small changes and improving conversion rates by even a few percentage points.

In unattended retail, age verification is typically implemented as a requirement that must work, rather than as part of the customer journey that should be continuously questioned and improved.

That creates a clear gap: While online retail keeps refining the path, vending often just accepts a certain level of friction as part of the process.

Which inevitably leads to the next question.

WHERE DOES AGE VERIFICATION ACTUALLY FAIL? A system can have a near-perfect success rate and still lose most of its customers. Similar to e-commerce, the problem is not one single technical problem, but a series of small uncertainties and points of friction that ultimately cause the customer to abandon ship: • The process seems complex or long • The customer lacks information about accepted ID types • System feedback is missing or insufficient June/July 2026 • VendingMarketWatch.com

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• The first failed attempt automatically leads to checkout abandonment The customer’s first impression is especially impactful: As soon as it is negative, the customer makes a decision even before attempting the purchase. And even worse, this customer will most likely default to another, easier alternative in the future. He becomes an invisible loss that no longer appears in metrics.

• How many people start a purchase at your vending machines?

• How many customers start the verification process?

• Who leaves with the restricted product, and how was the process for them?

While simple, this experiment can give you more insights than weeks of conventional data.

Additionally, operators can work with proxy metrics. Particularly telling is the ratio of product selections to completed transactions for age-restricted products, compared with non-restricted products on the same vending machine or smart cooler. If this ratio is consistently lower for the restricted products, it indicates that something in the verification process is causing friction.

A 30-MINUTE REALITY CHECK For an operator to understand the impact, a quick 30-minute reality check can provide a surprising amount of insight: observe your customers.

Another indication that the process is perceived as unclear is the time between the customer approaching the machine and the start of the purchase or verification step. In practice, longer hesitation times often correlate with higher abandonment rates.

Beyond observation, smart vision systems can also help to identify these patterns. It is worth looking at differences between locations with otherwise similar conditions, unusually low interaction rates for certain products, or time patterns where verification usage drops off noticeably. These deviations can be strong indicators that customers are turning away even before the actual purchase process starts.

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an unwelcome additional step. This is exactly where friction hits the hardest. Simply making the verification requirement visible before the customer commits to the product can noticeably reduce drop-offs.

Clarity is another factor that is often underestimated. Customers should not have to guess what is expected — not in technical terms but in practical ones. “Scan your ID”

Ahmet Misirligul | Shutterstock.com

COMMUNICATION IS KEY An often-overlooked but critical moment is what happens after the first failed verification attempt. No system is perfect, but how it handles failure matters. No customer wants to be abruptly pushed out of the process after a failed attempt.

Good communication is key. Does the customer understand what went wrong? Does he know what to do next? Does a new try feel like a natural continuation or like he is risking another let-down?

Operators can try a fake-customer-test: Have three people test the customer flow: • One person who is familiar with the process • One person who is using it for the first time • One person who is under time pressure Document, when uncertainties or frustration set in. These points of friction crystallize quickly within only a few test rounds.

sounds simple, but in reality, it often isn’t. What kind of ID? How exactly?

From which side or angle? Small things like visual cues, example images or short, concrete instructions can make a big difference here.

Indicating how long verification will take or showing a progress barcan help prevent the moment when customers stop and wonder whether the purchase is really worth it.

As mentioned before, a particularly critical moment is the first failed attempt. This is where many processes basically end even if the system itself would allow another try. If the feedback is unclear, too technical or just says “Something went wrong,” people tend to drop off.

What matters here is not just allowing a retry, but actually guiding it. What

IMPROVING THE PROCESS The good news is that small changes can lead to big improvements, without the need for a complete redesign.

Begin by considering the process from the customer’s perspective.

One of the most common issues is that the age-verification step appears too late in the process. While customers know that some form of age verification is required, it can still be

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exactly should the user do differently?

The difference between a generic “Try again” and a clear next step often determines whether the purchase continues.

None of these changes is particularly complex. But, they require a shift in perspective. Instead of just asking whether the system works, software designers should evaluate whether the customer actually understands it and can complete the process without friction.

WHEN NOTHING WORKS: THE ROLE OF FALLBACK At some point, every system fails.

Real-world conditions are unpredictable and often far from ideal.

Lighting can be poor, documents can be worn or unfamiliar, and users are often in a hurry or not fully focused. This means that there will always be situations where the standard process does not work.

In practice, a fallback such as a different scan option or a different verification method can help preserve the sale. It should remain exactly what it is meant to be: a backup for edge cases rather than a regular part of the user journey.

If data shows it is used frequently, it can be an additional indication that the standard verification process

In practice, a fallback such as a different scan option or an altogether different verification method can help preserve the sale. It should remain exactly what it is meant to be: a backup for edge cases rather than a regular part of the user journey. should be optimized. The real goal is not to optimize the fallback itself but to minimize how often it becomes necessary in the first place. A simple rule is that after two failed attempts, something has to change. If your system still shows the exact same message after the second failure, you are very likely losing the customer.

ADAPTABILITY OVER UNIFORMITY Beyond short-term optimizations, the structural design of age verification is becoming more important.

Instead of being added as an afterthought or an out-of-the-box solution, this step needs to be built into the flow in a way that actually fits how customers move through the purchase.

In practice, it shows that more flexible, software-based approaches have

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

2020

a clear advantage here, because they can adapt to different document types, changing requirements and real-world use without requiring physical changes as things evolve. Systems that adjust to the flow instead of interrupting it reduce friction in ways that are often underestimated.

This matters more than it might seem at first glance. Evidence from physical retail shows that losses do not only happen within measurable transactions. In a recent consumer survey by Coresight Research2, though based around retail transactions, found that around 66% of respondents said they had left a store without making a purchase within a six-month period.

Not every approach works equally well everywhere. At highway locations, driver’s licenses tend to dominate. In tourist areas, you are dealing with a wide range of international documents, In city environments, speed becomes the deciding factor. In office locations, users are often more patient and willing to go through an extra step.

Age verification remains necessary, but it should not be treated as an isolated compliance step. A system that blocks the wrong customer but quietly filters out the right one is not working as well as it may seem. ■ Sources 1. Baymard Institute, Cart Abandonment Rate Statistics 2. Coresight Research, US Consumer Survey on Store Behavior and Purchase Abandonment About the author

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Tamara Schweigler works in marketing and partner development at pi3g, a provider of embedded computing,

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