Beyond pantry service for OCS operators: It is time to invest in smart coolers and smart markets, and are they the next big thing?

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

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

Saying yes

Things have changed. As Mark Stein of Mark Vend in Chicago explained, “We are a company that says, ‘yes,’ and we have the infrastructure, so we are always chomping at the bit to do more for our customers, especially if it is something that will truly meet their needs,” he said.

Clearly, OCS operators are learning to say yes. But, maybe it won’t matter that much because OCS will come back strong as the office population grows. Stein expressed the sentiment of every operator I have spoken to about the state of the office workforce: “It is continuing to trend in a positive direction, but not as quickly as we would like to see.”

Work-from-home: Some positive news

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

“Just over half (51%) of respondents also said their company requires some or all employees to be in the office. 39% of respondents said this would be the case for their organizations by the end of 2024, while only 8% planned for this to happen by 2025 and beyond. Out of respondents who said their companies planned a return to office in 2024, just under one-fifth say employees will be required to work in the office five days a week. 28% of respondents said those who don’t comply with a return-to-office policy will be threatened with termination of employment by their company.”

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

The next big thing: smart coolers

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

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

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

In the August issue of Automatic Merchandiser, I will share some insights on the smart market landscape. While researching and writing the article, I was struck by a comment about smart cooler technology from Evan Jarecki, the co-founder of Gimme, an industry software company that builds management, delivery and invoicing tools for micro markets and vending operators.

“I would define a smart cooler as a system that can manage its own inventory, sales and take payments, which funny enough, sounds a lot like a vending machine,” said. Unlike vending, noted Jarecki, smart coolers can mitigate theft using weight sensors or video technology, and customers can touch and inspect their selection before they make the purchase.

One thing you will learn in that upcoming article: there are plenty of smart coolers to choose from.

Capture the territory while you can

For an OCS operator, smart coolers and smart markets (soon to be more common, featuring ambient temperature compartments and even hot-food capability) offer tremendous openings to new revenue streams and business opportunities. While those who are already highly invested in vending and traditional micro markets take their time and “kick the tires” before jumping in, progressive operators and even newcomers should seize the opportunity to capture as much territory as possible by adding this new technology to their arsenal.

A two-fold benefit

Arthur Siller, senior vice president of operations and business development at Evergreen Refreshments, has extensive experience operating smart coolers. He said the impact of smart coolers is two-fold. First, it allows for the ability to operate in public locations where a micro market would not work due to security concerns. Second, the revenue performance of smart coolers is impressive.

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

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

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