You are in a self-service business. There are three big questions for you to consider:

1. What exactly do my customers expect when they shop at my vending machines or foodservice operations?

2. How well is my company doing in delivering a great shopping experience?

3. What else do my customers expect and how can we deliver on those expectations?

It’s been a tough business climate for vending and onsite foodservice operators in 2008. Along with the bad news, there is good news. Let’s look at what’s going on – good and bad.

First the bad news: The U.S. economy is not doing well. All of your costs are up. Gas prices, while down recently, are well above what you budgeted for as you planned for 2008. The products you’re buying are increasing in price. Let’s not forget that your suppliers are also facing increases in their costs.

Sales are flat or even down for the past few years according to industry reports. The people shopping at the sites you serve are also feeling the economic pain. They’re cutting back on what they spend. The decision-makers at the locations you serve have become even more resistant to price increases.

What this means in your business: Sales growth is tougher than ever. Costs are up. This is the toughest economy for the food industry in many years – especially so for vending and onsite foodservice operators. It’s going to take new solutions to get out of this situation.

For vending and onsite foodservice operators: Some good news and some bad news.

Despite the bad news – there is some good news hidden within the bad news: There are opportunities you can capitalize on – if you recognize what’s happening and understand how to capture more transaction. Economic reports indicate that people are driving less. They’re making fewer trips and driving fewer miles each week. That means that there will be more people staying at work for lunch and breaks. College students going back to school in the fall will have less discretionary cash to spend. Their parents won’t be able to give them as much extra money as in the past. That might mean a cutback in late night pizza delivery orders. What new and different things are you doing to offer more late night snacking choices?

Technology is changing the way we all shop – presenting an opportunity for you to enhance your service to your customers. In many other convenience food shopping situations, we’re seeing technology applied to deliver new customer service applications and improved service. Kiosks in convenience stores allow shoppers to customize a sandwich or salad order. It saves time for the service staff – no need to take orders from each individual shopper. It simplifies the ordering process and absolutely eliminates errors – the customer sees a screen summarizing what was ordered and can change it if necessary before finalizing and approving the order. Supermarkets are doing the same at deli service counters – to eliminate the long delays and frustrating waiting periods until your number is called.

What this means in your business: Technology is perhaps the biggest opportunity for vending and onsite foodservice operators. This is more than route management and demand management software applications. Those cost savings benefits are real and can deliver a meaningful productivity gain on your bottom line. If you think about in terms of a restaurant – those are “back of the house” systems. Those applications are very important and are tools every vending and onsite foodservice operator must address immediately.

But the unrealized opportunity is in the “front of the house.” How do we make the vending machines and service counters better shopping environments?

We saw a new perspective on how technology is being applied in consumer marketing – for retail locations. At the Self Service & Kiosk Expo we saw the latest and greatest in new kiosk technology. More about what this means for vending and onsite foodservice operators in my next posting.