Vending and Coffee Service Atlanta

Dan Hart, owner and operator of Atlanta-based Southern Refreshments, has seen the future of vending. And it’s hiding inside his equipment, warehouse and trucks. The industry is caught in a time warp, lagging about two decades behind where it could be, he says. The wave of the future is technology, and Hart’s company is poised at the leading edge. 

A Glimpse into the Future

Let’s imagine a day in the very near future of this FLO operator, a company established in 1979 by two guys making deliveries out of the back of a station wagon: 

·         As the day begins, real-time data from each piece of equipment in metro Atlanta feeds into a warehouse stocking system. 

·         LED displays indicate exactly how many units of each SKU to select from flow racks to fill each order. 

·         Items are packed in individual plastic bins destined to fill a particular customer’s machine.

·         The system records how fast the order is prepared and prints a label, which attaches to the container before it’s loaded on the truck. 

And there’s more:

·         Money is handled in a similar fashion. The system knows precisely how many and which denomination of coins and bills are in each machine and what is needed to restock each of Southern Refreshments’ 5,000 venders.

·         Credit card readers installed on key machines provide further enhancements. 

·         GPS units mounted on the truck fleet enable managers to track drivers’ progress on their routes. 

·         As employees arrive at customer locations, they use hand-held bar code devices to track interactions with each machine and money bag. 

·         The system meticulously records all transactions and exchanges. 

·         Back at the office, computer readouts indicate minute details, such as the moment a vender is opened for service.

·         Service needs are monitored as well, informing the team if a unit is malfunctioning.

·         Vender temperature is controlled remotely, programmed to produce maximum energy efficiency. 

This tale is far from a work of fiction because Southern Refreshments possesses most of these capabilities today. The final piece of the puzzle, the warehouse inventory pick system, will be installed in 2011. 

Systems Increase Revenue per Machine

“At the end of 2009, I decided to push the edge on technology,” says Hart. “It’s always provided our company a competitive edge, and because margins are slim in this industry, we need to use every available efficiency. The systems we’re installing positively impact my bottom line, increasing sales and profits. And I now better understand what my business is doing.”

The controls Southern Refreshments has in place provide performance indicators by product, vender, location, customer and employee. “We know what’s going on in an account 60 miles away. It allows us to better merchandize equipment, keep products in stock and increase revenue per machine,” Hart explains. Labor efficiency is another advantage. In addition, customer service improves, and equipment is better maintained. The system also enhances financial accountability and minimizes risk.

Beyond Technology: The Rest of the Story

While technology is an enormous component of the picture, there is more to this success story.

Cold drinks comprise about 40% of the operator’s volume. “The Coca-Cola Company is our major supplier and part of our lifeblood,” says Hart. “Everything that Coke does affects us. New products can increase turns in a machine, and compelling advertising and graphics help us sell more. It’s a win-win situation.” 

In addition to Coca-Cola®, Diet Coke® is a top performing product. Coke Zero™ has been a huge seller for the operator as well. He points to energy drinks, POWERADE® and vitaminwater® as consistent moving products, and powerhouses include green teas and NESTEA® Red Tea Pomegranate Passion Fruit.

Equipment innovation delivers another distinct benefit. The new Coca-Cola Interactive Vender, featuring touch screen operation, is an enormous attraction at one of Hart’s key accounts, Georgia State University. “We placed two machines at the college at the beginning of the semester and three months later, kids still gather to look at it. When I visit, there’s always a flock of students standing around, touching it and buying products. The animation has generated a lot of brand awareness.” 

Graphics and promotions provide additional ways to increase sales. His company ran a promotion on the same campus with a pizza restaurant, using snipes to communicate the offer. With the purchase of a Coke Zero, the recipient would receive a coupon for $1.00 off a pizza purchase and some lucky recipients received a free pizza. “It was tremendously successful,” says the operator, “and helped drive volume through the machines.”

Southern Refreshments has experienced the same economy induced financial pinch as the rest of the industry, but wise planning created a silver lining. “This recession,” says Hart, “drove us to better manage our business and become even smarter.” The need to focus on technology is one of his most valuable lessons. “The entire industry is changing,” he says. “Those that evolve with it will survive; those that don’t will have a tough time making money.” Thanks to Hart’s foresight, Southern Refreshments is positioned for enduring success.