Self-service equipment finds more post-pandemic niches

The explosive growth of self-service equipment in the last few years isn't going to be slowing down any time soon, as retailers and other locations have recognized its benefits, according to a panel of experts who explored the topic, "New Markets for Kiosks," at the recent?Self-Service Innovation Summit ?in Hollywood, Florida.

"We really are seeing a difference now post pandemic — people happy to act in a self service manner," said moderator Richard Thompson, vice president of sales for global OEM at?Zebra Technologies Inc ., the session sponsor. The company's research shows shoppers want to interact with self service as well as with brick-and-mortar stores.

Research indicates 76% of all shoppers are likely to go to a brick and mortar store more frequently than pre-pandemic, he said, but they want to interact in multiple ways, including self service.

"It's becoming a much more combined way of retailing which I think is a huge opportunity," he said, noting that self service has become an extension as opposed to a challenge to retail.

(The Summit is one of several industry events organized by Networld Media Group, the parent company of Kiosk Marketplace and Vending Times. The media company's next event is the?Restaurant Franchising & Innovation Summit ?being held March 20-23, 2023, in Coral Gables, Florida.)

Brands embrace self service

Brands became exceptionally receptive to self service during the pandemic, agreed panelist Alejandro Rodriquez, founder and CEO of Pharmabox, which provides glassfront vending machines for OTC pharmacy products.

"After the pandemic, everything changed," Alejandro said, adding that some retailers are using vending machines in stores to control theft. "Vending has been a great solution."

Alejandro said he is meeting with companies he never thought he'd meet with. "Everyone wants to understand how this business works," he said.

And the acceptance is not restricted to the Western Hemisphere.

Panelist Amanda Atan, managing director at One Vibes Nation Vending & Advisory, based in Qatar, which operates halal product vending machines in the Middle East, said food brands turned to her company during the pandemic to be able to serve their products in vending machines. Her company provides machines that store and heat frozen Middle Eastern food.

Once the machines were introduced, it took time for Middle East consumers to become used to them, she said, due to the historic association of vending with low quality food. But vending is gaining more consumer acceptance, and as a result, vending in the market she serves has tripled in the last two years.

"A vending machine opens up more opportunity than anyone could imagine," Atan said. "It actually helps brands who are in the real retail industry … It even gives them an upper hand when they try to get investors."

Food machines, as well as machines offering laundry detergent and medical products, are thriving in multifamily buildings, Atan said.

"We even have military camps asking us to put their machines there," she said.

"It has become part of the omnichannel," she said, echoing Thompson. "It has become part of the retail presence. Right now if you want to have a shop, you just need to have a vending machine … Vending becomes a bridge that connects both dots."

Economic benefits

Panelist Jilbert Petrosian, founder and owner of Golden Goose Enterprises Inc., based in Southern California, owner and operator of iCream soft-serve ice cream machines, said the economics of vending are especially appealing in Southern California where it takes six months to a year to get a license to open a store.

"With a vending machine you're just plug and play," Petrosian said, adding that it is especially successful when you have brand recognition behind the machines.

Some locations Petrosian has served have required multiple machines since one machine did not meet the demand.

Panelist Amy Williams, executive producer at XD Agency, which operates self-service machines to promote brands at trade shows and other events, said kiosks provide brands a way to communicate a message in a fun and engaging way.

XD Agency deployed a machine at a trade show that invited attendees to win a Lego game as a prize. There was actually a line of people waiting to play the game.

"They all got to leave with the experience of what can be done and how much fun one can have with a kiosk experience or a vending experience," Williams said. "So people leave with an experience, not just an interaction with a machine."

Technology improves

Williams said a big draw for her as a kiosk operator is the modern technology that allows data collection, especially if you have touchscreens. Users are given the choice of opting in to the kiosk, and most opt in, giving the operator data such as customer emails.

"Having that many entries to your potential new sales space is hugely beneficial," she said.

Alejandro agreed, noting that the technology makes it possible to learn the demographics of the people in front of the machine and allows the location to know what the customer's past purchase was and make a suggestion based on it.

"You can change a planogram inside the machine based on the people nearby the machine," he said.

Thompson pointed out that the kiosk is another point of interaction to collect data that cannot be gained with a human interaction.

Technology partnerships crucial

Choosing a technology provider requires patience and persistence, the panelists agreed.

Petrosian went through seven prototypes to become NSF-certified, which he felt is necessary with a food machine. Parts manufacturers must be NSF-approved. In addition, equipment manufacturing requires a supply chain to source the hardware and software.

Williams said she looks at reliability, reviews, testimonials from other customers and how well the supplier understands how important service is to them and the customers.

Williams said there is still a negative connotation among some customers about vending food that must be overcome. The younger generation, however, doesn't hold this view.

"There is a huge amount of opportunity," Thompson reiterated. He said the industry has to talk about the benefits more, including the fact that self service doesn't take away jobs.

Cover photo by Willie Lawless. Head photos provided by speakers.