16 Jan 3 Industry Trends for 2020
The vending, micro market, and office coffee industry is changing fast. In particular, micro market, vending, and pantry services are driving overall revenue increases and boosting industry worth. To run a successful operation in 2020, you’ll need to capitalize on these growing industry trends. Here are 3 industry trends to watch in 2020:
Micro markets are still rapidly expanding in growth. According to the 2018 NAMA Industry Census, Micro Market Revenue increased 99% from 2016-2018 and represents two billion dollars in annual revenues.
Conventional accounts like manufacturing facilities office buildings are becoming more saturated. As time goes on, these ideal accounts will be harder and harder to get as competition increases. Savvy operators will look to unconventional micro market locations to grow their micro market businesses.
Universities or colleges, government buildings, hospitals, hotels, and health clubs are all currently micro market account types that are untapped. Target these locations to find successful accounts.
2. Emphasized Employee Wellness
Consumers are eating healthier than ever – 93% of consumers want to eat healthy at least some of the time. Healthy eating is found in office settings by increased emphasis on employee wellness programs. Large employers across the country are expected to spend an average of $3.6 million on corporate wellness programs. Per employee, that number comes out to $762 – three times the amount spent in 2009.
Increased spending on employee wellness means more money for operators providing fresh or healthy options in the workplace. In particular, micro market or pantry service providers can make more money by targeting companies with employee wellness incentives. These locations appreciate healthy options, and are even willing to subsidize these food types, which can lead to big money for your operation.
3. EMV / Dip Payments
EMV or dip payments are the standard payment method for merchants across the world. EMV payments are completed via dip and replaced the traditional swipe that had been common for so many years. EMV payment requirements and acceptance increase every year, and vending operators who place cashless readers on their machines need to be prepared.
Globally, 76.7% of card-present transactions are EMV. In the United States, the adoption rate is lower at 60.7%, but that number has increased about 8% in the last two years. As your customers move toward EMV payments, vending operators need to as well. To provide a method of payment your customers are comfortable using, and to keep up with security standards, the move to EMV is a must. For your next purchase of card readers, consider a cashless reader with EMV capability.
Our industry is constantly changing. By keeping in touch with upcoming industry trends, you can position your operation to capitalize on these new normals. In 2020, focus on unconventional micro market locations, take advantage of employee wellness programs, and adopt EMV-capable cashless readers to stay one step ahead of your competition and run a more successful operation.