The revolution in cashless vending

Although snacks and drinks vending has evolved with the concern with consuming healthy items, the main categories have remained the same and dominant throughout the decades: snacks and drinks. Payment methods for vending machines, however, have recently undergone a rapid transformation due to advances in technology that customers have been quick to adapt.

When you own a vending machine business, there are several forms of payment you can accept from your customers. Here’s a rundown—from cash to digital wallet—including the amazing advances that cashless vending allows.

Cash

Did you know coins first appeared about 2,700 years ago? They were a mix of gold, silver and copper, and issued by the government in Lydia, about where Turkey is today.

image source: pixabay

Coins are the oldest form of payment used in vending machines, but cashless options are quickly replacing cash as the preferred payment type. Cash still has its place, though, and there will always be customers more comfortable spending bills and coins.

Metal composition of coins remains important today. In vending machines, electromagnets in the coin mechanisms look at metal content and light sensors measure size. These tests determine whether coins put into vending machines are accepted or are ejected into the coin return area. What happens if a government reissues coins with a different metal make-up? No worries—operators can use a programmer to quickly and easily update the software in their coin mechanisms.

Paper currency? Vending machines use ultraviolet light, sometimes along with a reader to measure magnetic composition, to make sure bills inserted are the real deal. These devices also read the bill denomination.

image source: deposit photo

Magnetic Stripe Cards

In Canada, this was originally the type of credit card that required a signature to confirm transactions—vending machines with card readers accepted them for transactions under a certain limit.

Now, however, magnetic stripe cards are commonly used as stored value cards. For example, in a multi-family residence that has vending machines and laundry machines. They’re also used at schools and universities. Student ID cards can be combined with stored value cards. Customers can have additional value added to the cards. Students can use them in snack and drink vending machines throughout the campus, and for other services too.

The move away from physical cash to digitally-tracked cash has resulted in much less theft from vending machines. When thieves target vending machines, they’re usually after the cash in them. If the vending machine doesn’t contain cash, you’ve taken away the incentive.

EMV Chip Cards

EMV chip cards were the next advance, using NFC (near field communication). This refers to a set of communication protocols that allow 2 electronic devices in close proximity (4 cm or so) to communicate. EMV chip cards are inserted into the vending machine’s card reader and the customer punches in their personal identification number (PIN) to approve the transaction. Chip cards are highly secure because of the computer chip in the card and the requirement for a PIN.

image source: deposit photo

Contactless or Tap Cards

Contactless cards also use NFC. In Canada these days, contactless cards are the credit and debit cards used most. Customers can simply tap their card close to a card reader.

Integrated Cards: Chip and Tap

“Integrated” cards have both the chip and the contactless features: they can either be inserted or tapped to make payment. The bank debit card and the credit cards you have in your wallet now are highly likely to be chip and tap cards.

Contactless chip cards marked the beginning of the revolution in cashless vending. They’re easy and convenient to use and they’re highly secure. Canada’s most common forms of cashless payment for small transactions are Interac and debit payments. For the first time, customers could use their debit card to make a vending machine purchase.

image source: deposit photo

Digital Wallets

Customers now can use their smart phone to make a “tap” payment at vending machines. Smart phones use NFC technology and a “digital wallet” to operate the payment apps — like Apple Pay, Google Pay or Samsung Pay.

Summing It Up

When payments are purely digital, they are convenient for everyone:

• Deposits are made directly to the owner’s account.

• No need for owners to go to machines to do collections.

• No need to check that there are enough coins available to make change.

• No cash? —no reason for a thief to break in.

• Fewer moving parts to break down without a coin mechanism or bill acceptor.

• Customers don’t have to have cash.

• Customers don’t have to have the right change.

• Customers in Canada trust tap payments.

With digital payments, there will never be any nightmare calls about a jammed coin mech or a bill acceptor spitting the bills back out—leaving you wondering about how many potential sales you may have missed.

A tap payment is so fast, easy and convenient. In Canada, it’s quickly become the preferred way to pay. Get vending machines that come equipped with a state-of-the-art card reader, like Vive Premium Healthy Vending Centres.

image source: pixabay

Covid has changed how we think about snacks and beverages

Like any worldwide event, Covid has affected many in a big way. It’s changed how we think about things, including how we think about snacks and beverages.

Source: Pixabay

Has it affected what we buy? And how? —A 2022 study identified the following consumer mindsets driving purchases these days: 

• desire for better health

• feelings of nostalgia

• wanting comfort

• craving adventure and novelty

• seeking sustainability

These trends give you some insights into how customers are thinking today. Read on to discover how all this affects healthy, premium vending. This post mentions products available in single-serving packaging suitable for vending machines. There are no affiliate links. Check with your supplier.

Source: Pixabay

Who doesn’t want better health?

The idea of healthy eating varies from customer to customer. One or a combination of the following factors is usually involved:

• physical health

• mental health

• religion/ethical diets

Many people continue to have a heightened awareness of their immune system health. If a certain ingredient might help boost the immune system, people are apt to seek out foods and snacks that contain it. Even pre-pandemic, there was a move toward foods that have potential antioxidant, anti-inflammatory and anti-aging properties, or “functional” foods. Functional foods and beverages refer to items that have a potential benefit beyond nutrition. 

Drinks flavoured with ginger, which is said to have anti-inflammatory and antioxidant effects, are a good example, like Flow Naturally Alkaline Organic Lemon-Ginger Spring Water. 

Some customers restrict their intake attempting to improve physical health. The Keto diet has been popular. Customers following this diet will be more likely to purchase Hungry Buddha Keto Bars.

Dark chocolate is thought to have mental health benefits as a mood-booster. Usually chocolate with 70% or more cocoa is recommended. An example of this is Theobroma 72% Dark Chocolate Sticks. Dark chocolate is also considered a luxurious treat and Theobroma sticks fall into the premium vending category on that merit too. 

Special diets for religious/ethical reasons can include Halal, Kosher, and Vegan diets. CHIPS AHOY! Original Chocolate Chip Cookies 4-packs are Kosher, for example. Halal gummies, which contain no animal products or alcohol, are available, like Sour Patch Kids. These chewy candies are also Vegan.

Source: pixabay

Is there a place for nostalgia in healthy vending? —You bet!

A lot of people grew up eating potato chips as a treat. Barbecue-flavoured chips have been a perennial favourite. But what if customers crave that Barbecue taste and chip crunch but don’t want the high fat found in traditional chips? More non-deep fried snack options are coming to market. Some of them have nostalgic flavours, like BBQ. Three Farmers Roasted Lentils BBQ Flavour are high fibre, gluten-free, vegan and kosher. The lentils in them are grown and packaged in Canada.

Source: depositphotos

Comfort food does come in vending-size packages …

People used to think of a big family dinner when they heard the term comfort food. They still do! More people are seeking comfort food these days, read about it here. But now people are finding comfort foods in vending machines too. Often crunchy food or chewy food is placed in this category. The repetitive chewing motion required can be soothing. And comfort food for alternative diets is now more widely available in single serving packaging. For example, Clif Bars are not only chewy, but the delicious bars give customers an energy boost. They are a great item to stock if you have a location at a gym or other fitness facility.

source: pixabay

Customer palettes do the travelling

During the Covid pandemic, exotic flavours offered consumers a change of taste when a change of scenery wasn’t practical. Dan-D-Pak Philippine Mango is a good example. The fruit is picked when it’s perfectly ripe and then dried, becoming a delicious snack. Another example is coconut water.

source: pixabay

Snacking can be sustainable 

Customers are becoming continually more interested in supporting brands which don’t deplete the planet’s resources as much, says an article on specialty food trends for 2022. Some examples of these snacks from this post include Hungry Buddha Bars, which are non-GMO; Theobroma sticks, which are organic certified, fair-trade certified and non-GMO; and Three Farmers Roasted Lentils, which as mentioned, are grown and made in Canada. These snacks taste great and have less impact on the environment.

That’s a review of some of the consumer tendencies that are trending and a number of healthy and premium snacks and beverages for your vending machine business. Factor in what you know about the demographics of potential customers at each location and check what your suppliers are stocking. When you’re on location, talk to your customers and ask them what new products they’re interested in. Then you’ll be ready to offer some fresh choices for your customers. And remember, when you’re trying new products, it’s best to buy in smaller quantities first, do some testing to gauge customer response and then decide if this is a product you’ll offer regularly at that location. 

Safe vending checklist

We’ve learned a lot in the 2 years since the COVID-19 pandemic started. As the operator of a vending machine, it’s important to stay on top of practices that will increase safety both for you and customers that use your Vive Vending Centre.

The Public Health Agency of Canada tells us “COVID-19 spreads from an infected person to others through respiratory droplets and aerosols (smaller droplets)…” (https://www.canada.ca/en/public-health/services/diseases/2019-novel-coronavirus-infection/prevention-risks.html) It also spreads by touching a surface that has the virus on it, and then using unwashed hands to touch the mouth, nose or eyes.

image from pixabay

Other than vaccination, the main preventative measures against COVID-19 that we can carry out day-to-day are to:

1. Decrease our interactions with other people.

2. Make contact with surfaces safer.

Here’s a review of how you can follow through with these COVID-19 safety measures when you operate a vending machine. 

Limit interactions with people outside of your bubble

Vive Healthy Vending Centres are equipped with technology that allows you to monitor your sales and inventory from home or anywhere else you like on a computer or a smart phone. Before you go to locations, you’ll know exactly what snacks and drinks you need to restock. This allows you to make a shorter, more efficient visit to each location. Since you’re there for less time, you’ll encounter fewer people outside of your bubble.

Similarly, if you visit a cash and carry outlet to purchase snacks and drinks, you’ll know exactly what you need. Once you’re at the outlet, you’ll be able to collect and pay for the items you need efficiently. You’ll avoid unnecessary return trips. Again, you’ll be there for less time and come face to face with fewer people.

Customers that use vending machines are choosing a very safe unattended retail experience. There is no cashier, no manager, no jostling with other people. They’re not isolating at home, they get a treat they likely don’t normally have, and all of it happens without interacting with anyone outside of their bubble.

image from pixabay

Stay home when sick

It’s simple. It might be you just have a cold or flu, it might be you’ve contracted COVID-19, the wisest choice is to stay home. You don’t want to take a chance you might infect someone else. To read more about the guidelines in your area, please see the paragraph below beginning “Each province has their own guidelines …”

Wear a mask

The Canadian government site has a thorough section on mask use here: https://www.canada.ca/en/public-health/services/diseases/2019-novel-coronavirus-infection/prevention-risks/about-non-medical-masks-face-coverings.html#a8

• For your own safety

• For the safety of others

• For the sake of your business image

image from pixabay

Use social distancing

As mentioned above, since you can check your sales and inventory remotely from the safety of your home, you can arrive at locations prepared with the right products in the right quantities to restock your machine. You’ll only do necessary trips to your vehicle. Walking in, out and through buildings, keep the 2-metre social distance in mind. If you’re in a hallway, for example, just step aside to allow others to pass. Duck into doorways or other hallways to maintain that social distance. Make way for others as a matter of course. Especially if they’re carrying something.

Vending is the only form of food service that consistently fulfills social distancing standards, because just one person uses the machine at a time. If it’s busy, the people can follow social distancing norms and leave 2 metres between themselves as they line up.

Practice hand hygiene

Hand hygiene is a habit people have already formed. Vive Vending Centres make it easy to keep this good habit, with the first machine-mounted hand sanitizing stations on vending machines in Canada. 

When you’re on location and you switch tasks from machine maintenance to restocking, for example, always wash your hands first. This is for your own safety. It’s also important to maintain strict standards for the safety of your customers. 

An operator who is seen carrying out safe practices is held in higher esteem, and gets more customers, than one who is perceived as less than careful.

Clean and disinfect surfaces often

Keep your Vive Centre clean. A sparkling vending machine attracts more customers. It also runs better. Remember to remove dust from under the unit and from between the unit and the wall. If you can’t reach the top of the machine to dust it, bring a portable step stool to help you. 

Keep the hand sanitizing station looking tidy, and fill up the canister each time you visit. 

To disinfect the glass on the door, you can use a commercial window-washing spray. To disinfect the rest of the machine, use a solution of 70% alcohol—on the keypad and near openings, this should be used very sparingly. Remember to never spray liquid directly onto your machine, always dampen a lint-free cloth with the solution first, and then wipe the surface of the machine.

Conclusion

Each province has their own guidelines and rules for helping to prevent the spread of COVID-19. It’s a good idea to skim the guidelines for the province you live in with your vending business in mind. You may discover a way you can enhance the public perception of the safety of your vending machines. 

Image from Pixabay

Here is a list for all provinces where you can find this information. You can also find this material for Northwest Territories, Nunavut, and Yukon. It’s a good idea to check back to your province’s website regularly. As you probably already know, these rules can change.

Alberta: https://www.alberta.ca/covid-19-public-health-actions.aspx

British Columbia: https://www2.gov.bc.ca/gov/content/covid-19/info/restrictions#pho-order

Manitoba: https://www.gov.mb.ca/covid19/prs/orders/index.html

New Brunswick: https://www2.gnb.ca/content/gnb/en/corporate/promo/covid-19.html

Newfoundland Labrador: https://www.gov.nl.ca/covid-19/updates-resources/public-health-orders/

Nova Scotia: https://novascotia.ca/coronavirus/restrictions-and-guidance/

Ontario: https://covid-19.ontario.ca/public-health-measures

Prince Edward Island: https://www.princeedwardisland.ca/en/covid19

Quebec: https://www.quebec.ca/en/health/health-issues/a-z/2019-coronavirus

Saskatchewan: https://www.saskatchewan.ca/government/health-care-administration-and-provider-resources/treatment-procedures-and-guidelines/emerging-public-health-issues/2019-novel-coronavirus

We hope this post contains helpful information on safety that you can use when operating your vending machine route during the COVID-19 pandemic. But please remember, we aren’t epidemiologists, public health experts, or law-makers. Please consult these experts as necessary.

Vending customers want more than to just satisfy their hunger

Today’s premium healthy vending customers want more than to just satisfy their hunger. This post focuses on current directions in healthy vending snacks. A future post will focus on premium beverages.

Healthy vending trends are generally a reflection of grocery shopping trends, but there are a couple of specifics to keep in mind.

• Snacks must be available in a single serving size.

• Items must be shelf stable. Shelf stable means that they can be stored at room temperature in a sealed package, with a best before date far into the future.

In 2021, Whole Foods grocery store noted that the line between the grocery aisles and the supplements aisles is blurring and that this is likely to continue. (https://www.wholefoodsmarket.com/trends/top-food-trends-2021.) An example is Simply Protein Bars. These are high-protein energy bars that also contain a supplement: iron.

Vending customers are often looking for more than a simple snack these days. 

Sometimes they are looking for foods that fit into a specific diet. Some of these diets are:

• Low Carb

• Low Fat

• Gluten-Free

• Keto

• Kosher

One example is Keto Bars. Another example is Garden Veggie Straws, which are certified Kosher, non-GMO and Gluten-Free.

Sometimes customers are seeking snacks with additional benefits. Those benefits can be for themselves:

• extra energy

• an immune system boost

• amino acids

• a dose of vitamins

Quest Bars use dairy protein to provide a complete amino acid profile, for example.

Other times those benefits can be for the greater good:

• ethically sourced cocoa

• reduced waste packaging

• reduced carbon footprint

For example, Farm to Table Popcorn’s factory is less than 100 km from their growers.

Nuts are a perennial favourite snack, whether a bowl in front of the TV or a bag grabbed from a vending machine. They’re good for you too. Positive results keep coming in. A study through the Million Veteran Program, released just this past August, found an increased dietary intake of nuts was beneficial for cardiovascular disease (https://pubmed.ncbi.nlm.nih.gov/34578913/). The research into the benefit of nuts for your heart is well-publicized, making nuts a good snack option for healthy vending machines.

Along with nuts, dehydrated fruits like mango slices and cranberries are proven winners. More recently, fruits and vegetables dehydrated and enhanced at their prime are turned into fruit or veggie jerky.

It’s been said (more than once) that “chickpeas are the new cauliflower.” Chickpea snacks, puffs, and crackers are now on the market. Three Farmers Roasted Chickpeas Sea Salt are an example. They’re made with just 3 ingredients, chickpeas, oil and salt. They’re Gluten-Free and non-GMO.

Stocking your Vive Vending Machines with popular healthy snacks has never been easier, especially if you keep in mind today’s food shopping trends.

Will everything in the future be sold remotely? How does that trend affect the Vending business?

Unattended retail sales have been around for longer than you might think. You may have heard the word automat. It was a type of fast-food restaurant that first appeared in 1895 in Germany and became a big fad in New York City in the 1950s. It was a pretty cool business idea. Automats sold home-style food and drinks from coin-operated vending machines along the walls inside them. They had communal-style seating as well as a stand-up counter for “vertical meals”. They satisfied the needs of consumers looking for affordable, good-tasting food that was quick and convenient.

image from: New York Public Library’s Public Domain Archive

Self-service checkouts are also considered unattended retail sales. Invented in the 1990s by an American who was tired of standing in long grocery store line-ups, the number of self-service checkouts has steadily been increasing since they were first introduced. By the 2000s, they weren’t uncommon, and these days many grocery stores, plus stores like Canadian Tire and Walmart, have made at least some of their checkout aisles self-service. Again, consumers use them because they are quick and convenient. Store owners like them because they don’t require a paid cashier at every checkout.

Image: CC by 2.0 via Wikimedia Commons

Another example of unattended retail sales are the phone and other device charging stations now commonly found in public places like airports. Sometimes use of the charging port has no cost, other times, users are required to pay for the service. These stations require no human supervision.

The trend toward unattended retail sales continues. A 2021 report from Raydiant (a digital signage and experience platform provider) found that almost half of consumers use self-service checkouts exclusively and 85% strongly believe that they’re faster.

Since the Covid-19 pandemic, unattended retail sales have become even more popular with consumers. Self-service checkouts and premium, designer vending machines make it easy to follow social distancing protocols. Contactless payment options help customers feel more comfortable with the shopping experience.

Vending machines are unattended retail that have been around for a long time, but manufacturers like Vive Vending Inc., a vending machine business in Canada, are keeping up with the times and taking advantage of the “return to new normal” with designer machines targeting today’s consumers.

Interactions with on-location staff and cashiers may be decreasing as customers buy more things online and more things through unattended retail sales, but there will always be purchases where people want face-to-face interactions, so sales will never be 100% remote. Still, there’s no doubt that unattended retail sales are here to stay and will only represent an increasing proportion of sales in the future.

Image: vive vending inc.

Other strong trends include the growing concern about the quality of food we eat. Vive vending machines are able to stock a wide variety of products from Vitamin Water to Mango Slices to Pop Corners.  They also offer contactless payment and time-saving remote monitoring for operators. The high-resolution LCD screen can feature information about products or create extra revenue by advertising for local businesses. There’s a hand sanitizing station mounted right on the machine. They have eye-catching graphics with clean lines that compliment any business premises or public space. Vive Vending machines are perfectly positioned to capitalize both on the move toward premium snacks and beverages and on the trending customer preference for unattended retail.