How Vending Machines And Micro-Markets Are WOWing The Workplace
David Llewellyn, chief executive of the AVA, discusses the rise of micro-markets as an alternative solution to traditional catering.
The world of work has undergone significant changes in the recent years, as an increased stance on flexibility means employees often have more freedom about where they work. To accompany this change, is the shifting consumer behaviour in the way we pay for our goods. So how does this affect catering within the workplace?
Consumer behaviour has significantly changed in the last five years as a result of growing familiarity with using smart and cashless technologies. In fact, as of 2021, 23.1 million consumers used neither no notes or coins, or used them only once a month; and 50% of UK consumers pay for their goods and services via digital wallets.
This mass adoption of smart technology has made it possible to introduce more automated retail opportunities, such as micro-market vending, which is a specially created vending market or ‘mart’ with a self-checkout kiosk. It has also made it possible to accept more cashless payments, which was undoubtedly accelerated by the pandemic, during which the handling of physical cash declined. Evidence of this can be seen from the AVA census, as in 2017 66% of transactions in vending machines were made using cash compared to just 34% cashless. Following the covid-19 pandemic and because of vast developments in technology, in 2021 research showed that68% of purchases were cashless and only 32% were coin and notes.
As well as a change in consumer behaviour regarding payment, seismic changes in the world of work have also arisen, again largely as a result of the pandemic. Flexible and hybrid working have been widely deployed across the UK, with approximately 84% of employers across the country adopting a hybrid working approach, enabling employees to split their working week between home and the office.
These changes seen in consumer behaviour, combined with the changes seen in the workplace, has started to impact how conventional catering and canteen services operate. With less employees in the office on a regularly basis, typically, traditional catering or canteen facilities are becoming less commonplace.
Instead, micro-markets are now playing a bigger role in workplace catering to make sure that workers can get the refreshments they want throughout the day, without having to pay staff or a kitchen to supply for them.
Many organisations are also opting to implement micro-markets as a way to improve employee satisfaction and promote the return to office-based working. Micro-markets enable businesses to continue offering the flexibility that so many workers want, which will help with long-term employee retention.
Micro-markets grew by almost 25% between 2020 and 2021, according to the 2021 AVA census, with around 410 installations in the UK however, we are expecting to see a continued rise when the new AVA census is released this summer. This reflects how the working world is constantly evolving, and more hybrid working is probably going to cause a further decline in the use of conventional workplace canteens and an increase in the demand for micro-markets and “smart fridges,” due to the significant cost saving opportunity they provide.
It is worth noting that the vending sector is not an exception to the necessity for industries to adapt and change to suit new needs and access points. The vending industry is future-proof and ready to adapt to shifting customer preferences regarding contactless and human-free interaction, which will also help businesses cut overall expenses while still guaranteeing that their staff have access to refreshments on the move.
