LEISURE & RETAIL THE RISE OF UNATTENDED RETAIL
David Llewellyn, Chief Executive at the Vending & Automated Retail Association (AVA), explores the changing nature of catering in leisure and retail facilities.
Consumer behaviour has changed dramatically over the last few years, accelerated by the Covid-19 pandemic which forced all industries to adapt and evolve quickly in order to meet new demands and routes of access. While the pandemic may have passed and we have settled into the ‘new normal,’ many changes are still with us including hybrid working and the approach towards catering within both leisure and retail spaces.
The move to public vending While vending machines remain commonplace within business and industry, or ‘workplace’ settings, they are becoming more popular to provide refreshments within leisure spaces with a shift towards more machines located in public sites. According to the recent 2022 AVA census, 9% of vending machines in the UK are located within leisure facilities. This does not just benefit consumers, who have access to refreshments on-the-go from vending machines, but it also means that vending operators can reach a wider audience than if they are locked away in closed workspaces or office blocks.
The census also highlighted the increase in the number of cashless transactions, with 65% of vending machines now enabling cashless payments, compared to 55% in 2021. This reflects rising demand for cashless technology among consumers and shows how the industry is constantly evolving to keep up with the changing demands from the market, with many operators investing further in cashless readers and pay-by-app services.
Rise of unattended retail Consumers have become increasingly comfortable with the use of smart and cashless technologies. Not only has this opened the door for more cashless catering, but it has also enabled the introduction of more automated retail opportunities – such as micro-market vending – a custom designed vending market or mart with a self- check-out kiosk.
The rise of micro markets in recent years has been a major factor in transforming the way that businesses operate in the UK. As these markets continue to evolve and become increasingly sophisticated, they will likely have an even greater impact on workspaces and catering facilities across a number of leisure facilities as well.
While the 2022 AVA census highlighted the continued shift away from the traditional ‘canteen’ facilities, it also showed an increase in these self-serve fresh food and premium coffee services – with 480 micro-markets now installed across the UK – demonstrating a 17%
increase from 2021. In addition, the census also revealed an increase in the use of ‘smart’ fridges, with a 125% increase in the number installed since 2021 as more operators look to supply fresh or perishable food in this way. This growth is expected to continue to rise rapidly over the next decade, as businesses recognise the benefits of having an on-site retail space for both employees and other site users or customers.
As the micro market revolution continues, we have also seen the likes of Amazon unattended retail facilities in the UK, which use cameras and sensors to register when items have been selected and ‘purchased’. While conversation has been heavily focused on artificial intelligence and machine learning, we can expect that micro markets will utilise other emerging technologies. This will likely pave the way for further developments within micro-markets and vending, providing the ability to monitor consumer behaviour to inform stock or prices of certain products.
Healthier vending While machines and vending facilities are being continually developed, we are also seeing changing habits around customer preferences in snacks and therefore the choices that operators are providing within machines. The implementation of the sugar levy has meant that suppliers have to consider the nutritional value of the products within the machines. Now 80% of pre-package cold drinks have less than 5g added sugar per 100ml and 79% of confectionary and sweet lines now have less than 250 kcal – in a crackdown against unhealthy drinks and snacks.
The vending sector is future-proofing and is prepared to meet changing consumer behaviour surrounding contactless and human-free interaction. Doing this successfully will help businesses to reduce overall costs, while still ensuring people can have refreshments on the go.
www.the-ava.com 38 | TOMORROW’S FM
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