FOOD-TO-GO
Vending: Food-to-go's next growth channel? A
ccelerated by the pandemic and the sudden change in
shopper lifestyles and habits, food-to-go operators and retailers have had to come up with new solutions to meet changing shopper needs. Here IGD’s shopper Insight Analyst Shannon Goldsmith examines the increased demand for vending machines created by new trends of working from home or hybrid working.
Why vending machines?
• Low-contact – with social distancing and hygiene concerns increased, particularly during the first lockdown, vending machines provided a low- contact alternative to visiting a store, and gained acceptance as a safer way for shoppers to still collect food-to-go from their favourite operators • Convenience– vending machines can be placed in a number of locations that are more convenient for shoppers, including transport hubs and workplaces, and are operational 24/7, making food-to-go more accessible for those working or travelling at any time. They also provide operators with a cheaper alternative than opening more stores or keeping existing stores open 24-hours • Efficiency – for time-pressed shoppers on-the-go, vending machines provide a more efficient way of buying food-to-go with minimal queueing times and no waiting time while food is prepared • Suburban shift – there is expected to be a long-term shift out of city centres and transport hubs to suburbs due to working-from-home, meaning that operators will need to explore new ways to reach consumers at home, such as delivery and more click and collect locations. Vending machines are a solution to providing shoppers further afield with fresh items at a time and location that is convenient to them without having to open fully operational shops in local high streets.
Which operators are adopting vending machines?
Costa Costa already has more than 10,000 Costa Express machines in the UK, in supermarkets, convenience stores and transport hubs. Costa is now trialling a new line of coffee machine in 40 of its Express locations across Bristol. The Costa Express Hot & Iced machines serve more than 500 hot and cold Costa drinks s. As well as hot and iced versions of coffees, the machines offer a range of iced fruit cordials. The increased variety offered by the new machines means Costa will be
able to target a wider audience, including non-coffee drinkers, and cater to differing and seasonal tastes. Source: IGD Research
Carluccio’s As part of Carluccio’s new Caffe Carluccio’s concept launched in Sainsbury’s stores in June, Boparan Restaurant Group (BRG) has trialled a Carluccio’s self-serve vending machine in a Budgens convenience store. Source: IGD Research
Pret Pret has recently trademarked the name Pret Express under the class of ‘vending machines’ and ‘coffee vending and dispensing machines’, suggesting an imminent move into the vending machine market. A Pret
vendinginternational-online.com | 11
Huel Complete food brand Huel has also recently launched its own vending machines to target food-to-go missions. With five machines in Heathrow Terminal 5 dedicated to their nutritionally complete ready-to-drink (RTD) meals in bottles in four different flavours, Huel is targeting travellers looking for a substantial but healthier alternative to food-to-go.
Co-op Co-op installed two vending machines at Reading Festival in 2019 and plans to have them again for the festival’s return this year. The vending machine sold Co-op’s chilled meal deals and were filled with more than 400 items, including sandwiches, crisps, healthy snacks, fruit, chocolate and drinks. The machines automatically text staff when running low on items so they can be refilled. Co-op is also trialling vending machines in workplace locations.
Where next for vending machines?
It is likely that more food-to-go operators will enter the vending machine market in locations that are convenient to shoppers – transport hubs, workplaces, hospitals and other 24/7 locations. Locating vending machines in suburban areas will help to recapture some food-to-go missions lost from working-from-home now that city centre footfall is unlikely to recover to pre- pandemic levels for the foreseeable future. There may be development opportunities in the technology to provide
more fresh food options – particularly for food-to-go specialists like Pret, however there are supply chain implications to be considered here regarding ingredients, freshness, and logistics of refilling the machines. Food-to-go operators developing and using vending machines should
operate them as part of a network with their other formats, balancing cost, service and brand experience. While vending machines allow an operator to reach shoppers at more convenient times and locations, they should work as part of a hybrid model, not replacing the in-store.
coffee machine would directly rival Costa Express machines, particularly if they offer iced drinks as well as hot. Pret also trademarked Pret Perks, indicating that they may also be creating a loyalty scheme following their coffee subscription service.
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