Article

Self-service equipment providers adapt to coronavirus woes

Health authorities in several parts of the country are advising people to stay home from work if they think they have symptoms, slowing business activity for self-service equipment providers.

Image courtesy of iStock

March 11, 2020 by Elliot Maras — Editor, Kiosk Marketplace & Vending Times

The coronavirus that has caused more than 4,000 deaths and infected more than 116,000 worldwide in the past month has delivered a host of setbacks to thousands of self-service companies. While less than 800 COVID-19 cases have been confirmed in the U.S., according to a USA Today report, health authorities in several regions are advising people to stay home from work if they think they have symptoms, slowing business activity.

Micro market operators, who use self-serve kiosks to service company break rooms and cafeterias, have been forced to curtail deliveries in some regions as employers try to minimize employee health risks.

Royal Vending, which operates 175 micro markets in the greater Portland, Oregon area, has faced restrictions making deliveries to customer locations, founder Ryan Harrington told this website. A handful of customer locations have closed, he said, and schools are restricting visitors.

"We have had a reduction in same-store sales," said Harrington, who noted that many customers have canceled unnecessary deliveries. In addition, the state health department has advised employees to stay home from work if they cough, causing record absenteeism among his own 25-person staff.

The state health department has also encouraged people to work remotely if possible, he said, meaning there are fewer people at many customer locations.

"This is ground zero for Oregon," Harrington said, referring to the Lake Oswego area where he himself lives. His county alone, Washington County, has had 14 people infected.

Business continues, Harrington said, but he is preparing for a worse situation. He is paying attention to health department directives.

Safety products in short supply

While consumers have reportedly been stocking up on bottled water, safety masks and sanitizers, Harrington has only had difficulty sourcing hand sanitizers.

Micro market and pantry service operators in other parts of the country have reported similar issues.

"We have had communication about the virus from the suppliers and have had some challenges getting safety products," said Larry Nowak, chief operating officer at Variety Food Services, a convenience service operator based in Warren, Michigan. "As a company we made a decision to stock up on gloves and hand sanitizer as we are concerned with the supply of these products."

The company has also discussed the need to review products from heavily infected regions with its suppliers, Nowak said, and has re-educated its own team about sanitation practices.

"What we have noticed is that paper towels and toilet paper are gone everywhere in retail and wholesale clubs, etc.," said Todd Elliott, vice president at Tomdra Inc., a provider of micro markets, pantry service and vending service based in Tucson, Arizona.

One customer has requested Tomdra’s employees to wear nitrite gloves when servicing their account, said Elliott. 

"We are otherwise in normal operational mode using the same precautions we would otherwise use during a flu season," Elliott said. "We may have to shift gears a little if we start to see a sales decline from travel restrictions, etc."

Gulf Coast Canteen, an Ocean Springs, Mississippi provider of micro markets and vending services, was better prepared than most because it added sanitizers to all kiosks and hand mounted sanitizers when the SARS outbreak occurred in 2002 and 2003, said Greg Breland, president of the Southeastern company. The coronavirus is caused by the same family of viruses that caused SARS, according to a report in The Guardian.

Equipment supply chains affected

Companies that provide and operate self-service equipment have also had to adjust production and deployment schedules because of supply chain issues, especially those sourcing components from China.

Part two in this two-part series will explore how self-service companies are addressing equipment supply chain issues. 

About Elliot Maras

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Elliot Maras is the editor of Kiosk Marketplace and Vending Times. He brings three decades covering unattended retail and commercial foodservice.