Commentary

Do micro markets live up to the hype?

A veteran convenience services operator tackles some misconceptions about micro markets and explains the technology's continuing popularity.

Image provided by Connect Vending.

May 1, 2023 by Sam Roberts — Digital Marketing Manager, Connect Vending

Micro markets are getting a lot of credit in the convenience services industry in recent years. But is the hype really justified? Will they stand the test of time?

Micro markets have been expanding across the globe since they became a factor in the U.S. in the mid-2000s. The concept continues to grow almost exponentially in the U.S., with barrier-free access to quality food and drink and the self-service model proving appealing to consumers.

Equipment manufacturers have made huge technological strides when it comes to developing micro markets, and have been refining their hardware and software for decades.

The micro market concept has been particularly successful as it offers a seamless consumer experience from the point of picking items to scanning and checking out, something consumers are now very familiar with, having used self-service machines for many years in supermarkets.

A workplace benefit

In the U.K., micro markets are especially popular within workplaces, where they have seen rapid uptake by businesses ridding themselves of costly, inflexible catering setups and implementing micro markets in their place. This isn't to say that there aren't micro markets in public spaces in the U.K., but the uptake in private settings has been more rapid.

Businesses and organizations with 150 and more employees that have large traditional cafeterias are increasingly finding the space underutilized and expensive to run. This is especially true with sites where shift work is the norm, as the catering is very rarely available outside of standard working hours.

We've seen it with businesses we have worked with to transform the catering setup into a full micro market, where the catering setup doesn't allow access to shift staff and operating costs have increased to the point of being unsustainable.

With a micro market, businesses are able to provide round-the-clock access to great quality food and drinks, and a vastly expanded product range to include the world's leading snack and confection brands.

Not only this, there is no longer a need to order, wait and queue to pay, as everything in a micro market is self service.

What about food quality?

One of the biggest comments that we've seen out in the market is around the quality of the food and drinks that are available. There's a misbelief that the fresh food options, such as sandwiches, paninis and ready-to-eat meals, are going to be very low quality as they haven't been prepared in the kitchen by a catering team.

This couldn't be further from the truth. The food that is available in micro markets is great quality, from the ingredients that go into the fresh food, to the coffee beans and milk that goes into the coffee machines.

Yes, you can still get ahold of your favorite microwaveable burgers and your pastries, but you also have access to soups, fresh salads and more.

There's also a common misconception that micro market fresh food will be packed full of preservatives and left for two weeks in a fridge, making it less than desirable to purchase and eat.

Sales in micro markets can be lightning fast, selling hundreds of products a day, and the fresh food stocked in fridges is as fresh as anything you would pick up from a supermarket or get from a coffee shop.

Most of the products need to be turned around within three days to retain their freshness, or they'll be removed from sale. Quality is just as important in a micro market as it is in any other food retailing space.

What about coffee?

When it comes to coffee, micro markets have some of the best commercial coffee machines that you'll likely come across in your working life.

Micro markets are a premium offering, typically in workplaces with broad consumer demographics, and so having a flexible and high-quality coffee solution is extremely important.

There will always be occasions when staff want to head off site to buy something specific, whether it's food and drink or a last minute birthday card. But most staff, most of the time, would rather be able to grab something nice to eat and drink, and relax in a comfortable breakout area to recharge their batteries.

Workspaces are great for driving collaboration and increased productivity by having areas for staff to sit and run informal meetings and sessions. This has a two-fold benefit for breaktimes, with staff being able to kick back and relax with their colleagues and socialize in a non-work context. Drawing people into that space at lunch with great food promotions such as meal deals and delicious coffee makes it all the more appealing.

Organizations benefit not only from their staff feeling rested and recharged in a relaxed environment during their breaks, but they are also more likely to seamlessly get back into the swing of their work once they've finished. Even if this means employees are doing their best work 10 minutes sooner after returning from lunch, across 100 staff that's a serious amount of regained productive time.

Without a doubt, micro markets are worth the hype. They deliver benefits on so many fronts that it's easy to see why businesses are turning to them ahead of more vending machines or continuing with catering.

Employees love the flexibility and barrier-free nature of micro market food and drink, and businesses love the cost savings and better atmosphere of staff eating on-site.

Retail