OfficeCoffee Service Library

Why choose an OCS for your office?

The study found that, on average, going outside of the office to get coffee takes almost three times longer than it does to get a cup of coffee from a hot beverage service in the workplace.

Based on the article in Business News "Office coffee results in productive worker" February 4, 2006 edition, a survey, conducted by Harris Interactive for the National Automatic Merchandising Association -- a trade association of the food and refreshment services -- found that

  • 76 percent thought drinking hot beverages is relaxing
  • Almost 80 percent of U.S. workers say employers providing hot beverages such as coffee make them feel the employers care about them
  • Seventy-two percent said their office hot beverage service is convenient, while 47 percent said they appreciated that they do not have to pay for -- or at least that they get a break on the price -- for hot beverages.
  • 'The research indicates 79 percent of employed U.S. adults with access to office hot beverage service at work report that they are more productive, and 63 percent view coffee as a good way for people to get some energy,' said NAMA vice president Dean Gilland.

What is Office Coffee Services?

Coffee is one of the world's most popular beverages. Some claim it is the most widely consumed liquid in the world aside from water.

OCS provides a various array of coffee, tea, and other hot beverages. In addition to specialty coffee, or traditional blends, OCS' also provide some of the newest brewing systems, as well as standard coffee machines. Along side with their customer service, OCS' will also maintain, clean, and stock machines on a regular basis. In addition to their offering of coffee, tea, and other beverages, the OCS will also supply your company with all the necessities to make that excellent cup of coffee. (Creamers, sugars, cups, and stirrers, to name a few.)

To become more competitive, OCS operators have improved their selection of coffees, package sizes, equipment, and methods of distribution.

According to the NCA's most recent "Out-of-Home Coffee Consumption Report," in the afternoon, people are more likely to get coffee from within the workplace than from outside.

What a company should look for when choosing an OCS:

Service

    • Customer service is usually the distinguishing factor when deciding which OCS any company will use.

Equipment Maintenance

    • Regardless of coffee quality and customer service, without functioning equipment, your OCS has little value to your business. Make sure that you are getting equipment that works and that the turnaround time on repairs is reasonable. When in doubt, it is always best to ask for new equipment. Water filter exchange on machines is especially important, not only because water comprises 98% of the end coffee product (thus an ample portion of the taste), but because poor water quality can lead to water-bourn diseases, such as Cryptosporidiosis.

Price

    • Coffee prices are determined by product volume as well as the equipment being used. In other words, if the OCS provider is supplying expensive equipment, often times the cost for coffee and related products will reflect this premium. If you opt to use older machines, you may be able to negotiate more favorable coffee prices.

Selection of Coffee and Products

    • A quality OCS provider should have a large selection, not only of coffee, but of tea, hot chocolate and related allied products, such as cream, sugar, stirrers, cups, lids, napkins, plates, paper towels etc. It is a good idea (and should be welcomed by the OCS provider) to ask for multiple samples of any products being considered for purchase - especially when in bulk.

Selection of Equipment

    • Similar to the perishable products mentioned above, your OCS provider should stock a broad assortment of equipment (functionality, pricing) -- pods, single cup, dispensers, air pots, thermal servers - to meet your individual needs.

Ordering Methods

    • As it relates to customer service, ensure that your OCS provider offers ordering methods are suitable to your business. Most will accept some combination of phone, fax, email, and online ordering, as well as payment by cash, check or credit card. This is a service business and vendors should be flexible and convenient.

Delivery

    • Like other aspects of customer service, your OCS delivery regimen should suit your business’ needs. Vendors should offer flexibility in scheduling, an efficient delivery system, emergency delivery service, and perhaps foremost, unquestioned reliability

Internet Coffee Service

Internet Coffee Service is somewhat of a new phenomenon in the office coffee world. These companies are not typical office coffee services - i.e. those serving a specific regional market who have large warehousing facilities and local delivery routes. Internet coffee vendors utilize third-party logistics companies such as UPS, FedEx or DHL. They sell coffee machines at the risk of their purchasers, and leave maintenance and repair to the machine’s manufacturer. Like other non-traditional businesses that sprung out of the internet generation, there is a balance of advantages and disadvantages to internet coffee services. Below is a summary:

Advantages

  • Inexpensive prices for the OCS product. Because of the reduced overhead costs that these companies have to bear, they are often more aggressive on the pricing of their OCS products (perishables and equipment). Small offices especially benefit from internet company pricing.
  • Tax Free Purchasing.
  • 24 hour Ordering. Online ordering allows the customer to make OCS purchases and renewals 24 hours a day, seven days a week.

Disadvantages

  • Lack of Equipment Servicing. Maintenance and repair of OCS equipment is practically non-existent with internet vendors. If your machine is broken or leaking, you will likely have to resort to a local contractor. More often than not, internet coffee service providers do not even have a technician on staff to diagnose a machine problem. Traditional OCSs will be available for regular maintenance (including cleaning - grinds can get messy) and repair to ensure a well-operating machine that has a long life.
  • Lack of Insurance Coverage. Many vendors selling on the internet do not have product liability coverage, which protects the consumer from damage resulting from the use of the office coffee products. Because of this there is no recourse for the business owner should an accident happen and he or she is left with full liability. Most traditional OCS vendors offer this type of coverage.
  • Sometimes Lengthy Delivery Time. When ordering from internet vendors, customers are subject to the vendors regimented and broad shipping zones, rather than a local providers’ regular delivery route. For cross country shipping, customers can expect five days for delivery.

    Water Delivery Service-

    Freq of delivery, depending on what customer wants,

    Spring water-comes out of ground naturally and is filtered for dangerous contaminants, but keep the healthy minerals which provide taste.

    Filtered tap water in the 5 gallon bottle.
    Equipment- new or refurbished. Hot water, cold water, room temperature.

    Vending-

    Proudly Sponsored by Charles Hanna of Hanna Vending.

    TYPES OF VENDING PROGRAMS
    Which vending program should you choose?

    We receive hundreds of calls from potential customers inquiring about vending machines every month. Most of the time they have no idea what method of vending is ideally suited to their needs. They ask questions such as: Can we rent? Do we have to buy the machines? Will the service cost us anything? Where do we get products? The list of questions is endless. We thought you would appreciate some of the basic vending options available to the general public.

    Full Service : This vending program allows the vending company to offer all the vending equipment, products and total service at no cost to the location. In some cases, prices are adjustable to accommodate the location with a monthly commission based on sales. The vending company absorbs all the cost of equipment, insurance, taxes, payroll, spoilage, refunds, rotation of equipment as needed and much more. However, the vending company is allowed to keep all the profits. In some cases, the vendor may offer a commission to the location if the vendor is allowed to vend the products at a slightly higher price.

    Co-Op Service : This vending program allows the location to have the use of vending machines at little or no charge. The vending equipment is usually loaned to the location. However, in exchange, the location must purchase all products and services from the vender and at significantly inflated wholesale prices. The location is required to provide the labor, insurance and a list of other responsibilities. However, the difference between the total costs and the selling price is retained by the location. For example: If the vendor loans a beverage and snack machine to the location at no charge or for a low monthly rental fee of approximately $20 per month per machine, the customer would have to buy products at the following prices. A case of beverages that would ordinarily sell for $7.00 at a wholesale outlet would be sold via Co-Op service at $10 or $11 per case. The customer (location) would vend the case of beverages in the vending machine for approximately $12 and keep the $1 profit. The location staff would also be doing all the work.

    Owner Operator : In some cases an individual or location management person may choose to take complete control of the vending program. This program necessitates the outright purchase of all the vending equipment. The equipment owner is totally responsible for purchasing all products, absorbing any losses that may be incurred. Some of the expenses that the location owner or manager will experience includes: Paying taxes, labor costs, products costs, service calls, parts, repairs, insurance and other similar related expenses. The location keeps all the remaining profits after the expenses are deducted. The average cost of goods is usually 50%. In many cases the management may not want to make a big profit and will sell the items in the vending machines at lower prices than a vending company or sell the prices at a loss. For example: Some companies may pay a 25c wholesale price per can of cold beverage and then they sell the can of beverage for 25c as a special employee benefit.

    Which is the best method? That's a tough question. Each account has to be e val uated professionally to determine what's best in each business situation. In our opinion, Full service is the most popular. If you have any questions, I will gladly assist you with some free counseling and help you make the very best decision for yourself, your management and staff.

    For a free email info package on 100's varieties of vending machines, prices, pictures, vending machine educational materials and more, call Charles Hanna: 913 894 4979 or 800-397 8363 or visit us at: www.hanna-vending.com or email: charles@hanna-vending.com or Fax: 913 894 0252

    HISTORY OF VENDING MACHINES

    What if I were to ask you when was the first vending machine invented? Which machine was it? Who invented it? Maybe it was fifty years ago? One hundred years ago? One thousand years ago? How about 215 BC? Yes, you read that right. The first vending machine was actually on the drawing board of the mathematician Hero, who featured among other inventions, what is believed to be the first vending machine! It was a coin-actuated mechanism that dispensed holy water. In 50 BC in ancient Rome , the operator of a health club (public bath) placed a basket at the entrance of the establishment and the customers inserted coins at the top of the basket through a coin opening. What would prevent anyone from stealing the coins? The clever operator placed snakes at the bottom of the basket! However it was in 1076 AD that the first coin operated pencil machine was invented in China . By the 1700's coin operated tobacco boxes were popping up all over England in the taverns.

    So when did vending make its debut in the USA ? Most of us would not remember. It was in the 1880's when Tutti-Frutti gum vending machines (created by The Thomas Adams Company) could be seen in New York train stations. However, in 1902, the first completely coin operated restaurant, Horn & Hardart, was opened and operated in Philadelphia . In fact, that vending operation remained functional till the 1960's. The US Postal Service introduced the first stamp vending machines in 1905. Cigarette and candy vending machines were visible as early as the 1930's. Americans could buy their favorite gum or candy for as little as one penny! World War 2 created the real big push on vending, and the industry was growing rapidly. It reached approximately $600 million. The first coffee vending machine was introduced during this time to keep the workers in the big manufacturing plants awake, which gave a whole new meaning to the term, "coffee break". The 1950's resulted in a population explosion (baby Boomers) and the increased use of vending which had flourished and diversified extensively. If only I had bought stock in the companies that were pioneering new works of wonder in vending at that time...but alas, I was only a little boy then! However, I was old enough to see the introduction of the cup and canned beverage vending machines creeping into our schools, hospitals, work places and recreation centers by the 1960's.

    By the early to mid 1970's, Hanna Vending entered the vending industry. Nothing has been the same since! This little boy had grown up and discovered the exciting world of vending. At that time, vending had become a multi billion dollar industry. As for me, the past 25 to 30 years has been the most exciting ride of my life. Vending has now exceeded the forty billion dollar mark and is still growing. There is hardly anything you can think of that is not being already vended from a vending machine. I receive hundreds of calls and emails weekly from vending companies, entrepreneurs, manufacturers, inventors, customers, new business opportunity seekers, business owners and others who are interested in vending. In most cases, the questions I receive weekly, reminds me of when I first started out in vending. I even receive calls from 10 and 12 year olds wanting to start their own vending operations with bubble gum vending machines. I am sometimes overwhelmed when trying to remain calm and patient as I am buried under a barrage of questions that indicate how little these individuals know about the vending industry. It reminds me of when I first started in vending and discovered how difficult it was to find anyone who would make the time and effort to educate me. Ever since, I have been educating people to the best of my ability, regardless of the extent to which they have an interest in the vending industry. We can be sure that the world will never be without vending machines. What started as a dream idea in 215 BC has fully materialized. Some day in the future, my great grandchildren's children will look back at today's vending and laugh about the use of all the coins and bills we place in vending machines. Advanced technology in the future will make vending, as we know it today, completely unrecognizable.

    For a free email info package on 100's varieties of vending machines, prices, pictures, vending machine educational materials and more, call Charles Hanna: 913 894 4979 or 800-397 8363 or visit us at: www.hanna-vending.com or email: charles@hanna-vending.com


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