Group C, the largest independent vending company in the tri-state area of New York, New Jersey and Connecticut, was looking to add micro markets to their already stacked portfolio of traditional vending and coffee services. Group C had recently contracted a large corporate client that was to include five buildings and over 48,000 employees across New York City. Their client needed them to create a micro market program not only for their large breakrooms, but also demanded Group C be able to provide the market experience on every floor of their buildings, which house anywhere from 75-300 employees.
In order to deliver on this request and remove the unneeded friction of managing multiple systems, Group C also required a technology partner that could easily integrate into their current Vending Management System (VMS), USA Technologies Seed Platform. Enter Yoke Payments, an award-winning, innovative self-checkout software solution that provides a smart way for vending operators to maximize their potential for growth, expansion and increased profit margins.
To best meet the demands of Group C’s corporate clients and to support their new micro market business line, Yoke sought to address the top pain points for operators with micro markets, specifically for smaller per capita locations:
A common concern amongst new and existing market operators are the perceived high costs of equipment and ongoing technology fees compared to traditional vending machines. The major issue preventing scalability into the micro market vertical is that most market solutions are not priced for locations under 300 employees. This has previously limited installs to locations that generate enough revenue per month to warrant investing tens of thousands of dollars on a market build out. Group C was presented with a massive opportunity to expand their market footprint but needed to find a kiosk solution provider with the right economics that would allow them scale into this untapped smaller market environment.
When creating a micro market program to go after smaller environments, the physical space is always a concern. Operators need to maximize shelf space to fully capitalize on the potential revenue opportunity. Giving away valuable merchandising space to house a large kiosk directly decreases the number of products available in the market and negatively impacts revenue. In each of these satellite breakroom locations, Group C designed spaces for coolers and snack cabinets, but still couldn’t figure out where they were going to put the kiosk.
Network connectivity is a must-have at each vending and micro market location. This however can present significant hurdles when depending on the location’s capabilities such as hardwiring into the network, spotty Wi-Fi connections and strong firewalls. Relying on the on-site “IT guy” is a guaranteed way to increase frustration and market downtime. Group C was not willing to put their reputation and the success of their operation in anybody else’s hands.
“For every-one micro market with other solutions, we can have ten Yoke markets because it is just that cost effective. The whole program that Yoke built and their vision with the mobile app is bar none.”
– Mike Cascione Jr., Partner at Group C
The Right Price
To capitalize on this large opportunity of many smaller locations, Group C partnered with Yoke Payments to provide a micro market solution that met their clients’ needs while staying on budget. Yoke’s market POS terminal and smartphone app is priced at a point that allowed Group C to scale rapidly, all while still providing a top-notch system and dedicated support. Yoke’s flat rate monthly pricing significantly shortened Group C’s ROI further speeding up scalability and profitability.
The Perfect Fit
Yoke’s compact payment terminal, versatile mounting options and award-winning self-checkout smartphone app allows operators to capitalize on every inch of available space. By mounting each terminal to the side of the snack cabinet, Group C is able to use the entire shelf space for merchandising products. This in return significantly increased their revenue per square inch at these smaller footprint locations.
Using the latest Apple iPads with a built-in SIM card providing instant cellular connectivity, Yoke has significantly simplified the connection process. For Group C, connecting to their cellular network provider at every market location was a complete game changer. Yoke’s truly plug & play solution comes out of the box connected to the internet, saving considerable time, unwanted setup headaches and unnecessary conversations with the IT department.
Yoke Payments has developed a modern micro market solution for both operators and their customers of any size. In less than one year, Group C was able to open over 150 markets, with another 350 planned by the end of 2020. A key driver of this success was Yoke’s ability to integrate with USAT’s Seed Platform. The operational efficiencies realized through this integration, combined with Yoke’s ability to engage customers has increased Group C’s bottom line and customer satisfaction tenfold.
Transitioning from vending to micro markets with Yoke’s technology and dedicated support backing them, Group C has seen their business flourish:
- Revenue skyrocketed up to 200% over traditional vending
- Average ticket increased by $4-6 with new product mix
- Lowered maintenance costs
- Enhanced consumer checkout experience
- 0% commission paid out
- Created direct line of communication to customers
- Improved customer engagement and retention
- Overall increased value to company