Action taken
“Our journey in using vending machines is down to of one of those chance conversations that I had with a group of students. I was trying to find out why some students didn’t use our dining facilities, and one student said, I can’t be bothered to walk to the dining room, because it’s too far. The logistics at Sandwich Technology College is that we have a very large site here, and a large school population, with 1350 students.
The comment that student made got me thinking, and I approached the school head Richard Wallis with the question, how could we offer the same food that we offer in our dining room in areas other than the school restaurant or canteen? Initially, we carried out initial consultations with the school Student Council, and with the teaching staff, about their needs. Both groups were very positive about the possibility of in-house vending and we consulted them on key issues, such as, location, types of products, and costs;
- Approached Headteacher & School Governors with the idea and rationale
- Researched on the internet for information on types of refrigerated vending units, costs, and best value deals
- Looked carefully at what the vending suppliers offered in their ‘total service agreement. Some had case studies which were useful starting points
- Use of Good Practice: Visited a couple of NHS hospitals who were using the type of vending machine (carousel system/rolling drum) that we were interested in, and consulted with their Catering Managers
- Location is very important. So we consulted with students and staff, and also looked at where the machines would be in full view (i.e. not on a corner). After consulting with staff we installed a hot drinks machine in the staff room, which offers them drinks at cost price.
- up the pros and cons for rental vending versus purchased
- a business case with Headteacher and Governors for purchased vending machines (average costs £3,500-£6,500 per unit) and number of units needed. Units were funded from the schools capital budget.
- Bought the units, had a day’s induction with the vending company engineer.
- Allocated one staff member to be responsible for filling, cleaning, and cashing up of the vending units.
What were the outcomes and benefits?
Outcomes
- Immediately, we saw a 20% reduction in queuing in our restaurant, especially for those 6th form students, and lunch-club students who really wanted a ‘Grab & Go’ option.
- Sales of fresh fruit went up with students telling us they would rather walk to the machine and buy a fresh apple from it, rather than from the chilled unit in the restaurant, the taste was so good. That amazed me.
- Sales of milk went up, we have more sales from the vending units that we sell on the counter
- The units paid for themselves within the first year. On average we take around £12,000 per unit per annum.
- We work on 45%-50% gross profit. The machines give us hard data. The number of products sold the type of product sold by product code, the amount of cash taken. They are easy to audit.
- No real training is required to manage the machines, and the company have a quarterly service maintenance contract.
- Low energy cost: less that 15p per 24 hours
Benefits
- Because we own the machines outright, we have complete control over what we sell, and over the profits
- Queuing time and the pressure that puts on our restaurant staff has been totally reduced, almost overnight.
- Our customers are far happier with our service, because we have listened to them and responded to their needs and this is reflected in our sales, and in the feedback they give us.
- Our students are eating more fruit as a result of these refrigerated vending units. This summer we introduced watermelon for the first time. It was easy to package, and label, and we got 10 portions per watermelon, which we sold at £1.00 per slice, and we couldn’t keep up with the demand. Grapes are very popular too, especially bags of mixed grapes.
- We have a very high take up of healthy school food. Students are eating healthy food, we offer the same range of chilled fresh products that we offer in our restaurant, and they sell. Top selling items include tuna & pasta bowls, the classic ham and cheddar wholemeal sandwich, and wraps. The meal deals are a good seller.
- We can sell products to customers other than our students, like after school clubs, adult education classes, weekend events. Once we know, we stock up our units for those sales. This summer we made £500 just on chilled drinks, fruit juices and mineral waters.
- We dictate to our sandwich supplier what price we want on their products. We have negotiated with them that they take back unsold products and credit them to our next invoice
- The initial capital outlay has been totally recouped
- Because of our decision to buy our vending and manage it ourselves, other schools have come to us to see first hand how we do this, and make a healthy profit to plough back into the school
What were the challenges and how did you deal with them?
- Inclusion: We had to take into account students who were entitled to and were taking free school meals. Unfortunately, they do not have access to the vending units, so we avoid selling in the machines products that are not on offer in our restaurant. There has to be the same offer, the same choice for them”
- Resourcing: At times it can be a bit labour intensive some days we may have to refill the machines two or three times
- Supply & Demand: To cope with the high demand from our vending units, last year we had to move away from preparing all the sandwiches and wraps ourselves. We now buy in half of the products.
- Allergies: learning that if you put nuts into refrigerated units, as part of a meal deal section, it will contaminate the other products.
- Vandalism: In the early days there was a bit of vandalism, from students trying to shake the machine to get money out, or a free item. Now the machines are bracketed to the walls. When things do go wrong at the machines it’s usually down to the student’s lack of knowledge of how to use the machine. But they are fairly robust.
- Unit Management
- Litter: Having bins close to hand near the vending units
- Product sales: Giving time to find out which products sell well and which don’t. In the early days small bags of dried fruit did not sell at all. When we checked with the students it was because they were a branded make, and were expensive. We mix our own, in clear bags so that they can see what the product looks like, and they sell now.
- Product Monitoring: All our products have a 3 day sell-by-date; this means we have to have a system for monitoring our products, for Health and Safety. We rotate them every two days.
- Learning Curve: You have to be prepared to learn as you go, and to change accordingly, to check back in with your customers. When you talk to them, you will be amazed at the good ideas that they can come up with.
- Food other than Lunch Standards: There are certain items that we can’t sell at break that we can sell at lunchtime from Sept 2007, this has meant that we had to redraft a list of early morning items, and then restock after break. But the machines can be programmed to switch off, so that it will not accept any money from students, and it can be programmed to allow purchasing later, say at lunch time.
Learning Experience
- Talk to your customers, and listen to them. Because I listened to one customer, we made these changes.
- Do your research, go around to other schools, go on the internet, you can always get good ideas from others.
- Remember that items that sell well on your dining room chilled counter will sell well in the vending units.
- It’s a great way to cut down your queues, and give students more time at lunchtime, especially where you have lunch clubs.
- We only introduced the meal deals this year, I’m sorry we didn’t do it earlier. It such a great seller because we offer value for money, and high quality products. For around £2.00 a student can have a healthy sandwich, a drink and a piece of fruit or dessert cake. Which is the same price as a school meal deal.
- Take seasonality in account for costs, speak directly to your supplier, don’t be afraid to tell them what you don’t want, and what you do.
- Market and promote to your new customers, the Year 7’s. We have them in school for two days at the beginning of the new school year, before the other students return. You have to use that time to talk to them, give them testers, get them to try new tastes and flavours, and to sell ourselves to them.
- Get your Headteacher and Governors on your side “ I couldn’t have done this without the backing of Richard Wallis, my Headteacher, or of our Governors”
- If you decide to buy your machines could pay for themselves within the first trading year
Contact details:
If you would like further information then please contact the Trust on 0800 089 5001 or alternatively please email info@sft.gsi.gov.uk
