Micromarkets are seeing rapid expansion because they bring together the best elements of a vending machine, a convenience store, and a cafe.
These automated storefronts offer a wide variety of fresh and healthy food items that can be customized to best fit the audience they are serving, and provide these goods in an automated self-service environment that gives the user all of the quick-checkout convenience of a vending machine.
Key Data about Micromarket Kiosks
- 7 Billion: Expected size of Micromarket Industry in next 5 years
- 50,000: Total number of micromarkets expected to be in operation in next 5 years (3,000 operating today)
- 99.2%: Growth rate of micromarket industry from 2012 to 2013
- 200 Items: Typical number of items offered in a micromarket (traditional vending machines typically offers 45 products)
- 1.5% Shrinkage: Micromarkets see an average of 1.5% loss due to shrinkage (i.e. theft), whereas typical retail sees as much as 20% shrinkage.
Micromarkets offer important benefits to both owners and customers, and as a result, the micromarket industry is seeing unprecedented growth. The following are a few of the key statistics about the industry growth and why micromarkets are beloved by owners and customers alike.
Micromarket Kiosk Payment Options
One way that micromarket kiosks offer a major advantage over vending machines, convenience stores, and cafes, is that they provide the most flexible payment options.
Consumers love the quick and easy self-service checkout options offered by micromarket kiosks, such as Olea’s “California” kiosk, and each owner can customize the payment systems that work best with their business models.
- Apple Pay
- Pre-paid Cards
- Direct Debit from Pay Check
Micromarket Kiosk Advantages over Vending Machines
Micromarket kiosks offer a few key advantages over traditional vending machines that make these systems a much better option for both owner and consumer. The following are a few of the key advantages:
- A consumer can physically touch a product and read the label before making a purchase.
- Consumers can mix-and-match different types of products and then purchase all in a consolidated single checkout process.
- Size doesn’t dictate the product offerings, as is typically the case with vending machines.
- Micromarket kiosks can offer fresh foods, and many contract with local third-party services to offer goods prepared the same day.
- Owners are not limited to price points that are easily compatible with coin denominations, which allows for high profit margins by pricing goods with typical retail prices (e.g. $0.99)
- Because micromarket kiosks have software that allows management of the system, loyalty programs, temporary pricing, promotions, and bundles can all be offered.
- More products – typical vending machines offer roughly 45 products, while the average micro-market offers over 200.
Advantages over Cafes
- Micromarket kiosks have a lower barrier to entry and significantly lower operating costs. This makes micromarkets a particularly attractive option for smaller businesses that cannot invest in a full-service cafe.
- Micromarket kiosks can offer more products than a typical cafe, and because the fresh food is often outsourced, it is easier to change the menu with little notice.
- Micromarket kiosks never close. This is especially beneficial for companies that have staff working long hours and weekends. It is no longer necessary to have a cafe staff available to serve the employees during off-hours.
- The product offerings are limitless – even including items outside of food. As long as an item can be barcoded, it can be sold!