Market Central Delivers For Both Canteen and Its Customers

When was the last time you opted to have lunch in the office break room with a freshly cut salad, or a zesty Sbarro baked ziti dish - from a vending machine? Or skip breakfast at home in order to purchase a vended egg benedict entrée to eat at your desk?

Sound impossible? Not anymore thanks to Canteen's Market Central Fresh To You brand offerings - concepts that have literally redefined the way operators go to market with their products.

This past summer marked the 1000th installation of a Market Central vending bank just three years after Canteen shocked the vending industry by introducing top quality fresh foods and national restaurant brands in its boldly designed machines. It's reception has been nothing less than stunning with cold food sales jumping more than 20 percent, contracts for new business nearly doubling, and for the first time in 15 years, franchise owners can't stop knocking on Canteen's doors.

"We took a risk based on what customers told us they wanted, and three years later it's been a smashing success," said Tony Gagliardi, president of Canteen. In fact, the success of Market Central and Fresh To You have been so spectacular they surprised even the strongest supporters.

Canteen took multiple risks when introducing fresh foods: It spent several million dollars converting the machines, training employees, developing brand strategies and retooling its culinary centers. Offering fresh foods and restaurant brands gave Canteen the confidence to double its refund policy with a 200 percent satisfaction guarantee.

"The variety is ten-fold, and sales speak for itself," said Tony Pallozzi, facilities manager for American Express Global Mail Solutions, Weston, FL, and recipient of Canteen's 1000th Market Central installation.

Pallozzi added that American Express also converted its once blasé break room to a more colorful and friendly atmosphere-with designs selected to specifically match Market Central's décor. Two Market Central banks were originally installed, and five more are planned for installation over the coming year.

Stan Ledbetter, co-owner of RE Services, a Canteen franchise in Lafayette, GA, and his brother Steve became a Canteen franchise in 1999 after studying Market Central's success. "We immediately began bidding Market Central; it was the arsenal we needed," said Stan Ledbetter, whose business has since installed approximately 50 Market Central banks.

Similarly, Rocky Brandonisio, franchise president of Horizon/Canteen of Southern Nevada, wasted no time bringing Market Central of his customers after becoming a Canteen franchise just last year. "No one else is able to offer this concept." Customer satisfaction with the Market Central environment, including brand offerings, grew 3.5 percent from 2000, and sales in some accounts has jumped as much as 18.8 percent. "All of this happened because we listened to our customers," added Gagliardi.

What's next for Canteen's Market Central and Fresh To You offerings? "You can plan on seeing Krystal burgers in the machines beginning in the early 2002, and many of the Market Central banks will be more durable, easier to install," said Brian King, Canteen's director of marketing. King added that new enhancements to Market Central also include built-in shelves on machine facades to free up consumer hands as they shop; condiment stands similar to what you would find in Starbucks; more aggressive branding of Market Central; and designs that appeal to a broader customer base.


Side Bar: Highlights of Market Central's Success

* Immediate increase in cold food sales: Canteen's cold food sales increased 24.2 percent, the highest jump in organic growth achieved by any Canteen product category in the last 10 years.

* Product waste held steady: Canteen cut the shelf life across the board on its fresh food offerings. Despite expectations that this could mean more wasted food, Canteen saw only a 0.5 percent increase.

* Blimipe sales soared: Canteen sold more than 1,200,000 Blimipe submarine sandwiches in fiscal year 2001, up from 400,000 just two years prior.

* More exclusive brand offerings: Exclusive brand offerings have grown to include Blimpie, Sbarro, Rally's, Checkers, Cheesecake Factory, Nathan's Famous Hotdogs, and Krystal Burgers.

* Increased Canteen contracts: Canteen's success rate for landing new contracts doubled to one signed contract for every three sales pitches

* New demand for Canteen franchises: Since Canteen introduced Market Central and added exclusive brand offerings, 11 independent operators have signed on to become Canteen franchises.

* Market Central installations sky rocket: Market Central is currently in over 1,200 locations throughout North America. Canteen has installed a Market Central environment in over 97 percent of its Top 450 accounts.