Almost every vending company’s website says it serves your area. Very few of
them mean it the way you need them to.
We’ve been running routes through St. George, Cedar City, Richfield, Kanab,
Beaver, and Milford for over twenty years. We own every machine we place and we
fix them ourselves. Same family, same trucks, the whole time.
Here’s how the company got here, and what that means for whoever ends up
servicing your break room.
It starts with a bad job market and a gumball machine.
The bet
Early 2000s. Steve was working for the city of Roseville, California. His
daughter was down in Las Vegas going job to job, having a hard time of it.
So he asked her the question that either changes a family or wrecks one. What
about starting your own business?
She said what anybody says. She didn’t have the money.
And here’s the part that turned into a company:
“I’ll start something with you. I’ll invest and get it started, but you guys
got to run it. I’m too busy.”
They both went off and researched it. What they landed on was the little gumball
machines. Steve put in $30,000, they bought a pile of machines, and his
daughter and her husband went out and placed them all over Las Vegas.
Six months
The machines paid the whole thing back inside of six months.
“Within six months my investment would pay it off. Just off the little gumball
machines.”
That’s when the plan got bigger, and I love how he describes the moment:
“I’m going, wow. There’s got to be more to this than I’m thinking here.”
There was.
The call Pepsi didn’t take
Those gumball routes had good locations, and good locations kept asking for
things a gumball machine can’t do. So Steve went looking for somebody to teach
him the real equipment.
He called Pepsi first. Pepsi wouldn’t talk to him.
Then he called Coca-Cola in Cedar City. They would. Turned out they ran an
actual referral program for vendors.
“Pepsi wouldn’t talk to me. Coca-Cola does referrals for vendors. So we got
with Coca-Cola and they taught us all about the big machines, and they gave us
a real good start.”
Somebody else trained them on snack machines after that.
So that’s the whole origin. Not a franchise, not a business plan. One company
picked up the phone and one didn’t.
The first mistake
By 2008 there were machines all over Las Vegas and the thing was working.
Then the recession hit, and the businesses those machines were sitting inside
closed fast. Steve doesn’t dress it up:
“That was the first mistake that we made.”
They got out of Las Vegas completely and ate the loss. What was left was Utah.
Mesquite, St. George, Hurricane, Cedar City, and all of Kanab.
Those Utah routes are the company that’s still here.
The part where it almost ended
Through the 2010s they expanded again, out to Vernal and Moab and across the
state, before figuring out that being spread that thin was its own problem.
So they pulled back to the towns they could actually serve right.
Then COVID shut every single location they served. All at once.
Revenue didn’t dip. It fell off a cliff and stayed there.
“I could have just declared bankruptcy and quit altogether. A lot of times I
thought maybe that’s what I should have done.”
He didn’t. They worked through it, and it was ugly.
“But no, we managed through it. It was tough. We got the debts all paid, got
stuff rebuilt.”
And then he said the thing I wasn’t expecting:
“It really was the best thing, because we’re heading now in a completely
different direction that we wouldn’t have done otherwise.”
What changed on the way out
Two things, and they’re both why the company looks the way it does now.
The machines quit holding cash. Every machine has taken cards since 2016.
Before that, they were getting vandalized constantly, which never made any sense
to Steve:
“Each machine didn’t have that much money in it. You’re not going to get very
much. Unless you want a snack, I guess.”
High risk, low reward, and people kept doing it anyway. After the switch it
mostly stopped. The hotel accounts are almost all card-only now, and the few
still taking cash sit in secure spots and have never had a problem.
And the business moved toward micromarkets. This part is years back now, and
it’s the reason micromarkets are the most practiced thing we do today. A
warehouse operation came to us through a Coca-Cola referral. They were already buying drinks and handing them
out free to their employees, and they wanted somebody else to run it. They wanted
a coffee program too.
We’d never built a micromarket. Never done coffee either. So Steve told them
that, before anything got signed:
“I was honest with them. I’ve never done one before, but I’ve always been
interested in doing it. You’re going to have to understand we’re in the
learning process here. We’re going to make mistakes and we’ll correct it.”
They said yes anyway. There were problems and both companies worked through them.
That market has been running ever since, it’s the most stable part of the
business, and every micromarket we’ve built since is built on what we learned in
it. We’re not learning on your account. We already did that, on ours.
So why should you care?
Not for the sentiment. Three of these are things you can actually use when you’re
picking a provider.
We own the equipment outright. Bought, not leased from a bottler. That’s the
reason a broken machine doesn’t sit in somebody else’s service queue, and it’s
the first question worth asking anybody in this business. There’s a whole guide on
why that one question tells you almost everything.
The routes are real. Nobody drew them on a map. They got built out from Cedar
City and St. George into Richfield, Kanab, Beaver, and Milford over twenty years,
one stop at a time.
This company has been broke and didn’t quit. Twice it got close enough to
count. That’s not a marketing line. That’s the reason your machine will still be
getting serviced in three years by the same people.
Steve handed off the day-to-day a while back. Ask him if running a vending
company for twenty years counts as work and he’ll tell you:
“When I tell people, yeah, that’s all I do is play.”
He also spent two decades moving several hundred pounds of steel into a few
hundred buildings to do it.