|Restaurants or Machines? The Viability of Vending Ventures|
|Key Words||Sales, Brands, Brand Image|
Canteen Vending Services now intends to offer national restaurant foods, such as Nathan's hot dogs, Red Baron pizzas, and Hardee's biscuits and burgers, in addition to its own sandwiches in its vending machines. The hope is that taste will be enhanced and consumers' opinions of vending machine food will improve. Regional tests showed that sales increased by 20 percent when the machines offered restaurant brands.
Restaurant chains such as White Castle see this development as a way for them to increase their customer base and encourage restaurant business. Refrigeration and minor modification to the products maintains product quality. Nevertheless, some restaurants, such as the main burger chains, refuse to enter the market because they fear inferior quality will damage their entire brand image and their restaurant business.(Updated December 1, 1998)
|Source||Associated Press, "Machine cuisine gets name brand cache", St. Petersburg Times, October 23, 1998.|
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