Industry terminolgy is listed alphabetically below.
4C’s: An abbreviation standing for what
were the basics of vending as it evolved; The industry started with
i.e. COFFEE- CUP SODA- CANDY- CIGARETTES and grew to almost 8 C’s
(Coffee, Candy or Confections, Chips, Cold Drinks, Canned Drinks,
Cigarettes, Cold Cup, Commissary.
Account Executive: A representative of the
foodservice company who deals directly with the liaison designate
of the client.
Account Retention: In order to maintain customer accounts,
a vending company usually has to provide excellent service. For
most customers, this includes clean, working machines, and an ongoing
professional relationship.
Account Supervisor: A representative of the foodservice
company involved in the day-to-day operations of several accounts.
Accountability Reconciliation’s: Reconciliation of
a machine, truck, and/or route at the end of a period (could be
daily, weekly, or monthly). Usually compares cash and inventory
expected to the cash and inventory.
Accounting Period: Intervals on which accounting reports
are based. Usually monthly or every four calendar weeks if a 13-week
accounting period is used.
Accounts Payable: Amounts due to a vendor for the delivery
of inventory products.
Accounts Receivable: Amounts due and charged for the delivery
product to non-vending locations.
Activity Based Costing: An accounting method that enables
a business to better understand how and where it makes a profit.
In ABC, all major activities within a cost center are identified
and the costs of performing each are calculated – including
costs that cross-functional boundaries.
Administration Fee: A fee paid to the foodservice company
by the client to cover a portion of the foodservice company’s
overhead (general and administrative expenses) relating to supervision,
accounting provided y the foodservice for the location.
AMHIC: Organization Plan and Procedure of Automatic Health
– Industry Council (AMHIC) (revised 1991) outlines AMHIC purposes
and operation.
Bank: 1) Two or more bending machines in a row; 2) Amount
of money stored in a coin/dollar mechanism; also refers to a routeman’s
change fund.
Bar Code: A combination of parallel lines of bars and spaces that
communicate data about the product or shipping container to which
it is affixed. (e.g. U.P.C. Code). Bar codes allow for tracking,
management and control of physical product flow.
Broker: A person who is paid to act as an agent for others,
for example, in negotiating contracts or buying and selling goods
and services.
Bulk: A broad category used to define vending of candy,
gum, novelties, etc. This segment has evolved from the small, commonly
sited machines into a broader approach using oversize equipment.
Once again, it is not uncommon for there to be cross-over between
full-line and bulk operators in both directions, but not as frequently
as the OCS-vending connection.
Bulk Operator: specializes in vending machines offering
gum balls, trinkets and charms, usually at one cent or five cents
with larger offerings at ten and twenty-five cents.
BulkVending: Sale of unwrapped or unsorted merchandise through coin operated vending machines.
Buy-Back: Equipment purchased for a client by the foodservice operator; the cost is repaid through withholdings of commissions earned an/or through direct payments by the client.
C.S.A.: Canadian Standards Association. A testing laboratory
which is equivalent to the United States’s U.L. (Underwriters
Laboratory.)
Caterer: Offers foodservices at specialized locations and
event; is essentially a foodservice operator. Some offer only manual
service, such as airline caterers and mobile caterers. Many foodservice
operators are entering the social and special function catering
business, using their commissary as a base.
CFC: Chlorofluorocarbon – compound used as a refrigerant,
cleaning solvent, or propellant.
Change Fund: coin carried by a routeman and used to replenish
the change in changes and coin mechanisms. Also the coin in those
machines.
Changer Banks: Most vending machines have a coin mechanism
that delivers change if a customer puts in too much coin or cash.
In order to keep this change supply constant, vendors will maintain
a regular bank of coin in the machine. Usually the route personnel
are responsible for keeping this change supply at a consistent level
as determined by management. In addition, there are some Bill Changer
machines that make change for customers. The route person will bring
a replacement bag of coin, pick up all remaining cash and coin from
the machine.
Channel of Distribution: Refers to the “retail sector”
in which product is being sold through (e.g. Vend, Grocery, Convenience,
Food service, Warehouse Club, etc.)
Charge Out: Requisition form to record merchandise received.
Class of Trade: (Also referred to as location) the classification
of the site where the machine is placed by sector (e.g. schools,
public, factories, etc.)
Coin Room: The theft-protected facilities at the operation
where sales are counted and coin used to replenish change funds
is maintained under the supervision of the vault cashier.
Collections: Revenues that are received on account for previous
Accounts receivable transactions.Combined Automatic And Manual
Commissary: (Central Kitchen) Specialized food production
facility from which the operator serves multiple locations. Used
primarily for vended food installations, mobile catering trucks
and social catering. Facilities may range from small family-run
operations to modern plants that include bakeries and mass production
equipment.
Concession Advance: Large commission advance (generally
in cash) made by concessionaires in obtaining new locations. See
Location Advance.
Concessionaire: specializes in serving the general public
under a contract with the owner of recreational or cultural facilities,
such as amusement parks, sport arenas, museums, convention halls,
opera houses, public parks and beaches. Service is predominantly
manual and may include alcoholic beverages
Contract Foodservices: The providing food and vending services
for profit by independent contractor.
Contract Vending: The installation and operation of bending
machines by a private contractor, who retains title to his vending
equipment while performing his services.
Contract Feeding: Manual operation utilizing kitchen on
client’s premises (e.g. factories, schools, hospitals, etc.)
to serve the client’s dining halls. The client usually provides
the kitchen equipment, tables, chairs, etc., although by back or
other arrangements may be made. Silverware, dishes and similar items
usually are provided by the client; however, the operator often
is responsible for the normal replacement of these items.
Counseling: If a route person is not doing the route work
as expected, the route supervisor may do some counseling. As in
any management review, the route person is trained on correct procedures
and encouraged to comply.
Count: In the money room, each bag of money from the vending
machines is counted individually with the totals recorded. Coins
are usually counted with a coin counter, and the bills usually counted
with an automated bill counter. The total count for each bag is
usually compared against product sales or a meter reading for that
vending machine.
Delisting: Dropping, or discontinuing the stocking of a
product at a machine, or aggregate warehouse level.
Deposits: The money counted for each day is then usually
sent to the bank for deposit. At other companies, there may be a
security service that picks up the money on site. At other companies,
money is transported to the bank. In many companies, the deposit
is tracked through the daily management reports.
Distributor (Product): A representative for the Manufacturer
who sells the product to various Vend Operators.
Distributor (Equipment): A representative for the Equipment
Manufacturer who sells the equipment.
Employee Feeding: A general term. See In-plant Feeding.
FDA Model Code 1978: “The Vending and Beverages.”
Model ordinance and code developed specifically for vending in 1957
and revised in 1978.
FIFO: First in First Out.
Foodservice: Provision of foodservice by a combination of
vending machines and manual counters at the some location. Usually
employs vending machines to sell beverages and snack items. Sandwich
counters, steam tables lines, etc., are used to sell soups, entrees
and got sandwiches such as hamburgers, hot beef, hot dogs, etc.
Food Service Contract: A contract awarded on the basis of
the specifications for proposals and the submitted proposal.
Food Service Operator: specializes in providing food services;
may emphasize manual service, vending or a combination of both.
Office coffee service (OCS) specializes in placement and operations
of conventional non-coin-operated and coin-operated units in small
office, business or industrial locations to serve employees or customers.
The operator furnishes the equipment and product, and the client
stocks and services the machine.
Free Standing: A single machine installation, distinguished
from a bank.
Free Vend: A machine adjusted to
vend product at no charge.
Free Line: Complete food and refreshment service through
vending machines.
Full Line: As equipment evolved and the customers demanded
more alternative, operators who began to offer such things as HOT
CANNED FOOD, CAN SODA, REFRIDGERATED FOODS, FROZEN DAIRY ETC, were
said to be ‘full line”, meaning that they were still concentrated
in food and refreshments but offered a broader service than the
basic 4 C’s.Glass Front Snack
Machine: A vending machine which utilizes a full glass front
to merchandise the product selection inside the machine. Most
often product is delivered via spirals and is dispensed to a delivery
pan located at the bottom of the machine. Products vended
typically include snacks, chocolate confections, and pastries.
Hostess: See Resident Vend.
Income Statement: An actual operating statement of all activity
in a foodservice location for a specific period.
In plant Feeding: Any type of foodservice performed in an
industrial or institutional setting. A general term that makes no
distinction between independent contractors and company operated
facilities.
Installation: Placing a vending machine(s) for operation
at a particular location.
Installer: A person used in the installation of vending
equipment.
Inventory: A physical count of product and or equipment.
Invitation to Bid: A request to various companies to submit
proposals to provide food and vending services.
Impart Funds:
Joint Replenishment: Ability to buy two or more items from
the same supplier on a single purchase order.
Jump Route: See Route Vend.
Letter of Compliance: Letter stating conformity in fulfilling
official requirements.
Liaison Man: A person employed by a client who has the responsibility
from coordination the activities of the food and vending contractor
with the need of the company’s employees through the account
supervisor.
Location: Specific place within the site where the machine
is. (i.e. Cafeteria, Breakroom.)
Location Manager: A responsible representative of the foodservice
company who is permanently assigned to one particular client installation.
Location Acquisition Costs: Term used in financial statements
to demote the excess of cost over net assets of purchased businesses
(also called goodwill or cost in excess of net tangible assets of
business acquired).
Location-Owned Operations: Services similar to the contractor’s
but owned and operated by a college or factory on its own premises
by its own staff. Includes location-owned cafeteria, dining and
vending operations.
Machine Maintenance: Routine work completed by a mechanic
to ensure the machine is working properly.
Machine Manufacturer: Firm that produces coin-operated vending
machines for vending and OCS type equipment.
Machine re-fits: To configure shelves inside the machine
to fit a given product.
Management Fee: A fee paid to the food service company by
the client for providing the manual foodservice operations at the
location. Normally, a percentage of manual sales.
Management Reports: Either manual or computer-generated
report to give managers an overall picture of accountability, product
sales, staleage, profitability and/or route performance.
Manning Chart: The graphic representation of a number of
cafeteria employees, their duties and time schedule.
Manual Foodservice: Conventional cafeteria, short order,
or table service where the customer is serviced by manual delivery
rather than through vending machines.
Manufacturer (Product): Refers to the company that makes
the product.
Manufacturer (OEM): Refers to the company that makes the
equipment (i.e. Original Equipment Manufacturer.)
Marginal: Applied to vending machine locations where traffic
of potential customers is so small as to make vending machine placement
feasible only if equipment is fully depreciated, fills a gap in
route scheduling or is subsidized by the location so that operating
costs are reduced to the point where the operator can make a profit.
Mechanics: A person trained in the repair of various types
of machinery.
Mixed Route: A route that is planned to handle several types
of products.
Money Room: Location where revenue from vending and non-vending
sales is counted.
Music/Games: Another broad-based term used to describe what
began as the juke box/pool table side of the business, but today
has evolved into music machines, video games of all sorts, coin-operated
amusement devices, etc. This is another area that often sees diversification
to/from full line, but most often in the form of a separate operation
within a company due to the specific needs of this market.
NAMA: National Automatic Merchandising Association is the
national associate of vending and food service management industry
founded in 1936.
New Accounts: After a contract is signed with a new customer
site, the vending company sets up vending equipment, loads the products,
and begins regular servicing of the account. In order to get the
new account, the vending company often has to submit a proposal
outlining the services to be offered, the contractual agreement,
and the monthly or quarterly commission agreed upon. Such proposals
may be very competitive with several companies vying for that customer’s
business.
OCS: An acronym for Office Coffee Service, a specialized
service provided by an operator who offers equipment, coffee products,
and related (allied) products to offices and other locations. Some
OCS is very basic, offering traditional burner machines and a minimal
selection of other products, while other services are quite sophisticated,
using high-technology equipment that brews each cup individually
and offers a variety of other hot beverage selections.
Operator: An established company set up with trained personnel
to service and maintain vending machines.
Order Stock: Placing an order for products.
Out of Stock: A product temporarily unavailable due to demand/sales
exceeding inventory. (Application at a machine, VO warehouse, VPD
warehouse, for product supplier warehouse.)
OSHA: The Hazard Communication Standard of the Occupational
Safety and Health Administration (OSHA) requires ALL companies to
inform their employees of the potential dangers of any hazardous
chemical substances used in their operations.
Par Out: 1) The process by which the routeman collects sales,
fill the coin mechanism with change and loads the vending machine
with product (also called machine service stop). 2) The process
by which the merchandise and sales in a vending machine at any point
in time are reconciled to the par or fixed level of the machine
to determine if any overage or shortage exists. Sales plus the retail
value of merchandise remaining in the machine should equal exactly
the retail value of the par or fixed level (also called machine
settlement).
Parts Inventory: Most vending operations maintain an inventory
of common parts and replacement equipment to handle basic vending
machine repairs.
Payout: Length of time required for a location to return
in profits the investment in the location.
Prepaid Card: A card for a set amount of money which is
then debited for each purchase.
Pro-Formula Income: An anticipated operating statement of
potential activity in a foodservice location.
Product: The item vended.
Product Mix: The relationship of each item sold as a percentage
of the total sales and as a weighted cost of sales.
Promotion/Deal: Off-invoice price reduction offered by Product
Supplier either directly or through VPD for a defined window of
time. (E.g. Often accompanies new item introductions, new packaging,
etc.)
Proposal: A complete description of the type of foodservice
to be provided.
Pull Orders: In order to move product from the warehouse
to the route trucks, product is pulled from the inventory. In some
companies, the route personnel order product from the warehouse
staff who subsequently pull orders. In other companies, the route
personnel pull their own orders and load the inventory onto their
truck. In almost all cases, there is some accountability of what
is taken from the warehouse inventory.
Rebate/Incentive: A reimbursement for a portion of the original
purchase price for an item offered by a Product Supplier to both
VPD’s and VO’s as a “reward” for meeting predefined
criteria (e.g. increasing sales vs. YAGO, increasing number of facings,
achieving volume targets, etc.) Rebates are usually issued by check
quarterly.
Refund: An exchange of product or money for a malfunction
of equipment.
Report Totals: Many money room operations maintain a total
money count on their coin counting equipment. At the end of the
day, the total amount of cash and coins counted is compared to the
machine count.
Resident Vend: A vending operation at a client location
that has one or more resident routemen or hostesses. It is thus
distinguished from a route or street vend location, which is serviced
by traveling route personnel.
Restock Products: Usually products are ordered at least
once a week. Usually using a formula of usual usage minus current
on hand, a company will submit an order from its supplier and then
receive delivery within a day or two.
Return on Sales: The amount of money earned after taxes
by a company at a particular location in relation to the total dollar
investment required to operate in that location. Usually expressed
in percentage form.
Return of Investment: The amount of money earned after taxes
by a company at a particular location in relation to the total dollar
investment required to operate in that location. Usually expressed
in percentage form.
Rotate Product: Because many vending products have a short
shelf life, companies want a regular rotation of products. Older
products will be brought forward and loaded to the route trucks,
allowing for reordering of new product.
Route: A sequence of locations services by a traveling routeman.
Routeman: The person who services one or more vending locations.
See Resident Vend, Route and Route Vend.
Route Accountability: A bookkeeping system whereby the retail
value of merchandise issuances to a routeman is equated to cash
sales turned in by that routeman to determine if overages or shortages
exist on his route.
Route Driver: A person trained to fill, clean and balance
various vending equipment.
Route Manager: The route manager is usually responsible
for seeing that the vending machines at customer sites are clean,
full, and working. Many times the route manager also maintains contact
with customers on a regular basic and gives input to the route person
of there are ways to service an account better. The route manager
will also work with the general manager to increase profitability
by increasing sales and decreasing expenses.
Route Paperwork: Paper work filled out by the route person,
usually for accounting purposes. It may include stops visited, the
number of products added to each machine or store, stale product
picked up, and/or items loaded to the truck.
Route Persons: A trained person in proper merchandising
and servicing technique in routeservice. Prime responsibility is
to fill, clean and balance (cash) in vending machines on designed
route.
Route Relief: If a route person cannot work on a particular
day due to illness or vacation, a relief worker may work the machines.
Often called a Utility person, this individual usually has knowledge
of several routes and can work any of the routes as needed. If staffing
is short, sometimes route supervisors may do the route relief work.
Route Reports: Depending on the software package used, many
companies look at some kind of route reports. These may show the
stops worked, the time that the stops were worked, what product
was added to the machines, and how much inventory the route truck
should have.
Route Structuring: In most companies, route managers set
up a route sequence that gets the most machines worked in the most
efficient manner. The number and order of stops ate part of route
structuring. In order to maximize profitability, managers work to
structure routes se that machines are refilled at just the right
time.
Route Supervision: Similar to the route manager, the route
supervisor makes sure the route personnel do their job efficiently
and effectively. The supervisor may work with the route person on
better procedures, or speak with the route person regarding accountability
issues.
Route Vend: A group of individual vending locations serviced
by a routeman (also referred to as jump route or street vend.
Satellite: A site removed from the main location but serviced
by the same resident vend.
Service Calls: When vending machines do not function as
expected, either a customer or route person will report a service
call. Most companies have personnel on call to perform the needed
repairs.
Shelf Life: The length of time a product will keep without
deterioration that makes it unusable.
Shopper Mode: Allows customer to pick his or her particular
product.
Site: Restaurant or area where a machine is located.
SKU: Stock/Shelf Keeping Unit – a distinct unit of
inventory uniquely distinguished by an individual color, size, flavor,
or pack of product that requires a separate code number.
Slotting: A “fee” charged by a Vend Operator to
a Product Supplier “for machine real-estate” to guarantee
placement/distribution in agreed upon number of machines.
Slugs: A coin shaped object not recognized as a U.S. coin.
Snacks: Convenience items, such as chips, which can be eaten
between meals.
Specialty: As the technology and sophistication of vending
grew, amine operators either got into the business or chose to concentrate
their efforts in one particular line of equipment or product. Having
its roots in routes that focused in just one way on items such as
dairy, cigarettes, soda, etc., today’s specialty operator is
more often offering services in equipment such as French fries,
pizza, popcorn and other tightly focused items.
Specifications for Proposals: A uniform set of specifications
to insure a reasonable basis of comparison for various proposals.
Speed Line: Merchandise (product) which is beyond code date.
Standard Menu: A menu which includes a certain entrée
which is served with certain appetizers, vegetables, desserts, etc.
Statements: Billings for Account Receivable amounts indicating
the current balance due.
Stops: Term used for different locations, accounts (stops).
Street: In many quarters, Street vending is viewed as a
subset or a combination of specialty, full line and music/games
vending. Most often it is used to describe the type of location
being served, that of “public” such as restaurants, taverns,
etc. The service can encompass cigarettes, snacks, jukeboxes, video
games, pool tables or any combination of these.
Street Operator: Specializes in “street” or public
locations. This includes cigarette, soft drink, coffee, candy and
snack machines in restaurants, taverns, filling stations, transportation
terminals and stores. Such operators, unless they are part of a
large national firm, seldom operate food equipment.
Subsidy Contract: Contracts that guarantee the operator
a specific level of profit, normally a fixed fee or a percentage
of sales. When the operation doesn’t generate the guaranteed
revenue, the operator bills the client for the balance. If the profit
generated is greater than the contractual amount, the excess is
generally returned to the client.
Supplementary Vending: Small banks or individual pieces
of vending machines scattered throughout a location to provide back
up service for a more complete centralized manual or automatic foodservice
operation
Test Vends: A device used to give away products (for promotional
use).
Trade Shows: A place when exhibitors (machine manufacturers,
product suppliers, computer companies, distributors and many other
display their wears to the vending operators.
Truck Caterer: Serves food from a truck designed to dispense
hot and cold food and beverages as well as sundry items. Generally
services installations not large enough to support a vending or
manual foodservice operation. Can provide an additional service
for a large plant. Food and beverages prepared in a central commissary.
The driver handles sales.
U.L.: Underwriters Laboratory – A testing organization
that certifies that electrical. Requirements of a piece of equipment
meet federal standards.
UPC Code: Universal Product Code – A numbering and
bar coding system for product identification of consumer items,
typically scanned at the retail point of sale or as part of the
Vend process to manage inventory.
USPHS: In 1957, NAMA initiated a vending machine evaluation
program to enable vending machine manufacturers to build equipment
in conformity with U.S. Public Health Service (USPUS) sanitary requirements.
Such a program also provides a means by which vending operators,
customers, public health, military and other user groups can identify
those machines, which meet USPHS design and construction standards.
Vault Fund: The coin used to replenish change funds; assigned
to the cashier.
Vending (Automatic Vending): Retail selling of merchandise
and services by means of coin-operated dispensers.
Vending Operator: Specializes in vending machine services.
Vending Cafeteria: A location where all food and beverages
are dispensed through vending machines.
Warehouse: The storage location for inventory products to
be distributed to routes or to in-house sales.
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