Canadian Vending

Issue: 1970-December

British Vendin.g - Generally Quite
Different In Character To Canadian Vending
- Runs Into Similar Problems
Vending Operations, wherever they are carried out,
seem to be subjected to the same problems and Ops
seem to be very much the same the world over. In
Britain, the Vending Industry there has been slated
before Health Authorities. Criticisms by the Managing
Director of a large British Food Service Firm, which
also operates Vending, run to - Poor. .state of .equip-
ment, poor product, poor service and poor water fed
into drink machines.
The British Vending Industry functions on a some-
what different plane to that in Canada or in the
U.S.A. On this side of the Atlantic it is the main run
by food service and operating firms from huge corpora-
tions down to one man shows. In the British Isles, there
are these but, in addition, there are also a great many
machines run by locations themselves either with their
own or rented equipment. For Canadians to begin to
understand how this works, it is necessary to realize
that Canada's largest single employer, General Motors
in Oshawa, with its 12,000-odd workers, is a rela-
tively small firm in Britain or on the Continent.
There are hundreds of firms that large and larger and
countless ones employing 1,000 people upwards. As a
legacy of the last war in particular, but also because
of more active and older Trade Unions, socialistically
orientated over a longer time than those here, British
factories have operated their own Executive, staff and
workers' canteens for decades. Over the years they
have built up facilities and experienced catering staffs
and in many cases a single factory catering Division
can make some of our larger Vending Operators look
ridiculous in sales and food turnover. Moreover, sev-
eral of these companies even ran farms to supply
their own raw materials for the kitchens, in addition
to which, they could, because of their size and de-
mands, command excellent prices when buying. In
addition, these operations have usually proven quite
profitable. After all, with so much going for them
and large "captive audiences" why shouldn't they?
Rising wages and all round costs have created labour
problems there as elsewhere so, catering and feeding
divisions have turned to Vending to replace and aug-
ment their long standing manual services. This has
meant large numbers of location owned or rented
but certainly Operated, Vending Machines.
In cases where equipment is rented, the renting
company usually carries out maintenance and repairs
and corrects se1,i ous malfunctions; Operators only fill
and collect. Rental firms have, it seems, proven very
32
weak in keeping their equipment going once it is in-
stalled.
All this has taken place in little more than the past
five years. Even today, Industrial Vending does not
approach the percentage of total "Works" or plants
it .does in .C.anad!l or the U.S., but, it is gro_wing fasJ.
Vending Operators on the other hand are also rela-
tively new and inexperienced be they Vending firms
or divisions of large caterers. So, the situation there is
quite different to here.
But, the troubles and problems aren't so different.
It seems that in many Industrial locations there is a
tendency to look upon Vending machines as "plant"
rather than as a means to an end, that of dispensing
food and drink. As a result service is poor. This is
further enhanced by a serious lack of people trained
to understand the problems of Vending. And, this ap-
plies not only to attendants but also servicing per-
sonnel. Apparently - a great many machines are
scruffy, unreliable and the subject of poor service
which results not only in frequent breakdowns but
also of machines being "sold out" or mechanically
out of action when needed or for too long periods.
As everywhere, sloppy or greedy Operators have
been selling inferior product, weak drinks, wrong
temperature drinks, unappetizing and mingy sand-
wiches and other foods. Some of this has been traced
to bad water being used in hot and cold drinks.
All these things have got the public somewhat fed
up with Vending with the result that confidence in it
on the part of people has been lost. This is evident
from the fact that although there is no general reces-
sion elsewhere in Britain, Vending is not being main-
tained. New installations were down by nearly one
quarter in 1969 by comparison with 1968.
To correct this state of affairs, the British Industry
is going to have to take ahold of itself. To this end, the
country's Department of Health together with the
Automatic Vending Association of G.B. had got out
a code to cover the construction and operation of
Vending Equipment. Quality control of product and
intensive and complete training of Operating and Ser-
vicing personnel would have to receive a great deal
more attention in the future than in the past. This
was now being recognized and when it came to pass
and things improved, Vending would again go ahead
but not until then.
Men on the Move
Mr. Baker formed Baker Vend-
ing Services in 1954. In 1959, he
became Executive Vice-President of
Vendomatic Services Limited and
in 1962, when the corporate name
was changed to Versafood Services
Limited, Mr. Baker was President
of the Company. He was appoint-
ed Chairman of the Board in 1967.
Until November 1970, he held the
positions of Chairman and Presi-
dent.
VERSAFOOD
ANNOUNCEMENT
llan D. Baker, Chairman and
Chief Executive Officer
Senior management of Versafood
Services Limited has been streng-
thened by the appointment of Wil-
liam E. Emerson as president of
the Company. Mr. Emerson fills the
president's position following the
appointment of Allan D. Baker as
chairman and chief executive offi-
cer.
As founder of the Company, Mr.
Baker has seen Versafood grow to
become Canada's largest food ser-
vice management firm with domes-
tic sales reaching $60,000,000. In
:r;ecent years, Versafood has also ex-
tended its operations into England,
Germany and the Caribbean. With
anticipated growth potential in over-
seas markets, Mr. Baker retains re-
sponsibility for the Company's in-
ternational development.
Mr. Emerson joins Versafood
following a distinguished business
career with Pepsi-Cola Canada Ltd.
and PepsiCo International. Immedi-
ately prior to his recent appoint-
ment, he was chairman of the board
of Pepsi-Cola Canada Ltd. and
vice-president and general manager,
operations of PepsiCo International.
Since early 1969, Mr. Emerson's
office has been located in New
York. He now returns to Canada
where he is well known in the busi-
ness community.
Canadian Vending Magazine
Allan D. Baker is Chairman of
the Board and Chief Executive Of-
ficer of Versafood Services Limi-
ted.
Founded by Baker, the company
has grown, in 16 years, to over 60
million dollars of sales in Canada,
and, as well, bas associate compan-
ies in Jamaica, Germany and Eng-
land.
Versafood employs about 6,500
persons. Its stock is listed on the
Toronto, Montreal and Calgary ex-
changes and has nearly 50% of its
shares on the Canadian market.
Among the company's accounts
are hospitals, homes for the aged,
universities, colleges, schools and
leading business and manufacturing
companies. Through Heritage Ser-
vices, Versafood operates restaur-
ants and hotels, including the 10-
restaurant complex in the Toronto-
Dominion Centre, one of the largest
single food complexes in Canada.
Since the beginning of 1968,
Versafood has owned Jiffy Foods
Limited, a mobile catering company
located in Toronto; Robert-Stewart
Foods Limited, a producer of bak-
ery products to the food service in-
dustry and retail outlets; Arco Au-
tomatic Retail Company Limited
and Coffee Bar Corporation, opera-
tors of vending locations in Mont-
real and southern Ontario.
In February, 1969, Versafood •
purchased a 70 % interest in Ap-
etito-Fertigmenu, the largest pro-
cessor of frozen pre-prepared meals
in Europe. Apetito is located in
Rheine, Germany, and is a supplier
to industry, institutions, offices and
restaurants throughout West Ger-
many and is considered to have a
tremendous growth potential within
the European Common Market
area.
In March, 1969, Versafood en-
tered the airline catering business
through the purchase of a 50% in- ·
terest in Versair In-Flite Services
Limited of Jamaica. This rapidly
growing company services all air
carriers operating out of the Island
of Jamaica. It also operates air ter-
minal restaurant and bar facilities
in Kingston a.nd Montego Bay. Mr.
Baker is Chairman of the Board of
Versair In-Flite Services Limited.
B.C. Litter Legislation in Effect
B.C. is the first province to put litter legislation into
effect, but other provinces have the matter under re-
view. Pollution is certainly a high priority for public
and press agitation and governments and business must
take such representation into consideration. However,
it is to be hoped that if further legislation is needed it
will be better than that introduced in B.C.
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