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Plant Restaurants. Most aggressive new entrant into vending-machine manufacturing is Chicago's Seeburg Corp., biggest U.S. jukebox manufacturer, which is run by 34-year-old Delbert W. Coleman (TIME, Oct. 27, 1958). Within the past 18 months, Seeburg has acquired four vending-machine makers (cigarettes, fresh brew and powdered coffee, soft drinks in bottles and in cups), added a fifth last week. Seeburg plans to bring out two new machines (milk and candy) in the near future to broaden its line. Coleman expects the company's sales to rise 15% to $26 million this year (35% from vending v. 7% last year) with profits "substantially increased" over 1959's $1.64 per share. Says Coleman: "Just open up a suitcase and try to sell in the lobby of a big office building. They'll throw you out on your ear. But with vending machines they welcome you because you're rendering a needed service."
The biggest area of growth within vending is something that goes by the repellent name of in-plant feeding installations. With them, such companies as Chrysler and American Motors have stopped losing money on company cafeterias. Machine makers are racing to perfect a complete in-plant feeding system for such operating companies as ABC Vending Corp. (1959 sales: $66 million) and Los Angeles' fast-growing Automatic Retailers Co. of America (est. 1960 sales: $35 million). ABC Vending, which began selling popcorn and candy in Manhattan movie houses, now has concessions in more than 2,750 theaters and 420 drive-in movies. It has taken advantage of the leisure-time boom, moved vending machines into sports arenas, bowling alleys and stock-car racetracks. At Squaw Valley's Olympic Games last winter ABC did $280,000 worth of business in ten days, decided to keep its snack bars in the area permanently.
Varied Menus. Presently out in front is Chicago's Automatic Canteen Co. (1959 gross income: $140.5 million), which both makes and operates vending machines. Automatic Canteen has developed a battery of vending machines that offer a complete snack line including infra-red toasted sandwiches, hot soup, chili, baked beans, pastry, coffee and cigarettes. Says Automatic Canteen Chairman Nathaniel Leverone: "The sales potential in in-plant feeding alone is at least as great as the entire automatic vending business is now." In an industry where profits for operating companies run about 3% of sales after taxes, Automatic Canteen expects to earn about $5,000,000 from 1960 sales of $147 million.
This week, Long Island's Continental Industries will begin operation of an automatic cafeteria for investment bankers Carl M. Loeb, Rhoades & Co., providing a menu of 55 dishes with three choices per day, e.g., roast turkey dinner (50¢) and codfish cakes, peas and carrots (45¢), to 600 employees.
To keep up to date and to remain competitive, vending-machine makers are now spending ten times what they used to on developing new gadgets. They are now experimenting with store-front units with a complete line of grocery staples, which could operate on a 24-hour-a-day, seven-day-a-week basis. They are also perfecting new dispensing devices for supermarkets and drugstores to prevent costly pilferage of small items of merchandise.