Micro Market Training 5 Micro Market Training 5

Nicky: Hey, everybody. Welcome to our fifth and final session of our micro market training. Of course, we want to thank our sponsors for making this come true. 365, Translucent, RSA Management Group, PepsiCo, Hadley and USI. This is questions and answers. I know we've had a lot of questions and answers and I think we're going to have a lot more questions after Steve and Patty answered a lot of the questions to get today. We forward them a lot of your questions that I got to them and they have those to report on. I think this has been very exciting. Our feedback has been great. I know one of the questions I've had is how do we get in touch with Steve and Patty and they'll give you their information and when they have time, they'd love to do trainings in States where you guys are happy work through to set up your markets and do all that stuff.Nicky: As we said, even markets are going to change now when we started this call about touchscreens and so many other ways and apps and all kinds of new things that we've learned. I

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think micro markets are the future of our program and I think that this has been a great training and I thank Steve and Patty and of course Hadley for holding this and sponsoring us and we missed everybody in Chicago for Blast. We had a great Blast. Sorry you didn't make it – just kidding. But anyway, I hope that you came prepared with your questions today for Steve and Patty. Colleen, you can mute me now. I'll talk to you when this is over. But Steve, Patty, thank you.Patty: Hi, all. It was such a blast. We don't remember it happening.Steve: Kirby, do you want to explain the rules and then that way we can keep a little bit of order and go from there?Kirby: Sure. Today's session will be questions and answers for Steve and Patty. To ask a question, you can go ahead and click “raise hand” next to the chat option on your computer or if you'd like to use shortcuts - if you're on the phone, hit *9, on a Windows device hit alt Y and for an Apple MacBook Pro or iPad hit option Y. I will unmute you and you can go ahead and ask your question. And we have a question from area code 512 and the last three digits are 906. You are unmuted go ahead and ask your question.

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Speaker 5: Good afternoon, everyone. I really enjoyed the micro market seminar, but I'm curious just with the way things are right now. I've been kind of thinking about even with the cafeteria businesses and different businesses that we have a lot of our facilities events, do you think that micro markets are going to end up popping up in some of these places and food might turn into more of a to-go feature where it's barcoded, people can just walk up and purchase it themselves as opposed to it being served on the line?Steve: Absolutely. Yeah.Patty: We've had that discussion a lot. We think salad bars will go away for a while and you'll have a packaged salads with a barcode or even there are potentially a lot of locations that will go to the pre-order model so that that way you don't even have the line service and the food is just packaged and handed off to the person so that you don't have the queueing of the lines in the traditional cafeteria. I think anybody that's set to potentially in their food service operation take orders either over the internet or via at phone, et cetera, are in a much better place when things reopen. We have to still continue to stay six feet apart, or even if we don't have to, people are scared to. I think that

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positioning yourself and being prepared for that is good and-Steve: Let's just take that as a broader question. What does food service look like down the road? I'll give you an example of what we did in Kansas City at the FAA. They have about 500 people, a blind operator and we've been working with them for many years and they had a little small belly at a salad bar. They had a grill and they had an entree station. Those two things were combined. What we did is they started to work from home more and more there and they ended up with about 300 people and it just was hard to keep it staffed to make a profit. What we did is we took the vending, we took that down. We took the market and redesigned and basically didn't really do any massive remodeling but designed a micro market in the cafe, still let them get fountain beverages, still let them get coffee and they went from four employees to, well they went from five really to two. They were able to run the business where you come in and you pay for everything ahead of time.Steve: You basically walk up and they know what they purchased. They could either tell you or they can stand right in front of you and pay with the phone app and you can hand the product. What we

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noticed was a couple of very interesting things, restaurant sales, what I'm going to call cafe sales went up 18% and the reason why that happened was instead of getting your product and going to the cafe line and somebody trying to look at the tray and pick out all the things that you purchased, the customer now can't get it unless they pay for it. They get exactly what they pay for. It's not on purpose the cashier is trying to read a tray, it's got a whole bunch of things on it and there's 10 people in line there and they actually going to get hurry.Steve: The other thing is, and McDonald's found this out in their study is that people ordered more when they don't have to tell you what they want. In other words, they're very comfortable adding on bacon to a hamburger or get an extra egg or whatever the case may be by doing that. We found that the satisfaction level at the FAA has skyrocketed. It is really completely changed the narrative, so much so that the regional director is now sharing a success story with the other regionals. I think overall what you're going to see is anywhere that you can … One more thing I want to back up just a second. The other thing that the operator noticed was they didn't have to count cash anymore. Everything was credit card sales.

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Steve: They said, “I didn't realize how much time I was spending going into the bank making change and counting money every day.” There's no cash over in short, it's exactly what you get, gets deposited in your account. When the whole thing was said and done, there were like, “Wow, business just got a whole lot easier to do.” I think that anywhere you can look at where you can bring a market into a food service operation you have or add to it where you're using your food service operation to funnel your market with food and salad and things like that, you will find huge success and it's the way it's going go moving forward so that we can continue to make a profit on smaller people at work. I hope that answered your question.Speaker 5: Yeah.Patty: The other part of that too that is that by taking the cash out of that scenario, that cafe is actually better positioned to go back and take one potential point where you're adding bacteria into the equation and it's not there because we all know how dirty money is. That's one of the things that the micro market, if you go with the cashless and you possibly take a small snack area or something like that and combine the two that you're taking

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away another potential point of adding contaminant. How many of us have been to a location where the same person makes your sandwich and then turns around and also takes your money? And so, then you can take that potential hazard out of this situation if you go with in micro markets.Kirby: Okay. I want to remind people to ask a question, go ahead and raise your hand by hitting *9 on the phone, alt Y on a Windows device or option Y on an Apple MacBook or iPad. The next question comes from G8 ThinQ. You're unmuted. Go ahead and ask your question. G8 ThinQ is the name on the screen. You're unmuted. Go ahead and ask your question.Roxanne: Oh, I'm sorry. My question is, how would a micro market fit into a large mall? Because when you go to the mall you want grab something real fast, but they have eatery areas when you stand in line and you get what you want. I was wondering how would a micro market fit into that? Would it go well or what?Steve: We've heard and we do not have experience with this, but we've talked to a couple of operators that are doing this. There's a couple of things on the … Let's talk about the pro side is as

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long as the mall is full, it will do well. It may have to be manned at certain times throughout the day just to kind of control things and kind of have a presence there. But what we found with that is, is that they would be there anyways because they do a fair amount of sales. Everything is, is that opened yourself up to do some marketing because you have a wide breadth of customers that come in and you might grow some opportunities for you business wise because they may contact you for their place of work because they're out shopping that day.Steve: The con side of it is, is that malls seem to be on a downward slide around the country, but the ones that are still going, they're doing well. The real thing that I found is, is that you become a tenant. In our business, a lot of times we're not used to being tenants. Things like, they want a piece of your business, they want some commission that's usually, sometimes it can be fairly heavy or you're all of a sudden next thing you're paying electricity and so just really be careful when you look at the contract for that is what I've heard and negotiate a really good deal because you're now negotiating with multi-billion dollar real estate investors. I think understanding

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you're just going to have a staff member there probably Friday night, Saturday, Sunday.Steve: What are the other things look like? Get some legal advice would be my advice on the contract on the tenant lease part of it. It really does open up some unique opportunities, especially with things like coffee. We have one operator that he does little soda of like almost like a little soda fountain coffee shop. They do some hand dip ice cream when they're there, they make cappuccinos and coffees and when they're not there, they have a bean to cup machine that makes them a cup of coffee. They do a fair amount of business with that in the mornings. This was before the COVID issue. With the walkers, that guy didn't realize how many people would walk to malls early in the morning.Steve: It's a fairly large number, because he said he does about $200 a day in coffee sales before 10 o'clock in the morning. Again, I haven't talked to him since all this has gone on. A lot of places around the country, the malls are closed currently, but that'll come back. Yeah, I would just take a look at it and try and get the best bite you can. I think it's good that you're thinking outside the box on the revenue streams.

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Kirby: Great. The next question comes from area code 202, the last three digits are 107. You're unmuted. Go ahead and ask your question.Speaker 7: Yes. Steve, my question is related to the FCC scenario that you just shared with us. Did I misunderstand you or did I understand you to say that the person pays for the food before they get it?Steve: Yes.Patty: Correct.Speaker 7: You just called it a micro market, so you use a kiosk. What does that look like?Steve: It looks the same as the kiosk you're using today or you can use the phone app. You can either barcode your menu and you're going to get really streamlined with your menu. I would encourage folks to sit down if you're in the food service realm now with cafeterias to sit down and really look hard at your menu and see what you really sell because that was part of this exercise as well. We actually did a whole lot less menu, a whole lot better. That's actually what the regional manager said to us with the FAA was. You guys did a whole lot better. Now, we have a really awesome food service. He goes, “Not that it was bad before,

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but this is better and that's pretty good.” He goes, “That's good.”Patty: Stay 100% focused on hot food and all of the cold foods, the deli and the salad bar they were doing before moved to package items. Instead of having staff working during the peak times of breakfast and lunch, trying to serve up items that somebody could easily go grab out of a package, all they're doing is in the morning cooking eggs to order and at lunch cooking burgers, fries, hot food and serving hot food to order. The cold food is just packaged and they grab it and they go.Steve: I think back to the days when I ran a cafeteria early on in my career in an automotive plant, and I wish this had been around back then because that would have been the way to do it, would have been to be able to have a really streamlined menu and have people pay for things before. It can be done, I've actually had a couple of different ways I can go to the kiosk and pay or they can pay from their phone.Kirby: Great. Our next question comes from area code 512, the last three digits are 906. You're unmuted. Go ahead and ask your question.Speaker 5: I asked the question in the beginning and I'm still trying to make sure I understand.

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Basically instead of having a cashier per se, you would be having someone that would be making sure that they're giving you the products that you have wanted to order. Is that what you're saying? Like that they go and fetch it for you?Steve: No. Let's say you walk up to the grill right now. You walk up, you say, “I want a hamburger and fries or a chicken strips and fries,” and then you go to the cashier line. Well, now you walk up and you can either go to the kiosk first and pay and take the receipt over and hand it to them or you can stand in front of them with this scenario that we worked out and they can scan the items right there in front of the grill and the grill person hands it to them and then they're done. If they want to go get a soda or a candy bar or a bag of chips, they can go over and pay at the kiosk or again on their phone. What you're doing is instead of everybody queueing up at the end in line, they're doing it as they're going. Kind of pictured as you go into McDonald's and you go up to the kiosk and do it now, it's exactly the same scenario.Patty: And it's a little more expensive than your traditional kiosk, but 365 actually has the technology within where they can even go up and order and say, “I want ketchup left out.” Or, “I want

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this or that.” They could even go up a step from your traditional micro market kiosk and go to a screen where they actually can even do modifications.Steve: Right. Then that would print to the kitchen. Then the ticket prints in the kitchen and it was going to say, “Hey, Steve. Your chicken strips and fries are here ready for you.” That technology is out there. For more larger locations, very similar to what you do when you order on an app now from anywhere, Chick-fil-A or anything. In business, we all have to look at opportunities and take advantage of them and we're the ones taking the beating now with our sales, we're all hurting. Everybody's hurting. Let's try and make lemonade out of lemons and stop taking cash.Steve: To flip this around to your client and use this as an advantage, say, “Look, I need to go to self checkout technology and I need to stop taking cash. Here's the reasons why it's a whole lot less touch points and that's an advantage for our business. It's really good opportunity.” You will get some pushback, I promise but you're going to have to forge through it because I will tell you, this regional manager what the FAA said, “Look, this has to work or we may have to go out and look

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outside.” He goes, “I don't know that I like this, but I understand why you're doing it.”Steve: When it all got said and done, he goes, “Boy was I wrong and I love being wrong.” You're going to have to kind of just … This is what we said is, “Trust us. We've known you for years, just trust us.” He said, “Fair enough.” I would encourage you, you do with your clients. Do the same thing. Say, “Look, we've been in business together a long time, just trust me and I'm going to bring in professionals. I'm going to get all kinds of advice. There's always going to be a little hiccup here or there, but when it's all said and done at the other end, this will be better for you and better for me.”

Steve: That makes it a better partnership. I think you'll find most people were very receptive. Look, folks are very comfortable, especially now ordering online. The numbers are through the roof, how much people are ordering online now with phone apps and they're getting used to ordering from Walmart and everything else. It's already here.Patty: Yeah. The COVID just forced the change of attitude and we might as well take advantage of it to potentially help us have a better bottom line by not having a cashier and not taking cash with all of

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its potential error possibility. The credit card is the credit card, it's swipes for the amount the consumer rings up, with cash you have a lot more possibilities of mistakes that you can take or remove.Steve: Losing, yeah. The same way the micro markets did, what micro markets did, if any, this will happen the same way here.Kirby: Okay. We have several more questions in the queue. The next question comes from area code 727, last three digits are 660. You're unmuted. Go ahead and ask your question.Jim:Hello, my name is Jim and my question is this. This is my second or third micro market that I've opened. I had a pretty large building. They're shut down now. They told me I have no customers but I'm still doing business. I'm still for some reason making sales, but 10% of my sales are coffee. My question is this, when someone opens up a micro market, how do you determine what kind of equipment you're going to put in these micro markets and how do you base that decision? We've been talking about going strictly cashless. I tried that once. It only cut my sales by 25%, my point is it would still cut it by 25%.

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Patty: We have not seen that happening. The question will be how long ago was that?Jim: I would say that I would say I've been able to convert most of my sales to cash, but I've only got it up to 25% cash and 75% credit. That's with a lot of work. There's still a lot of people out there they don't want the government in their business. They deal strictly with cash and these kinds of people don't change.Patty: No. That's in your areas where you have an older population. If you have enough of the population that is over 45, you're probably still going to have cash.Steve: But you're not doing change. In the micro market, you're just doing cash and then to change things on their account. Correct?Jim:Well, believe it or not, a lot of them will buy something and they'll just leave it there. They just don't care. It's like with credit cards. I love credit cards because people … Honestly, I see this all the time. People don't even pay attention to the price usually when they buy something.Patty: You are correct, sir.Jim: It's hard to leave.Patty: Yeah, you're correct.

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Steve: You're going to probably have to tackle that one with your client. We've had that in some places and it just kind of work its way out. It's always a struggle. I don't know if we have a right answer or magic potion for that. To answer your question on what we decide, what goes into market. It's almost the same questions that we talked about on that first day of doing that site survey and understanding things like, how many people, what's their break schedule like, what's the parking like, what's around them. It's almost the same questions that lead to the determination of how we set up a market and how much goes into that market. That's the easiest answer that I can give you. I would encourage folks, I'll tell you one way that we encourage folks to get off the cash part was we gave them an incentive to use their account.Steve: And that's where you find a loyalty reward part kind of coming into play. Don't underestimate that and say, “Maybe it's time to do a re-grand opening.” Or, “Hey, thanks for your business,” when they come back from the break and get people to use their account and say, “Hey, look. Everybody that loads on X amount of money, even if you want to use cash and put into a $20 bill, you're not going to get your change back. But I'll

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give you money to kind of wean yourself off and look at the advantages of using a credit card or using an account.” That's one way to do it. Yes, there are some places that I think every marketeer, every person that's had a market comes up and find $1.50 or two bucks laying next to the kiosk. I don't think we're ever going to stop that. Overtime we will, but it seems to be fewer and fewer the farther you forge ahead along. Kirby, next.Kirby: Looks like we have a follow-up question from G8 ThinQ. You're unmuted. Go ahead and ask your question.Roxanne: Yes, this is Roxanne again. I have a couple of questions. From what I'm hearing, there are several different types of micro markets, where you just have hot food and cold food?Steve: Sure, absolutely.Roxanne: Okay. I didn't know that. How does that work? From what I’ve seen, all you do is go in a vendor machines and pick out what you want and go through the kiosk and pay it. Now if you are not using no cash then you don't have any cash on hand. If you have a micro market, do you tell a customer you specifically just take credit cards?Steve: That's correct. Yes, ma'am.

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Roxanne: Okay.Steve: Yeah.Roxanne: Who would you suggest that we would take with us to try to find a micro market? Are you guys trained to do that? I know you all know the business, but I'm just saying.Steve: Yeah, we have helped customers get into the business to go on a sales call. We have done that as part of, “Hey, here we are to help you grow your business. We even do sales materials and things like that and help people get started in the business. Yeah. We do a pretty good job and what we tell folks is we just let them know we work for you. We don't talk about our company, we talk about your company.Patty: If you want to make a leap, the way that we suggest to people who want to leap into the micro market business if they already have an established vending business, is look at your bank of machines that's doing very well, that has a cold food machine that's actually doing sales and approach that client who you already have an established business with and say, “Hey, I want to upgrade you to this.” So that that way you're taking existing business, working with that client to make their place better and now you have your

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first place that you're learning at with people who already know you and trust you. Then from there you can use that to take … When we go and build a market with somebody, we take pictures from beginning to end of what it was like through the process. Now, it's done - grand opening day.Patty: We put those together and create a slideshow for our customer that then they can take to show to other potential clients and go, “This is what we did here. We took this vending bank and turned it into this.” If you can find an existing customer who's willing to partner with you to create this new employee benefit, do that as your first step because that's a little easier. It's like you're riding the bike with training wheels before you just hop on the bike without training wheels.Steve: And you're going to get our contact information. If you go to our website, we have hundreds of videos of basically these transitions and transformation. We don't make the videos longer than one minute because we found that people lose interest after a minute. But it is the start to finish, the vivid picture of the vending machine bank. Then at the end, if there's pictures of the grand opening and you can watch those and we have thousands of pictures on our website as

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well, of all the different kinds of markets and food services and things like that. It kind of gives you a visual that you can share with them as well.Kirby: The next question comes from area code 202, last three digits are 107. You're unmuted. Go ahead and ask your question.Speaker 7: Yes. My question is more technical and I'm hoping you can help me or direct me. I run a micro market. We call them manned-micro market. My audience or my group is captured. I'm in a federal building in DC. The micro market I have now is not accessible. It doesn't speak and as I listen to you all and hear a little bit about the 365 and so in my particular place, we would think about bringing in another kiosk. I was told that it was a simple connection. It was just like sticking a plug into it. My question is, it possible to have a 365 with the existing kiosks? Could it be as simple as just a plugin to connect?Steve: I just don't know what you currently have. I would probably need … Give us a call offline and we can walk through that. There's not a simple answer. There's a lot of questions that goes into that and it might very well be, but I don't know. I'd have to ask you a lot of questions.

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Speaker 7: Right. Do you have any micro markets where you have two kiosks in the same room?Patty: Yes.Steve: Oh, absolutely. We have markets where we have two or three-Patty: Four.Steve: Yeah, big places. We did one today that has two of them. But they've also, again some of the technologies out there now you have a phone that's in everyone's hand it's a kiosk. You can save yourself a lot of money by not having to get extra kiosks.Speaker 7: Yes. Okay.Steve: Yeah, absolutely.Speaker 7: Where can I get information to find out more about the 365?Steve: Yeah, absolutely. Yeah we'd love to talk to you. Yeah, sure. I think we'll give it to Colleen and Kirby when they send out the materials. You'll have our contact information. If you also go to our website @translucentllc.net or llc.com either one, you'll see our contact stuff there, but we're going to send out our contact stuff. You can also send the note to Nicky and Nicky can forward that onto us

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and we can get right back to you. We've done that with a lot of folks already, but I'd love to talk to you. Yeah. That's what we're here for.Kirby: All right. I want to remind people, to ask a question, press *9 on your phone, alt Y on your Windows device or option Y on your Apple device. The next question comes from area code 301 last three digits are 329. You're unmuted. Go ahead and ask you a question.Tassie: Yes. My name is Tassie and I just wanted to ask about the financial part of it. I wanted to know, can you give me an idea of how much money you have to start up and then how much money do you have to have as far as doing inventory and everything. What should you have to so you can make sure everything is stocked the way it's supposed to be.Steve: So, average size … You already in business now, right? You've already got a vending business now. Correct?Tessy: I'm in business, but I'm not in a micro market.Steve: In cafeteria?Tessy: No, just the convenience store right now.

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Steve: Okay. You've already got some inventory, so I'll put it this way. The average micro market with technology and there are some that are less, there are some that are more. Depending upon size you need to budget about anywhere from 18 to 30,000 with technology and fixtures. Okay? If you get a really big one, you can get more, but that's about the average of what you're going to see. There's some that are about 12, but the technology is going to run you 5,000, 6,000 bucks and you're going to need some fixtures. What you're going to need in inventory is about $1,200 to stock the store the first time and then you're going to need your back stock behind that. What you always say is you need two and a half times your initial load, so roughly $3,000 in food purchases and you're off and running.Kirby: Okay. The next question comes from area code 512, last three digits are 906. You're unmuted. Go ahead and ask your question.Speaker 5: Hey, I'm sorry. I'm sure y'all are going to think you know me by the time this is all said and done.Steve: I think it's great. Ask away.Speaker 5: My question has several parts and I'm going to try to just ask it all at once so you know

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where I'm going with this. All right. I'm real interested in obviously the convenience store and that's an easy fix. But I'm really looking at the way things are changing with actual food service and how this could work into that. It could create an extra line of protection if you will, between the customer and exchanging hands with the workers, so to speak. So, that's where it starts. Then I know you were talking about streamlining your menu and I get all that. Say for example you say normally you go up to the line, “I want to buy nachos and I want to get this, that and the other on it.” So, tell somebody and they would still prepare that and you would just charge it as nachos, right?Patty: Right.Steve: Correct.Speaker 5: Okay. I'm just trying to think of when you're doing all these modifications, what is the difference in the software expense and if you were say to have the software where you were able to do stubs and modifications, could you originally sign up with whatever software and then say, “I need to upgrade it. Can I pay the extra 500 and get the Mac daddy kind?” Do you understand what I'm saying?Patty: Yes.

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Steve: And the answer is yes.Patty: It is the same software. What it is actually is an upgrade in hardware, believe it or not. You have to have a bigger processor in order to do that part. If you learn the software, you've actually learned from the beginning of it, it all builds upon itself.Steve: Because they're the only ones that do it, I'm going to talk about 365. So 365 has what's called, they call it a connected campus. What I say is that it works across all lines of business, so in other words, you can have a cash register in the old traditional sense. That you can have somebody staying in there at breakfast and lunch and if you had to do this and somebody takes money or I shouldn't, take money is the wrong word, if the cashier and takes people's cash and gives them change, you can do that. You can then at the end of the time, lunch's over, breakfast over, you can make that key, that back register be self-service, but just not take cash at that point. It only works with credit cards.Steve: That register is really a kiosk and register combined. You then starting about November of this year, you will be able to do pre-ordering on the web or on your phone with that device in your cafe

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so that you can have all those modifiers and you walk down to the cafe and you've had your nachos with tomatoes and sour cream, but not chives and no sour cream or whatever. You know how it works. You can tell we're food people, right?Patty: With peanut butter on top.Steve: With peanut butter on top. You can have all those on there and they can walk down and it's ready to go from there. You can even take out the talking of the employees. The reason that we do a lot of work with 365 is just what you said, the platform is very expandable and you can have everything under one. So, even though you may have a market in that building that's only got 75 people in this department, but they have a nano market. In the cafe, you have a full service cafeteria or micro market that's big in the lunch room so to speak. You can have the same … Their account works everywhere. Again, making it easier for people to use their credit card by letting them have multiple ways to pay with one account. Again, them earning reward points the whole time they're doing it, no matter where they are on the campus. They're the only ones that do it.Steve: Other companies, they do a good job, but 365 is the only one that gives that kind of

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flexibility. We put a lot of those in, where there's a cashier in a traditional sense. For example, we just did one at a bank in downtown St. Louis and we did it first week in March. The cashier used to stand there all day and process payments. Well, what she does now … She was leftover from the previous company when this company worked with eight men. She takes cash for an hour at breakfast and an hour and a half of lunch, and the rest of the time she's a customer service rep. Well, the sales in this restaurant have doubled with the changeover.Steve: What they're saying is they have somebody that's there helping them with questions and everybody loves her. It's great. It allows us to really kind of change how we do things and serve the customer. I hope that answers. You said you had another part of the question too.Kirby: I think we lost her. We have another question from Chad Keeney. You are unmuted. Go ahead and ask your question.Chad Keeney: Hey. Hi. Thanks a lot. Hope you guys can hear me.Steve: Yeah.

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Chad Keeney: I'm having trouble by my phone here. I've heard a lot of really positive talk and it just makes me excited and very… about it. But there is one question that I have-Steve: Oh, oh – he’s having trouble with his phone.Chad Keeney: Oh boy.Steve: I think I recognize his voice.Chad Keeney: You may, you never know. We're never more than six degrees of separation. My question-Steve: Kirby you might want to go to the next one.Chad Keeney: Am I still here?Steve: Yeah.Chad Keeney: Okay. Okay. Just want to be sure since I’m having trouble with mine. The question I have is about, I know that nationally all shrinkage and theft is average around 2%. What I'd like to know is, and you may have covered this, and forgive me if you have, what type of security measures you can get with these and what types of, when you have unfortunate incidents happen, when someone has engaged in this what measures

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do you have or have you suggested to be in place when this occurs?Steve: Hey, Chad. I'm sorry. For some reason we lost audio just for a few seconds. Could you repeat the question? I apologize.Chad Keeney: Sure, I can. I guess I'll try again. Like I said before, the national average in theft and shrinkage is around 2% is what I've heard.Steve: That's correct.Chad Keeney: What kind of measures though do you have to offer for terms of security, like a camera or something like that? When you do have an unfortunate instance that happens in an unmanned or even a manned micro market where theft has occurred? What are some of the measures that are taken with the building management or whoever or building services? What do you guys recommend if anything, is what I'm looking?Steve: Yeah. There are cameras. We have a couple of different things. One is we put up a sign that lets folks know in a positive way that they're on camera. We traditionally don't recommend you put up a sign that says, “You're under surveillance.” We put up signs and talk about the

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technology and this is here as a benefit for everybody. Help us keep this as a benefit and please make sure you bring everything up. So, that in a positive way says, “Hey, you're on camera, don't steal.” But it doesn't sound like that when you say that in a positive way. We also encourage you to offer a reward for folks that when they, typically it's $5, if they go to scan something and it doesn't scan, they call in, they let you know that it just didn't scan and you can then fix it in the system and they get a reward.Steve: What that does is that helps people know that you're watching and that everything does have to be rung up. There's another way. The third way is spend time talking about that when you're at your grand opening with your customers while they're signing up for an account, point the cameras out. They'll do this naturally on their own. You'll really find that it's very easy to do. It's not difficult and they'll start to do it themselves, “Oh, I see cameras all over.” That just kind of plants that seed. If you do have an incident and oftentimes you'll find more often than not, it was a mistake, but when you have to have something that does pop up and you have to review it with the client, just to be honest with them.

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Steve: Take a picture of the video, take it in and show them and say, “Look, this has happened a couple of times now. Can we, just talk to them and ask them to stop this because this isn't helping my business at all and this is not right?” Oftentimes what you're going to find is the client's going to say to you, “Thanks for sharing it.” I always tell people, they're taking more important things from the clients than they are from you. If they're stealing from you, they're stealing stuff from the client as well. Just open an honest conversation about it usually handles it pretty quick.Kirby: Next question or comment comes from Terry Smith. Terry, you're unmuted. Go ahead and ask a question.Terry Smith: Hey, Steve. I just want to pass along a question that I got and I'm surprised, I think they're on the line and they just haven't asked the question. I didn't like your reaction to this type, somebody that was associated with the vending equipment part of the industry told one of our vendors that this pandemic has essentially a death blow to the micro market industry. Would you respond to that?Steve: Yeah, it's not going to, it won't build a death blow to convenience stores. It's not going to

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build a death blow to the grocery stores. That's what we are. That's a shame that somebody would say that. I don't think vending and micro markets will always be a brother and sister together in our industry. You will have both. Vending will never go away and micro markets will never go away. They need to coexist because there is spots where you can have a micro market in the main area and you may have an area way back in the back of the plan or back in the office that does need something that you might have a soda machine or snack machine and you're still going to have that. I think that's just a shame to hear. We're all in this together and as an industry and we have to stay together. It's not going anywhere anytime soon.Kirby: Terry, did you have any other questions?Terry Smith: That was my reaction. No. That was my reaction. I just want the person to hear it from you.Steve: Yeah. I think it's a real...it’s a real shame.Patty: I think that is somebody just being extremist. There's always people out there that want to see the extreme worst in every situation.Kirby: Okay. I want to remind people to ask a question. Go ahead and press star 9 on your

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phone, alt Y on your Windows device or option Y on your Apple device. The next question comes from area code 215. Last three digits are 155 you’re unmuted. Go ahead and ask your question.Sammy Ingram: Hi, this is Sammy Ingram from Philadelphia. My question was basically kind of answered by the question that Mr. Terry Smith asked. I can go ahead and talk more about it. Where I am, I have a location in the post office that comprises of a snack bar, which is on the third floor. Then it's a large distribution center, so there's like four or five break rooms within the building where there are vending machines as far as snack machines, coffee machine and a soda machine in each one of those rooms. If the snack bar was converted into a micro market, I was wondering how that would fit the sales in the break rooms where basically we had the snack machines, the sodas and the coffee machines. As far as what I've been hearing is that if they did go in and convert my snack bar into a micro market, then they would snatch the snack machines and things out of the break room because it would have an adverse effect on the sales that the micro market would produce as a replacement for the snack bar.

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Patty: It's a very small drop because a lot of the people that purchase from the vending machines don't come to the snack bar. People that come to the snack bar currently aren't going to the vending machine. In that process you'll gain people that weren't purchasing it either. The net is again in almost every place we've ever seen. You actually gain sales, you drop a little in your vending, but you gain so much at your other location because it becomes a 24/7 with more easily accessible things for the people who like to put their hands on their food. They can go into the snack bar after you're closed and still purchase something at the kiosk that they probably would not have gone to buy. There's a good sized chunk of the population that just does not purchase from vending machines because they don't trust them. You gain all those customers that you currently don't have after hours.Steve: Yeah. This is just real life experience. When we got into the market business in 2008 by 2010 we were out of space in the warehouse to put machines. We asked the client if we could leave the machines on the floors and just take out the main break area. Kind of like the post office was a large place. First week the vending sales come in and they were about 15% lower. I said, “Well, but

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the market did more than the whole account was doing before.” The manager at the time goes, “Yeah, I know. I don't know, maybe we're just behind a week in collect.” I kind of do it at the side. Next week the vending sales were down 20%, but the market had doubled again and it held there forever.Steve: What we found is, and that's why we say that the micro market customer that you are going to gain was never your customer. They were stopping at McDonald's or Quiktrip or whatever convenience store was on their way in. They were not buying from you today. What will happen is, your sales in the other break rooms that you're talking about in the plant, and that post office will go down probably 15% to 20% but whatever your account is doing as a total is what you'll do on the micro market. Your sales will go up in essence at least 100%. That's four times of growth multiplier. That is huge.Sammy Ingram: Okay.Steve: That's what I can tell you. It happened at every almost every single location that we had, that's what happened. We're speaking from experience and we did it over and over again and I shook my head from 2010 till 2015. I shook my

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head and finally I stopped shaking my head and we did a massive study about why and how. We had some interns and they stood there and asked people all summer long, why. We come to find out that they were never shopping with us before. Just like Patty said, they liked to touch it, they liked to look at it. They'd like to read the label. They'd like to read to the nutritional information. Personally, I think some people did. I think people just like to touch the food they get.Steve: They know they're going to get it in the micro market. They know they're going to walk out with their product. The other part of it is, you're not too upset when you lose $1.25 in the vending machine, but when you go and you buy a sandwich and it's four or five bucks and you buy something else, now you're starting to expose yourself a little bit of more loss and it's hard to get your money back. With the micro market you don't have that problem. There's just all kinds of, that you've reduced the friction in the payment cycle with the micro market. So, they don't have problems spending more money.Patty: You're also going to offer products in the micro market that you were not offering in your vending. You gain all of those potential customers

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that were never a vending customer because you didn't have product that satisfied their needs. The micro market allows you to increase your products.Sammy Ingram: Is it possible to make that data available to us? I’d like to include that in my proposal.Steve: Yeah.Sammy Ingram: And try to convince my SLA to help me open this micro market as opposed to just having a plain snack bar because the post office is a 24 hours shop. It is a 24-hour shop.Steve: That'd be even better, yeah...Patty: Yes, you will.Steve: Quite frankly it's actually … What you want to try and do is strike it that you're bringing a new employee benefit to the post office. You want to kind of do it as a benefit, not as I'm giving you additional services and cost you anything. I'm going to benefit, but better more importantly than me benefiting is your employees are going to benefit. Your folks are going to love it. Yeah. We can make the information available. Not a problem at all.Patty: The benefit is the people especially in the afternoon, the evening now instead of just having

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access to your traditional vending machine options, you will have in your micro market healthier because generally, almost everybody is looking for healthier for their employees right now. A good chunk of the employees are actually looking for healthier. You're going to have healthier options in your food refrigerator, your micro market that they can get after hours that currently only are available when you're open at your snack bar.Steve: Another thing to think about when you talk about post office is traditionally, and this is not true for every person working, but traditionally the folks that work on the second, third shift, sometimes these are their second job, right? If you think about it like that, then now you're giving them a way to dine. They don't want to stop from one job to the other. They know they can come get a fresh sandwich or a salad. They can come get a meal, not just a snack. That opens up a whole different realm in that area. That's why we talked about, in one of the previous lessons that your per average sale is $5 plus on third shift. I have always attributed to the fact that that was in a lot of instance in some of our locations, those were second jobs for people.

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Kirby: Okay. At this time we have no raised hands. I want to remind people - to ask a question, go ahead and hit star 9 on your phone. On a Windows device hit alt Y. On an Apple device hit option Y. See if any other questions come up. Yeah. It looks like we have no other questions.Steve: All right. Well, how many folks do we still have online, Kirby?Kirby: 68.Steve: All right. Well, hey on behalf of Patty and myself and Terry and Nick and all the other co-sponsors, I want to thank, and I know I speak for Patty, which is probably a rare thing for me to do, but we just want to thank everybody. We're here to be a service. It's an honor to work with you. I hope we've made a difference and in helping you make a decision. I would really encourage you and get into the micro market business. If you need to borrow money, borrow money, because money is going to be really cheap for a while, but get into the business. It really will change your whole business model and all for the good. We're here to help in any way we can. From all of us, just stay safe and be healthy.Colleen: This is Colleen. Do we want to unmute Nicky for any final comments, Kirby?

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Kirby: Sure. Let me find him.Colleen: Yeah, I'm looking too.Kirby: Nicky, you're unmuted.Nicky: There you go. Steve, Patty, thank you so much. I think it was fantastic. I think that there will be changes and I think a lot of it will be apps that you don't have to touch the screens. I know that 365, I have a call with them on Friday to talk about accessibility again. We will continue, the National Association of Blind Merchants, will continue to work on accessibility with 365, Three Square Market, Par Level, Avante, Yoke, all of them. I know Yoke has a great app out now that we're working on too, that's accessible, so that people can just scan things and check things out and do that. I think this is still going to be a wave of the future.Nicky: As people try to get away from money and dirty money and things like that, but when you can increase your sales with markets and instead of vending or whatever it is, even downsizing from cafeterias, the more you could put in and you could sell almost anything you want in a market. Think about that. I sell umbrellas and gifts and different things and Hallmark cards and so many things that you can sell at the market. If It's got a barcode, you can sell it. If not, you can put a barcode on. There's

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so many things, but we will be working on accessibility. We'll be working with Patty and Steve. Mike, for you we will be announcing some other trainings coming up here in the next couple of weeks. I look forward to it.Nicky: What I have, my message to you is, that we're sorry that we couldn't have Blast this year, but we will be planning it coming up soon and we will be coming up with other training soon to kick upper mobility. We hope that everybody stays safe and healthy and keep in touch. I am available, I'm round most days unless I'm on a call. If you want to talk about market accessibility or anything, I'll be around. Steve, Patty, Hadley thank you so much. Colleen, Kirby, thank you guys so much for all of your work in this and being a sponsor. Thank you, guys. Stay safe, stay healthy and talk soon. Thank you.Colleen: Okay, this is-Kirby: Steve and Patty, we have one more hand that just came up. Would you like to answer it?Steve: Sure.Kirby: We have a question from Aloha’s iPad. You're unmuted. Go ahead.

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Aloha’s iPad: Yes, I have a question. Do you think because I've had a manager ask me, you think this will work in roadside rest areas?Steve: No.Patty: No.Steve: I don't see how. Unless it's manned, I don't see how it works.Aloha’s iPad: Thank you.Kirby: And one other question from Yvonne Batmore. You're unmuted. Go ahead.Yvonne Batmore: Hi, I'm in the city, New York City. Micro markets are a little hard for us. Is there a way that … Hold on a minute. Sorry about that.Kirby: No problem.Yvonne Batmore: In the urban areas, we seem to have problems with micro marketing in New York City because I agree with the theft part, but a lot of us are in the lobby and I just want to know how that would work for us.Patty: What some people have done is put it off of the lobby in the hands of building owner, whoever have like almost like a glass cubicle or some way to have a badge access. That that helps with the,

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because then that way you know who's going in and out.Yvonne Batmore: Okay. My second question is, do we get proof that we took these classes, so as our SLA knows?Patty: That is a question for-Steve: That would be a question for Nicky I think.Patty: Yes.Colleen: This is Colleen. I can tell you that, I did see a registration list from Barbara Badger. I'm assuming that she has the names of everyone who's registered. Do we want to unmute Nicky, see if he has any more to add to that.Kirby: Nicky, you are unmuted.Nicky: I'm sorry, what was the question, Colleen again? I'm sorry.Colleen: They were asking if they can get proof for the SLA that they took this training?Nicky: Yeah. Yes, we can. Yeah. We'll check the list with you, Colleen and we'll go off Barbara's list and we'll look at phone numbers, but we'll get your certificate. This was a certificate class and if you need it and you were on all five days, we will get it for you. Absolutely.

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Colleen: The other thing that I want to add, this is Colleen, is we did record all five of these sessions. We went back and rerecorded the first two with overhead PowerPoint slides because some people were asking for that. We have all of the recordings full with video that I believe an ABM will repost or we'll put them up on our website and we can get more information out to you once those are posted. If there's something you feel you missed you can go back and view those when we get those all posted, there'll be five of them.Nicky: Colleen, this is Nicky again. What I like to tell everybody is, when we first planned this, we talked about the certification class. First thing Steve and Patty said was, we'd like to do it in next year's list and do a recertification because so many things will change. We keep the hope to build this relationship with Translucent, Steve and Patty. They're available to come to states and you can talk to them and we'll talk to them about that, to do trainings. It's something that, our industry is going to change and keep changing and we need to be on top of that. It's a perfect time. You can look at the recordings, we'll talk about how we're going to do that. This is very exciting and we hope to get back to work soon so we can start using the

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principles that they taught us and make some money for everybody. Thank you again.Kirby: Terry Smith has his hand up. Terry, you're unmuted.Terry Smith: Yeah, Nicky answered what I was going to say. I would just add that Barbara has created a certificate, which she actually sent to me today to look at. That certificate will be emailed rather than mailed. It'll be emailed. Then if you want to print it out on a nice parchment paper and hang it up or whatever you want to do, that will be up to you. You will be getting an acknowledgement that you completed the training as soon as I'll look at the certificate and send it to Nicky for his approval.Kirby: Great. Steve and Patty, we have one more hand up. Would you like to answer another?Steve: Yeah, sure.Kirby: Okay. This comes from area code 512, last three digits are 846. You're unmuted, go ahead and ask your question.Kayla: Hello, this is Kayla from Austin, Texas. Actually I think Nicky answered my question about if the recordings were going to be available for us to go back and recheck our notes and all that. Also,

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I was going to ask if you guys are preparing like a Word document material that we can have to go back and reread, if any of our managers in our districts would ask for it or anything like that or it would be just based on our notes?Colleen: Well there will be a PowerPoint presentation in all of the videos now. If you go back and listen to the presentations, there'll be a PowerPoint there for you to look at. I don't know, Patty and Steve, are you planning on sending your slides out or not?Nicky: No.Colleen: Okay.Nick: We're going to work on that. That's something we're going to work on, Colleen, with Steve and Patty on mistakes and our divisions and our people that are members of our subscription plan for training. We're going to talk about that next week and then we'll be able to get that out to everybody.Colleen: Okay, so-Kayla: Oh, that's awesome.Colleen: For right now there's not going to be a distribution of slides. Did I understand that?

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Nick: We're working on that. Yeah. We'll have an answer by next week how we're going to do that.Colleen: Okay. Well, thank you so much.Kirby: Thank you.Colleen: It was great training. Thank you so much.Steve: You're welcome. We're coming through Austin, Texas in two weeks. We'll wave as we're driving through.Colleen: Okay, cool.Kirby: It looks like we have a followup question from G8 ThinQ. You're unmuted. Go ahead and ask your question.Roxanne: Do you guys have a book or anything or any information on the 365 Market? Michael Moffitt, Translucent, a book or something of that nature that we could reference to?Steve: Yeah. If you just go to 365retailmarkets.com they have enormous resources there.Roxanne: 365market.comSteve: 365retailmarkets.com.Roxanne: Oh, retail?

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Steve: Yeah.Roxanne: Okay.Steve: And you can put that in Google: 365 Markets and it'll pull them up. They have just a ton of resources and if you have questions, give us a call and if you have additional questions that we can't answer, we'll look you up with one of the folks there and they can get you an answer easily.Roxanne: Okay, cool. Okay.Steve: We're on the phone with them about 10 times a day, it seems like. So, they know us really well.Roxanne: Oh, okay.Steve: We're actually up in Detroit. We're in their offices right now doing some stuff. So, yeah.Nicky: All right, everybody. We thank you, thank you, thank you.Steve: Thank you.Nicky: Stay healthy.

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