In the latest episode of The Unattended Edge, host Staci Thornton Ryan sat down with John Hickey of Tech2Success to discuss how technology has transformed vending — and where it could take the industry next.
Hickey has spent nearly three decades watching vending evolve from mechanical machines and paper-based processes to remote monitoring, cashless payments, smart coolers, and artificial intelligence.
That longevity gives him a unique perspective on the industry’s technology cycle. He’s seen technologies arrive with big promises, watched operators figure out how to use them, and experienced firsthand how the right technology can fundamentally change an operation.
But after nearly 30 years in the industry, Hickey’s advice isn’t to chase every new technology.
Instead, he believes operators should understand their problems first and then determine how technology can solve them.
Remote Monitoring Changed What Operators Could See
Hickey remembers remote monitoring as one of the earliest technologies that truly changed vending.
He recalled working with Alan Weintraub, whose system could read a DEX file from a vending machine and transmit the information back to a central station.
For operators accustomed to physically visiting machines to understand what was happening inside them, that was a major shift.
“That was our moment of, ‘Hey, we’re actually going to know what’s sold?’” Hickey recalled.
Remote monitoring established a concept that has continued to shape vending technology: the ability to collect information from machines without physically being there.
Today, operators have access to vastly more information than they did when remote monitoring first emerged.
The challenge has shifted from getting data to figuring out what to do with it.
Operators Don’t Always Need the Next Technology
With new technology constantly entering the industry, Hickey believes operators can sometimes become too focused on what’s next.
“I think people underutilize the technology they currently have,” he said.
VMS platforms, payment systems, remote monitoring tools, and connected equipment can provide operators with enormous amounts of information.
But simply having access to that data doesn’t improve an operation.
Hickey recommends starting by identifying the recurring problems inside the business.
What causes missed stops?
Why are service calls repeated?
Which machines are regularly out of order?
Where are inventory shortages occurring?
Where is the operation losing time or sales?
His approach is rooted in process improvement: identify the defects and delays, then determine what needs to change.
“If people really focused on what are the defects in my business… the technology that they need to solve that will certainly rise to the surface,” Hickey said.
That philosophy is particularly relevant as operators evaluate AI and other emerging technologies.
The question shouldn’t simply be, What can this technology do?
It should be, What problem can this technology solve for my business?
AI Could Make Vending Data More Actionable
Hickey is optimistic about AI’s potential in unattended retail, particularly because of how much operational data is now being generated.
Computer vision in smart coolers is one example he sees as valuable today. But he believes AI could eventually have an even greater impact on merchandising, supply chain management, and equipment analytics.
One opportunity is identifying equipment problems before they become lost sales.
Hickey pointed to broken card readers as a major contributor to declining same-store sales. Payment systems can already send alerts when something goes wrong.
The problem?
“Nobody reads them,” he said.
Inventory creates another opportunity.
A driver may arrive at a machine without the products necessary to properly replenish it. The machine remains understocked until the next service visit, and sales are lost in the meantime.
AI could potentially connect those pieces of information and prioritize which machines need attention.
“If AI can be used to rise to the surface machines that need to be given attention for repair reasons and also merchandising and fulfillment, I think there’ll be a wonderful revenue increase for the operators,” Hickey said.
In other words, the next stage of vending technology may be less about generating more information and more about turning information into action.
Finish Today Well Before Focusing on Tomorrow
Despite his focus on technology, Hickey’s strongest operational advice during the episode was decidedly low-tech.
“Finish today and focus on tomorrow,” he said.
The idea is to use the end of each day to prepare the operation for the next one.
Routes should be accurate. Drivers should have the inventory they need. Substitutions should be communicated. Known equipment issues should be addressed.
Hickey recalled seeing end-of-day reports filled with missed stops and asking operators why those locations hadn’t been serviced.
Sometimes the response was that the driver didn’t really need to go there.
His question was simple: Why was the stop on the route in the first place?
“Make sure the schedule is absolutely correct,” Hickey said. “Then make sure that they have every piece of product that they need.”
The approach reduces the number of problems drivers have to solve in the field and helps prevent today’s issues from becoming tomorrow’s emergencies.
It also illustrates a larger point about technology: technology can’t compensate for a broken process.
An operator can have sophisticated software and connected equipment, but if the underlying process isn’t working, the technology won’t solve the problem by itself.
The Technology Operators Underuse May Be Their Own Data
Hickey’s perspective also highlights an opportunity that is easy to overlook.
Operators don’t necessarily need more data.
They need to use the data they already have.
VMS information can reveal purchasing patterns, equipment problems, service frequency, inventory needs, and other operational trends. The opportunity is to turn those insights into decisions.
That could mean changing a route, adjusting inventory levels, addressing a failing payment device, changing a planogram, or identifying a machine that needs attention.
The more consistently operators identify those patterns, the less they have to rely on guesswork.
And as AI becomes more capable of analyzing large amounts of information, Hickey expects that process to become increasingly automated.
He believes the industry could eventually move toward systems that don’t simply report what happened but help determine what should happen next.
Cybersecurity Is Part of the Technology Conversation
Hickey’s decades in technology have also given him a close view of another side of digital transformation: cybersecurity.
As vending operations become increasingly connected, operators are managing more payment systems, customer data, financial information, connected equipment, and cloud-based systems.
That creates more opportunities for cybercriminals.
Hickey said Tech2Success regularly works with operators dealing with cybersecurity incidents, from social engineering and phishing to more serious system compromises and ransomware.
The problem isn’t limited to large operators.
One of the biggest challenges, he said, is that companies often don’t want to talk about being hacked.
“If everybody was like, ‘I got hacked. Here’s what you need to do. Please don’t do what I did,’ that would solve for a lot of their future friends going through this as well,” Hickey said.
For operators, the basics still matter: avoid shared logins, use strong and unique passwords, keep equipment and routers updated, and make sure employees understand common cybersecurity threats.
As technology becomes more deeply integrated into vending operations, cybersecurity becomes part of operational risk management — not simply an IT concern.
Technology Could Lower the Barrier for New Operators
Looking ahead five years, Hickey expects technology to continue evolving.
But one of the trends he’s most excited about is what those technologies could mean for entrepreneurs entering the industry.
He has seen more individuals start small, with a single truck or a handful of machines placed in workplaces, churches, gyms, apartment buildings, and other locations.
Hickey believes smart coolers could help accelerate that trend.
Micro markets created significant opportunities for established operators, but they also required more capital for kiosks, cabinetry, inventory, and other infrastructure.
Smart coolers can potentially allow smaller operators to enter locations with less upfront investment.
“I’ve seen… so many more of the guys who have one truck, and they’re putting a machine in their place of business,” Hickey said.
He sees that as a return to the entrepreneurial spirit that has always been part of vending.
“I’m really excited to see these guys, our industry, backfilled with the guy who’s jumping on the truck and the firemen that are putting the machines out after work,” he said.
The technology may be different, but the entrepreneurial model is familiar: start small, learn the business, and grow.
The Bottom Line
After nearly 30 years of watching technology reshape vending, Hickey isn’t convinced the answer to every operational challenge is a new piece of technology.
In fact, his advice is almost the opposite.
Start by identifying the problem.
Then look at the processes and data already available.
Only after that should operators determine whether new technology is necessary.
“Whatever problem you’re having today can be solved,” Hickey said. “It can be solved with technology, it can be solved with process, and sometimes you just need to have a conversation with someone outside the four walls that you’re in.”
That perspective may become even more important as AI and other technologies continue to enter the industry.
Operators will have more tools than ever before.
The challenge will be knowing which problems are worth solving, which tools are actually useful, and how to turn technology into measurable improvements.
As Hickey put it: “Start with your problems and let technology solve the problems and help you meet your goals.”
For someone who has spent nearly three decades watching vending make that technological journey, it’s advice worth listening to.
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