Local vending machines pushed out

It was the email they dreaded: 'Can you please ensure all of your [vending] machines have been removed prior to June 4.”

And they're not just any vending machines. These were a major $250,000 investment for Carol Haimes and husband Allan Walker, and a big chunk of their livelihood.


Looking for new business – vending machine franchisee Allan Walker. Photo: Tracy Hardy.

'We wouldn't have bought the business just a year ago had we known this could happen,” says a distraught Carol.

Their four vending machines were strategically sited in a plum location at Tauranga Hospital – a captive market of patients, public, busy doctors and nurses all looking for an on the fly quick fix of chocolate, nuts, soda or chips.

'There were healthy options in there too,” says Carol. 'It's all about choices.”

The removal order reduced Allan to tears. That's because it takes a $126,000 wad out of his business each year. And he didn't see it coming.

'We are local people, building a local business and buying local,” says Carol. 'Now some Aucklanders have muscled us off our own patch. That business, that money, will be leaving the region.”

It was the Compass Group NZ – the Auckland company which holds the cleaning and catering contracts at the hospital – that ordered Carol and Allan out.

'We will be using our nominated national vending provider Vending Direct. We wish to thank you for your service,” Compass told Carol and Allan.

They are disappointed 'the DHB didn't stand up for local business”.

The Bay of Plenty District Health Board, however, wiped its hands.

Bay of Plenty District Health Board's support services business leader Sherida Cooper says their contract is with Compass 'to provide appropriate vending services which includes products in line with our healthy eating criteria”.

It's Compass which decides who'll provide that service – and Carol and Allan's Provender franchise didn't figure in their plans.

It's understood the BOPDHB put healthy products in an honesty snackbox in the surgeon's penthouse at the hospital.

'They wouldn't eat it,” says Provender business development manager Paulyne Hamilton.

'Surgeons are busy people and they wanted quick fix products – they wanted V drinks, which they drink like crazy, and they wanted their Coke, they wanted their chocky and chips.”

Provender understands there will be a zero tolerance of sugar products in hospital vending machines by the end of this year.

'But the people using those machines are grown-ups, they can makes choices,” says Paulyne.

'And why didn't Compass come to us and say ‘you don't have enough healthy options in your machines – fix it'. And we would have,” says Carol.

But they weren't consulted – nor were they given the chance to bid for the business. 'It was corporate Auckland arbitrarily deciding what's good for the people of Bay of Plenty,” says Paulyne.

But isn't that business? Isn't all fair in love and war?

'Yes,” she admits, 'but Compass could have made an effort to find out who and what is available in the regional vending industry before bringing down the axe.”

Or are they just victims of zealous DHBs around the country practising what they preach – healthy living and healthy eating.

'That too,” says Paulyne. 'Right throughout the country, DHBs are dictating what goes in vending machines. Even if staff tell us they want Mountain Dew, they're not allowed it. 'They're not allowed to be seen with those products in their machines.”

Apparently hospital cafeterias are under the same scrutiny – and anything with cream has been outlawed.

Compass Group says when it signed a national services contract with Vending Direct in 2013, that company didn't have a representative in the Bay of Plenty region. So it retained the existing Provendor Franchise owner.

When Vending Direct did get a representative here, Compass says shifting the contract to them was a natural consequence.

Compass says Vending Direct is working towards offering a range of healthy eating choices as per the DHB's food and nutrition guidelines and has proven to be a trusted supplier.

Compass says it regrets Carol Haimes feels she should have been given the opportunity to tender for the business. But because of the national contract with Vending Direct, this wasn't possible.

And the bad news for Carol and Allan may not end here. Their polytechnic contracts are up for renewal before the end of the year – and Paulyne suspects that business could be lost as well.

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12 comments

Suggestions

Posted on 29-05-2015 11:47 | By BullShtAlert

Approach the group that holds the contract and see what sort of cut would be required to keep things as they are. Also it could be worth asking council about rates that hospitals pay? My guess it they don't pay rates yet various private businesses operate there? A bit of heat about whether the private businesses at the hospital pay rates like other businesses might get the hospital thinking. Business can be tough sometimes but hopefully you will find some other good places for the machines.


Healthy Options?

Posted on 29-05-2015 12:15 | By maggiebop

Hmmm, much of the food I've seen at the hospital, in which I've spent many hours over the past few weeks with family, is not healthy. Gluggy, luke warm, unappetising etc.


Local vending machines pushed out

Posted on 29-05-2015 12:17 | By algail

The sickening part of this episode is that a very small group


No surprises here

Posted on 29-05-2015 12:54 | By The Tomahawk Kid

Private business is all about supply and demand. Businesses are created based upon what individuals wish to purchase of their own free will (be it snacks, health care, education) This situation is EXACTLY what happens when government get involved in PRIVATE business - but we must like it, because we keep giving them our encouragement to do it (by voting for them). Everything is fine when they are DOING IT to others, but when they do it to YOU you moan about it. Try the private hospitals - maybe they will take the vending machines (or is their business contaminated and dictated to by the govt also)


Blue Boy

Posted on 29-05-2015 13:08 | By BlueBoy

I get sick of hearing about Auckland and Australia coming into out regions and throwing there fat around and telling us what to do. The Health sector have it all wrong when it comes to no sugar of fat tolerances, If you look at milk and cream there is more sugar in Milk than there is in cream and there is more sugar in tomato sauce than there is a one lolly so where do you stop. And what it it with the DHB buying fruit and vege from Australia that is so stupid, most if not all of the health and nutrition from that is all gone once it get to NZ so why?. Just dumb if you ask me


Greed on all points of the comnpass

Posted on 29-05-2015 13:20 | By Ross01

Compass is the outfit that is going to provide frozen meals to hospital patients at a cost of jobs in the hospital catering div.Hawkes Bay have rejected them.Maybe our DHB should follow suit and then everyone would have their jobs back


Healthy choices?

Posted on 29-05-2015 16:37 | By Gammelvindnz

been up to the hospital a few months ago, as a diabetic I went to one of the machines by outpatients looking for a snack, there was no end of sugary crap but very little in the way of food suitable for me. Found that amazing in a hospital.


local company? buying local?

Posted on 29-05-2015 20:46 | By luap12

provender is an Auckland based franchise where all franchisees have to buy through them from Auckland!!! Therefore no difference to vending direct who have won these contracts and have a local person to service them. sounds like a case of sour grapes to me. well done vending direct on winning a good contract.


true

Posted on 30-05-2015 00:29 | By Wonkytonk

it is hypercritical to sell this stuff in a health facility full stop. Food served at the hospital is ok, same as any other hospital. restrained budgets i suppose have other priorities like staff who in reality help the most.


Monopoly again

Posted on 30-05-2015 08:33 | By astex

luap12, this is fine if the contract is fairly won but apparently vending direct is owned by compass so was it fairly won. This is a move by compass to monopolise their business at the hospital. The quality of food and the high prices have turned people to use the vending machine and cost compass in lost revenue. Their solution, get rid of the competition. Example: a biscuit across the counter $3.50 but only $2.50 in the vending machine. The food in the cafeteria is sub standard and hygene is poor ie: the person taking the money is also handling the food. No barrier between hot food and coughing customers. As for healthy food we are still waiting for it to appear in the staff cafeteria.


wrong info

Posted on 30-05-2015 16:57 | By luap12

hi iknow not sure where you got your info from but vending direct is owned independently by a man called Paul Faint. He would have negotiated a national contract with compass, and I am certain that the provender head office would have been doing the same, therefore yes I would say that the contract had been won fairly


Why not

Posted on 31-05-2015 00:07 | By GreertonBoy

Have both... then the buyers can decide? I take it the compass group aren't up for a bit of competition? I bet their healthy stuff doesn't sell very well, patients will get visitors to bring their chockie fix. My empathy for Carol and Allen.... bad situation :(


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