Dive Brief:
- Reis & Irvy’s is deploying its frozen yogurt vending robots to select grocery retailers in 17 U.S. states this spring, according to The Shelby Report. The brand, which launched in 2016, dispenses frozen yogurt within 60 seconds or less at the point of sale. It has seven different flavors and up to six toppings.
- Reis & Irvy’s said these frozen yogurt robots are ideal for high-traffic retailers. “Our colleagues in the grocery business can capitalize on the new technology, generate more revenue … while boosting additional traffic and sales,” Nick Yates, chairman of parent company Generation Next Franchise Brands, told food publication.
- The deployment leverages a hot trend in frozen yogurt, which has been experiencing staggering growth since 2016. The frozen yogurt market is expected to grow at a compound annual growth rate of 20.5% through 2020.
Dive Insight:
While still early, robots are slowly but surely making there way into supermarkets. Some banners, such as Midwestern chain Schnucks, are testing front-of-store robots to scan shelves for low inventory and price errors. In the case of Reis & Irvy, its technology is taking advantage of the rapidly growing frozen yogurt category.
Frozen yogurt leverages a number of trends; namely, it is a fast and healthier snack — two trends popular with on-the-go millennials. Consumers can feel good about grabbing a cup and boosting their digestive and immune systems in the process. This new self-service technology adds even more advantages such as convenience and customization, both high on consumer priority lists.
These robots could benefit retailers with placement near the point-of-sale, targeting a captive audience and driving spontaneous purchases. The candy bar aisle has long found success doing this, but frozen yogurt offers more of a guiltless experience. Grocers would be wise to find locations throughout the store that spur impulse buys but also convey a sense of health eating.
Reis & Irvy’s machine isn’t too different from automated kiosks that have been growing their footprints in retail and restaurants during the past decade. But what makes Reis & Irvy’s rollout special – beyond the revenue-generating benefits and flashy technology – is its potential to enhance a retailers’ in-store experience. Like the introduction of mochi ice cream cases by Whole Foods and Costco in 2017, these self-serve offerings give consumers another reason to visit, socialize and linger — all in the hopes that consumers grab a few extra things.
The Wall Street Journal points out that many grocers are reinventing themselves as destination spots.Hy-Vee, Whole Foods, Kroger and H-E-B are among the supermarket chains that have experimented with restaurants. There have been experiments with clothing, beauty and cosmetics, adding a dietitian to the store and even including a gym. Like coffee, frozen yogurt and ice cream are social foods, so why wouldn’t consumers take advantage of these real-time opportunities and stick around a bit?
Experimentation doesn’t always work, but when it does it can really pay off. It’s an approach that’s especially important now that Amazon, a highly-capitalized experimenter, is a meaningful player in the game. Increasingly, robots will likely play a bigger role in this ongoing push to try new things, even beyond just frozen yogurt.