10 reasons not to buy a smart fridge.
Smart fridges, with their sleek designs and high-tech features, seem like lifesavers when it comes to fresh food solutions at work. It can be easy to be drawn in to the exciting new tech as the 'next big thing'.
Don't get us wrong, at first glance, smart fridges look the part. They're secure (to a point) and do have that modern technology vibe that adds ambience to the workplace. With the promise of mouthwatering fresh food that stands out from from traditional vending machines, or even as an alternative to a micro market offering, the commercial smart fridge offers a convenient, secure way for staff to purchase food, without having to rely on the premise of honesty.
But, are they really worth the investment? We'll explore the harsh realities from our own experience as a business in the market space. We will discuss why you might want to think twice before purchasing a smart fridge for your office. From high costs to frustrating consumer experiences, we'll uncover the pitfalls of this modern technology - all 10 of them!
Smart Fridge Pre-Authorisation Pitfalls
Due to the unattended nature of smart fridges, there is usually a need to pre-authorise payment.
This pre authorisation reserves a set amount (a holding fee) from your bank account, set by your company (once you’ve waited 15 seconds for the door to even open). For example, £5 or £10. This enables you to unlock the door to the smart fridge. Whichever items you choose, the remaining balance is refunded, or you are charged the outstanding amount.
If there is a remaining balance, it should be refunded immediately. However, in our experience, this is not the case. In some instances, we’ve had users report up to £50.00 outstanding from their account at the end of the week! For the majority of us, that’s simply not acceptable on principle, or affordable. It’s certainly not something we would be happy to invest in, or conducive to employee experience and satisfaction.
Other payment issues include that you won’t know the total cost before paying, or even an hour later due to the refund/charge delay. You could be charged an incorrect amount and you wouldn’t know until the transaction was completed. There’s also no ability to change your mind once the smart fridge door closes – that’s when the transaction completes. If staff complain and need refunds, only the full amount can be refunded – so that’s revenue down the drain as well.
The smart fridge customer journey
Most people in the UK have never seen smart fridges in the workplace. However, we have all used the equivalent of a micro market at the local supermarket in the form of a self-service checkout at some point.
Our internal data suggests that users are up to 3x more engaged in the food & beverage offering with a micro market, as it’s convenient, accessible and they can pick up the products to observe the quality, ingredients and nutritional information without them being behind a glass door or paywall. Micro markets generally do sell more, which is better for your business.
When using a smart fridge, as we mentioned, the door takes a little while to open once the pre-authorisation is complete. This. Is. Frustrating. We speak from personal experience! Although it seems like a relatively small thing, when you’re in the lunchtime rush, it becomes an issue quite quickly – and it’s offputting. We’re certainly not hanging around for it!
Smart fridges are marketed as easy and convenient… but we beg to differ.
Smart fridge variety and choice
The aim of the game is all about variety, availability and frictionless experience. The smart fridge doesn’t actually solve these must-haves, with a capacity of around 8 selections per shelf.
With limited space compared to a micro market, it restricts variety. We all want to make a profit, so you’ll want to stock what sells. There’s just not that much space for mixing up the offering and trying new foods out. That means less new seasonal foods, less general rotation and more potential for staff to become bored with the choice available.
This ultimately leads to less sales, lower consumer engagement and more time off-site.
Smart fridge setup, replenishment and maintenance
As a vending machine replenishment and maintenance provider, smart fridges are more complicated than other fresh food options.
Lead times can be long, as most are manufactured overseas at present. The set up is long-winded from a technical and administration perspective and there is no option to add extra shelves, or adjust the height of shelves.
Unfortunately, size and weight can become a issue for installation, especially in smaller buildings. The current smart fridge options are bulky as well as heavy. It sounds ridiculous, but even stairs can be a show stopper. We know of one large scale, high profile installation where these issues meant that some smart fridges were not able to be installed.
When replenishing, the smart fridge must be programmed with the new product options each time on the planogram, which is a slow and frustrating process. The internal mechanisms have also been known to crush items such as crisps, which is less than ideal! Adding additional mechanisms is also costly.
But aren't smart fridges theft proof and, well, foolproof?
Well… no, actually. Despite what the marketing may tell you!
There are ways to get around AI cameras and even weighted shelves. There’s even potential for the whole fridge to get emptied, even with the pre-authorisation – and for the culprit to not be charged the full amount. The smart fridge can also get it wrong sometimes and end up innocently charging someone less than it should, throwing your stock figures out.
As with any emerging technology, it’s not foolproof. Especially when it comes to artificial intelligence. Your smart fridge will learn as it handles more transactions, sure. But they are in no way free of errors.
Conclusion: 'Weighing' the Pros and Cons
So, the 10 reasons not to buy:
- Holding fees
- Lack of pricing transparency
- Delay in refunds
- Doors take ages to open
- No partial refunds
- Lack of variety
- Hard to set up
- Hard to maintain
- Bulky
- Not foolproof at all
Of course, this is just our opinion – but it’s an opinion we’re confident in until the technology improves, given our long-standing experience of the industry and different products that include smart fridges.
Smart fridges offer high-tech features, but come with significant disadvantages. Costs are high, from the initial purchase to ongoing maintenance. Imagine spending £30k on three smart fridges – and all you get from it is staff complaints. Plus, at this point you’re likely stuck in a 3-5 year lease.
If there are no other options and a fresh food vending machine is definitely not right for you, this may be a relevant solution. You just need to be aware of the realities.
Ultimately, if you are offering fresh food in the work place, installing a micro market is the solution that we recommend. This is from an engagement, user experience, ease of management, variety AND sales perspective.