Local vending company expands business

Jul. 21—HERMITAGE — Since moving into their LindenPointe location a couple years ago, Dean Natural Vending has continued to expand — not just with its products and employees, but the building as well.

While the original building still contains office space, kitchen space and a food warehouse, Dean's latest expansion includes a garage area for loading and offloading trucks, storing and assembling vending machines, and maintenance.

"It was definitely needed," Vice President Robert Hites said of the expansion. "It gives us room for semis, room to work, and room to breath."

Originally known as the CHIP building, the facility at 3100 Prosperity Place was rented by Dean Natural Vending for about six months before the company assumed full ownership in early 2021.

The company eventually undertook an expansion of about 13,000 square feet, along with a connecting area between the expansion and original building, Hites said.

"It pretty much doubled the size of the building," he said.

Instead of traditional vending machines, Dean Natural Vending makes "smart" vending machines that incorporate technology to offer more individualized food choices to clients.

The company offers a variety of food, from traditional snacks like chips and pop to healthier options like salads or sandwiches, as well as other offerings like pasta and desserts — with some foods made on-site, Accounts Executive Kara Kaufman said.

Although vending machines remain a major focus of the company, Dean Natural Vending has also expanded into self-checkout markets, featuring separate coolers, shelves and point-of-service systems.

"It's something we first started looking into about four years ago," Hites said. "We noticed the self-checkout markets seemed to be starting along the coasts, and they've been working their way into the Midwest and interior of the country over the years."

Like the vending machines, self-checkout markets can be monitored electronically for inventory and security reasons, with their products tailored toward the clients' needs.

The vending machines and markets also share the same payment software. This allows customers who use a telephone app to pay at Dean's vending to use that same app with a market's POS system, Kaufman said.

"It's whatever a customer's comfortable with, so they can use their phone, or they can pay with cash, or swipe their card like they would in a store," Hites said.

Part of the funding for Dean Natural Vending's expansion was provided by a loan through the Shenango Valley Enterprise Zone.

The loan, approved in May, is for $90,000 per-year for five years at 60% of prime rate — the interest rate used by banks that increased last month to 4.75% — said William Moder, loan committee chair for the enterprise zone.

"The best commercial bank loans get prime rates, so we're under the best rates that commercial banks can offer," Moder said.

Dean Natural Vending was also approved for a loan by the Northwest Commission in Oil City at about the same time as the Enterprise Zone loan. Moder said the enterprise zone often collaborates with other lenders to create a "package" for the borrower.

Although interest from borrowers in loans from the Shenango Valley Enterprise Zone were lower before the Federal Reserve raised the prime rate, Moder said he expects interest will increase again after the prime rate increased over the past six months.

"We'll probably see interest rise as businesses expand and look for some blend of private and public financing, rather than all private financing," Moder said.

Jim Cardamon, who serves as coordinator for applications and works with other lenders for the enterprise zone, said loans from the organization can cover up to 50 percent of a project and no more. Loans are for industrial and commercial businesses, not retail.

Although the loans can't be used to refinance debt, Moder said enterprise zone officials look at job retention and job creation as factors.

Potential applicants should also have a strong business plan and marketing plan, along with a potentially "decent" financial statement, Cardamon said.

At Dean Natural Vending, Hites said the company made it a point to hire local subcontractors and employees whenever possible, both for practicality and to support the community, including working with CareerLink in Sharon and participating in the Shenango Valley Chamber of Commerce, along with other local events.

The company also holds smaller events, such as a recent employee breakfast, throughout the year to thank its 20 employees.

"Everything we've done so far is only because of the people here," Hites said.

For more information on applications and guidelines for the enterprise zone's loans, visit www.svezc.com.

Like David L. Dye on Facebook or email him at ddye@sharonherald.com.