Diverse revenue streams offer ways to boost bottom line

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Diverse revenue streams offer ways to boost bottom line

27 Nov 2025

Maggie Glisan

Maggie Glisan covers consumer trends and emerging markets for the Commercial Baking media group. She spent the bulk of her 15-year career as the senior food editor at Better Homes and Gardens, where she was responsible for producing, writing and editing stories and developing recipes for the monthly magazine and special interest publications. Prior to that she worked as graphic designer and assistant art director in the Food Group at Better Homes and Gardens, where she took on an increasing role in content creation and editorial development.

KANSAS CITY, MO — For bakers today, growth often means looking beyond traditional retail shelves. Shifting purchasing habits and an increasingly competitive landscape are pushing brands to explore new ways to get their products into consumers’ hands, whether through vending machines and micro-markets, c-stores and gas stations, catering programs, or even subscription models. These channels open the door to fresh revenue streams and new audiences, but they also come with operational challenges.

With a number of things to consider — packaging formats, shelf life, logistics and brand consistency — bakers must balance opportunity with complexity. The question isn’t just where to sell, but also how to make each channel work.

C-stores are no longer just a spot to snag a bag of Cheetos while topping off the tank; they’re evolving into full-fledged gourmet pit stops. According to National Association of Convenience Stores data, in 2024 foodservice accounted for nearly 28% of in-store sales and almost 40% of gross-margin dollars at US c-stores, with prepared food driving 68% of that growth. Bakery alone generated nearly $19 billion in sales, underscoring the strong demand for grab-and-go cookies, muffins and pastries. That combination of consistent consumer traffic and appetite for packaged baked goods makes c-stores a compelling growth channel.

The rise of micro-markets and vending reflects broader shifts in consumer behavior. The National Automatic Merchandising Association (NAMA)’s 2023 Industry Census shows that micro-market installations have grown from 2% of the industry in 2014 to 20% in 2023, with manufacturing, hospitality and college locations leading opportunities for growth.

“Micro-markets and vending have both diversified significantly in part due to changing consumer demands wanting access to products whenever and wherever they are,” said Kat Snodgrass, senior director of communications and marketing at NAMA.

But success in these channels requires more than just placement.

“Micro-markets and vending have both diversified significantly in part due to changing consumer demands wanting access to products whenever and wherever they are.” — Kat Snodgrass | senior director of communications and marketing | National Automatic Merchandising Association

“There’s no universal answer,” Snodgrass said. “What works depends entirely on an operator’s location, consumer base and timing. For example, third-shift manufacturing workers might grab coffee or baked goods at 2 a.m., while day-shift hospital employees purchase the same items at 8 a.m., and they may take extra home for family breakfast.”

Research from the 2024 International Food Information Council’s Food & Health Survey supports this, finding that nearly three in four Americans snack at least once a day, with 56% replacing meals with snacks.

Operators also face unique operational challenges.

“Convenience services require strategic thinking beyond traditional food distribution, and underestimating that complexity can be a pitfall,” Snodgrass said. “Unlike wholesale distribution to stores, convenience services involve automated dispensing systems, packaging that withstands temperature variations and shelf-life management without human handling. Products that remain visually appealing in unmanned environments while fitting planogram dimensions and inventory turnover patterns create competitive advantages.”

For wholesale bakers, mastering these operational nuances and tailoring products to meet consumer demand can open doors to new revenue streams while supporting strategic objectives such as workplace wellness, guest satisfaction and employee engagement.

That balance between spontaneity and quality is something San Leandro, CA-based Otis Spunkmeyer knows well.

“Unlike traditional retail markets, where purchases are usually planned, vending and micro-markets thrive on impulse and convenience,” said Paul Stippich, senior director of marketing for Otis Spunkmeyer, an Aspire Bakeries brand.

To succeed in those environments, the brand has leaned into individually wrapped, larger-portion formats designed to maintain freshness and visual appeal in unattended spaces. It recently introduced Caddy Packs, which are delivered frozen and include 12 individually wrapped loaf cakes, cookies and brownies, giving operators an easy way to stock, store and display the baked goods. This type of packaging innovation has been central to ensuring products travel well through distribution and stand out once they’re stocked.

“Our packaging must act as a silent salesperson,” Stippich explained. “In micro-markets, airports and workplace catering, people often browse visually before selecting baked treats. We’ve focused on tamper-evident, grab-and-go solutions that meet operator needs for safety and convenience while maintaining our premium brand presentation.”

This story has been adapted from the October | Q4 2025 issue of Commercial Baking. Read the digital edition here.

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