Are Vending Machines Your Ideal Business Opportunity?
Everywhere you go, you’ll see vending machines. In a gas station. In a hospital. In the airport. And it’s not only snacks and drinks you can buy from vending machines. You can buy clothes, medication, health products, ice… In fact, there’s not a lot that can’t be purchased from a vending machine.
But is owning vending machine franchises a good move? Are vending machines profitable? Are you qualified to buy a vending machine franchise?
Vending machine businesses: a brief history
Vending machines have been around for a long time. The first recorded vending machines in the United States were produced by Thomas Adam in 1888 and sold Tutti-Frutti gums on subway platforms in New York City.
It wasn’t long before coin-operated vending machines began selling other items, like stamps and cigars. However, it wasn’t until the 1920s that vending machines began to sell sodas in cups.
Today, the most common items sold from vending machines are hot and cold beverages and snacks. And now, many vending machines will accept card payments.
The most popular vending machines products include:
Healthy, vegan, and fresh food
Beauty products (e.g., cosmetics, haircare)
You can also buy other items like fishing bait, lottery tickets, books, over-the-counter drugs, etc. from vending machines.
The future looks bright for franchise vending machines
The current market size of the vending machine sector in the United States is around $9 billion. Not bad for machines sitting on a sidewalk, railway platform, or hospital corridor. Growth of around 3.5% is expected in 2022.
Worldwide, the vending machine market is expected to grow by a CAGR of 6.7% through 2027, reaching a total value of $25.25 billion, up from $18.28 billion in 2019.
Why you should consider buying a vending machine franchise
When you buy a vending machine franchise, you aren’t only investing in a business in a market with good prospects for high growth. You’re buying a flexible business opportunity that allows you to be your boss (it’s also possible to own a vending machine business that doesn’t need you to hire staff).
Other benefits of owning a vending machine franchise include:
No special education requirements — you don’t need a degree in rocket science, but you do need a little business acumen and a bag full of enthusiasm.
Low capital investment — these franchises are among the cheapest to buy, meaning you get to own your own business for lower startup costs.
Leasing options — When you start your business, instead of buying the vending machines, you can lease them, making your investment amount even more financially attractive.
A business that sells 24/7 — vending machines are always open.
Adapt how you work to your needs - owning and operating vending machines is a business that you can fit around your personal life. A magnificent work/life balance opportunity.
Minimal time investment — you aren’t tied to a desk, and you’re not required to be on the shop floor while the vending machine brings in revenue. You’ll need to check and order stock and arrange and oversee maintenance as needed.
Franchisee support — the franchisor will offer support to help you set up and maintain a successful business (though the exact level of support will depend upon the franchise you buy).
If you want an easy-to-manage franchise business, with high success rates and scope for product diversification, buying a vending machine franchise with well-equipped machines that meet the needs of consumers could be ideal for you.
How do you know a vending machine franchise is for you?
Before you get carried away with the opportunity of owning a vending machine franchise, you’ll need to consider a few things.
First, though it’s a low-cost and low-labor franchise, it’s still a business. You’ll need to operate it professionally and have a business head on your shoulders. While it is a good first business to own, the more business or professional experience you have, the better.
Considering your experience will also provide a good indication of the support you’ll need to be successful. Different businesses franchising vending machines offer different support packages, and it’s crucial to buy one that provides you with adequate support. Speaking to a franchise consultant will help you decide which is best for you.
You’ll also need to consider your budget, and, of course, if the franchise business model is suitable to achieve your personal, business, and financial goals.
Where do you start?
Take our franchise aptitude test today. It’s the first step to success as a franchisee.