The different types of snack vending machines available for the commercial market are almost as varied as snacks themselves. Vending machines now take in about $40 billion a year in the United States alone, and even the most conservative of estimates suggest that number is going to do nothing but increase in the years and decades to come. Snack food sales make up the lion’s share of that figure, too, so if you’re looking to get involved in the lucrative snack vending machine market, you’ll need to know what to do to maximize the returns on your investment.

Places Where Snack Vending Machines Perform Well

The first thing you’ll need to think about is where to position your vending machine to reach people with the munchies. Generally speaking, the only outdoor locations where snack vending machines are viable are on commercial properties such as strip malls, outdoor shopping centers and areas where no food stores are available–think campground check-in centers and rest stops. Otherwise, operators usually seek out indoor locations with a high volume of pedestrian traffic.

Be creative in your approach. Conventional wisdom rightly suggests that cafeterias and lobbies of multi-purpose buildings make good choices. But what about spots like workplace lunch rooms and hospital waiting areas? Sit down and make a list of places–any and all places–that you can think of where people gather or pass through in large numbers. Check them out, and take notice of how many of them are already serviced by snack vending machines. If vending machines are already present, consider yourself on the right track; if not, you may have identified a need in the marketplace which you can then act to fill.

Know the Types of Snack Vending Machines Produced for the Commercial Market

Broadly speaking, snack vending machines are manufactured in two different styles: those designed solely to sell snacks, and snack food/soda combination machines.

Units designed simply for snacks usually have lower operating costs, since, unlike combination machines, they don’t have to increase power consumption to run a refrigeration system. The largest snack vending machines normally stock about 48 different products, with at least a couple of rows dedicated to different product types. Since chips, candy bars, nuts, licorice and candies all come in different-sized packaging, the best-designed vending machines offer dedicated chambers to use the machine’s interior space most efficiently. Thus, while one row of chambers may be designed to carry five different brands of potato chips, a row dedicated to candy may be able to offer a dozen or more different treats. Smart vendors know that machines that offer varied choices tend to outperform machines with narrower selections, even when the additional costs of supplying the machine with various products is taken into account.

For this reason, combination machines are often worth the extra investment because they generate greater sales volumes. After all, nothing washes down a bag of chips like an ice-cold soda, and if a consumer can get both from the same machine, it’s the operator who profits. However, the initial cost of a unit like this usually runs into the range of several thousand dollars; on the other hand, the simplest snack-only machines might only cost a few hundred dollars. Also, keep in mind that you can save some money by purchasing a used unit, though it won’t come with a warranty. It depends whether you’re looking to supplement your income by operating a snack vending machine or two, or whether you want to get into a whole new line of work. If you’re in the latter category, a good financing plan will work wonders to help you get your new business off the ground.

Ice cream vending machines are a prime example of the technological improvements that have encouraged the resurgence of the vending machine industry. Today, machines that store brand-name frozen treats at sub-zero temperatures, as well as soft-serve and parlor-style ice cream, service a growing consumer demand. In fact, entrepreneurs can earn big profits by operating branded ice cream vending machine businesses, which typically include vending machines as well as storage freezers and a delivery truck with its own cooling system.

Popular ice cream brands such as Ben & Jerry’s, Haagen-Dazs and Mini Melts can sell well enough in vending machines to earn a business owner a primary income stream. Of course, placement is important: experienced business owners encourage start-up entrepreneurs to seek out locations that encourage indulgence but remain underserviced by the sweet treats many people crave. Prime examples include food courts and cafeterias, student centers on college campuses and at high schools, as well as busy, high-traffic areas such as transit stations, recreation centers and shopping malls.

A Case Study of an Ice Cream Vending Machine Business

Building an ice cream vending machine business can even lead to six-figure profits. Consider the following example, drawn from a website featuring a Mini Melts vending machine business up for sale.

The owner was asking $350,000 for a fully operational, mid-sized ice cream vending machine business. Included in the sale were 20 individual Mini Melts vending machine units as well as a half-dozen delivery cases, eight sub-zero freezers and a delivery van. Also included was a licensing agreement with Mini Melts, Inc. that permitted the ongoing use of the brand name.

The business sale advertised a cash flow of $50,000 per year and a gross income three times that level. Inventory cost an average of $15,000 a year, and maintenance costs, while not factored into the purchase price, were easily manageable with the generated cash flow. The business employed a grand total of three employees. Perhaps most remarkable is that this successful business was built in just five years, beginning with a single vending machine and a shrewd businessman who reinvested his profits.

Types of Ice Cream Vending Machines to Consider

Relatively simple units offering pre-packaged ice cream treats make up a significant share of the market. However, newer technologies like soft-serve ice cream vending machines are poised to make big gains in the near future. These machines contain cones which are released and filled with the customer’s choice of soft-serve ice cream flavors once payment has been entered. Forward-thinking vendors are also taking advantage of growth in the fat-free sweets market by offering generic low-fat ice cream and frozen yogurt. These machines typically allow customers to buy a pre-set number of scoops, which are distributed in Styrofoam or plastic containers.

However, those interested in getting involved in the ice cream vending machine business should be prepared to face costs that are significantly higher than those associated with more traditional vending machines, such as those that sell snacks or drinks. The patented technology used to make ice cream vending machines work is costly and complex, so it’s highly recommended that you have a financing plan in place if the manufacturer doesn’t offer one.

Prior to improvements in heating technology, hot food vending machines simply weren’t feasible due to concerns over food spoilage. However, vending machines with coin- or card-activated individual slots or carousel-style hot food vending machines are becoming increasingly common. The monetary and time investment demanded of an operator tends to be higher with hot food vending machines; however, because these machines stock higher-priced items, they also have the potential to bring in bigger profits.

Typical Offerings from Hot Food Vending Machines

Though the types of foods available from hot food vending machines will vary significantly, depending on the design of the specific machine you’re using, they generally include:

• hamburgers
• hot dogs
• panini sandwiches
• mini pizzas
• macaroni & cheese
• grilled cheese sandwiches
• chicken fingers
• french fries

Prepared Hot Food and Heat-It-Yourself Vending Machines

Typically, vending machines which contain ready-to-eat hot food items are found in stores where the facilities to prepare the food ahead of time are easily accessible, with convenience stores and gas station food marts being two of the most common locations. Operation of these vending machines can be more costly, not only because of the higher price of the sophisticated heating units that the food is sold from, but also due to the additional personnel required to maintain them. Typically, hot food vending machine operators are expected to at least subsidize the cost of the employee whose job it is to ensure the machine is properly stocked with the right items.

More common are refrigerated units that stock food items for sale coupled with a microwave oven provided so customers can heat their own food on site. These vending machines are usually comprised of a selector plate mounted on an axle or other mobile mechanism which responds to customer input when a selection is made. After the correct amount of money is inserted in the machine, the purchased items is sent down a chute and delivered to the customer, who then heats it using easy-to-follow instructions on the accompanying oven.

While that might seem to be a complex operation to maintain, the fact is that most locations that can support a hot food vending machine can support heat-your-own machines as well. Normally, both the vending machine and the microwave oven can be run off a single power outlet. Operators are simply responsible for ensuring that the refrigerated storage area beneath the unit is stocked, and that new products are rotated into the display case once current supplies have sold out.

The same payment technology which breathed new life into the vending machine industry as a whole is also available with hot food vending machines. Operators who wish to offer their customers the convenient option of paying using a bank or credit card can do so, and can offset the higher cost of electronic payment by padding the prices of their products. However, as with any business, location, location, location is the key to success. Most hot food vending machine operators have enjoyed the greatest success by cooperating and sharing revenues with store owners who want the ability to offer their customers access to hot food without installing the cumbersome facilities needed to prepare it on site. Finding a partnership is, in fact, often the first step to success in the hot food vending machine business.