Ice Cream Vending Machines
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.
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