School Vending Machines

School vending machines present entrepreneurs with excellent opportunities to create income streams by selling a variety of foods, drinks and other goods. You should, however, begin your research by looking into laws that apply to school vending machines in your state, county and/or city. You should also be aware that certain jurisdictions, particularly on the county level, have also overtaken the job of managing school vending machine contracts. In such jurisdictions, school boards have complete control over the operation and management of vending machines and usually take half the profits, with the other half being pumped back into the school. Independent operators do not stand to profit from vending machine operation in these jurisdictions, which have turned to self-reliance in an increasingly health-conscious society.

Industry estimates suggest some 20,000 school vending machines are in operation across the United States. Each of them is governed by federal and state laws regarding hours of operation and, more frequently nowadays, the types of foods and drinks that may and may not be sold. Almost all elementary, middle and junior high schools in the country now enforce strict policies which do not allow foods of “little nutritional content,” particularly soda pop, chips and candy bars, to be sold in vending machines. However, high schools that do permit the sale of sweets and treats in vending machines hold the potential to earn their operators high profits.

Consider the following statistics, drawn from a recent study:

• Approximately 71 percent of the items students purchase from school vending machines are soft drinks.
• Similarly, 71 percent of the student body surveyed in the study purchase soft drinks from campus vending machines on at least a semi-regular basis.
• Of students who use vending machines at least semi-regularly, 68 percent of them usually buy at least one snack item in addition to a soft drink.

The study also found that consumption of sugary beverages is higher in schools that are located in close vicinity to fast food restaurants, owing to the habits kids form from indulging in quick, cheap lunches. To the vending machine owner considering operating in a school that permits high-calorie snacks and sugary drinks to be sold, these figures suggest a combination snack-and-soda vending machines placed in a school near a high concentration of fast food restaurants are the most likely to generate sustainable profits.

Stocking School Vending Machines Healthfully

Of course, one way around the restrictions on foods offered in vending machines is to stock them with healthier alternatives. But will kids accept them? It seems they will. Miami-Dade County Public Schools in Florida made changes to high school beverage machines in 2004. Only one-third of their machines still stock soft drinks. Another third offer only low-fat milk, and the remaining third offer water and juice. Water is an increasingly popular choice, and revenue from the more health-conscious machines increased by $400,000.

Yogurt, nuts, string cheese, fresh or dried fruit and vegetable-and-dip packets are popular choices for restocking snack machines. With technological advances in refrigeration, machines that accept swipe cards and other innovations, it is becoming easier than ever before to offer healthy options such as salads, sandwiches and fresh produce to school children.