Running a franchise can be exciting, profitable and challenging in equal measure. It can also be very time-consuming. If you’re looking for a full-time role that comes with minimal investment, maintenance and operational fees, allowing you to enjoy a healthy work-life balance while still turning a profit, running a vending machine franchise could be an ideal opportunity for you.
If running a vending machine franchise is something that interests you, you’ll need to do your research, starting right here. In this article, you’ll discover the five key advantages to investing with a vending machine business and becoming a franchisee.
Should you start a vending machine franchise in 2021?
Vending machine businesses are usually mobile or van based franchise operations, in which franchisees can offer products to customers across a wide area. Investing in a vending machine franchise won’t cost too much, and getting started won’t be too complex a process. Demand in the sector is increasing, and in Britain, there’s now one machine for every 55 people. More than seven billion items are sold out of vending machines per year, including more than eight million cups of coffee and two million cups of tea [UK Vending].
Vending machines can dispense a wide range of products, from food and drink to other small articles like newspapers, cigarettes, lottery tickets and children’s toys. If you’re looking to capitalise on a growing market, 2021 is the perfect time to start a vending machine franchise.
The vending machine industry is one that has evolved and steadily grown since 2012. As consumers’ lives get busier and people seek convenience and time-saving options while on the go, vending machine operators have many opportunities.– CorpNet
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The 5 biggest advantages of running a vending machine business
Beyond the ease of set-up and the growing demand, these are the five key advantages to running a vending machine franchise right now in the UK...
1. Vending machines create an easy stream of revenue from a low initial investment
Despite running 24 hours a day in most cases, vending machines require little energy to maintain, meaning that your franchise will have very low overheads. Like a shop or cafe, you’ll be providing products to customers, but unlike a shop or cafe, you won’t need staff members to oversee purchases. You won’t even need to be on hand most of the time.
You can achieve an easy, steady stream of revenue via a vending machine, and you can do so with a low initial investment, making life as a vending machine franchisee an accessible option for many people. The average cost of starting a franchise in the UK is £42,200 [British Franchise Association], but as an example, an investment with successful vending machine franchise Tubz costs a minimum of £3,499, with no advertising or royalty fees. As a Tubz franchisee, you’ll be entitled to:
- A full training and support package with 24/7 technical advice available online
- Dedicated support managers
- A full guarantee on your vending equipment
- Free lifetime vending machine servicing
- Ideal locations for your vending towers
2. These machines are growing and changing with the times, meeting cashless consumer demands in 2021
Vending machines are well equipped to meet the needs of tomorrow, with many now offering contactless payment options that negate the need for customers to fumble around, searching for the right coins to make 80p, or £1.45, or whatever the cost of the product they want. Making these kinds of updates to vending machines is relatively easy, and when done, increases your customer base.
The British have become very comfortable with taking out their phone or card to pay for even the most mundane daily purchases. At this rate, the UK should transition at the very least to a predominantly cashless society by the mid-2020s.
3. Revenue continues to be generated outside of traditional working hours
When you’re investing in a vending machine franchise, you’re not limiting your revenue generation hours. Vending machines can run 24/7, making you money even when you’re sleeping soundly in bed at two in the morning. No matter the time of day, vending machines and towers can satisfy customers and keep the money flowing. If you’re looking to make some out-of-hours money with a vending franchise, consider placing machines in the following in-demand locations:
- Service stations
- Leisure centres
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4. Vending machines are easy to manage, especially with franchisor support
As has been touched upon, once your vending machine is installed and in place, it will often require very little maintenance. Plus, as a franchisee, the responsibility of maintenance when something does go wrong will often fall to your franchisor, rather than you. Take a look at your franchise agreement to determine respective liability.
All in all, your biggest job as a vending machine franchisee will be ensuring that all your machines are stocked regularly and functioning correctly, and if you can tick those boxes, you’re good to go. In fact, if you’re investing in a managed vending service, you can sit back and enjoy your passive income source.
5. There’s room for innovation and change in the vending industry, and these days, there’s something for everyone
Vending machines have long been a convenient and relatively low cost method of delivering food and drink. They have also been a source of unplanned eating and drinking [...], which makes vending machines a target for improving the diets of children.– Bruce Y. Lee, Forbes
In the past few years, there’s been a huge focus on health, particularly the health of children, and many vending machine franchises across the UK and the wider world have been responding to changing demands well, expanding their offerings. Here’s an incredible, surprising list of things you could currently find in a vending machine:
- Farm goods
- Fresh milk, eggs and fruit
- Ice cream and cupcakes
- Ramen and vegan food
See? There’s more to running a vending machine franchise than a bar of Snickers and a bag of Walkers. Yes, many vending machines stock crisps, chocolate, sweets and sugary drinks. But long gone are the days when that’s all that was on offer.
Become a franchisee and enjoy running your own business with expert franchisor support
This article should have given you a strong insight into whether or not running a vending machine franchise is for you. If you’re not sure the vending sector is the right fit, but you’re definitely interested in franchising, browse Point Franchise’s UK franchise directory to find better suited investment opportunities.
Lily Sweeney, Point Franchise ©