Vending Machine Operators
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 2,740 vending machine operators in the US generate revenue by reselling a variety of merchandise through automated machines. The majority of companies are full-line vending machine operators which distribute multiple product categories. About a quarter of the industry specializes in a product category, such as candy or cigarettes. Common locations for vending machines include manufacturing facilities, offices, hotels, restaurants, bars, retailers, schools, hospitals or nursing homes, and government buildings.
Mitigating Theft
Because vending is generally a cash business, companies are at risk for theft from both internal and external sources.
Technology Improves Performance
More vending machine operators are investing in technology to improve operating efficiency and boost sales and profitability.
Industry size & Structure
The average vending machine operator operates out of a single location, employs 14 workers, and generates $2.5 million annually.
- The vending machine operations industry consists of about 2,740 companies that employ about 37,000 workers and generate about $7 billion annually.
- The industry is concentrated at the top and fragmented at the bottom. The top 50 firms account for 61% of sales.
- Many vending machine operators are small to medium-size businesses. Some operators service routes part-time.
- Some large food and beverage manufacturers and food service operators have vending operations. Food service companies Aramark and Compass Group have large vending machine operations. Compass owns Canteen Vending Services.
Industry Forecast
Vending Machine Operators Industry Growth
Recent Developments
Nov 14, 2024 - Retail Sector Growth, Employment Down
- Economic activity in the services sector including the retail sector expanded in October 2024, according to the Services ISM Report on Business. The Services PMI registered 56% in October, up 1.1 percentage points from September, marking the fourth consecutive month of expansion. Of the 14 of the 18 services industries reporting growth in October, Retail Trade reported the fastest growth during the period. Employment by vending machine operators fell 0.5% in September 2024 compared to a year ago, according to the US Bureau of Labor Statistics (BLS).
- US office vacancy rates remained steady at 19% in the third quarter of 2024 compared to the previous quarter, according to real estate firm CBRE’s 3Q office report in Facilities Dive. The US office markets tracked by CBRE in Q3 saw positive net absorption, with 4.3 million square feet of net absorption. The net absorption was up 87% from the previous quarter, marking the second consecutive quarter of positive demand for office space. This follows six consecutive quarters of negative net absorption. The report cites a shift in patterns of office attendance and interest rate cuts by the US Federal Reserve creating more favorable conditions for commercial real estate. Workplace occupancy levels are a demand indicator for vending machine operators.
- The National Federation of Independent Business (NFIB) monthly jobs report shows that unfilled job openings grew in October 2024, with a seasonally adjusted 35% of small business owners reporting jobs they could not fill. The reading is up one point from September 2024. A seasonally adjusted net 15% of small business owners plan to create new jobs over the next three months, unchanged from September. About 20% of owners reported labor quality as the most important problem facing the business. According to NFIB Chief Economist Bill Dunkelberg, “On Main Street, the job market remains challenging. Although the labor market appears to be softening overall, small business owners reported little success filling their plentiful vacancies in October.”
- Ammunition vending machines are expanding across southern and western US states, targeting areas with high hunting activity, according to Vending Times. The machines, which have been approved by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, are aimed at streamlining ammunition sales. Operated by American Rounds, the retail kiosks use 360-degree facial recognition to confirm a customer’s age and government-issued ID before dispensing bullets. The kiosks are currently operating in grocery stores in Alabama, Colorado, Oklahoma, and Texas.
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