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
Jan 22, 2025 - Employment Flat, Revenue Down
- Employment by vending machine operators was flat in October 2024 compared to a year ago, according to the US Bureau of Labor Statistics (BLS). Sales for miscellaneous store retailers, which includes vending machine operators, dropped 1.1% in November 2024 year over year and fell nearly 13% compared to the previous month, according to the US Census Bureau. Economic activity in the services sector expanded in December 2024 for the sixth consecutive month, according to the Services ISM Report on Business. The Services PMI registered 54.1% in December, up 2 percentage points from November. Nine of the 18 services industries reported growth in December, including the Arts, Entertainment & Recreation; Retail Trade; and Wholesale Trade industries.
- Hotels continue to invest in grab-and-go markets and vending machine options to streamline their food and beverage offerings for customers, according to a recent Hotel News Now report in CoStar. Hotels have boosted these options to bring customers convenient food and beverage options and better compete with food delivery services. Many of the grab-and-go pantries, which often include ready-to-go meals, specialty coffees, alcoholic beverages, and snacks, have a self-serve checkout option, which meet guests’ preferences for contactless service without any additional hotel staff required. According to Brick Hospitality COO Sarah Lynch, data indicates that 60% of lobby market purchases occur between 7 p.m. and 7 a.m., when hotel staffing is typically reduced. She noted, "Implementing self-checkout kiosks allows our guests to make purchases conveniently at any time, enhancing their experience and increasing operational efficiency.”
- 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.
- Consumer confidence levels declined in December 2024, falling by 8.1 points from the previous month, according to The Conference Board. The Consumer Confidence Index was 104.7 in December 2024 from 112.8 in November 2024. Dana Peterson, chief economist at The Conference Board, noted that those remaining most confident on a six-month moving average basis confidence were those aged under 35 and those in the income category of over $100,000. Per Peterson, “The recent rebound in consumer confidence was not sustained in December as the Index dropped back to the middle of the range that has prevailed over the past two years.” Purchasing plans for homes decreased while plans to buy new cars and big-ticket items rose in December 2024 on a six-month average basis.
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