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
Mar 21, 2025 - Tariffs Expected to Push Costs Higher
- According to Vending Market Watch, new tariffs imposed by the Trump Administration could drive up food prices for manufacturers, which could have a trickle-down effect on the vending industry as manufacturers absorb the higher costs. President Donald Trump has enacted numerous tariffs including 20% tariffs on imports from China, a 25% tariff on imported steel and aluminum, and 25% tariffs on imports from Canada and Mexico expected to roll out fully in April. Categories affected by the tariffs include fruits and vegetables, grains, sugar, tree nuts, coffee, soda, and livestock. Major US food companies including PepsiCo, J.M. Smucker, and Conagra have petitioned the Trump Administration for specific tariff exemptions on imports of cocoa, coffee, spices, and tropical fruits, which are essential to products but not produced domestically. The Consumer Brands Association, which represents the companies, said a tariff exemption would help manage manufacturing costs and reduce the impact on consumer prices.
- According to a report in CFO Dive, consumer confidence levels, an indicator of discretionary spending, have fallen due to consumer anxiety about tariff effects and economic uncertainty. The consumer sentiment index from the University of Michigan dropped 11% in March 2025, marking the third straight month of declines and hitting the lowest level since November 2022. In addition, the Conference Board index of consumer sentiment in February 2025 marked the biggest decline since August 2021 and the third straight month of declines. According to Stephanie Guichard, senior economist for global indicators at the Conference Board, “There was a sharp increase in the mentions of trade and tariffs, back to a level unseen since 2019. Most notably, comments on the current administration and its policies dominated the responses.”
- 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 fell to 18.9% in the fourth quarter of 2024 compared to the previous quarter, according to real estate firm CBRE’s 4Q office report in Facilities Dive. The US office markets tracked by CBRE in Q4 saw positive net absorption, with 10.3 million square feet of net absorption. The net absorption was the highest quarterly total in three years. The report cites stronger demand for high-quality space in prime locations during the period while commodity buildings continued to draw limited tenant interest. Workplace occupancy levels are a demand indicator for vending machine operators.
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