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
Sep 24, 2024 - Employment, Sales Up
- Employment by vending machine operators was up 4.5% in July 2024 compared to a year ago, according to the US Bureau of Labor Statistics (BLS). Consumers may make more vending machine purchases during periods of higher consumer spending. Consumer spending levels were up 2.6% in June 2024 from the previous year and up 0.2% from the previous month, according to the Bureau of Economic Analysis. Sales for miscellaneous store retailers, including vending machine operators, grew 1% in June 2024 compared to a year ago and were down 5.4% from the previous month, according to the BLS.
- The National Federation of Independent Business (NFIB) monthly jobs report shows that unfilled job openings grew in August 2024, with a seasonally adjusted 40% of small business owners reporting jobs they could not fill. The reading is up two points from July 2024. A seasonally adjusted net 13% of small business owners plan to create new jobs over the next three months, down two points from July. About 21% of owners reported labor quality as the most important problem facing the business. According to NFIB Chief Economist Bill Dunkelberg, “Job openings on Main Street remain historically high as small business owners continue to lament the lack of qualified applicants for their open positions. Owners have grown understandably frustrated as attempts to fill their workforce repeatedly stall and cost pressures continue to rise.”
- 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.
- US office vacancy rates reached a 30-year high of 19% in the first quarter of 2024 compared to 17.8% in the same quarter a year ago, according to real estate firm CBRE’s 1Q office report in Facilities Dive. The majority of the 57 office markets tracked by CBRE in Q1 saw negative net absorption, meaning more space was vacated than leased. Still, tenant downsizing has slowed in the past 12 months as part of a gradual rebound, according to a JLL report on Q1 US Office Market Dynamics. The report expects office leasing to reach 85% of pre-pandemic levels in 2024. Office occupancy levels are a demand indicator for vending machine operators.
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