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Get More Out of Vending Machines
Vending has long been a successful and lucrative additional revenue stream for businesses looking to provide staff with snacks and drinks without the extra cost of maintaining a catering outfit. The benefits of varied product lines, increased margin and zero staffing mean that a machine can sit in the corner of an office or canteen and quietly attract an income without causing any particular worries for the client.
In the past, this was all well and good, so long as the machine was popular enough to clear its own monthly rental and maintenance overheads. But if the machine broke down or staff numbers dwindled because of holidays or quiet periods, operators could lose out until service was returned to normal.
However, now there is a pay-as-you go alternative which ensures you are billed only for what has been purchased, and with it comes the potential for some really tasty profits.
Catering in Scotland introduces Capital Vending, and watches the products sell themselves…
Founded in 1981, Livingston-based Capital Vending supplies and services a diverse range of vending machines for the catering and hospitality industry.
Providing units for selling hot drinks, chilled bottles and snacks, Capital Vending's speciality is in the coffee market. Through a double association with two of the industry's most recognisible brands – Fair Trade and Lavazza – the company supplies top quality coffee to hospitality outlets, caterers and offices throughout Scotland.
With an innovative range of rental options, Capital Vending offers contracts on a cost-per-cup basis, which cover machine rental, maintenance, sanitisation and the ingredients themselves.
The vended product itself is among the best on the market: 'We have a contract with Lavazza who put together a blend called Grande Ristorazione – a high quality coffee aimed at the upper end of the market,' explains Alan. 'Essentially, we want to bring the coffee shop experience to the office area, and the only way to do this is to offer a similar or better product.'
And with a large range of traditional or bean-to-cup coffees, mochas, hot chocolates and leaf tea, and a typical cost of around 25-30p per cup*, the vending machines can compete with the coffee shops on choice and cost-effectiveness.
And as an indicator of their commitment to Corporate Social Responsibility, Capital Vending is also the sole franchisee for Fair Trade coffee in Scotland: 'We supply Fair Trade vending machines to charities, businesses, schools, colleges and local authorities throughout the country,' continues Alan: 'With the world becoming more aware of what Fair Trade stands for and what it does for small producers, it makes for a popular, lucrative and guilt-free vending option.'
Whichever machine their clients go for, whether traditional or Fair Trade, there is a big potential for them to make money from it. Compare the cost of a top quality coffee in the workplace (around £1) to the £3 you might have to pay in a coffee shop, and it starts to make sense for employees to buy from a machine. Then, as an operator, imagine making up to 75p per cup pure profit with no overheads. If an average-size company goes through a couple of hundred cups per day, that's £150 profit per day.
And the beauty is the customers not only think they are getting a good deal – they really are!
www.capitalvending.co.uk
www.fairtradevending.co.uk
* Based on companies of between 50-100 employees
This article has been edited from its original version. For the complete feature, please see Catering in Scotland magazine November/December 2008.
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