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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 profiles Capital Vending, the sole franchisee for Fair Trade coffee in Scotland.
Founded in 1981, Livingston-based Capital Vending supplies and services a diverse range of vending machines for the catering and hospitality industry. Supplying bean-to-cup coffee machines, tabletop and desktop hot-drinks vending solutions, freshbrew tea and instant coffee machines, and food merchandisers, the company supplies 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.
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.
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.
* 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 2009.
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