Hey there, Vendpreneur!

Welcome to Becoming a Vendpreneur—where every week I help you navigate the challenges of running a vending machine business, whether you’re just starting out or looking to expand your operation.

This week, we’re going to dive deep into the 10 most popular and profitable locations for vending machines:

• Location #1: Manufacturing Facilities

• Location #2: Offices

• Location #3: Malls and Shopping Centers

• Location #4: Hotels and Motels

• Location #5: Schools (Elementary, Middle, and High School)

• Location #6: Hospitals and Nursing Homes

• Location #7: Colleges and Universities

• Location #8: Military Bases

• Location #9: Correctional Facilities

• Location #10: Restaurants, Bars, and Clubs

Before we dive in, let's catch up on some exciting updates from my vending business, Pod Plug:

Quick Business Updates:

• Officially signed an agreement with a buyer to sell our 8 vending machine route in Austin, TX for $150,000. Made 500% on my money in 4 years. Not bad.

• Onboarded a killer sales consultant, Caroline, to implement our new Hubspot Sales CRM

• Demoed Clay, a powerful lead-list software for business owner contacts (can literally find any phone number and email)

• Began week 1 onboarding with our new Operations Manager, Ana

• Completed strategic plan for franchising, and now moving forward with legal

• Demoed franchise territory analytics tool to help define territories based on a mixture of bar and nightclub density and zip codes

• Our newest financial model projects $5M in annual profit within 5 years at our current growth rate 💰

Now, let’s dive into this week’s newsletter!

Vending is booming.

Despite a dip in 2020, the industry value is growing steadily and is expected to hit $25 billion by 2027 (Allied Market Research).

Starting or scaling your vending business?

Location is crucial.

There are two main environments: open and closed.

• Open spaces, like malls, get high traffic but risk vandalism.

• Closed spaces, like airports and offices, offer security and a steady flow of customers.

Let’s explore the best spots for your vending machines, their pros and cons, and what can you sell:

Side Note: I tweeted a list about my favorite locations. Catch it below:

1. Manufacturing

Manufacturing facilities are the top vending locations in the US, hosting over 35% of machines.

Managers love them. They keep workers on-site and productive.

But be prepared:

• High-usage environment. The machines will most likely need more frequent maintenance and restocking.

• In environments with more people and constant activity, vending machines can be subject to vandalism or misuse.

Recommended Products: Granola bars, pretzels, chips, crackers, cookies, candy, gum, energy drinks, microwavable meals

Best specialty products: Pain relievers, hand sanitizer, phone chargers, ear plugs

2. Offices

Next stop: offices, home to 20.5% of vending machines in the country.

Offices are goldmines. Long hours mean quick sales for snacks and drinks.

But consider this:

• Limited sales potential. Machines might not be accessible after hours or on weekends.

• Competition. Larger office buildings often have nearby cafes or food courts.

Recommended Products: Nuts, dried/fresh fruits, energy drinks, flavored water, sodas, coffee, chocolates

Best specialty products: Gluten-free and vegan options, Coconut water, Kombucha, cold-brew, stress balls, blue light glasses, portable phone or laptop chargers, productivity planners, focus-enhancing supplements

3. Malls and Shopping Centers

Around 10% of vending machines in the US are in malls and shopping centers.

High visibility and foot traffic mean more impulse sales.

Retail owners love them too!

But be aware:

• Competition. Nearby convenience stores and food courts can cut into your sales. You might need to lower margins.

• Limited space. This can restrict machine placement and product variety.

• Security risks. Vending machines in retail sites can be vulnerable to vandalism and theft

Recommended Products: Bottle water, energy drinks, trail mix, candies, chocolates

Best specialty products: Pre-charged portable phone chargers, earbuds, orange juice (see below 👀)

4. Hotels & Motels

Lodging facilities host 9% of vending machines in the US.

They offer premium margins. Guests love convenient access to snacks, drinks, and essentials.

To maximize earnings, target high-end hotels. Tourists and VIP guests will pay premium prices for a wide range of needs.

But keep in mind:

• Limited product selection. Space constraints can limit variety.

• Competition from in-room amenities. Some guests prefer minibars or room service.

Recommended Products: Water, soft drinks, energy drinks, chips, pretzels, candy bars, cookies, nuts and trail mixes, alcoholic beverages, instant noodles, microwavable popcorn, laundry pods

Best specialty products: Sleep aids, beauty products, gluten free snacks, vegan protein bars, Kombucha, toothbrushes, noise-cancelling earbuds, portable power banks

5. Schools

In the fifth spot are schools, hosting 5% of vending machines.

These machines offer snacks that complement cafeteria menus.

School admins love them for the extra revenue to fund extracurricular activities.

🗒️ Important Note:

Schools prefer healthier snack options to educate students on nutrition.

To succeed here, consider:

• Security and vandalism. Machines may be at risk, especially in unsupervised areas or after hours.

• Classroom disruptions. Students may leave class to purchase items, leading to disruptions and lost education time.

If you’re planning to install in grade schools, consider selling: 100% fruit juice boxes, string cheese, pretzels, fruit cups, crispy treats

For middle schools: Sports drinks, smoothie pouches, veggie snack packs, turkey jerky sticks

For high-schoolers: Protein bars, bottled iced tea, sandwich wraps, frozen yogurt cups, pre-packaged salads

6. Hospitals & Nursing Homes

Hospitals and nursing homes host 6% of US vending machines, holding underrated potential.

You cater to three main groups:

• Patients

• Visitors

• Staff

This diversity means solid sales across a range of products.

Plus, with 24/7 operation, you can capitalize on non-standard hours when outside stores are closed.

But remember: food high in sugar, salt, or fat might not sell well here.

Recommended Products: Water, healthy snacks, 100% fruit juices, fresh fruit, sandwiches, yogurt parfaits, gum, instant soup

Best specialty products: Disposable wearables (like diapers, underwear, etc.), pain relievers, cold and flu remedies, allergy meds, eye drops, books, crossword puzzles, portable phone chargers, ear plugs, eye masks, stress balls

7. Colleges & Universities

Colleges and universities host 6% of US vending machines.

Personally, this is where I found success, hustling during my college years (to pay off a sports betting debt).

Want to dive deeper? I posted my journey on Twitter. Take a look:

You have two niches to target:

• Academic needs

• Young adult entertainment essentials

Capitalize on late-night study sessions and last-minute runs for electronic essentials.

Or, take my route: sell party essentials. High margins are possible, as customers don't mind paying more for a good time.

Recommended Products: Chips, granola bars, sandwiches, salads, wraps, fruit, bottled water, energy drinks

Best specialty products: USB cables, phone chargers, allergy meds, Advil, toothbrushes, condoms, tampons, Tums, Vitamin C, Band-Aids, hangover remedies

8. Military Bases

Military bases host 3% of US vending machines.

Though a small share, they offer high profits by providing a taste of home to service members.

They also simplify logistics in remote bases, reducing the need for frequent shipments.

But be prepared for:

• Security risks. Machines can be targets for sabotage.

• Shortages. Remote bases can face restocking challenges.

• Maintenance issues. Desert heat or tropical humidity requires frequent servicing. You must invest in reliable parts and equipment.

Recommended Products: Protein bars, energy drinks, dried fruits, nuts, beef jerky, water, protein shakes, candy bars, popcorn, instant noodles, microwaveable meals

Best specialty products: Rifle or pistol magazines, targets or range accessories, emergency blankets or ponchos, fire starters

9. Correctional Facilities

Correctional facilities hosts 3% of vending machines in the US.

As long as you have:

1. A solid pitch

2. Clear logistical plan

3. Well-prepared proposal…

Prison admins can see vending machines as a solution for control monitoring and reducing smuggling.

They'll also appreciate the extra revenue for inmate programs, facility upgrades, or staff training.

But be aware:

• Security concerns. Inmates might try to vandalize the machine or use it to conceal contraband.

• Operational challenges. Security protocols and scheduling can complicate maintenance and servicing.

Recommended Products: Canned beverages, instant food, hygiene products

Best specialty products: First aid kits, batteries, books, foreign language dictionaries

10. Restaurants, Bars, and Clubs

Last but not least, this is where my vending business took off.

Only 2% of vending machines in the US are in restaurants, bars, and clubs, so there’s plenty of room for growth.

Take advantage of extended service hours and premium pricing!

But keep in mind:

• Space constraints. Limited space can restrict machine placement and product variety.

• Competition with menu items. Machines might compete with the establishment’s offerings.

• Aesthetic concerns. Ensure your machines match the venue's ambiance or decor.

PS. I’ve shared a clip on Twitter about using AR to tackle space constraints and aesthetic concerns. Check it out here:

Recommended Products: Gum, mint, condoms, tampons, caffeine strips

Best specialty products: Vapes, emergency phone chargers, hangover remedies, Tums, Mystery Bags

Bonus List: Locations with Rising Popularity 🎉

There are more opportunities to explore beyond the popular places.

These spots are gaining attention fast. Getting in now gives you a special edge before competition heats up.

• Gyms: Over 52 million people in the US go to the gym. Post-workout snacks and protein supplements can rack in thousands a month (per machine)!

• Co-working spaces: With 41,000+ co-working spaces, the freelance and hustle culture is booming. Sell snacks and office essentials for a solid income, though some spots have in-house retail.

• Micro-markets: With over 5 million apartment complexes in the US, micro-markets offer mutual benefits. They provide tenants easy grab and go groceries, and landlords and operators profit from convenience.

And that’s it for the week!

Success in vending hinges on more than just the products. It's all about strategic placement.

Looking Back: If you missed it, I covered how to secure your first location in detail in a previous newsletter:

Thanks for reading this week’s newsletter.

Hit reply and let me know what you found most helpful this week—I read every single reply and I’d love to hear from you!

See you next Saturday!

-Ethan