🥗 Salad Vending Machines: The Next Big Wave in Convenient Healthy Eating?

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, I want to dive into the rise of salad vending machines and their surprising earnings potential. Here’s what I’ll cover:

1. The rising trend

2. Profitability

3. Best locations

4. Operational insights

5. How I’d get started

But before we jump into more details, I want to share a few quick updates on my vending business, Pod Plug:

Business Updates

• 🎯Finalized investor pitch deck and financial model. We’re going to raise $500,000 through a convertible note by October 1st - we’re only taking 5 investors. If you’re interested on getting in on the action early, reply to this email and let me know. Minimum check size will be $50,000.

• 🚀 Vending Machine LaunchPad countdown: T-minus 4 weeks! Limited spots for max face time with me and my partner, Jaime. Want your first machine in 60 days? Hop on the waitlist here.

• 💰 Slashed prices by 10% on our machines. First-ever price drop to test the market.

• 🏭 Officially moved into our first warehouse in Dallas!

• 🕵️ Drama alert: We had a competitor try to approach our locations saying he was permitted…which he was because he applied for the same permits as us AND he got them. Not fun waking up to an email from one of our best locations that generate over $15,000 a month with the owner confused.

Another great (and wild) week in the books!

P.S. Are you looking to become a vending machine business owner? Hit the button below to get on our franchisee waiting list!

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

Ever seen a salad vending machine?

I’ve been seeing them pop up at airports and I’ve been intrigued ever since.

This week, someone replied to one of my tweets and asked about salad vending machines.

They asked if I could write about it, so here we are!

Just like last week when we explored perfume vending machines, I'm going to break down how much money $$$ you can earn from salad vending machines (and how to start from scratch).

With over 5.5 years as a vending machine operator under my belt, I’m excited to share my insights below!

The Rising Trend

Vending machines don’t just sell snacks and sodas anymore.

As more people look for quick & healthy options, we’re seeing an increasing trend with "healthier" vending machines popping up everywhere (from airports to hospitals).

Convenient +guilt-free = the perfect combo to grab a nutritious meal on the go.

And guess what? It’s not just me who’s noticing these salad vending machines…

Check out this Reddit thread, for example. These machines are all the rage on social media right now!

Farmer’s Fridge is one of the vending companies that’s killing it in this space right now. They serve up fresh salads daily, packed in nicely branded jars inside sleek modern vending machines.

Now, I know what you might be thinking: fresh food in a vending machine sounds like a spoilage nightmare, right?

But here’s the cool part—Farmer’s Fridge uses some serious tech to make sure everything stays fresh.

According to the Forbes article, “The company deploys an impressive tech stack that guarantees food safety from farm to fridge, forecasts ingredient needs, reduces waste, and accurately plans trips for restocking.”

Sounds pretty fancy to me!

Profitability Breakdown

Now, let’s break down how much these machines earn per month (this is my favorite part).

After crunching the numbers, here’s what I found:

• Best Location: Airport terminals, where foot traffic is high and travelers seek quick & convenient healthy food options.

• Foot traffic: Approximately 45,000 people per day.

• Impressions: Let’s assume 10% of people see the machine. This means the machine will get 4,500 impressions per day.

• Purchase rate: Roughly 1% of the people who see the machine make a purchase, which is 45 purchases per day.

• Competitor analysis: While there may be other food options available, few can match the convenience and speed of a vending machine, placing it favorably against cafeteria-style or sit-down dining options.

• Average retail price per item: $10 per salad, aligning with airport pricing norms.

• Daily revenue: 45 purchases x $10 a salad = $450 in revenue

Cost Breakdown:

• Cost of Ingredients: $4 per item (60% gross margins).

• Commissions: 15% of revenue paid to the airport for hosting the machine.

• Processing Fees and Software: 7% of sales.

• Maintenance: 3% of sales, considering the higher wear and tear in its busy location.

Profit Breakdown:

• Monthly revenue: $450 daily x 30 days = $13,500

• Net profit margin: 35%

• Profit = $13,500 × 35% = $4,725 a month!

If you had one in all 5 terminals in DFW airport, that’s almost $25,000 a month in PROFIT!!!

Who’s going to jump on this? If you’re serious about this, reply to this email and I will be happy to put you in touch with a great supplier to make this happen.

Ideal Locations for Maximum Profit

Here are 5 ideal spots:

1. Airports: With travelers often looking for quick, healthy eating options, airports offer a captive audience that values convenience and nutritional meals.

2. Corporate Office Buildings: Employees in large corporate offices seek fast, healthy lunch options that fit into short lunch breaks.

3. Hospitals and Medical Centers: Patients, visitors, and staff in hospitals and medical centers often need access to nutritious meals at all hours.

4. Universities and Colleges: Students and faculty are increasingly health-conscious and appreciate the availability of quick, nutritious meals between classes.

5. Gyms: This demographic is typically focused on health and wellness, making them a prime audience for salad vending machines (with extra protein 😉).

Operational Insights

When running a vending machine, here's a streamlined game plan:

• Ingredient Costs: Keep this around 40% of total sales. You’re investing in high-quality, fresh ingredients to attract health-conscious customers.

• Maintenance: Allocate 3% of sales for maintenance. Cold food vending machines, with their complex refrigeration systems and advanced payment technologies, require more frequent upkeep.

• Processing Fees and Software: Set aside about 7% of sales for state-of-the-art systems that manage cashless transactions and real-time inventory tracking.

Getting Started Today

So, here's how I'd go about launching a salad vending machine business today:

Step 1: Setting Up the Business

I’d start off by forming an LLC to protect myself legally. Then, I'd open a business bank account. Platforms like LegalZoom make this process a breeze.

Step 2: Building ‘‘The List’’

This is your database of potential locations. It should include contact details and all the info you’ll need to pitch your salad vending machines to the right people.

Step 3: Selecting the Right Machines

I'd opt for specialty vending machines designed specifically for fresh salads, with prices ranging from $7,000 - $10,000. My top pick is to go through a supplier on Alibaba for half the price. If you're interested in my top supplier, just let me know!

Step 4: Stocking Fresh Ingredients

Next, I’d partner with local suppliers to get fresh, seasonal produce directly. Over time, buying in bulk from trusted suppliers will help cut costs while maintaining quality. Companies like Sysco or US Foods also offer a wide range of vegetables, fruits, and other salad ingredients at bulk prices.

Step 5: Crafting the Perfect Sales Pitch

I’d craft a killer sales pitch, highlighting how a salad vending machine can enhance customer experience, offer a healthy option, and add a unique feature to any location. It’s also a great way to tap into the health-conscious market.

Step 6: Drafting Contracts

Finally, I’d prepare contracts to formalize partnerships with locations, ensuring that all parties understand their rights and responsibilities.

And That’s a Wrap!

Running a salad vending machine is a smart business strategy that taps into the growing demand for convenient, healthy options.

However, it's crucial to also keep an eye on maintenance costs and the effort needed for restocking.

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!