Vending Franchises UK – Vending Franchise Opportunities For Sale UK
Many entrepreneurs are constantly on the lookout for new opportunities and investments to help them grow their business holdings. The trouble is they need investments and businesses requiring little of their hands on time, as these individuals are already busy. In this case the vending franchises and a variety of vending franchises offer a great opportunity to create new revenue streams without creating additional work.
In the United Kingdom alone consumers purchase over 10 million hot beverages from vending kiosks every day. It does not stop at hot beverages, last year consumers spent nearly 5 billion pounds at vending machines across the nation making vending franchises well worth a look when considering buying a franchise in the UK.
Important Factors to Look for In Vending Franchises
Buying vending franchises is like any other business, due diligence needs to be completed on the machine, products, market demand and location. If these aspects are not considered it puts the business at a significant risk of failure, or in the case of vending not making enough money to cover the locations rent.
- Location Location – It is important to ensure the location of the vending machine is in an area where there is not only high traffic but a demand for the service. In such a case it would be worthwhile to visit a prospective vending site at several different points in the day to sample customers. This sample will give you an idea of the level of demand there is for the services of a vending machine.
- Product Choice – There are many high traffic areas presently without vending machines. Many of these areas have had machines that failed to make their sales targets. The problem in many of these cases is the machines simply had the wrong products. An example would be a coffee machine at a children’s school, while the teachers will use it, none of children are at an age where they have started to drink coffee.
- Economics – In business it is important to ensure the financial case for any new business location, be it a physical store or a vending machine is solid. If your vending machine makes a very small profit after paying rent for the location, it may take your entire lifetime to recoup the cost of purchasing the machine. The good news with vending is, if the machine is placed and does not make a suitable return it can always be moved.
Products and Services in Vending Franchises
The vending machine industry is a growth industry in the United Kingdom. Historically these machines only ever served beverages and confectionary products. However, more and more products are becoming available in vending machines. Products ranging from electronics to magasines are available for purchase without visiting a human staffed shop. Some of the leading types of machines available for placement with vending franchises include:
- Coffee Machine Vending Franchises – Gone are the days of poor quality vending machine coffee. Modern coffee vending machines often include all of the equipment to make a full-blown espresso, Americano, or latte. This increased range of product choice and ability to stock different beans and syrups for different products have greatly improved the quality of vending machine coffee. The low cost of the inputs to run the machine also make the business a highly profitable one.
- Photo Booths Vending Franchises– While photo booths spent years on the decline, there has been a recent uptick in their usage again. Many of these vending machines are for hire. This means people rent your vending machine for their special event, leaving two ways to make money; rental of the machine, and the sales of the service.
- Confectionary Vending Franchises– The confectionary business is one that has always been fairly stable. Candies, treats, and chocolates are all found in confectionary vending machines, along with an increasingly diverse array of gum and crisps. One of the advantages of a confectionary vending machine is consumers tend to buy on impulse when they see the machine.
- Water Vending Franchises– Increasingly people across the country are growing suspicious of the tap water in public buildings. They are also conscious of the reality that plastic water bottles are not great for the environment. Free water coolers (to customers, paid for by businesses) and coin-operated water coolers are popping up to fill people’s reusable water bottles allowing them to reduce waste one water bottle at a time.