Coffee vending machines: a small side route

Employees, visitors and customers at places like auto shops, small offices, clinics, warehouses and gyms, who pay per cup.

Each cup is sold at a price well above the cost of ingredients and cups. Some hosts take a small commission or a share of sales, and you cover supplies and repairs.

• Friendly, confident approach when pitching to managers
• Basic mechanical and cleaning skills
• Reliable routine for restocking and tracking stock

• Check with your local public health unit whether a food permit or inspection applies to serving hot drinks from machines
• Check whether your municipality requires a business licence for vending machines
• Commercial general liability insurance, and cover for the machines themselves against theft or vandalism
• Machines in unheated spaces can have problems in winter, so check where they will sit
• Some locations are slow, so agree a trial period and a way to remove the machine if sales are poor
• Collect and track cash and card takings carefully, and check when you need to register for GST/HST
• Used commercial machines vary widely in price and condition, so budget for delivery, a first stock of supplies and repairs, and start with one machine if cash is tight

Startup costs are typically around $4,000 to $20,000, depending on whether machines are used or leased, delivery, your first stock of supplies and repairs. Starting with one machine can suit a tighter budget. These are estimates, not quotes.

Monthly revenue is typically around $300 to $1,500, depending on how many machines you place and how busy each location is. Some locations are slow, so agreeing a trial period is worth considering. This is an estimate, not a guarantee.

Things to check: whether your local public health unit requires a food permit or inspection for serving hot drinks, and whether your municipality requires a business licence for vending machines. Also check insurance cover and when you need to register for GST/HST.