* The calculations use average data for Russia
Starting investment: 350,000 ₽ (2 machines)
Revenue: 80,000 ₽ (2 machines)
Net profit: 30,000 ₽ (2 machines)
Payback period: 12-18 months.
Coffee machines are the most popular area of vending; they occupy about 65% of the total market. In this article we will analyze the main points of business from choosing a location to equipping machines with online cash registers.
Coffee vending is one of the most popular types of vending trade. Hot drinks vending machines operate without a salesperson, but with the right location they bring a stable income and can pay for themselves within a year of operation. To organize such a business, you will need minimal capital and a personal car to service the machines.
But, despite its apparent simplicity, the coffee business requires a lot of attention, especially at the initial stage. To organize a vending trade, you need to find space, select equipment, solve problems with maintenance and repair, and ensure regular purchase of ingredients. To turn vending into a real business, you must create a network of at least four devices - then you can count on high incomes.
Therefore, before taking active steps to start a vending trade, you need to draw up a business plan: analyze the market, evaluate locations, calculate the amount of planned income and expenses.
Let's take a closer look at how to open a coffee vending business.
Market analysis
First of all, you need to evaluate all the advantages and disadvantages of the business. This will allow you to make a decision about opening and foresee what difficulties you will encounter. The advantages of vending are provided by automated trading, which helps to save significantly. But the main disadvantage is due to the fact that the success of a business is largely determined by location. Moreover, in this case, not only the trafficability of the point is taken into account, but also the possibility of round-the-clock operation and the presence of security. For example, if you place the device in a shopping center, you will solve the problem with vandalism, but the point will work according to the shopping center’s schedule. And the location near the station is more risky, although it will allow you to work around the clock.
Advantages and disadvantages of coffee vending
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Next, you need to examine the market situation: assess demand, competition and business prospects.
According to statistics, the vending market is growing annually by an average of 20%. Today, more than 60 thousand devices throughout Russia make up a market of 3-4 billion rubles. But the market is developing unevenly: 75% of vending machines are located in large cities, while the regions are still empty. So there is still room to be found in this business. The Russian market has room to grow. If in our country there are 600 people per vending machine, then in the USA this figure is 35, and in Western Europe – 110. Conclusion: in the coming years, the vending market will actively grow. Coffee machines are the most popular area of vending; they occupy about 65% of the total market. This is due to three factors: speed, availability, low price.
- The vending format is very suitable for selling coffee;
- coffee from vending machines is cheaper than in public catering;
- Coffee machines are very compact, so they can be placed where a cafe cannot.
Coffee machines owe their popularity not only to the development of such a trade format as vending, but also to coffee itself. The consumption of this drink is growing every year in Russia. If in 2001 our compatriots consumed 400 g of coffee per year, now this figure is already 1.35 kg. According to social surveys, more than 50% of Russians always buy a glass of coffee on the way to work or school. At the same time, 22% of respondents make daily purchases, and 48% drink coffee in cups once or twice a week.
Vending is one of the types of business
According to the general director of the VALEO Firm, Valery Rakitsky, in Japan, where vending is most developed, there is one vending machine for every 23 residents, in the USA - for 35, in Western European countries - for 110 people. In Russia, there are about 2200-2400 people per vending machine, which indicates the enormous potential for the development of the industry.
Why coffee machines? The answer is simple - coffee machines are considered the most profitable in the vending industry. This is achieved due to the low price of ingredients and the high selling price of finished coffee. Moreover, coffee machines are quite easy to install - you can “attach” such a machine anywhere, from a subway entrance to a bus stop, office or government agency.
Let's consider the main issues that arise when organizing a business with coffee machines.
How to register a business selling coffee
In any business, the first step is registration. For vending, the best option would be to register an individual entrepreneur. To do this, you just need to write an application in the prescribed form and attach a receipt for payment of the state duty (800 rubles). You can register as an individual entrepreneur without additional employees. In this case, you will have to pay contributions to the funds only for yourself. Type of activity according to OKVED-2: 47.99.2 Activities for trading through vending machines.
After the number of days specified in the notification, you will pick up your documents (extract from the Unified State Register of Individual Entrepreneurs) from the tax office. On the same day, it is advisable to write an application for transition to the chosen tax regime. It is recommended to choose UTII (the tax is calculated based on the number of vending machines and the k2 coefficient for the city in which the business is planned). Please note that UTII is not valid in all regions, so it is worth checking in advance whether this type of taxation is available in your region.
The choice of taxation system also depends on the location of the vending machines: a flat rate should be chosen if the machines are located in places of high demand (shopping malls, train stations). If a retail outlet has a pronounced seasonality of demand or an average level of pedestrian traffic, then it is better to choose a taxation method that depends on profit (STS 6%). Pre-calculate both options to determine which one is suitable. After this, you can open a current account (its monthly maintenance will cost approximately 2,500 rubles). Many novice vendors are concerned about the question: do they need to obtain any permits or licenses from regulatory authorities? Rospotrebnadzor is quite loyal to vending. Therefore, there is no need to notify the territorial bodies of Rospotrebnadzor about the start of business activity. However, you must take into account that Rospotrebnadzor has the right to conduct scheduled and unscheduled inspections of your organization. To avoid claims from regulatory authorities, each vending company needs to have:
- medical book for the employee who will service the vending machine;
- certificates for machines (provided by the manufacturer or seller) and certificates for goods, ingredients (provided by the supplier);
- lease agreement for space for a vending machine;
- production control program and monthly reports on program execution;
- an order on the persons responsible for compliance with the requirements of sanitary standards and regulations, and the implementation of the above program.
Registration of activities
Once you have decided on the intended location of the coffee machine, you can begin registering the business. The organizational form can be either an ordinary individual entrepreneur or a legal entity (LLC).
What OKVED code to indicate when registering machines OKVED code - 52.63 “Other retail trade outside stores.” No operating licenses are required. The taxation system used is the single tax on imputed income (UTI). The amount of tax directly depends on the size of the retail space. In our case, this is only 1-2 m2 per vending machine.
How to choose a place for a coffee machine
Choosing a suitable location for vending trade is one of the most important and difficult stages of opening. The volume of sales depends on the successful location. To find such a place, the entrepreneur must carefully analyze all potential points for installing the machine. Keep in mind that most of the “fishing spots” in large cities will be occupied - shopping centers, train stations, etc. The benefits of such a location are obvious, but an analysis of various places will help you find equally successful options. If you don’t manage to take the “fishy” place, then rely on the quality of the products: offer unusual varieties of coffee, original recipes, and a variety of assortments.
When selecting a site for the machine, consider the following requirements:
- proximity to public places with high pedestrian traffic: shopping and office centers, train stations, service stations, universities, etc.;
- availability of socket;
- required area 1 sq.m.
The average cost of renting such a point is 3-4 thousand rubles. Some shopping centers may charge a higher fee - from 6 thousand and above. By the way, it is possible to find a place for coffee machines among government institutions. Tenders for the placement of coffee machines are published on the Rostender website (rostender.info).
At the first meeting with the owner of the site, experienced operators advise bringing an image of a coffee machine in this interior, having previously photographed the place. This will clearly show that the device really occupies a small area and fits organically into its surroundings. You can read more useful tips for negotiating with landlords about installing vending machines here.
It is advisable to specify in the lease agreement all the terms of cooperation: the amount of rent, guarantees, obligations of the parties, degree of responsibility, payment of other expenses. Discuss the possibility of including costs for energy consumption in the rent (they will average 1 thousand rubles per month).
Component Features
When choosing ingredients, it is worth considering that products for vending machines differ from those used at home. They are intended only for coffee machines:
- Dissolve quickly.
- They do not absorb moisture.
- They do not accumulate odors from foreign objects.
- Stored for a long time.
You should purchase ingredients only from trusted suppliers, and when preparing drinks, follow all rules and proportions. Only in this case will the coffee or tea be tasty and aromatic.
How to choose a coffee machine
Coffee machines vary by country of origin, raw materials used and performance. Experts advise studying the offer using the Internet and Moscow professional exhibitions, such as Vending Expo.
Most vendors advise buying European coffee machines. German, Italian and Spanish coffee machines need repairs less often than Chinese or Korean ones. From an aesthetic point of view, “European” ones are more attractive: they are ergonomic and fit better into a modern interior. But the cost of European machines is quite high compared to their Korean or Chinese counterparts. Thus, a new machine running on freeze-dried coffee, Jofemar Coffeemar (Spain), costs 230 thousand rubles, and its Korean analogue SMC costs 130 thousand rubles.
You can save money and buy a used European coffee maker. According to sanitary standards, the maximum service life of the device in Europe is seven years, although in reality it is still quite functional. The equipment is sold to countries “without an age limit.” This way you can purchase a coffee maker with a 70% discount.
When choosing a coffee machine, you should clearly understand your business model. The vending equipment market offers many options for machines with different functions. There are machines that can prepare a maximum of 8 drinks, and there are more advanced versions for 12-15 drinks. The machines also differ in the raw materials used: some work on instant coffee, others on capsules, and others are equipped with coffee grinders and allow the use of coffee beans. There are also combined machines that combine the functions of coffee and snack machines. Of course, the cost of equipment varies significantly depending on the performance, functions and type of raw materials that are used.
Important point! When choosing a device, you need to take into account legal requirements. Since 2013, GOST R 51303-2013 has been approved, which obliges owners of vending machines to install cash register equipment. And from 2020, vending machines must be equipped with online cash registers and send receipts to the tax office. Therefore, it is not recommended to buy used equipment that cannot be adapted to modern requirements. At the stage of selecting a machine, check whether the terminal can be modified. Then you need to buy an online cash register and connect the cash register to the device. The cash desk needs to be registered with the tax office and signed an agreement with the OFD in order to transfer all checks to it.
How to connect an online cash register to the device? Changes in legislation have simplified the work with checks - now it is not necessary to print them. It is enough to connect an automatic device to the terminal that generates and sends electronic receipts via SMS or email. Automatic online cash registers join the machines that were produced in 2003 - and yet there are terminals and machines to which you cannot connect a cash register. Take this into account when choosing a coffee maker.
We purchase ingredients
The quality of the drink produced by the technique is also very important. Agree that dense creamy foam in a cup of cappuccino is the best advertisement for your business. In order for the drink in the machine to be aromatic and tasty, and for the profit from coffee machines to be regular and stable, it is necessary to purchase high-quality ingredients.
Choose granular products made from natural ingredients from animal and plant materials. Then they will not sinter inside the machine. Consequently, the buyer will receive the desired glass of aromatic drink, and not just boiling water.
Some unscrupulous entrepreneurs add whiteners to coffee instead of cream and milk. They cost much less, but the taste of the drink suffers greatly. You shouldn't skimp on ingredients. Otherwise, the profitability of the coffee machine will sharply decrease. Another advantage of granular products is significant savings. Their technology uses approximately 30% less than simple soluble additives.
How much does an online cash register cost?
- Fiscal storage – 6-15 thousand rubles. Those who work on the simplified tax system or UTII will have to change it every 3 years;
- OFD services – 3 thousand rubles per year;
- Automatic device for payments (online cash register) – 4-13 thousand rubles;
- SIM card with 3G (for sending electronic receipts) - 100 rubles. per month.
- Printer for printing receipts (optional) – 10 thousand rubles.
What equipment is suitable for terminals and machines? Cash register models are included in the Federal Tax Service register. Devices whose names end with “FA” are suitable for vending.
Thus, choose the equipment that suits your budget and requirements. Even in such a narrowly focused niche there are options for the concept. You can sell economy-class instant coffee or a drink brewed with freshly ground coffee. Accordingly, prices and target audience will be different. Having decided on the location and equipment, you need to install coffee machines. Installation work takes little time and is carried out by the company that sold you the equipment.
Description of the object
Vending in English means the sale of goods and services through a vending machine. Today, this is one of the fastest growing areas of business. Especially when it comes to selling coffee and drinks through a machine. These products are in constant demand, regardless of the time of year. The advantage of vending is that the outlet does not need sellers, a counter and a cash register. The machine combines all these functions. You just need to choose a good location and the business will generate income. The machine does not get tired, it works for the entrepreneur 24 hours a day, 365 days a year. She will never cheat, steal money, run away from work early, or be rude to a client. Promising places for installing coffee machines are bus and railway stations, shopping and entertainment centers, higher education institutions, office and business centers, cinemas, and fitness centers.
What ingredients are needed for a coffee machine?
The assortment of coffee is formed based on the installation location and target audience. For example, in office and shopping centers, consumers are focused on higher quality, so it is better to install machines with freshly ground coffee there. But in universities it is more advisable to place coffee machines with instant drinks. And it's not just that instant coffee is cheaper. It prepares faster, and for students it is important to have time to buy coffee during a short break. This benefits you too. Judge for yourself: instant coffee takes 20 seconds to prepare, and freshly ground coffee takes 50 seconds. Then, during a 10-minute break, the machine with instant coffee will be able to “sell” 30 cups, and the second one will be able to “sell” only 12 cups. This example clearly shows that it is necessary to plan key business parameters in advance.
Now let's move on directly to the purchase of raw materials.
The main consumables for coffee machines are coffee (bean or instant), sugar, cream, chocolate. All this can be purchased from one supplier. Experienced vendors advise purchasing ingredients from European brands: the Danish company Eurogran, the Dutch ICS, the Italian Ristoria or the domestic “Golden Domes”, “Andrey and Co”). An average coffee machine consumes 20 kg of “total ingredient” monthly, costing about 400 rubles. per kg, i.e. 8000 rubles.
In addition, you need to purchase bottled water. One unit requires about 300 liters of water per month (expenses - 2000 rubles). Please note that water for coffee machines must be from the same company. If the water hardness level changes, the machine may malfunction.
You also need cups: volume 165 ml, packs of 100 pieces, price - 170 rubles. Stirrers: 100 pcs for 40 rubles. Average coffee sales are 60 cups per day. Accordingly, you will have to purchase 18 packs of cups and plastic stirrers per month. The total cost of consumables will be about 2,500 rubles. Add to this the cost of sugar, milk, etc. – another 2,500 rubles. Thus, monthly costs for raw materials will be 15,000 rubles.
Please note that all food products must be certified. Certificates are provided by the supplier.
Situation today
A coffee machine appeared in Russia relatively recently. In the 20th century, you could mostly find machines on the streets dispensing sparkling water with or without syrup. But today you won’t find them during the day, but machines selling hot drinks are common.
Meanwhile, judging by the statistics, this market segment has not yet been completely filled. Competition, of course, is present, but not as intense as in other, more complex types of business. Therefore, each coffee vending machine pays for itself perfectly and brings its owner a good income.
But before you organize your own business selling hot drinks, you need to calculate a few little things. In addition to a detailed consideration of all financial investments in coffee machines, a business plan will help you carefully consider ways to reduce production costs.
How to calculate the cost
Before setting a price for coffee, you need to calculate the cost. The cost of a 0.2 liter glass consists of the following:
- coffee, 12 g – 5 rubles;
- milk, 60 ml – 5 rubles;
- water, 120 ml – 1.5 rubles;
- sugar – 1 rub.;
- glass and stirrer – 2 rubles.
In total, the cost of 1 cup of coffee (volume 0.2 l) is 14.5 rubles. The selling price is 40-60 rubles a glass. That is, the markup on coffee will be 200-300%.
How to advertise coffee vending
You must clearly understand who your target audience is. It depends on where the vending machines are located:
- Universities – students, young people aged 18-25 years;
- Stations - low- and moderate-income men and women;
- Shopping centers - middle-income families;
- Business centers - office employees.
Focusing on the target audience, you can set prices and create a sales offer. Understanding who your consumer is is not a marketing tool, but largely determines the level of sales. If your offer matches the interests and needs of the audience, then trading will be successful. Otherwise, even the best offer will not be appreciated.
The main way to advertise a coffee maker is to place it in the right place. You need to select retail outlets based on the results of geomarketing research. Pedestrian traffic should be at least 1.5 thousand people per hour during daylight hours. Please note that foot traffic is not the most important characteristic for a retail outlet. 2 thousand people per hour can pass by the coffee machine, of which only 10 people will buy coffee (because your target audience will not be among them). And a coffee machine installed in an office with 50 employees will earn more because all 50 employees will buy coffee.
In general, we must admit: marketing for vending machines is very specific, and each advertising tool needs to be adapted to specific conditions.
For example, outdoor advertising is effective for vending, aimed at visually highlighting a retail outlet. For this purpose, the following are used: pillars, banners, signs, scent marketing, i.e. attracting customers with smell. The aroma of coffee itself stimulates sales because it awakens the appetite. Practice shows that 80% are unconsciously guided by smell. The coffee machine itself is unlikely to smell of coffee, so you will have to use a special flavor based on gel cartridges. For this purpose, an aroma device is installed on the outer wall of the machine. The aroma is heard within a radius of 1-5 meters and can attract people who did not pay attention to the coffee machine itself. This technique can increase sales by 15%.
Another way to attract attention is to brand your machine. This is done not only to catch the eye of a passerby with a bright sign, but also to increase the recognition of the coffee machine. For branding, it is enough to order a sticker film from a printing house or paint the surface with graffiti. But keep in mind that in this case you deprive yourself of the opportunity to rent out the advertising surface.
Thus, the cost of advertising a vending machine will be minimal if you correctly assess the target audience and location.
How to maintain a vending machine
There is nothing complicated about servicing coffee machines. Any person can cope with this - even those who combine the vending business with other activities. You'll only spend a couple of hours a week on maintenance. It consists of changing ingredients and utensils, as well as withdrawing money. It is recommended to check the machine 3 times a week. If the bill acceptor is full, the machine will simply stop accepting money. An entrepreneur can easily handle servicing 1-4 machines on his own. When expanding your vending machine network, it is better to hire an assistant who will service the equipment.
Register your business
No one can simply engage in entrepreneurial activity on the territory of the Russian Federation. This is the law of the country. First of all, you need to submit documents and register as a private entrepreneur.
You will also have to register with the tax office. You also need to obtain a medical certificate for the right to operate a coffee machine.
Another important item on our list is opening a bank account. Through it you will record your profits, pay taxes and pay off debts to ingredient suppliers.
How much can you earn from coffee vending?
The average turnover of a coffee machine is 30-50 thousand rubles. per month. That is, you must sell 40 cups per day. And this is quite real. Of course, such a sales volume will not appear from the first day of installation, but such points are quickly gaining momentum; A favorable location and spontaneous purchases help.
An additional source of income can be advertising on cups and panels of coffee machines. The cost of advertising on the side of the machine is about 4,000 rubles per month, and on the front panel - 750 rubles per month. If you rent out advertising space for six months, you can earn almost 30 thousand additional rubles.
How much does it cost to open a coffee vending business?
Experienced vendors advise installing several coffee machines at once in different places. This way you can compare which site works more efficiently. A beginner should install at least 2 coffee machines, and then focus on creating an entire network with several points around the city. Thus, you will have to spend about 300 thousand rubles on coffee machines alone. Almost 90% of your budget will go to equipment. The rest of the amount will have to be spent on obtaining permits, paying rent for the first month and purchasing raw materials. The table shows approximate costs for each item.
Initial investment for opening a coffee vending business
NAME | AMOUNT, RUB. | |
1 | Coffee machines (2 pcs.) | 300 000 |
2 | Business registration | 10 000 |
3 | Purchase of raw materials | 15 000 |
4 | Rent for 1 month of work | 10 000 |
5 | Other (unforeseen) expenses | 15 000 |
Total: | 350 000 |
To open a coffee vending business, you need to invest 350 thousand rubles.
In addition to the initial investment, plan your monthly expenses because they determine your net profit. The table shows an approximate calculation of fixed costs.
Fixed costs of coffee vending
NAME | AMOUNT PER MONTH, RUB. | |
1 | Rent | 10 000 |
2 | 1 000 | |
3 | Communal payments | 2 000 |
4 | Depreciation | 5 000 |
5 | Ingredient costs | 30 000 |
6 | UTII tax | 2 000 |
Total: | 50 000 |
Now you can calculate the payback period.
- Initial investment – 350 thousand rubles
- Revenue from 2 machines – 80 thousand rubles per month
- Cost of sales – 30 thousand rubles per month
- UTII tax – 2 thousand rubles per month
- Other expenses – 18 thousand rubles
- Net profit from 2 machines – 30 thousand rubles per month
- Payback period – 12 months.
As practice shows, the average payback period for identical projects is 1-1.5 years. This indicator is worth focusing on. And if you manage to conclude a lease agreement for advertising space on your coffee machines, you will be able to recoup your investment faster.