Are you about starting a coffee vending machine company? If YES, here is a complete sample coffee vending machine business plan template & feasibility report you can use for FREE.

Okay, so we have considered all the requirements for starting a coffee vending machine business. We also took it further by analyzing and drafting a sample coffee vending machine business marketing plan template backed up by actionable guerrilla marketing ideas for coffee vending machine businesses. So let’s proceed to the business planning section.

Why Start a Coffee Vending Machine Business?

If you are contemplating starting a business in the United States of America, then one of your options is to start a coffee vending machine business. The truth is that anyone can vend coffee from a machine. This business is not financially tasking to start as you can purchase a used vending machine, even that of a popular brand at a cheap price, and still get the most out of it.

The coffee vending machine business doesn’t require any expertise or know-how, and any serious minded entrepreneur is likely to make good profit out of this business.

If you are sure that this type of business is what you want to do after you must have conducted your market research and feasibility studies, then the next step to follow is to write a good business plan; a detailed blue print of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing your services.

The truth is that it is one thing to have a fantastic idea cum business plan, it is entirely another thing for the business plan to translate to profits, that is why it is important to assemble a team of experts to work with if you want to be successful with your coffee vending machine business.

Below is a sample coffee vending machine business plan template that will help you write yours in record time.

A Sample Coffee Vending Machine Business Plan Template

  • Industry Overview

A vending machine business is a retail business that does not require face to face interaction with customers, and can be run 24 hours a day depending on the location. This business offers operators flexibility, because it can be tailored to suit the lifestyle of the owner, thereby creating a balance between work, life and family. Entrepreneurs can also go into other businesses, while others can decide to make it a part-time business venture.

Coffee vending machine business is part of the vending machine operator industry and basically, a vending machine dispenses items such as coffee, ice, beverages, snacks, lottery tickets, alcohol, cigarettes, perfumes, toys, candy and so much more. There are very strict laws regarding the sale of alcohol and cigarettes through vending machines due to concerns regarding underage buyers.

If you are a close observer of the Vending Machine Operators industry, you will notice that the industry has struggled over the past decade. This decline was caused by decreasing per capita soda consumption and a rise in the healthy eating index. However, the decline was offset slightly by rising per capita disposable income, most notably in 2015 when the industry experienced growth.

In addition, a change in product mix toward healthier snacks, beverages and other food items, along with increasing use of technology, helped companies spur demand from new consumers. These gains were mitigated, however, by increasing competition from external competitors. Over the five years to 2022, industry revenue is estimated to continue declining.

The Vending Machine Operators industry that coffee vending machine business is a subset of is a thriving sector of the economy of the United States and the industry generates over $7 billion annually from more than 21,064 vending machine companies scattered all around the country.

The industry is responsible for the employment of over 54,291 people. Experts project the industry to grow at – 0.5 percent annual rate. Aramark Corporation and Compass Group are the market leaders in this industry.

A recent report published by IBISWorld shows that the Vending Machine Operators industry is in the decline phase of its life cycle. The report shows that over the 10 years to 2022, industry value added (IVA), which measures an industry’s contribution to the overall economy, is expected to decrease at an annualized rate of 1.4 percent. In contrast, US GDP is projected to grow at an annualized rate of 2.0 percent during the same period.

An industry is considered to be in the decline phase of its life cycle when IVA growth is below GDP growth over a 10-year period. One key indicator that an industry is in decline is a shrinking market, as shown by declining revenue. Since 2005, the industry has experienced constantly declining revenue, except for a small growth in 2015.

Over and above, the vending machine industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her niche vending machine business; you can choose to start on a small scale in one or two public facilities or you can choose to start on a large scale with several outlets in key cities.

Coffee Vending Machine Business Plan – Executive Summary

Johnson Travolta® Vending Machine Company is a US licensed and incorporated business with strong bias in coffee vending. Although our business will be based in Nashville – Tennessee where we were able to secure a 40 by 40 feet warehouse, we have the plans to spread across major cities in the United States.

Aside from retailing assorted coffees from our vending machines, our vending machines will also dispense products such as groceries, drinks, snacks, candy, hot and cold beverages and other products.

We are aware that there are several businesses around Nashville – Tennessee that run vending machines, which is why we spent time and resources to conduct our feasibility studies and market survey so as to position our coffee vending machines in strategic places.

We are aware of the trend in the vending machine industry and we are not only going to operate a system where our customers would just make purchase from our machines without getting useful data from them that will help us serve them better.

We will also go ahead to ensure that we position money changers in some of our busiest coffee vending machine locations so that our customers will not find it difficult looking for change to make purchase from our vending machine.

We have put plans in place to operate a mini but standard call center/customer complaint center that will operate on a 24 hours a day and 7 days a week for the sole purpose of resolving customer’s complaints as fast as we can.

Johnson Travolta® Vending Machine Company is a family business that is owned by Johnson Travolta. The business will be managed by his son Ashton Travolta, a graduate of Business Administration who has extensive experience working with one of the leading retail outlets with several vending machines in the United States of America. He will bring his wealth of experience to help build Johnson Travolta® Vending Machine Company.

  • Our Products Offering

Johnson Travolta® Vending Machine Company is in the vending machines industry for the purpose of making profits and we will ensure that aside from vending coffee, we will also make available a wide range of beverages and snacks in our vending machines.

Here are our product offerings;

  • Coffee beverages (cappuccino, espresso, iced coffee, decaffeinated coffee, alcoholic coffee (Irish Coffee and Brandy Coffee et al), filtered coffee, cold brew coffee, Turkish coffee, coffee with milk, and flavored coffee et al.)
  • Snacks
  • Hot beverages
  • Cold beverages

Our Vision Statement

Our vision is to build a coffee vending machine business that will have active presence all over Nashville – Tennessee.

  • Our Mission Statement

Our mission is to establish a coffee vending machine business that will make available assorted coffees, beverages and snacks at affordable prices to residents of Nashville – Tennessee.

  • Our Business Structure

Johnson Travolta® Vending Machine Company do not intend to start a business whose vending machines can only be found in few outlets around Nashville – Tennessee; our intention of starting a coffee vending machine business is to have coffee vending machines in strategic positions in key cities all around Nashville – Tennessee.

We will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.

In putting in place a good business structure, we will ensure that we hire only people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

  • Chief Executive Officer (Owner)
  • Admin and Human Resources Manager
  • Merchandize Manager
  • Accountant
  • Client Services Executive

Roles and Responsibilities

Chief Executive Officer – CEO:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
  • Creates, communicate, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization

Admin and HR Manager

  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Carries out induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments

Merchandize Manager

  • Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
  • Helps to ensure the right coffee brand and beverages are on our vending machines
  • Responsible for the purchase of goods and products for the organization

Accountant

  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensuring compliance with taxation legislation
  • Handles all financial transactions for the organization
  • Serves as internal auditor for the organization

Client Service Executive

  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with students on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the school coordinator in an effective and timely manner
  • Consistently stays abreast of any new information on the schools’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to students when they make enquiries

Coffee Vending Machine Business Plan – SWOT Analysis

Our intention of starting our coffee vending machine business with a dozen vending machine installed in strategic locations all around Nashville – Tennessee is to test run the business for a period of 3 to 6 months to know if we will invest more money, expand the business and then install 50 coffee vending machines first all-around Nashville – Tennessee before spreading to key cities in the United States.

We are quite aware that there are several vending machines all over Nashville – Tennessee and even in the same locations where we intend installing ours, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.

Johnson Travolta® Vending Machine Company employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a business model that will help us achieve our business goals and objectives.

This is the summary of the SWOT analysis that was conducted for Johnson Travolta® Vending Machine Company;

  • Strength:

The strategic locations we intend installing our coffee vending machines, the business model we will be operating on, ease of payment, wide range of products, competent team members and our excellent customer service culture will definitely count as a robust strength for Johnson Travolta® Vending Machine Company.

  • Weakness:

A major weakness that may count against us is the fact that we are a new coffee vending machine business and we don’t have the financial capacity to compete with multi – billion dollar retail outlets who also run coffee vending machine business when it comes to retailing at a rock bottom prices.

  • Opportunities:

The fact that we are going to install our coffee vending machines in some of the busiest streets in Nashville – Tennessee provides us with unlimited opportunities to sell our coffee and other products to a large number of people.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our coffee vending machines locations; we are well positioned to take on the opportunities that will come our way.

  • Threat:

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing power. Some other threats that may likely confront us is the arrival of a new retail outlet or new vending machines in same location where ours is located and also seasonal fluctuations cum unfavorable climatic conditions.

Coffee Vending Machine Business Plan – MARKET ANALYSIS

  • Market Trends

The coffee vending machine business is part of the retailing industry and the retailing business has been in existence for as long as humans started trading goods, but one thing is certain, the retailing industry is still evolving especially with the advent of technology.

The introduction of technology is what gave birth to vending machines. In recent time, you can find vending machines designed specifically to dispense several goods ranging from snacks to drinks to groceries and to even cigar.

It is now a common phenomenon for vending companies to leverage on technology to effectively predict consumer demand patterns and to strategically position their vending machines to meet their needs. No doubt data collected from customers goes a long way to help vending machine businesses serve them better.

Another common trend in the retailing industry of which coffee vending machine falls under is the pricing system. Aside from having varieties of products in a vending machine, one of the easiest ways for vending machines to sell the goods on their vending machines as fast as they can and keep re – stocking is to ensure that the prices of their goods are a bit lower than what is obtainable elsewhere.

For example, it is common to see items with prices in this format; $3.99, $99 and $199 et al as against $4, $100 and $200. As small as the price difference, consumers are likely going to be swayed to make purchase because of that.

  • Our Target Market

Perhaps the vending machines industry has the widest range of customers; everybody on planet earth has one or more things that they would need from a vending machine. It is difficult to find people around who don’t patronize vending machines when they come across one.

In view of that, we have positioned our coffee vending machines in strategic locations to service the residents of Nashville – Tennessee and every other location our coffee vending machines will be located. We have conducted our market research and we have ideas of what our target market would be expecting from us.

Aside from coffee vending, we are in business to dispense a wide range of beverages and snacks via our vending machines to the following groups of people;

  • Event Planers
  • Households
  • Corporate Executives
  • Business People
  • Sports Men and Women
  • Students
  • Children
  • Adults
  • Tourists

Our Competitive Advantage

The competitions that exist in the vending machine line of business is stiff because anyone can start a coffee vending machine business; it isn’t financially tasking to start, as you can purchase a used vending machine at a cheap price, and still get the most out of it. The coffee vending machine business doesn’t require any expertise or know-how, and any serious minded entrepreneur is likely to make good profit out of this business.

One thing is certain, we will ensure that we have a wide range of products available in our vending machines at all times. It will be difficult for customers to visit our coffee vending machines and not see the type of beverages that they are looking for.

Our excellent customer service culture, highly competitive prices, reliable and easy to use payment option and the visibility of our vending machines and competent team members will serve as a competitive advantage for us.

Coffee Vending Machine Business Plan – SALES AND MARKETING STRATEGY

  • Sources of Income

Johnson Travolta® Vending Machine Company is established with the aim of maximizing profits in the retailing industry and we are going to go all the way to ensure that we do all it takes to sell a wide range of products to a wide range of customers.

Johnson Travolta® Vending Machine Company will generate income by retailing the following products via our vending machine;

  • Coffee beverages (cappuccino, espresso, iced coffee, decaffeinated coffee, alcoholic coffee (Irish Coffee and Brandy Coffee et al), filtered coffee, cold brew coffee, Turkish coffee, coffee with milk and flavored coffee et al.)
  • Snacks
  • Hot beverages
  • Cold beverages

Sales Forecast

One thing is certain when it comes to a vending machine business, if your vending machines are well stocked and centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Nashville – Tennessee and we are quite optimistic that we will meet our set target of generating enough profits from the first six months of operation and grow the business and our clientele base.

We have been able to examine the vending machine industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Johnson Travolta® Vending Machine Company, it is based on the location of our business and other factors as it relates to vending machine startups in the United States;

  • First Year: $240,000
  • Second Year: $550,000
  • Third Year: $950,000

N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown or major competitors positioning their vending machines in same locations where ours are. Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

Before choosing locations for installing our coffee vending machines, we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market and become the preferred choice in Nashville – Tennessee.

We hired experts who have good understanding of the vending machine business/retail industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Nashville – Tennessee.

In summary, Johnson Travolta® Vending Machine Company will adopt the following sales and marketing approach to win customers over;

  • Print handbills about our coffee vending machine and its location, and also give our vending machines unique look, by painting them with bright colors or putting a large neon sign on it, so that it is easily recognizable to customers.
  • Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get our message across, so that those on the social media or those who read blogs can know where to go when they need products that we retail
  • Creating a basic website for our business, so as to give our business an online presence (list the locations of our coffee vending machines)
  • Directly market our coffee vending machine business.
  • Join local vending machine associations for industry trends and tips
  • Provide discount days for our customers
  • Advertise our business in community based newspapers, local TV and radio stations
  • List our business on yellow pages’ ads

Coffee Vending Machine Business Plan – Publicity and Advertising Strategy

Despite the fact that our coffee vending machines will be strategically located, we will still go ahead to intensify publicity for the business. Here are the platforms we intend leveraging on to promote and advertise Johnson Travolta® Vending Machine Company;

  • Place adverts on both print (community based newspapers and magazines) and electronic media platforms
  • Sponsor relevant community programs
  • Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, et al to promote our brand
  • Distribute our fliers and handbills in target areas
  • Position our Flexi Banners at strategic positions in the location where our coffee vending machines are located.

Our Pricing Strategy

Johnson Travolta® Vending Machine Company will make sure that we have assorted coffees, beverages and snacks in different sizes of cups to meet the financial capacity of our customers. The prices for all our assorted coffees, beverages and snacks will be affordable and at the same time competitive with what is obtainable in the industry.

  • Payment Options

Due to the nature of vending machines, there are no options when it comes to payment for items purchased other than to insert your money in the vending machine and then the machine will dispense what you paid for. We will ensure that we position money changers around our busiest coffee vending machines so as to make change available to our customers.

  • Startup Expenditure (Budget)

When it comes to starting a coffee vending machine business, the major areas that you should look towards spending the bulk of your cash is in the purchase of coffee vending machines and of course renting or leasing warehouse facility. Aside from that, you are only expected to pay your employees and stock your vending machines.

These are the key areas where we will spend our startup capital;

  • The total fee for registering the business in the United States of America – $750.
  • Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
  • Marketing promotion expenses for the grand opening of Johnson Travolta® Vending Machine Company in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The cost for hiring Business Consultant – $2,500.
  • Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $75,900.
  • The cost for the Warehouse remodeling (construction of racks and shelves) – $20,000.
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
  • The cost for Start-up inventory (stocking with a wide range of products) – $100,000
  • Storage hardware (bins, rack, shelves, food case) – $3,720
  • The cost for the purchase of vending machines – $25,000
  • The cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • The cost of purchase and installation of CCTVs – $10,000
  • The cost for the purchase of furniture and gadgets for the office (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $50,000.
  • The cost of launching a website – $600
  • Miscellaneous – $10,000

We would need an estimate of three hundred thousand dollars ($300,000) to successfully set up our coffee vending machine business in Nashville – Tennessee.

Generating Funds/Startup Capital for Johnson Travolta® Vending Machine Company

Johnson Travolta® Vending Machine Company is owned and financed by Johnson Travolta and his immediate family members. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

  • Generate part of the startup capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from the bank

N.B: We have been able to generate about $100,000 (Personal savings $70,000 and soft loan from family members $30,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

Coffee Vending Machine Business Plan – Sustainability and Expansion Strategy

It is an established fact that the future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our most important goals of starting Johnson Travolta® Vending Machine Company is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our coffee and other related merchandize a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

Johnson Travolta® Vending Machine Company will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

  • Business Name Availability Check: Completed
  • Business Registration: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Securing Vending machines: In Progress
  • Opening Mobile Money Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Leasing of facility for warehouse and remodeling: In Progress
  • Conducting Feasibility Studies: Completed
  • Generating capital from family members: Completed
  • Applications for Loan from the bank: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Printing of Packaging and Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business both online and around the community: In Progress
  • Health and Safety and Fire Safety Arrangement (License): Secured
  • Compilation of our list of products that will be available in our vending machines / warehouse: Completed
  • Establishing business relationship with vendors – suppliers of all our products (assorted coffeess, beverages and snacks): In Progress