Coffee boost our mornings and keeps us grind in work throughout the day. But for many business owners, the question arises: where does the real profit lie and is coffee vending machine business profitable than cafe coffee shop? Let’s dive in and find out the battle between coffee vending machine convenience and the delightful experience of a coffee shop, seeing which reigns supreme in terms of profit potential.

Coffee Vending Machines: Low Overhead, High Markup

Based on research, coffee vending machine business provide high profit margins with minimal operational expenses.

Pros:

Low overhead: Machines require minimal staffing and minimal space, making them ideal for offices or high-traffic areas.

High markup: Vending machine coffee can have a markup of 100% or more, translating to significant profit per cup.

24/7 operation: No need for staff to open and close – vending machines serve customers whenever they crave a caffeine fix.

Cons:

Limited options: Vending machines offer a restricted variety of coffee choices compared to cafes.

Lower quality perception: Pre-brewed coffee might not match the quality of freshly brewed coffee.

Price sensitivity: Customers might be more price-sensitive with vending machines due to the perception of lower quality.

Coffee Shops: Experience Sells, But Costs More

Even though coffee shops seems bigger and better, but coffee vending machine business offer higher profits and lower overhead costs.

Pros:

Premium pricing: Coffee shops can command higher prices due to the ambiance, service, and perceived quality.

Upselling opportunities: Pastries, snacks, and merchandise create additional revenue streams.

Customer loyalty: A welcoming atmosphere fosters repeat customers who spend more over time.

Cons:

High overhead: Rent, staff salaries, equipment, and ingredient costs significantly impact profits.

Labor-intensive: Baristas require training and ongoing wages, adding to operational costs.

Limited hours: Coffee shops typically have set opening and closing times, restricting customer access.

The Verdict: A Balanced Brew

Conclusion

So, which reigns supreme? It depends on your goals. Coffee vending machine business offer a low-maintenance, high-profit solution for specific locations. Coffee shops, while requiring more investment, can build a loyal customer base willing to pay a premium for a quality experience.

The ideal scenario? Perhaps a combination! Consider placing a vending machine in a high-traffic area to capture quick coffee needs, while a cozy coffee shop caters to those seeking a delightful coffee break experience. 

Well, one thing for sure is there are too many different people out there that love coffee and require caffeine daily. Like Howard Schultz, Founder and CEO of Starbucks said: “We are not in the coffee business serving people, but in the people business servicing coffee.”  We just do our best and love what we do will definitely get what we want. Just like how we Like Me Coffee aims to achieve. Contact Like Me Coffee for a FREE vending machine placement in your area!