24h Vending Franchises: Promised 3,000 Euros with Four Machines

24h vending franchises promise 3,000 euros gross with four machines; real cases show 300 euros net per machine and closed businesses.

English · Original discussion in Spanish · Published

24h Vending Franchises: Promised 3,000 Euros with Four Machines
24h Vending Franchises: The Promise of 3,000 Euros with Four Machines

Fershop, Picapica, Abierto 25h. 24-hour vending store franchises sell a story that fits in one sentence: four installed machines and between 3,000 and 4,000 euros gross per month. This figure has circulated since October 2013, when an entrepreneur put it on the table and asked aloud if it was credible. Four years later, in July 2017, not a single official account supporting it had appeared. Selling products for two or three euros to reach that volume requires a trajectory no one has documented in writing. And the figures that are shown go in another direction.

How much does it cost to set up a vending business and when is it amortized?

A new vending machine costs between 1,000 and 2,000 euros; one with coffee, cans, and snacks goes up to 2,500 euros plus VAT. That is not the problem. The problem is everything else. A five-machine business in a city of 15,000 inhabitants, with an investment of about 45,000 euros, lasted three years before closing. The reason was not the machine: it was the relationship between time spent and the remaining margin.

The experience repeats itself. Someone who installed four machines in a regular-to-poor neighborhood store saw money go to repairs, theft, and breaks not covered by insurance. They moved to a more expensive location in a good neighborhood and started seeing profitability. The uncomfortable conclusion is that location is not just a factor; it is the factor.

Is 24h vending profitable? The optimistic and real calculation

The most generous scenario circulating claims that a well-placed machine can generate more than 100 euros per day, yielding between 2,000 and 3,000 euros monthly. The scenario told from within is different: a business with several machines left less than 300 euros per month in net profit per machine, even with full-time dedication, including cleaning, daily restocking, expiry control, and claim handling. In the end, the machines were sold for 70% of their cost.

In between lies another figure, that of those who settle: between 100 and 200 euros net per month for four already-placed second-hand machines. Far from the franchise story. Far from ruin, too.

Hotels, offices, and courts: where vending works

The niche is inside other premises, not on the sidewalk. In hotels, the usual split is 30-40% of sales to the establishment, which also provides electricity and water; in return, vandalism is zero and customers do not go elsewhere. The most ambitious calculations mention several thousand euros per month in high season, although access is blocked by competition and established relationships.

In small offices, volume is modest: 60 people and three machines for coffee, soft drinks, and snacks sustain the service without surprises. In official buildings —courts, police stations, ministries— prices are in a different league: coffee at 50 cents, small water bottles at 50 cents, near-daily restocking.

Why the franchise usually fares worse than doing it alone

The argument repeats: the franchise provides brand image, installation, and setup, and in exchange charges very high prices for materials. The margin of a single machine is high; the margin of a franchise is not. There are large vending companies with hundreds of machines, sales staff, and employees, against which it is impossible to compete on equal terms. The question many ask is not whether vending is profitable, but for whom.

Who really controls the business is the owner of the machines placed in other establishments, with contracted insurance and without paying rent or an opening license. The franchise, by contrast, transfers risk to the franchisee and guarantees income to the franchisor.

The 24-hour opening license, the hurdle no one mentions

The activity license is the most expensive and slowest part. You must register at the town hall, in urban planning, providing the address and activity, and wait. The problem is not just time: while waiting for the response, the rent for the premises continues to run. And not all town councils have the 24-hour store activity categorized. Without a license, closure. The repeated recommendation is to set up a conventional establishment while processing the license, provided local regulations allow it.

Bubble or mature business?

There is suspicion that this is a bubble about to burst, like electronic cigarettes. The reasoning has its logic: if four machines yielded 3,000 euros gross per month, streets would be saturated with franchises, and the best locations —the ones that actually work— are already occupied. Competition is brutal and growing.

On the other side weighs a simple fact: the margin per product is high and the machine does not rest. But neither side shows an audited statement of results.

With these premises, the calculation remains stuck in the same point as in 2013: the only verifiable figure is what the franchisee pays. The one promised to be earned has never been signed.

Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (59 replies).

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