You’ve probably noticed that while lots of small businesses come and go, vending machines seem to hold their ground. Even with changing payment tech, online shopping, and shifts in what people snack on, those glass-fronted machines haven’t disappeared. Some operators are expanding in 2025, not scaling back. It raises a fair question: in a year where cash is nearly obsolete and consumers are more health-conscious than ever, do vending machines still turn a reliable profit?
The short answer? They can. But success depends heavily on how, where, and with what kind of setup you approach the business. It’s not the hands-off income stream some people expect, but it’s also not out of reach for someone prepared to put in the work. Before diving in, it’s worth examining how the model performs in today’s landscape.
Why These Machines Still Work When So Many Trends Don’t
The concept behind vending machines is old-school, but the psychology is timeless. People buy on impulse, especially when the purchase is fast, visible, and doesn’t require interaction. That’s part of what makes vending so resilient, even as other retail formats struggle to stay relevant.
Location is still everything. Vending machines do best where convenience prevails: train stations, university campuses, gyms, medical centres, and large office complexes. And they’ve moved beyond soft drinks and chips. You’ll find machines selling headphones, phone chargers, PPE kits, protein bars, and even locally sourced snacks. Operators who think beyond the standard Coke-and-Snickers model tend to get better returns, especially in urban or high-footfall areas.
Tech has also kept machines alive. With tap payments, digital tracking, and temperature control, modern units are more responsive and less prone to basic faults than their coin-slot ancestors. That reliability keeps users coming back, especially when the alternative is a long queue or an expensive convenience store.
What to Know if You’re Getting Started in the Local Market
If you’re considering vending as a small business or side hustle, don’t underestimate the logistics. It’s not just about choosing a machine and filling it with stock. You’ll need to consider servicing, restocking, repairs, and what to do if something goes wrong on a public holiday.
Access to local support can make a real difference. For example, having suppliers and tech help close by is a significant advantage when working with vending machines Melbourne operators tend to rely on. Whether it’s a part replacement or a stock emergency, local networks help keep downtime low and income steady.
Council permissions vary between areas, and lease agreements for public or private sites can be surprisingly detailed. Some locations will require you to agree to specific product ranges or cleaning schedules. Others might cap your operating hours if noise or security is a concern. Understanding foot traffic is also key—school holidays, weather, and nearby events can swing your earnings more than you’d expect.
Don’t just focus on product sourcing or machine pricing. Know who your customers are, how often they’ll walk past, and what they’re likely to want at that exact moment. That insight is what separates consistent returns from machines that sit untouched for weeks.
The 2025 Profitability Equation
Running the numbers in 2025 looks different to a few years ago. Yes, snack prices are up, but so are margins—if you manage the setup well. A typical vending machine stocked with a mix of snacks and drinks might generate between $80 and $300 per week, depending on its placement and traffic. Multiplied across multiple machines, that adds up, but so do the expenses.
Machine type matters. Refrigerated units cost more to operate but offer a broader range of stock options. Touchscreen machines with dynamic pricing or advertising panels can generate additional revenue streams, but they also increase your upfront costs. Tap-to-pay compatibility is no longer optional; the vast majority of users expect fast, card-based payments. Machines without it tend to underperform, even in otherwise decent locations.
Energy use is another cost that has become increasingly important. Many newer models offer low-energy modes or sleep cycles during quiet hours. If you’re running a fleet, those savings add up fast over a year. Likewise, smart software that tracks sales and alerts you to low stock can cut your rounds in half, especially if you’re managing machines across several suburbs.
Return on investment often comes down to how quickly your machine earns back its initial cost, plus ongoing maintenance and rent or location fees. Some operators see breakeven in under a year; others take longer, depending on product pricing and how well they’ve matched their machine to the environment.
Risk Factors That Are Easy to Miss
The vending model appears simple from the outside, but it carries risks that are easy to overlook if you’re new to the industry. Machines left in unsupervised or poorly lit areas are magnets for vandalism, especially overnight. Even a minor break-in can leave a unit out of action for days—and that’s before you count the lost stock or repair cost.
Weather can also impact performance in ways you might not expect. Machines in semi-outdoor areas may overheat in the summer or experience condensation issues in winter, which can affect product quality and shorten shelf life. If you’re stocking fresh items or anything heat-sensitive, location protection becomes critical.
Payment system glitches are another potential headache. When contactless readers go offline, users tend to walk away rather than report the issue. That means missed revenue you won’t always notice right away unless your software flags it. Most operators now conduct regular checks or utilise alert systems that trigger when sales drop unexpectedly.
Insurance is a must, but it doesn’t cover everything. Many policies require machines to be bolted down or monitored by security cameras. You’ll also need public liability cover if your machines are accessible to the public, which is almost always the case. Finally, service contracts for older machines can get expensive fast. Spare parts aren’t always readily available, especially for imported units or those no longer in production.
What Sets the Profitable Operators Apart
There’s a clear pattern among vending operators who consistently turn a profit: they treat it like a serious business, not a passive side gig. That starts with machine placement. High-traffic areas are a given, but the best spots aren’t always obvious. Hospitals and 24-hour gyms tend to outperform predictable public places because the foot traffic is consistent, and people often stay longer than expected.
Stocking is another factor that distinguishes strong operators from others. The best performers adjust their product mix regularly based on what sells and what doesn’t, even if it means changing suppliers. Some tweak their selection seasonally, while others go hyper-specific—for instance, protein snacks near gyms, stationery near schools, or gluten-free options in health clinics. These aren’t just trends. They’re targeted strategies based on watching the numbers and responding to real demand.
Data matters here. Many newer machines offer real-time dashboards showing what’s moving, what’s stale, and how long each slot takes to sell out. Operators who track those patterns can reduce waste, avoid overstocking, and spend less time driving between locations.
And then there’s diversification. Successful vendors often run different machine types across multiple sites. Some might use smaller, wall-mounted units in tight retail spots, while others manage large combination machines in warehouse lunchrooms. By spreading risk across different customer types and product mixes, they build more stability into their income stream.
Conclusion
There’s no doubt vending machines still have a place in Australia’s business landscape. However, what worked ten years ago may not necessarily work now. Today’s market rewards planning, adaptability, and attention to detail. From technology upgrades to smarter stock decisions, the operators seeing success in 2025 are those who treat this like a business that requires regular attention, not one that can be forgotten once it’s installed. The model still works—it just asks more from you than it used to.