Asked on 11 Feb 2020
Boon lay power nasi lemak recently came up with their Nasi Lemak vending machines. I wonder how much capital is required to own this sort of quick food vending machines?
Total start-up capital for 1 year of operations, for 1 unit: $20,000
Here's a concise breakdown of startup costs:
1. Food Vending Machine: Starts from $8,000/unit to buy. $500/month to rent
To buy or rent a food vending machine, you can look at food vending machine providers in Singapore like Bicom Asia and AIC Systems. When you buy from a provider, they will also have servicemen to perform regular maintenance on your unit.
Alibaba also has a wide selection of models with prices. This particular hot food vending machine is USD 5500 (SGD 7,700): https://www.alibaba.com/product-detail/Microwave-heat-function-vending-machine-for_60453540906.html?spm=a2700.7724857.normalList.132.e3c92977c2Ynlb
2. Food Inventory + Food Packaging: $500-$1000/month
Food costs vary depending on the type and quantity of food sold. You can either make the food yourself (cheaper), or outsource preparations to a centralised kitchen (costlier).
3. Electricity: $50/month
This is a starting price for newer, energy efficient machines. Make sure you check the energy consumption of the machine. Less efficient models can consume twice as much energy (and so cost twice as much to power) as more efficient models.
4. Maintenance: $100/month
Food vending machines will require more upkeep than drinks machines or snack dispensers.
5. Location Rental: $200-500/month
Varies depending on: district, outdoor/indoor, natural proximity to crowds (e.g. HDB, offices, schools, malls).
6. Commercial Insurance: $50/month
You'll need to protect your machines against burglary, vandalism, fire, and other risks. If you're selling package food, you'll also want to protect yourself from liability, e.g. if customers become sick after eating your food. You can get commercial insurance online at https://www.coverprovide.com/
7. Food Vending License: $195/year
You'll need a food vending license from the Singapore Food Agency before you can begin operations. Apply here: https://www.sfa.gov.sg/food-retail/licensing-permits/food-vending-machine
Interesting question as I have often wondered if vending machines are a viable business idea as well.
A quick search on Google got me this:
$8800 per one large-size Vending Machine
$8500 per one medium-size Vending Machine
$8250 per one small-size Vending Machine
Purchase more than 2 machines, enjoy 70% CDG grant support
$500 Rental per Month
2 Year Contact
I have also checked out Carousell for cheaper alternatives (but mostly are second-hand and more for drinks/snacks e.g. https://sg.carousell.com/p/vending-machine-snacks-drinks-188573274?t-id=499123_1581560974986&t-referrer_request_id=Fo6wRS1a53JfdgNZ )
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