How much capital required for food vending machine? - Seedly
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Gabriel Tham

Asked on 11 Feb 2020

How much capital required for food vending machine?

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?

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Nathaniel
Level 4. Prodigy
Answered on 16 Feb 2020

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

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Chiam Min
Chiam Min
Level 5. Genius
Updated on 13 Feb 2020

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:

To Buy:

  • $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

To Rent:

  • $500 Rental per Month

  • $3500 Deposit

  • 2 Year Contact

https://www.businessforsale.sg/businesses-for-sale/smart-vending-machine-for-sale-4076

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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Anne-marie Sim
Anne-marie Sim
Level 2. Rookie
Answered 3w ago

We are the Authorised Distributor for Pizza Vending Machine, Hot Food Vending Machine, Ice Cream Vending Machine. Interested, pls WhatsApp 90707168.

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