The future of passive income is beginning to look downright delicious.
The pandemic has spurred on a sort of renaissance era for the humble vending machine.
As consumers' tastes, lifestyles, and preferences have changed, so has the vending machine.
Today, you can find vending machines pumping out just about anything you can think of.
From electronics to sushi and even cars, vending machines are dispensing things that just a
couple of years ago would have been inconceivable.
But one of the most exciting opportunities today could be pizza vending machines.
Thanks to their profit margins and low costs to get started, they could be one of the best
passive income vending machines available.
As of right now, there are just a few pizza vending machines operating in the US, which
have only started popping up in the last few years.
Meanwhile, Europe has had them for well over a decade now, with great success.
Considering the positive response from European customers and the fact that Americans are
some of the biggest consumers of pizza in the world, it's pretty clear that pizza vending
machines are going to be a huge hit in the United States.
As we know, that means now is the best time to act for entrepreneurs looking to get a
piece of the pie here in the states.
So without further ado, here’s everything you need to know about the so-called automated
pizza ovens.
Pizza Vending Machine Costs As of 2022, there are four main pizza machine
manufacturers vying for market dominance.
You've got Piestro, PizzaForno, Pizza ATM, and the current front-runner, Let's Pizza.
It should be noted that none of these machines are cheap.
At the very least you'll have to shell out $30,000 for a basic model while more full-featured
machines run from $75,000 to $125,000.
PizzaForno is setting itself apart from the other players in the robo-pizza game by building
its own brand while using a licensing model to spread its presence.
But, this is a model that is particularly attractive for people looking for a side hustle
or passive income.
Licensees will have to put down between $115,000 to $125,000 for a package that includes the
machine, basic materials, and territorial rights.
From there, they'll still have to negotiate with landlords to actually place their machines
and then handle all future maintenance and operational costs.
Piestro's pizza robots, as they like to call them, can be pre-ordered for about $75,000.
These are sort of the middle-tier pizza vending machines in terms of price.
They claim that this price is actually pretty reasonable because you’ll get much higher
profit margins with pizza vending than you would from investing in and opening a traditional
brick and mortar store, which isn’t much of a surprise.
Piestro’s pizza robots can pump out a freshly baked pizza in just 3 minutes.
Next is Let's Pizza, which was the first player on the scene to offer freshly made, ready-to-eat
pizzas out of a vending machine.
They initially started rolling out their devices in Northern Italy and Germany in 2009, and
since then, they've expanded their operations by entering the South Korean market in 2015.
They had ambitions to expand to the US a couple of years ago, but at the moment it looks like
that plan has temporarily been put on hold.
Even so, they insist that they are actively working on bringing their pizza vending machines
to America as soon as possible.
So this one isn’t available to US entrepreneurs yet, but keep your eyes peeled because this
brand has a lot of weight behind it.
When available, Let's Pizza's machines are by far the most affordable of the bunch.
According to the DailyMail, Let's Pizza vending machines retail at around $32,000.
Finally, the Pizza ATM machine is currently seeing the most action here in the states.
A new one has just popped up in St. Petersburg, Florida, with other locations popping up in
college towns across the country.
The Pizza ATM has been said to cost about $55,000.
While that might not be cheap, that price point makes it the mid-range offering of all
the machines discussed, and the most affordable option within the US right now.
What makes these machines different from the competition, however, is the fact that they
don't actually produce every part of the pies in question to order.
Rather, it's up to the owner of the machine to stock it with whatever kind of 12-inch
pizzas they desire.
Pizzas are prepped every day in an outside kitchen and loaded into the machine.
When a customer selects what type of pizza they want, the Pizza ATM fetches the selected
pie from its refrigeration chamber and then bakes it to perfection in about three minutes.
In comparison, Let's Pizza and Piestro both make pizzas from the ground up, starting by
kneading fresh-made dough before laying on a coast of sauce, cheese, and toppings.
This could be the reason for the higher price point, and customers may be willing to pay
more for truly fresh-made pizza.
Pizza Vending Machine Benefits Since pizza vending machines have been up
and running overseas for the last decade and a half with tremendous success, could be a
great time to become an early adopter in the US.
The machines currently on the market have proven to be reliable moneymakers, but they’re
also easy to manage.
For example, each of these machines hold enough ingredients to make over 100 pizzas before
they need to be restocked.
That means they’ll be incredibly low maintenance.
And even when servicing or maintenance is required, you can reach out to the manufacturer
directly, which makes it much simpler than finding the right help for generic vending
machines.
Furthermore, the company behind the Pizza ATM, Pauline, is headquartered in the US,
which may give you more confidence going that route.
Lastly, pizza vending machines allow you to remain in control of your business.
You can customize your ingredients and recipes to experiment and see what customers like
best.
Of course, keep in mind that options like the Pizza ATM require you to restock the machine
with premade pizza crusts, which may not be convenient for all investors.
Pizza Vending Machine ROI Pizza Vending machines offer a remarkable
return on investment.
Available performance data shows a high ROI and a very low operating cost.
If you were to sell 12-inch pizzas at $10 each, which, is on the low end of things,
your pizza vending machine will likely make you about $50,000 annually in profit.
Of course, this all comes down to how many pizzas you’re selling each day.
Location is crucial for success, but if you place your pizza vending machine with a lot
of traffic and a ton of hungry people (like a college campus or busy downtown bar district),
you can easily make far more than the estimate we just mentioned.
Here’s a quick example.
If you were to sell 20 pizzas a day at $10 each, you'd be pulling in $73,000 a year in
revenue.
Granted, you have to factor in all of the associated fees and operational costs, which
according to Piestro, results in a profit margin of around 50%.
This means you’d take home $36,000 per year, which certainly isn’t bad for an automated
machine.
And again, there’s a lot of room here to increase your pizza prices or pick the perfect
location where you’ll sell even more pizzas every day.
Let's imagine that you were able to sell 50 pizzas a day – which is totally possible
when you look at the numbers of some of the top-selling European machines.
This would bring in $180,000 of revenue, which means you take home $90,000 a year with a
50% profit margin.
Pizza Vending Machine Hygiene
In this post-COVID world, consumers are a lot more open to the idea of automation when
it comes to their food and beverages.
One of the major benefits of something like a pizza vending machine is how hygienic devices
like these are.
Since human hands don't have to touch every last component of the finished product, the
risk of contamination is greatly reduced.
This makes pizza vending machines even more desirable than a traditional retail food environment.
There’s no risk of contamination from employees, and not to mention you won’t need any employees
to begin with.
These pizza vending machines are completely automated and run 24/7, which means you can
sell around the clock without any additional costs.
Plus, the experience of ordering a freshly made pizza from a vending machine is something
that no pizza-lover will be able to resist.
Because these are still so new, they are going to make a ton of sales in the early days just
because people will be curious about trying them out for the first time.
The Best Vending Machine
Between the profit margins, unique product offerings and the opportunity to jump on the
first mover advantage, pizza vending machines may be one of the best vending machine opportunities
out there today.
If you have any questions about these machines or want us to cover anything more in-depth,
drop us a comment below so we can address it in another video.
Or, if you’re interested in one of the other top vending machine opportunities, check out
this video on the Everest ice and water vending machines.
The profit margins are INSANE.
We’ll see you in the next video!