6 Tips to Start a Vending Machine Business in the UK [Definitive Guide]

Have you seen those TikToks where vending machine business owners show how much profit they made in just two weeks?

Sounds tempting, right?

Setting up a vending machine can be a flexible and profitable venture that offers the potential for passive income with relatively low startup costs. 

But while the idea sounds simple — buy a machine, stock it with goodies, and collect the profits — the reality is a bit more strategic.

In this guide, we’ll walk you through the essential tips to set you up for success, from choosing the right products to finding the best locations and ensuring your machines are compliant with the law.

1. Perform in-depth market analysis

Before investing your hard-earned money into vending machines, you need to do proper market research. Where are vending machines already installed? What products are selling well? Where are the gaps?

You should consider high-traffic locations such as:

• Workplaces and offices: Especially in buildings with 40+ employees, placing machines in break rooms, near meeting areas, or entrances can generate reliable daily sales.
• Shopping centres and retail areas: Locations near entrances, exits, and central hallways encourage impulse purchases due to the high foot traffic.
• Leisure centres and gyms: Visitors often crave healthy snacks or sports drinks post-workout, making these ideal spots for protein bars, bottled water, and low-calorie items.
• Hospitals and healthcare facilities: These are 24/7 locations with high foot traffic from both staff and visitors, ideal for offering snacks, hot drinks, or personal care items.
• Airports: With millions of annual travellers, airport vending machines can sell snacks, drinks, travel accessories, and tech essentials profitably.
• Schools and universities: Common rooms, libraries, and lecture halls offer access to a young audience who frequently use vending machines.
• Apartment buildings and residential complexes: Machines in communal areas or lobbies can generate passive income from residents.
• Government buildings and courthouses: Limited on-site food options make vending machines a convenient alternative for staff and visitors.
• Small local businesses: Barbershops, salons, butchers, or fish & chip shops may host compact vending machines offering refreshments or impulse treats.

Additional considerations

📋 Legal permissions: Public spaces require permission from the council, and private property requires consent from the owner. Make sure you have written agreements!

♿ Accessibility: Machines must comply with the Equality Act 2010, ensuring controls are accessible to users with disabilities, including button height, screen readability, and reachable payment terminals.

👀 Visibility: Machines should be positioned where they are clearly visible to maximise usage and increase sales.

🎯 Product fit: Match your product selection to the preferences of people frequenting the location.

2. Choose the right products for your audience

Product selection is what makes or breaks your machine. You’re not just selling snacks — you’re solving a specific need at a specific location.

Here’s what sells well in UK vending machines:

3. Create a strong business plan

A clear business plan is essential for setting goals, securing funding if needed, and tracking your progress. 

A detailed plan also helps you stay focused on specific goals, allocate your budget wisely, and measure the success of each vending location.

What to include in your business plan:

• Business objectives: Define your targets clearly, such as "Operate 5 machines generating at least £400 each per month within the first year."
• Target market: Identify your main customers — office workers, students, travellers, or fitness enthusiasts.
• Product strategy: Decide on the mix of products to offer based on location and customer preferences.
• Location strategy: Outline how you will find and secure machine placements.
• Startup and operating costs: Include purchase costs (£1,200–£3,000 per machine), initial stock, insurance, permits, maintenance, and repairs.
• Revenue projections: Create realistic forecasts based on location type and foot traffic. For example, machines in busy offices often generate £250–£400+ monthly.
• Funding strategy: Specify if you will self-finance, take out a loan, or seek investment.

💡 Pro tip from ANNA

If you don’t have the funds upfront to buy your first vending machine or stock it properly, ANNA can help with flexible credit options. 

How?

Open a business account and send us a message in the app about getting a loan.

Then, you can split your startup costs over 3 months, get quick access to a credit pot, or apply for a tailored loan – without drowning in paperwork. 

It’s a simple way to get your vending business off the ground faster.

4. Select and purchase vending machines

Once your plan is in place, it's time to select the right equipment that matches your product selection and budget.

Types of machines to consider:

• Snack machines: Great for crisps, chocolates, and bars. These are often used in schools, offices, and gyms.
• Drink machines: Dispense bottles, cans, or hot drinks like coffee and tea. This is quite common for hospitals and transport hubs.
• Combination machines: Offer both snacks and drinks in a single unit — a space-saving solution for small venues.
• Smart machines: Feature touch screens, inventory monitoring, and card/contactless payment systems. These are ideal for high-end locations like airports and corporate buildings.
• Specialist machines: Designed for items like tech accessories or chilled fresh food. Suitable for niche markets or specific venues.

⚠️ Tip: Starting with used or refurbished machines can cut initial costs significantly. However, ensure the seller offers a warranty or service support.

Key features to prioritise when looking for a vending machine:

✅ Payment options: Machines should accept both cash and card/contactless payments — card payments now account for more than 50% of vending purchases in the UK.

✅ Energy efficiency: Choose energy-saving models to lower running costs — particularly important for chilled machines.

✅ Remote monitoring: Allows you to track inventory, performance, and maintenance needs via your phone or desktop.

✅ Ease of refilling and cleaning: Choose machines that are simple to restock and sanitise, especially if handling food or drinks.

🧰 Ongoing considerations:

• Keep a stock of essential parts (e.g., motors, buttons, payment modules).
• Schedule quarterly deep cleans and servicing.
• Monitor machine error logs if software-enabled.

A well-chosen machine will pay for itself in just a few months in a high-traffic location. 

Start with 1–3 units and expand as you learn which models and features work best for your business goals.

5. Register your business and meet legal requirements

Ok, now it’s time for more serious stuff.

Before you begin trading, it's important to get your business legally set up and meet all compliance obligations, especially if your vending machines sell food or drinks.

Choose a business structure

You can operate as either:

• Sole trader: Easier to set up, fewer reporting obligations, but you’re personally liable for any business debts.
• Limited company: Offers limited liability, which separates your personal finances from the business — though it comes with more legal and tax obligations.

Many vending operators start as sole traders and later transition to limited companies as they scale.

Register with the right authorities

✅ Register your business with HMRC if you're a sole trader or form a limited company through Companies House. Or, use ANNA to register your company for free (even on the same day) and get a business account along with valuable add-ons.

✅ Register as a food business with your local authority at least 28 days before trading if you're selling any food or drinks — even pre-packaged items.

✅ Food hygiene regulations apply. You must ensure machines are clean, food is stored correctly, and allergen information is clearly displayed.

Permissions and legal requirements

• For private property, get a written contract signed with the property owner or their managing agent.
• For public land or council-owned properties, you’ll usually need to apply for permits and possibly go through a tender process. This can take time, but opens up valuable high-footfall locations.
• Always check zoning restrictions, insurance obligations, and whether your machine setup complies with local fire and safety rules.

6. Source inventory and build supplier relationships

Now it’s actually time to stock your vending machines.

To maximise profit, create a smooth and cost-effective supply chain that supports consistent quality and availability.

Where to buy stock in the UK

1. Wholesalers

Buying in bulk from wholesalers like Booker, Bestway, Costco Business, or JJ Food Service gives you access to better pricing and consistent stock levels. These suppliers often have trade accounts and delivery services suited for vending operators.

For example, Booker offers multipacks of branded items like Walkers, Kit Kat, or Coca-Cola at wholesale prices — ideal for filling several machines with high-demand products.

2. Cash and carry stores

If you're just starting and not ready to commit to bulk delivery, visiting a cash-and-carry warehouse can be a flexible option while you test which products perform best.

3. Online distributors

Sites like Vending Superstore or Refreshment Systems specialise in vending-sized packaging, often including tailored bundles for snacks, drinks, and healthy options.

4. Local suppliers

For fresh or niche products (like artisan snacks or sustainable items), connecting with regional food suppliers or independent brands could give you an edge. These work especially well in trendy office spaces or university campuses.

🚫 Avoid:

• Buying from retail supermarkets: It may seem convenient, but the markup is too high to sustain profitable vending margins.
• Unbranded or low-rotation items: Unless you know your audience well, unknown brands can sit unsold and take up valuable space. Instead, try new items by placing a small quantity in one machine and tracking the sales before rolling them out widely.

Build relationships that benefit your business

• Negotiate trade deals: Once you’ve settled on your go-to suppliers, don’t hesitate to negotiate better rates, delivery terms, or promotional stock deals — especially if you’re growing fast or operate multiple machines.
• Set a restocking schedule: Regular ordering keeps your machine full and customers happy. Use sales reports from smart machines to automate your reordering process.
• Keep your options open: It’s smart to have backup suppliers for popular items in case of sudden shortages, price hikes, or seasonal demand spikes.

Wrapping up

Starting a vending machine business in the UK is more than just plugging in a machine and waiting for the coins to drop.

You need the right products in the right places, with the proper business setup behind the scenes. 

With smart planning and continuous fine-tuning, your vending machines can become reliable income generators.

Start your business with ANNA – Company registration made simple

If you're ready to turn your vending machine idea into a real business, ANNA makes company registration quick, easy, and affordable.

✅ Register a Limited Company for free

With ANNA, you can register a Private Limited Company (Ltd) at no cost when you choose the Enhanced or Total Support plan. The process takes just a few minutes, and most companies receive confirmation within 1–3 business days.

✅ Open a business account at the same time

Every company needs a separate business bank account — and ANNA lets you set one up alongside your registration. You’ll get a debit Mastercard, instant payment links, expense cards for employees, and support for both local and international payments.

✅ Choose from flexible support plans

Whether you just want to register and go or need extra help running your company, ANNA offers tailored packages:

✅ Optional Add-ons

Need a virtual office? Want help with PAYE or VAT registration? ANNA also offers affordable add-ons like:

• Virtual office from £15/month
• VAT registration for £39.90
• PAYE registration for £39.90
• + Taxes that covers all the essential taxes you may need
• Share management, confirmation statements, and more

ANNA is ideal for new vending machine businesses — especially if you're starting solo. You can register as a single director, keep your personal address private, and get support on everything from taxes to compliance.

Your data is secure, your registration is handled directly with Companies House, and ANNA’s team is available 24/7 via chat or email if you need help.