Corona Daily 154: Unattended Retail

Vending machines have been around since the 1880s. In London, you could drop a coin to get a postcard. American machines started by selling gum. The coronavirus pandemic has triggered a revolution in the vending machine industry. You not only avoid contact with humans; you may buy by touching only your smartphone.

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In this $25 billion industry, worldwide there are 15 million machines, including 5 million in the USA. With 4 million machines, Japan tops the per capita. India, with more than two billion working hands, is the most reluctant nation to have vending machines.

Traditionally, in North America and Europe, machines can sell anything from food and drinks to engagement rings, morning-after pills and contraceptives, even live earthworms for fishing. However, the standard, known as “full-line” machines, have at least 75% space allocated to food and beverages.

Over the last twelve months, this assortment is expanding rapidly.

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Now you have bread-baking machines, customize-your-yogurt machines. Pizza machines that allow you to choose from three pizzas. Once you choose and swipe your credit card, it takes three minutes to cook the 10-inch frozen pizza. The cooking happens inside the machine, and the hot pizza ($8.50) is delivered to you in a box. This machine is considered ideal for college dorms once they open.

The vending machine hot meal has several advantages over ordering online. The vending machine serves you 24/7. When you are desperately hungry, online orders can take the maximum amount of time. Also, online may have a minimum order requirement.

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People who have lost their jobs or incomes are looking at this business. If you find the right location to install your machine ($2000+), you may recover the costs and start making profits within six months.

Barry and Lori Strickland, a married couple from San Diego, run The Vending Mentors, an educational resource that offers both courses and consulting. Since the pandemic started, their business boomed, 200 new vendors signed up. Most of them are blue-collar workers who lost their jobs, or had hours cut, and are turning to vending as a part-time or full-time business.

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Technology has made management of the machines easier. Only a few years ago, the vending machine owner or operator needed to physically visit the machine, take stocks, replace the sold items. Now all machines are connected to the owner’s computer or smartphone. He gets alerts on which stocks need replenishment.

The hot meal revolution is getting streamlined as well. One vending machine that sells a Caribbean jerk chicken with corn salsa and dairy-free butter chicken, have the items refrigerated, not frozen. Each meal tends to last three or four days. If unsold, it is immediately sent to the nearest food bank.

Worldwide, hotels are getting buy-and-cook vending machines installed. Many hotels with customers have their restaurants and kitchens shut. Instead, a machine simply needs six feet along a wall with a plug and a reliable local vendor.

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Vending machines in Japan have masks, antibacterial wipes and rapid-testing kits. Japanese buyers then mail off a saliva sample for processing.

Singapore vending machines now offer salmon, crab, cacti, Wagyu beef, curry puffs, fresh pizza, fresh orange juice and “free masks”. One man and two women were arrested for stealing free masks, by punching in bogus names. Even in a strict State like Singapore, older citizens think stealing at an unmanned machine is safe.

In France, for 16 Euros a dozen, you can buy a meal of frogs. It can either be ready-to-cook or prepared with cream and wine as a cassolette. Snails are planned, but the progress is slow.

On a couple of English farms, cheese vending machines offer fresh cheddar, smoked and chili cheeses 24/7.

In Washington, after the 6 January riots, Congress staff is now relying on vending machines for meals. Earlier they ordered using Uber Eats or Grubhub, but now the delivery boys are not allowed anywhere near Capitol Hill.

India, as far as I know, has done nothing in terms of vending machines. However, Vendekin Technologies, an Indian platform, offers to turn existing vending machines into smart ones.  

Ravi