rdinta Posted October 25, 2013 Share Posted October 25, 2013 I am looking to buy into the bulk vending business, purchasing an existing route, and am looking for information on trends in the business. Are groups like National entertainment Network, Vendomatic, etc. making it nearly impossible to go after/or hold onto national chain locations like TGIF, Golden Corral, Johnny Rockets, CICI's etc? Any information on how these groups are effecting the business would be appreciated. Link to comment Share on other sites More sharing options...
musser Posted October 25, 2013 Share Posted October 25, 2013 yes Link to comment Share on other sites More sharing options...
mission vending Posted October 26, 2013 Share Posted October 26, 2013 yes short and sweet answer Like all businesses, vending continues to evolve and change with the times. For the last few years the trend with the national chains is to consolidate their vending, both bulk and full line. They do this by either contracting with a large national or regional player like those you mentioned or go with a management company and they, in turn, will subcontract out to different companies. Link to comment Share on other sites More sharing options...
havending Posted October 26, 2013 Share Posted October 26, 2013 I am looking to buy into the bulk vending business, purchasing an existing route, and am looking for information on trends in the business. Are groups like National entertainment Network, Vendomatic, etc. making it nearly impossible to go after/or hold onto national chain locations like TGIF, Golden Corral, Johnny Rockets, CICI's etc? Any information on how these groups are effecting the business would be appreciated. The places you listed are all franchise and for the most part are serviced by independent operators. Many CI CI owner own their own bulk and have an operator for the amusement. To be honest I'd rather have a good china buffet or home cooking spot then most of the chain spots. Much of it will depend on where you live. Link to comment Share on other sites More sharing options...
rdinta Posted October 26, 2013 Author Share Posted October 26, 2013 The places you listed are all franchise and for the most part are serviced by independent operators. Many CI CI owner own their own bulk and have an operator for the amusement. To be honest I'd rather have a good china buffet or home cooking spot then most of the chain spots. Much of it will depend on where you live. An interesting point, thanks. Question...do most franchise operators have the ability to have their own independent vending machine partner or does the Corporate HQ dictate what a franchise must do. I want to get a better understanding of how this works with Ci Ci and others, as the business I am interested in buying has volume attributed to Ci Ci, Golden Corral, Shoneys etc and I am wondering if this is business that could be lost due to Corporate signing on with a National "player" even though the franchisee is happy with the service I provide. I know there is not one answer for all situations but the better I understand how franchise owners operate with respect to independent vending operators will be very helpful in my decision making process. All input is appreciated Link to comment Share on other sites More sharing options...
musser Posted October 26, 2013 Share Posted October 26, 2013 as the business I am interested in buying has volume attributed to Ci Ci, Golden Corral, Shoneys etc What does this mean? It seems to say you are buying a business that services these accounts. If the buisness is serving Shoneys or Golden Corral it is under a sublicense Agreement with a nation operator. Franchise agreements vary greatly. Most however are pretty strict when it comes to vending. Link to comment Share on other sites More sharing options...
LandJGroup Posted October 26, 2013 Share Posted October 26, 2013 This is a really good topic. As others has mentioned it depends on the franchise. I have a decent number of franchise stores. As hav mentioned they are good to have but not my bread and butter. Whenever they just open a new store hit them up because the owner and regional managers will be there with there happy faces on. They will offer you a wealth of knowledge regardless if you get in or not. Link to comment Share on other sites More sharing options...
How2vend com Posted October 27, 2013 Share Posted October 27, 2013 I am not a huge fan of purchasing routes from people. With some sweat equity you can build your own route into an empire for a fraction of the cost. I would not advise going into debt to purchase equipment or a route. Paying cash as you go will make you profitable soooo much faster. One of my best buys were 50 vending machines all with their own pipe stands for $5 dollars a piece with keys and locks included. All i needed where locations and product. Needless to say I was profitable in just a couple week. Franchises can be tough. Once you get leveraged with all of the machines in place they can start to renegotiate commission rates if their projected revenue is not met yada yada. It takes a unique brave sole with money your willing to burn if everything goes south or another vender offers 5% percent more in commission. People say thats why we make contracts etc etc. However, corporations want to agree to contracts that are in their best interests. If you are savvy to this type of negotiation then the boiling water wont be so difficult to swim through. Good luck. FWIW. Link to comment Share on other sites More sharing options...
sherlock Posted October 27, 2013 Share Posted October 27, 2013 I am not a huge fan of purchasing routes from people. With some sweat equity you can build your own route into an empire for a fraction of the cost. I would not advise going into debt to purchase equipment or a route. Paying cash as you go will make you profitable soooo much faster. One of my best buys were 50 vending machines all with their own pipe stands for $5 dollars a piece with keys and locks included. All i needed where locations and product. Needless to say I was profitable in just a couple week. That you were able to place enough of those 50 machines and earn over $250 + the cost of product back to make your business profitable in only a couple of weeks is incredible. But, new vendors should know that a two-week ROI is very uncommon and not a realistic expectation to set. While it's cheaper to build your own route, sometimes you can find great deals on existing routes. I don't get a ROI of 2 weeks on routes I have bought, but, frankly, I don't get a 2 week ROI on routes I build either. I recommend that a route be made up of something you build and routes you purchase. Good deals can be found in both situations. Link to comment Share on other sites More sharing options...
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