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Coffee Vending anyone?


soco

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I have started suggesting to my accounts that I can also provide coffee supplies, as a way to expand my current business, while prospecting for new locations.

A new client who wants snack/soda machines also wants to throw out their Bunn coffee maker (honor system) and have a vend coffee system put in.  I looked at Kuerig first but they only have an expensive prototype vend system.  So now I'm looking into Saeco.  Anyone using them?  Feedback? Pros and Cons?  Any other systems to suggest?  I was trying to avoid the old style large generic coffee vending machines that make lousy coffee. :-\

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yea that's a twist on the traditional but as we all know there will be a lot of shrinkage with this method. I have been resisting getting into coffee for quite some time now but now that I have broken into the market I realize how great it is and how much money can be made!

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Mxer: Thanks for the comment re Betson. 

Blue Plate: Thanks for the comment re vending k-cups, I hadn't thought about that, but I will be putting a snack machine in too, so it's possible.  How were the K-cups handled via the coils? or did they shrinkwrap them into a "package" which could be held by the coils better?

Mxer: I don't understand your comment re "shrinkage" with vending k-cups, could you explain as I'm not part of that "we all understand" comment.

I'm looking at the Saeco machines tomorrow and will post my results.

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I really don't remember.  I THINK they modified the coils to be wider.  The K-Cups were in a baggie with a knapkin and a stirer and 2 packs of stirrers.  I was on business at the Maine State offices, I was sort of in a hury at the time.

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Well when i say shrinkage, a lot of people may use the coffee maker and bring their own or make a few cups worth when they are not paying for every cup separate with the vend per cup machines. I am using Brio coffee machines currently they are great machines that will fit just about anywhere, they are about half the size of a AP coffee machine and offer the same selections. I buy 100% from betson since they usually have a nice referb sitting there ready to ship. Coffee coffee vending is something that a lot of people seem to stray away from anymore but let me tell you its a cash cow in the right location.

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  • 2 weeks later...

all of mine are the 8oz models but I believe I can switch it over to the 12oz cups if needed, I also got the mug sensor on all of mine since I know a lot of people like to just use their mug, plus it saves me money in the long run with not having to buy cups.

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Looked at the Saeco and while it's a well thought out machine in many respects, it can't do decaf as it grinds its' own beans, so it's limited that way.  Going to think more about the Keurig and look at the Brio.

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If you are interested in doing full line vending coffee is a very important part to the package and a must to get a lot of bigger accounts. But keep in mind it will be the most complicated aspect to full line vending as far as machines go, I would suggest looking for accounts that will not require coffee to get yourself in the door then worry more about being able to offer coffee machines. especially when a decent coffee machine is going to run you around 4000$ where that will buy a few very nice drink and snack machines.

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I'm gonna jump in late on this discussion as it is all over the place. The Bunn, Keurig, Brio/Seaco and full size coffee machines are not even close in what should be the target market for each style. What you need to determine is where you want to be positioned in the coffee market. Keep in mind that the Brio/Saeco are Italian based brewers, meaning they start by making a cup of Espresso and dilute it to make an American coffee. Each style of machine has a place in the industry but you cannot paint the locations with a wide brush and say that all locations can be serviced with the same machine. The Bunn and Keurig both have a certain amount of the honor system involved. The Brio/Saeco and full size coffees will eliminate this. Even though those in this discussion understand what each type of machine is I am going to break it down some for those reading this that may not.

Bunn: Referred to as a pour over brewer. This is a batch brewer that makes bulk amounts of coffee, like your unit at home. Some of the pluses as a vendor are, the product burns if it sits on the burner to long and a new pot must be made and when making a new pot it is usually a full pot which uses more product then is needed. Traditionally you will sell the location the coffee, creamer, cups, stirrers, etc in bulk so you want the waste. With any luck some of the employees will take some home with them.

Keurig: The K-cup machine. These are extremely popular up here in New England and their popularity continues to grow (wish I bought their stock). These machines make one cup at a time so there is no product waste or burnt coffee. There is always a fresh cup at hand. The cost per cup to the individual (and operator) is higher then any other type of coffee service. Originally the machines were placed much like the pour overs. Sell in bulk and let the location give the stuff away. Due to the price and cut backs locations now are looking for ways to NOT give the coffee away. To solve this you can get a Keurig with a coin acceptor on it or you can sell the K-cups out of a machine. If vending out of a machine you just need to use the right spiral. The machine that Blue plate saw is one of my customers and he is very successful with his approach. We have also sold complete glassfronts set up to vend K-cups or just one or two trays can be set this way.

Brio/Saeco: These are small self contained coffee machines. They make a cup of espresso and dilute it o make regular coffee. The Brio has been refined more then the Saeco to make the American style coffee. The general design of these machines limit them to smaller and more secure locations then their full size counterparts.

Full size coffee machines: Ahhh, the grand daddy of them all. Throw out what you ever knew about coffee machines because this new generation of Gourmet Coffee Machine has fully come of age. It can make a good up of coffee, control costs and make you lots of money with a lot less labor then ever before. With the blends and flavored coffee these machines are enjoying a resurgence.

It doesn't cost a lot to make a cup of coffee. But the mantra in coffee vending is the same as computers "Garbage in, Garbage out". You can't make a good cup of coffee with crappy coffee but you can make a crappy cup of coffee with a good coffee. The ability to make a good cup of coffee is what will set you apart.

The more you research coffee the more you will see you know nothing about coffee. I forgot where I was going with this. Hopefully it makes some sense. If I need to clarify anything just ask.

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Tech, it seems Blue just made it worth jumping into this thread late...

My set up is a large retail organization with a break room that truckers, employees, reps and wholesale customers use.  While it's not hundreds of people a day, it's good solid traffic 6 days a week and not close to any coffee outlets.  They want a soda and snack machine in the room and I've sold them on the idea of an additional soda out front at the cash registers.  Then I saw their Bunn, looking forlorn and burnt around the edges, and started talking with them about coffee service too.  They no longer want to subsidize it and want another solution.

I'm liking the idea of selling K-cups through a snack machine; maybe getting a larger capacity snack then I anticipated so I have enough spirals for everything.

On a related note the sales reps at Keurig haven't been especially helpful... more like doing me a favor to even answer my phone call.  Did I recently see Keurigs for sale at Sam's?

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You will find the Keurig at many stores now. Kohls, Sams, Walmarts, etc will soon be carrying them. If memory serves me Keurig signed a deal with Cuisinart to make their home brewers. That being said, that is what you will probably be getting at Sam's is a home brewer. I cannot recommend using a home anything in a commercial application such as microwaves, brewers, toaster ovens and the like. There have been horror stories through the years about home units being used commercially and then issues with insurance claims when something goes wrong. I would look at Keurig's website as they do sell individual commercial rated brewers online without having to sign up for their program.

As far as selling the K-cups through a machine you will still need to address the ancillary products. Cups, sugar, stirrers, creamer and anything else they may want. If you package them up like BP said you will still have to sell them cups.

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My client decided against any coffee vending because they didn't want to offer anything more to their employees then the 2 soda and 1 snack machine I'm already setting up.  It wasn't meant to be.  Good coffee education from the pros here tho'.

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Yea coffee is something I never push the issue on since its usally a huge investment and a bit of a pain but it can yield some very good money. I have also won some big money accounts by being able to offer coffee where the previous vendor would not.

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