How to start a vending machine business in the UK

Starting a business is one of the most effective ways to take control of your income — but knowing where to start isn’t always easy. If you’re looking for a relatively low-barrier, flexible business model, starting a vending machine business could be a smart move.

Vending machine businesses can be quicker to launch than many traditional startups, don’t require a physical storefront, and can often be run alongside a full-time job. With the right planning, location, and products, they can also become a reliable source of recurring income.

In this guide, we’ll walk you through how to start a vending machine business in the UK, from choosing the right machines to understanding costs, legal requirements, and profitability.

In this article:

• What types of vending machines you can start in the UK
• How much it costs to launch and run a vending business
• Steps to start a vending machine business from scratch
• Legal requirements and insurance you need to consider
• How to pick the right location and products
• Tips to make your vending business profitable and scalable

The UK vending industry has evolved far beyond crisps and fizzy drinks. Today, first-time founders can choose from several different vending machine business models, each with its own advantages and challenges. Let’s talk through the different types of vending machine businesses you could start:

Food and drink vending machines
This is the most common type of vending machine business. These machines sell snacks, soft drinks, hot drinks, or fresh food and are typically placed in offices, hospitals, universities, gyms and transport hubs. They benefit from consistent demand but face strong competition and tighter margins.

Bulk vending machines
Bulk machines dispense small items like sweets, toys, or capsules, often for £1 or less. They’re cheaper to buy and maintain but rely heavily on high footfall locations, such as shopping centres or leisure venues.

Speciality vending machines
These machines sell niche products like coffee, protein snacks, electronics, PPE, flowers or even phone chargers. While startup costs are often higher, speciality vending can be more profitable due to higher price points and lower competition.

Smart and contactless vending
Modern machines equipped with contactless payments, remote stock monitoring and sales analytics are becoming increasingly popular. They cost more upfront but can significantly reduce admin time and improve profitability over the long term.

Tip: This might sound obvious but speciality and smart vending machines often perform best in locations where the product solves a very specific problem — such as protein shakes in gyms or phone chargers in airports

Starting a vending business is actually more accessible than you might think, but preparation is key. Here’s what you should consider:

Market research helps you understand whether your vending machine business idea is viable and where it’s most likely to succeed. At this stage, you should:

• Research the demand for different vending products in your local area
• Analyse existing vending machines nearby and what they sell
• Identify potential locations with strong footfall
• Understand who your target customer is and what they’re likely to buy

For example, a vending machine placed in an office building may perform best with coffee and healthier snacks, while machines in student accommodation often sell energy drinks and affordable convenience items.

Your vending machines will be your biggest upfront investment. But there are a few different ways you can finance the start of your vending machine business, such as:

• Buy vending machines outright (new or refurbished)
• Lease vending machines to reduce initial costs
• Rent vending machines on a short-term or trial basis

New machines often include features like contactless payments and remote monitoring, while older machines are cheaper but may require more maintenance. You’ll also need to source stock. Many vending business owners either:

• Buy from specialist vending wholesalers
• Purchase stock in bulk from cash-and-carry suppliers like Bookers or Costco

If you plan to manage restocking yourself, you’ll also need access to a car or van or you may find it difficult to manage stock.

There’s no single mandatory insurance policy for vending machine businesses, but several types of cover are strongly recommended. Most owners choose:

• Public liability insurance, which protects you if your machine causes injury or damage to a customer
• Contents or equipment insurance to cover theft, vandalism, or damage to your vending machine
• Product liability insurance if you sell food or drink

Insurance costs vary, but many policies start from around £50–£200 per year.

In most cases, you don’t need a specific licence to operate vending machines in the UK. However, you do need to make sure your business is properly registered and compliant before you start trading.

First, you’ll need to register your business. Most vending machine owners choose one of two options:

• Sole trader: You register as self-employed with HM Revenue & Customs (HMRC). In practice, this means telling HMRC you’re trading so you can complete an annual Self Assessment tax return. If you earn more than £1,000 from vending sales in a tax year (which runs 6 April–5 April), you must register by 5 October following the end of that tax year to avoid penalties. For example, if you began trading in May 2025, you’d need to register by 5 October 2026
• Limited company: This is a separate legal entity and needs to be registered with Companies House before you begin trading. If you choose to register a limited company for your vending machine business, why not try our company registration service? If you register with Companies House, it’ll cost you £50. We only charge £12!

If you aren’t sure which structure suits you, it’s worth researching the differences. But either way, getting registered early helps you keep your financial records clean and avoid last-minute stress from HMRC.

Food sales and local council requirements
If you plan to sell food or drink from your machines, you must:

• Register as a food business with your local council before trading begins
• Comply with applicable food hygiene and safety regulations

This ensures you’re meeting legal standards for food handling and public safety.

Site permissions
Finally, if you place machines on private property, like in offices, gyms, or retail spaces, you’ll need the site owner’s permission. This is usually covered in a simple written agreement outlining access, any revenue share or rent and maintenance responsibilities.

Launching a vending business is easier when you break it down into clear steps:

Decide what type of vending machine fits your goals and budget. Snacks and drinks are reliable; speciality machines can offer higher margins if you find the right audience.

Location is everything in vending. Areas with a high footfall such as offices, schools, gyms, and leisure centres, are ideal. Speak with site owners about placement agreements or commissions.

Even a simple plan helps you understand costs, forecast revenue, and plan for growth. Include:

• Target products and machines
• Startup costs
• Revenue projections
• Maintenance schedule

You can operate as a sole trader or limited company. Registering as a limited company is quick and affordable, and services like Countingup make it even easier. Don’t forget to set up a dedicated business current account.

Decide whether to buy, lease, or rent machines. Stock up based on your chosen niche and customer demand, and plan for replenishment schedules.

Confirm any local trading rules, food safety requirements, and insurance obligations. Keeping everything compliant avoids fines and ensures your business runs smoothly.

Machines require regular restocking, cleaning, and maintenance. Plan a schedule that keeps your machines functional and your customers happy. Gathering what you’ll need for a vending machine business

Before you know how to start a vending machine business, you need to plan for success and gather all the tools you need. Then, with the right preparations, you can pursue your business with purpose. 

Startup costs vary depending on your niche and scale. Here’s a rough guide:

• Basic snack/drink machine: £500–£2,000 per machine
• Speciality machines (coffee, frozen): £2,000–£5,000
• Insurance: £50–£200 per year
• Initial stock: £50–£500

Many entrepreneurs start with just one or two machines and expand as profits grow.

Vending businesses can be highly profitable if planned carefully. But success depends on a variety of different things. Let’s take a look:

• Location: High-traffic areas drive higher sales
• Product selection: Stock items that appeal to your audience
• Maintenance: Well-stocked, clean machines keep customers coming back

Margins vary, but many machines generate a steady, passive income with minimal ongoing effort.

Franchises offer support, proven products, and branding, but usually come with higher upfront costs and fees. If you’re confident in choosing your own machines, locations, and stock, independent vending can be more flexible and potentially more profitable.

Keeping your vending business organised is simple with the right tools:

• Track revenue per machine
• Schedule maintenance and restocking
• Use a business current account to manage income, expenses, and tax obligations

Our smart business current account can help you automate accounting, track expenses, and make invoicing easier.

While vending relies heavily on location, you can still market your business:

• Offer promotions or bundle deals
• Partner with local businesses to increase foot traffic
• Leverage social media to showcase unique or speciality machines

Starting a vending machine business in the UK has never been more achievable. With the right niche, strategic locations, and careful planning, you can grow from a single machine into a thriving business.

To get started, check your preferred company name with our company name availability checker, and once you’re set up, manage your income and expenses easily with our business current account.

Can I start a vending machine business for free?
Not unless you already own machines and stock. Most businesses require at least a modest upfront investment.

Is it easy to start a vending machine business?
With planning, research, and the right location, it’s straightforward. Ongoing success depends on maintenance, stocking, and understanding your audience.

Do I need to register my vending machine business?
Yes. You can register as a sole trader or limited company. Using a service like Countingup makes the process quick and affordable.