They started out selling gum, and now they’re selling tossed salads. Modern vending machines have come a long way since the first coin-operated machines were introduced in the 1880s. Now, they are a thriving, global business.
Between now and 2021, the American interactive kiosks market is projected to grow by an annual rate of 7.2 percent. In 2016, the market generated $717 million in revenue, 30 percent of which came from food and beverage kiosks — the largest share of total revenue of any category. And it only appears to be growing.
Between 2013 and 2016, the food and beverage segment of the kiosk market’s revenue increased by 8.4 percent, while more than two million new kiosks were ordered and shipped. This growth is expected to continue, with the market segment’s revenue set to reach $310 million by 2021.
Dispensing Big Business
These figures may sound like a lot of vending machine chump change, but there is more to the modern kiosk than just candy bars and soda bottles. Restaurants and food businesses have been cashing in on the self-service kiosk business by developing their very own, providing customers with a dizzying array of food and drink options — and serving them faster, by even allowing customers to order right from their tables. In Japan, there are vending machines that dispense fast meals, like ramen and fish soup, and in China, consumers can even buy whole, live crabs from self-service kiosks. America is not far behind, with some cities, like Seattle, allowing vending machines to sell a diverse mix of items, from fresh juice to legal marijuana.
It’s no wonder merchants are increasingly using kiosks to interact with their customers; people who input their own orders tend to expend more. One study found that consumers spend 30 percent more when they order through self-service kiosks, meaning that using kiosks can automatically boost a business’ bottom line.
Other revelations in the PYMNTS Kiosk and Retail Report, Food and Beverage Edition, include:
- More than $1 billion worth of kiosks were ordered in 2015
- One thousand new food and beverage kiosks were installed in 2016
- Food and beverage kiosks produced $218 million in 2016
In this report, our analysts explore the relationship between the American consumer and the brimming self-service kiosk market, particularly regarding how self-serving food and beverage kiosks are transforming how Americans eat, drink and live.
To find out more about how businesses are using kiosks to improve their customers’ dining (and snacking) experiences, download the report here.
About the Report
The Parking edition of the Kiosk and Retail Report, a USA Technologies collaboration, is designed to give readers a better understanding of how these emerging parking kiosk technologies are shaping the parking industry. The report looks at over 200 data points to gauge the growing parking kiosk market and emerging mobile solutions, and takes a peek into the future of smart parking.