I was asked today by one of my clients about getting in a coffee machine. This is because we used to have a strong association with a large coffee machine distributor. I stress used too as we do not any more but as a result of this association we do have several clients that do have these machines and considerable knowledge about these machines.
Plus I do claim some expertise in this as I am a certified barista, my wife knowing how much I loved coffer enrolled me in the course.
Overall coffee is a huge industry in Australia. Looking IBISWorld in Australia, there are no major players, turnover is worth about $4.3 billion and the profit of $250 million. Now doing a quick look through the yellow pages, I estimate there are about 15,000 outlets Australia so about $250,000 with $16,000 profit an outlet. So its an open market.
In general, I would say these questions are the most important.
1) Can you put coffee in, in some places like shopping, you need special permission. I know that some people that tried were rejected.
2) How much can you charge for a cup of coffee? The average price is about $4 to $5 dollars with a Barista. What I suggest you do is take a walk outside your shop and see what the competition is around you. See if anyone has these machines near you. Some places like 7-Eleven who are doing a great trade in coffee sell it for $1 a cup if you have one next to you, your price may need to be a $1 too. Furthermore, remember that for a machine, you cannot get full price, you probably are looking at about $2.50. Check also an akin area to yours to see what shops similar to you do charge. In addition, check the traffic flow too as if you are open in the morning and have say a bus stop right in front of you, you probably could pick up a lot of trade as looking at a few clients' data and comments the peak period for coffee sales is between 8:00 am and 10:00 am.
Check also to see who has these machines near you. Some places like 7-Eleven who are doing a great trade in coffee sell it for $1 a cup if you have such a place next to you, your price may need to be a $1 too. Additionally, remember that for a machine, you cannot get full price, you probably are looking at about $2.50.
3) How much room does it take up? Every single foot of your shop's space needs to work hard. One plus is that these machines do not take up a lot of room, and they do not have to be in a prime position. They do, however, need access to electricity. Plus these machines are often messy. One of my clients reported that he had to move some items from the immediate area because of spillage.
4) Time taken and who does the work. You will find its a bit more than its promoters claim. Also does it need a lot of training to use?
5) Australians are serious about their coffee and have a high standard for their coffee. Does this machine make a decent cup, the best is to try it.
6) Repairs and maintenance. These machines frequently break down. How quickly is support and who pays. One of my clients told me that if the coffee machine was not close to the service bay, he would have pulled it out.
A typical scenario here would be a fixed cost of about $1995/year for the hardware and a variable cost of about 63 cents a cup. Now you need to do your figures.
I hope this answers some of your questions.
