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How do YOU start a Healthy Vending Business?

If you’re looking to get on board with the healthy vending revolution that’s taken America by storm, you’ll need the right vending machine, appropriate product, and the best locations, without breaking the bank! We’re here to tell you exactly how you can do this without being locked into a franchise such as Human Healthy Vending.

Whether you’re vending traditional snacks, drinks, healthy snacks, or a combination, you’ll need a vending machine that is appropriate for your product and eye-catching to draw in customers. Many healthy vending franchises say they’re giving you a great deal when they offer vending operators start-up packages that include the machine, product, locations, tutorials, etc. for exorbitant prices. Such franchises include Human Healthy Vending, Healthy You, Fresh Healthy Vending, Naturals 2 Go, and others. Don’t be fooled! You can buy a vending machine new or used with a warranty for less than half of the cost that the healthy vending franchises charge! When buying a machine, keep in mind that a Healthy Wrap or some other healthy design/decal will identify your vending machine as a healthy option for customers and attract more sales.

Many healthy vending operators who are just getting into the business are under the impression that they have to special-order product or purchase online to offer their customers the healthier options they’re looking for. Many of the franchises like HUMAN Healthy Vending and Fresh Healthy Vending are spreading these lies but it simply is not true! healthy-vending-expensiveYou can find most healthy vending products locally. Check out our blog post on healthy product ideas. Buying in bulk from places like Sam’s Club or Costco can save you hundreds when re-stocking your machine and you can then pass those savings on to your customers. Additionally it is more convenient to be able to buy them on demand as you are serving your route instead of waiting days for the product to arrive.

Once you have the perfect healthy vending machine with all the best products stocked in it, you need to find the most profitable locations for your machines. Check out the DVS Blog for tips on finding and securing some of the best locations; remember that you don’t have to hire a locator or offer high commissions to get your machine in the hottest spots. You can usually sell a prospective customer on your machine, product, and services alone, without the need to offer a commission.   However, if you don’t have time to locate the machines yourself, there are many great companies out there who can help you find good locations for around $400- 500. Check out our resources page for more information.

Lastly you will need the proper licensing from your state, county and city where you are doing business. Don’t get overwhelmed by the bureaucracy though. With a simple google search you should be able to find out what forms need to be filed and licenses obtained in your local area. The vending business is one of the easiest small businesses to get into and the Return on Investment (ROI) is typically less than a year if you do it right by buying an affordable machine and securing good locations.  Give us a call as we are here to help you do just that.  If you have additional tips and feedback please share them with us.

New USDA School Regulations

And How It Affects Your Vending Machine… 

In an effort to reduce the percentage of childhood obesity in the United States, the federal government has elected to alter the rules and regulations put forth by the US Department of Agriculture for snack and drink vending machines. These guidelines are being put into place in order to safeguard the health and well-being of future generations. For most people, this revolution won’t change anything. However, aside from nutrition coordinators and schoolchildren, there is a small minority who will certainly feel the impact of new procedures.

Vending machines are in the halls of schools all over the country. Behind those machines are vending machine proprietors and business owners whose livelihood depends on what products are in their machines, and the demand from consumers to purchase those products. Knowing the latest nutritional information and restrictions is essential for these entrepreneurs to succeed in their business and, with that in mind, here is a list of the newest facts and regulations issued by the USDA:

All Foods

Must be “whole grain-rich” products; or have a fruit, vegetable, dairy, or protein as their first ingredient; be a combination food that contains at least 1/4 cup of fruit and/or vegetable; or contain 10 percent of the daily value of one of the nutrients of public health concern in the 2010 Dietary Guidelines for Americans (calcium, potassium, vitamin D, or dietary fiber.)

Limits Per Serving

Calories: Snack: 200; Entrée: 350
Sodium: Snack: Less than 230 mg.; Entrée: 480 mg.
Fat: Snack: 35% of calories; Entrée: Less than 10% of calories; Trans fat: zero grams
Sugar: 35% of weight from total sugars in foods

NOTE: Beginning July 1, 2016, foods may not qualify using the 10% daily-value criteria, and snack items must contain no more than 200 mg. sodium per item.

Beverages

Juice: 100% fruit juice or vegetable juice with no added sweeteners
Milk: Unflavored, low-fat, or flavored low-fat milk; milk alternatives are allowed.
Water: No restrictions on plain water (with or without carbonation)

So What’s In and What’s Out?
Here are a few examples…

 

What’s In

What’s Out

Light Popcorn Chocolate Sandwich Cookie
Granola Bar Chocolate Bar
Flavored Water Soda Pop
Baked Potato Chips Candy
Trail Mix Snack Cakes
Dried Fruits Cookies
Fruit Cups Pretzels
Yogurt Ice Cream
Diet Sodas High Calorie Sodas
Diet Sports Drinks High Calorie Sports Drinks

When determining what merchandise to stock in a machine, keep a few key things in mind; under the new rules, most food sold in school will now be subject to fat, calorie, sugar and sodium limits. Snack foods will have to be less than 200 calories and have some nutritional value instead of being mostly empty calories. By respecting these new directives, a vendor is choosing to be a part of the cause and is helping reduce the consequences of childhood obesity, along with ensuring a secure, long-standing enterprise for future years to come.

To learn more about healthy vending options, visit Piranhavending.com we are always striving to offer the best service and satisfaction to our customers.

Healthy Vending Trending for the Future

Healthy vending is the wave of the future. If you have been dragging your feet with opening a healthy vending business, here is some information to get you excited to jump on the bandwagon!

Several states have legislation in the works to mandate more healthy options in vending machines, thus making vendors feel pushed to ‘go healthy’. According to the Public Health Law Center website, “experience is showing that healthy vending initiatives can actually result in increased sales, especially when pricing, placement, and other marketing strategies are used to encourage healthier purchases.”  You really can be successful selling healthier options in your vending machines!

Legislators and vendors need to “focus on the common ground as much as possible — both supporters of healthy vending movements and vendors recognize that if the products do not sell, the policy will not be successful. Nutritional standards for vending machines should be evidence-based, but also should take into account what vendors are doing already, and what products are actually available in the region. The implementation plan should factor in adequate time for vendors to transition their products and acclimate customers to the changes. Marketing strategies that encourage people to purchase healthier options, including pricing, product placement, and promotional materials, should be included in policies and guidelines. Vendors should be supported through communications and outreach activities.”

Vendors are coming to understand that market forces are changing. New studies and market research continue to emerge showing that consumers increasingly want healthy food and beverages. The evidence is showing that healthy vending efforts, with planning can be just as profitable and successful — if not more — as the increasingly outdated business model based on junk food offerings.

A recent study of the Chicago Parks District’s healthier vending policy (which requires 100% of products to meet modest nutrition standards) found that the overall average monthly sales per machine increased by over 400% (from $84 to $371) during the first contract year, and that 98% of patrons surveyed stated they would buy snacks again.

Healthier options for vending machines

Consumer Attitudes

The International Food Information Council (a food industry trade group), conducts annual surveys on consumer attitudes about food and reports on trends. Its 2014 consumer survey found that the importance of healthfulness (which has long been one of the top three factors that influence food purchasing decisions) has increased significantly, with 71% of consumers now reporting that they are influenced by healthfulness when buying food and beverages — up 15% from 2011. In contrast, taste and price (the number one and two factors) have remained relatively unchanged at 90% and 73%, respectively.

The 2016 consumer survey found that healthfulness continues to drive consumer’s choices. Many Americans are making an effort to choose more healthful options. More than three-quarters (76%) of Americans report making small changes to achieve an overall healthier diet. Eight-in-ten (81%) have made an effort to eat more fruits and vegetables, with three-in ten having made this change in the past year. Similarly, most are trying to cut calories by drinking water or low and no-calorie beverages (76%), eating more foods with whole grains (65%), cutting back on foods higher in added sugars (70%), and consuming smaller portions (66%). In fact, the average American is doing at least six of ten healthful eating behaviors. Women, college graduates, those with higher income, and those in better health were more likely to report engaging in the healthy eating behaviors.

When probed about their motivations for adopting healthy eating behaviors, most Americans say that they made the changes either to lose weight (63%) or to protect their long term health (62%).

These are some huge numbers. People, (potential customers) would rather purchase healthy options to support their long term health!! With the data and legislation momentum, healthy vending is only showing signs of growing into a large and profitable market.

We Can Help You!

At Piranha, we have plenty of options for anyone looking to get their foot in the door of the healthy vending business trend. We offer resources for vending placement, technical support and even training in our warehouse here in Michigan. We’d love to see you succeed with one (or several) of our healthy vending machines.

Too much sugar in Drinks

Label reading can be quite daunting especially when it comes to snack vending machines. Sugar is often a hidden ingredient on the labels in processed foods. Among other things, it enhances flavor, promotes browning and aids in preservation; however, the high sugar content in foods comes with a trade off. Excessive sugar intake can lead to type 2 diabetes, contribute to metabolic syndrome and lead to excessive weight gain. The empty calories in sugar don’t provide any nutritional benefit to the body, which is why it is important to know other names for sugar on food labels. Here are some common alternative names for sugar:

  1. Barley malt
  2. Barbados sugar
  3. Beet sugar
  4. Brown sugar
  5. Buttered syrup
  6. Cane juice
  7. Cane sugar
  8. Caramel
  9. Corn syrup
  10. Corn syrup solids
  11. Confectioner’s sugar
  12. Carob syrup
  13. Castor sugar
  14. Date sugar
  15. Dehydrated cane juice
  16. Demerara sugar
  17. Dextran
  18. Dextrose
  19. Diastatic malt
  20. Diatase
  21. Ethyl maltol
  22. Free Flowing Brown Sugars
  23. Fructose
  24. Fruit juice
  25. Fruit juice concentrate
  26. Galactose
  27. Glucose
  28. Glucose solids
  29. Golden sugar
  30. Golden syrup
  31. Grape sugar
  32. HFCS (High Frustose Corn Syrup… Very Bad!)
  33. Honey
  34. Icing sugar
  35. Invert sugar
  36. Lactose
  37. Malt
  38. Maltodextrin
  39. Maltose
  40. Malt syrup
  41. Mannitol
  42. Maple syrup
  43. Molasses
  44. Muscovado
  45. Panocha
  46. Powdered Sugar
  47. Raw sugar
  48. Refiner’s syrup
  49. Rice syrup
  50. Sorbitol
  51. Sorghum syrup
  52. Sucrose
  53. Sugar (granulated)
  54. Treacle
  55. Turbinado sugar
  56. Yellow sugar

There are some “Fake Sugars” and Sugars that we’re often told that aren’t as bad for you that are worth researching as well:

  1. Splenda
  2. Aspertame
  3. Agave Nectar

The results are particularly shocking.  Read the labels and due your due diligence when researching. When you see the names and have questions about the health value of the sugar or possible issues, you can search the name in a search engine and find out a wealth of information on that particular type of sugar.

Suggested Shelf Life for Popular Vending Items

expiration-dateVendors need to pay attention to expiration dates of products that are sold.  The following are suggested shelf life for the most popular vending items.  You should always follow expiration or sell-by dates printed on the products that you purchase.  If you have a vending question, ask us about it here!

 

 

 

Chocolate Candy 9-12 Months
Sugary Candy (ie: runts, Mike & Ikes, Skittles, Hot Tomales) 18 Months
Gumballs 18 Months
Licorice 6-9 Months
Nuts 6-10 Months
Chips 2-3 Months
Pop Tarts 5-7 Months
Granola Bars 6-8 Months
Bottled Diet or Non-Diet Soda 3-4 Months
Canned Diet Soda Soda 3-4 Months
Canned Non-Diet Soda 9-12 Months
Gatorade or other Sugar Sugary Juice Drinks 9-12 Months
Bottled Water 10 Years
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Piranha, LLC
50601 Central Industrial Drive
Shelby Township, Michigan 48315, USA

Email: piranhamfg@gmail.com

Phone: 800-764-8245 * 586-997-1212

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