From Zero to $50k in Monthly Vending Revenue in 16 months

Vending machines are a classic passive income source that continues to be profitable today.

We had Mr. Passive himself, Mike Hoffman, in the show before to talk about how to scale up his vending machine business.

And one of his mentees is here today.

Anthony Kolodziej from H&H Vending scaled his vending operation from zero to over $50k per month in just 16 months.

That’s 30+ locations, thousands of transactions, and a strategy that turns vending into something way beyond the old-school snack machine in the corner of a breakroom.

Tune in to Episode 662 of the Side Hustle Show to learn:

• how to land prime locations
• how to negotiate deals
• why he never says the word “vending” when pitching a property manager

Want to go deeper? Check out Mike Hoffmann’s Vendingpreneur training program. (Side Hustle Show listeners get 10% off!)

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Getting Into Vending & Finding the Right Location

Anthony’s been in the real estate business since 2009, but it was always highs and lows. You close a deal, then you’re back at square one.

So he wanted something more stable, more predictable. It should also be something his kids could be involved in and teach them entrepreneurship and work ethic.

Then he came across Mike Hoffman and joined his community in late 2023.

He has one rule in this vending machine business: location is everything.

• Manufacturing facilities – 150+ employees minimum
• Class A luxury apartments – 200+ units, single building (no scattered buildings with a clubhouse)
• Workplaces – Lots of foot traffic
• Office buildings – Ask about vacancy, remote work, and whether they already provide snacks for employees

“I just don’t want to be the guinea pig,” Anthony shared about why he doesn’t want to be in a struggling location. He’s looking for places that need vending, not just places that might be nice to have one.

So if a location can’t do $2K/month for him, it’s not worth it.

Pitching & Closing Deals

Anthony never says the word “vending” when pitching a property manager. He pitches instead “AI-powered smart markets” and then sells it as an amenity for their residents or workers.

Not to mention, most locations have vending machines, but they’re not stocked and no one could get a hold of the operator. That’s one of Anthony’s proposals.

He tells them, “I’m local. You can call me. You’re going to call this cell phone number.”

Anthony also offers rev shares (3-5% of gross sales), which keeps competition from sneaking in and offering a better deal later.

He offers rev share to property managers, but it doesn’t start until 6 months in. Why? Because he’s got a huge upfront investment in equipment. But if they introduce him to three other buildings, he’ll start their rev share immediately.

A lot of them take the deal. And that’s how he turned one placement into multiple, stacked locations, and built his route at scale.

Each location gets a QR code where residents can request inventory — if they want a specific drink or snack, Anthony’s team makes sure they get it. So it’s not just vending but a customer-driven service.

What It Takes to Start a Vending Machine Business?

Anthony’s got $400K into equipment.

And it’s not just one type of machine because he’s running different kinds:

• Futura combo machines – $5K refurbished
• Micro markets – $8-9K each
• Stockwells AI smart machines – $8K each
• Micromart’s AI refrigerated with video screens – $12K each

The Micromarts have video screens that Anthony’s thinking of usual for ad space. So this is another potential revenue stream on top of vending sales.

The Numbers: ROI & Financing

How long until a machine pays for itself?

Anthony bought in a $9K machine and it pulled $750-800 in profit every month; he broke even in 10-12 months. After that? It’s all profit.

But he’s not out here paying cash for every machine. He’s leveraged financing to scale faster.

Most of these machines were $0 down, 60-month financing, $175/month payment.

It keeps cash free for inventory, growth, and expansion.

And honestly, if you’re starting out and don’t have the capital, this is how you scale smart by let the machine pay for itself over time while you keep growing.

Building a Route vs. Buying One

Anthony built his route from scratch, but he’s also bought a route. He mentioned that there are a few pros and cons to acquisitions.

• Building from scratch – more work, more cold calls, more pitching.
• Buying a route – faster, but you’re taking over someone else’s setup.

He picked up a route in downtown Chicago from another Vendingpreneur who was moving. It was a smooth transition and got him into a new market quickly without having to grind out those initial deals.

But he still had to optimize: switch machines, tweak inventory, make sure it was running at his level.

Either way, it’s all about getting the right locations and running them better than the last guy.

A Day in the Life

Running a vending business has stocking, logistics, storage, and route management.

For Anthony, he has a storage unit downtown to keep inventory close to his machines.

But he isn’t doing all the running around refilling machines himself. He’s got a driver handling that now.

His primary focus is on high-level business development tasks.

What Sells? Product Mix & Margins

Anthony isn’t just stocking snacks and drinks. He also includes incidental items too like:

• Tide pods
• Clorox wipes
• Tylenol and Advil,
• and even sunblock in the summer

It’s all about convenience. People don’t just want chips — they want whatever they forgot to grab at the store.

Pricing and margins are very important, and Anthony’s cost of goods runs 30% to 40%, but that number moves depending on how much he’s buying in bulk.

When he started, he was sourcing from big box stores. Now, he earned $27k in inventory just last month alone. And it keeps growing.

Scaling Up: More Units, More Machines, More Stocking

Anthony’s not just running a couple of vending machines in office breakrooms. He’s at 10,000 units now. That means serious logistics.

Last summer, he started interviewing stockers. Because if you’re spending your whole day refilling machines, you’re not growing the business.

Eventually, he bought a used Ford Transit Connect van for $300/month to handle inventory runs. Now, his guy stocks the machines while he focuses on deals.

His kids are a part of it too. He brings them to their weekend Costco runs to help pick inventory. They’ve also tagged along to stocking machines and learned how it works.

Now, they spot vending machines everywhere. In movies, in songs, in stores. They get excited. It’s not just a business but something they’re growing up with.

Mistakes & Surprises

Anthony made a mistake right away on his very first vending: he did not qualify locations properly.

He found a spot 5 minutes from home and jumped on it.

The manager said they have 75 employees across two shifts. Turns out, that means 70 employees during the day, 4 at night. He thought he was getting 150 employees total.

That location makes $700 a month, but after cost of goods, it’s barely worth it.

Now, he asks way more questions.

• How many employees work here?
• What’s the shift breakdown?
• How many actually show up daily?
• Do they already provide snacks?

Lesson learned. Know your foot traffic.

Anthony’s #1 Tip for Side Hustle Nation

“Push through adversity and you will be successful.”

Want to go deeper? Check out Mike Hoffmann’s Vendingpreneur training program. (Side Hustle Show listeners get 10% off!)

Episode Links:

• Side Hustle Show with Mike Hoffman
• Mike Hoffmann’s Vendingpreneur training program. (Side Hustle Show listeners get 10% off!)
• H&H Vending
• H&H Vending snacks and drinks
• 23 Best Real Estate Side Hustles to Build Wealth and Cash Flow
• Scaling a Local Service Business: Multi 6-Figures in Pet Waste Removal
• How to Earn $200k/Year in Semi-Passive Income Through Small Business Acquisitions

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