In the increasingly competitive world of convenience retail, gas station owners are discovering new ways to enhance profitability without expanding square footage or staff. One of the most effective and underutilized strategies is the integration of automated revenue-generating solutions such as vending machines, ATMs, and specialty kiosks. Nick Kambitsis of Raceway Petroleum explains that these installations offer passive income, low maintenance, and high adaptability, making them a smart choice for station owners looking to diversify their revenue streams and increase customer dwell time.
The Business Case for Automation: Why It Works
Gas stations are naturally high-traffic environments. Whether it’s commuters grabbing coffee, road-trippers refueling, or locals swinging by for essentials, these customers present an untapped market for more than just gasoline and chips. Strategic vending solutions provide additional services and products without the need for increased staffing or significant infrastructure investments.
Low Overhead, High Return
Automated systems have relatively low overhead. They don’t require payroll, they operate 24/7, and most can be remotely managed. In many cases, third-party operators can own and maintain the machines, with gas station owners receiving a percentage of the profits or a monthly leasing fee. This means additional revenue with almost no effort beyond providing the space and power.
Vending Machines: More Than Just Soda and Candy
Modern vending machines go far beyond basic snacks and beverages. Thanks to advancements in technology and changing consumer habits, vending options now include a wide variety of niche products. Each of these represents an opportunity to cater to different customer needs and preferences.
Healthy Snack Vending
Consumers are becoming more health-conscious, and stocking machines with low-calorie, organic, vegan, or gluten-free snacks and drinks can cater to this growing demographic. Fresh wraps, protein bars, fruit juices, and even kombucha can now be found in modern refrigerated machines. These healthier options not only serve a wider audience but can also command higher price points.
Electronics Vending
For travelers and commuters who may have forgotten their charging cables, headphones, or phone accessories, an electronics vending kiosk can be a lifesaver. Compact machines can offer USB chargers, portable batteries, earbuds, and even prepaid SIM cards. These machines are especially effective at locations near highways, airports, or urban centers.
CBD and Wellness Product Vending
With CBD products gaining mainstream acceptance, vending machines offering CBD-infused drinks, oils, gummies, and wellness products are now viable revenue generators. Licensing and local regulations must be considered, but these machines can cater to a niche yet loyal market segment willing to pay premium prices for convenience.
ATMs: A Steady Stream of Transaction Fees
An ATM remains one of the simplest yet most effective ways to generate passive revenue. With installation often subsidized by banking or fintech partners, gas station owners can earn a commission on every transaction, typically ranging from $1 to $3 per use.
Advantages of In-Store ATMs
- Foot Traffic Booster: People often come in just to use the ATM and then end up making additional purchases.
- Cash Availability: For stations that offer car washes or services where cash tips are common, on-site ATMs improve customer convenience.
- Reduced Card Fees: Encouraging cash purchases can slightly reduce merchant transaction fees over time.
Maintenance is minimal, with most machines remotely monitored and serviced by third-party providers.
Specialty Kiosks: Niche Services, Big Profits
Kiosks represent the next generation of vending, offering not just products, but services. These modular systems can be customized for almost any market niche and are often touchscreen-operated with remote support capabilities.
Popular Options Include:
- Lottery Ticket Kiosks: High-volume areas can generate strong returns with self-service state lottery terminals.
- Bill Payment Centers: Allow customers to pay utility bills, mobile phone top-ups, and other services.
- Photo Printing Kiosks: Offer passport photos or instant print services for customers in a hurry.
- Reverse Vending for Recycling: Some stations are adopting eco-conscious vending that rewards customers for recycling bottles or cans.
Site Selection and Strategic Placement
To optimize ROI, gas station owners must consider customer behavior and foot traffic patterns. High-visibility areas near entrances or checkouts are ideal for impulse buys like snacks or small electronics. More private corners are better for ATMs or CBD kiosks, where discretion is valued. Ensure all machines are placed in well-lit, secure areas to encourage usage and deter vandalism.
Vendor Selection and Partnership Models
Not all vending partners are created equal. Some offer revenue-sharing, while others charge flat lease fees. Key considerations when evaluating vendors include:
- Product Restocking Frequency
- Remote Monitoring Capabilities
- Customer Service Responsiveness
- Brand Alignment with Your Gas Station
It’s often wise to start with a short-term trial contract and evaluate sales metrics before making long-term commitments.
Marketing and Cross-Promotion
Make the most of your new installations with in-store signage, loyalty apps, and pump-top digital ads. For example, offering loyalty points for ATM use or vending purchases can increase adoption and repeat use. QR code coupons and bundle discounts (e.g., buy a snack + gas = 10% off) are also effective.
Legal and Compliance Considerations
Before installing specialty machines, particularly for CBD products or lottery ticket kiosks, verify compliance with local zoning, health, and commerce regulations. Some cities may have licensing requirements or restrictions based on proximity to schools, age limits, or product classifications.
Small Footprint, Big Potential
Gas station owners looking to future-proof their business should not overlook the power of automated vending and kiosk systems. These installations offer a low-risk, high-reward path to diversification, increasing average revenue per customer while requiring minimal oversight. Whether your focus is on health trends, convenience products, or cutting-edge specialty services, vending solutions offer a scalable way to grow passive income.
By thoughtfully integrating ATMs, vending machines, and specialty kiosks into your gas station’s business model, you can tap into new streams of revenue that are aligned with today’s consumer habits—and tomorrow’s opportunities.