How the split actually works
Revenue share is calculated on net sales — gross takings minus VAT and card-processing fees. The operator funds the machine, restocks it, handles servicing and cashless reconciliation. In return, the location earns an agreed percentage paid monthly or quarterly. The exact definition of 'net' varies by operator and is worth pinning down in writing; some deduct only VAT, others also strip out card-processing fees, refunds and even a small 'operations charge'.
Typical splits by format
Splits vary by format, machine density and the site's throughput. High-throughput sites (transport, hospitals, large logistics) command the top end because the operator can afford to give away more of a bigger pie.
- •Traditional snacks/drinks: 5–12% to location
- •Bean-to-cup coffee: 8–15% to location
- •Micro-markets: 8–20% to location (higher basket, higher share)
- •Smart fridges / fresh: 10–18% to location
- •High-traffic public sites (transport, hospitals): 12–25% at the top end
Contract clauses to read carefully
Revenue share is standard — but the surrounding clauses are where deals get uneven. Always ask for these in writing, and never accept 'that's just how our contract works' as a reason for an unfavourable clause. Every one of them is negotiable if the site is worth winning.
- •Term length + termination for non-performance (should be ≤ 90 days)
- •Minimum monthly sales trigger for share calculation
- •Whether card fees are deducted before or after share
- •Price-change rights — who signs off on retail price rises
- •Reporting frequency — monthly telemetry reports should be standard
- •Ownership of the transaction data (yours, or theirs?)
- •Exit terms — machine removal, final reconciliation, transition support
Signs of a good operator deal
A good deal isn't the highest %. It's a fair share plus the service standard that keeps the machine full, current and cashless. A 15% share on a machine that's out of stock half the time earns less than a 10% share on a well-run one. The operator's service model is the multiplier on the share number.
- •Telemetry-based reporting, not paper spreadsheets
- •Next-business-day service SLA
- •≥ 98% availability guarantee
- •Transparent product margins and VAT handling
- •ESG / healthy range if requested
- •Named account manager, not a general inbox
The traps to watch for
Beyond the headline share, three clauses cost sites the most money. First, a 'minimum monthly sales' trigger below which no share is paid — turning bad months into zero-share months. Second, card-processing fees deducted from your share rather than the operator's. Third, discretionary price rises with no site approval, which can quietly compress your share by degrading demand.
Benchmarking your share offer
If you receive multiple proposals with wildly different shares, don't just pick the highest. Look at the implied revenue: share % × operator's stated forecast × 12. A 12% share on a realistic £22k/yr forecast beats a 20% share on a fantasy £30k/yr that never materialises. Ask each operator for a comparable-site case study, not a spreadsheet.
Frequently asked questions
What's a fair vending revenue share?+
5–12% of net sales for standard vending, 8–20% for micro-markets. Anything below 5% needs a very strong service or capex justification.
Do we pay for the machine on revenue share?+
No — the operator funds the machine, stock and service. You provide the space, power, and share of sales.
How is 'net sales' defined?+
Gross takings minus VAT and (usually) card-processing fees. Confirm in writing which fees are deducted before the split.
Can we negotiate the share upwards?+
Yes — especially on high-throughput sites or if you have multiple locations. Operators will pay for density.
How often is revenue share paid?+
Monthly is standard for well-run operators; quarterly is common but slower. Weekly is rare and usually a sign the operator has cashflow discipline.
What happens to the share when the machine breaks?+
It falls to zero on the days the machine is unavailable — which is why the uptime SLA and next-day service response matter as much as the headline percentage.
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