Back in the old days, no one really talked about ‘unattended retail’. Sure, we had vending machines. Simple coin-operated cabinets mostly used to dispense snacks and drinks. They’re still around today, albeit they are more likely to be operated via contactless payment.

But nowadays, that’s just the tip of the iceberg for what is no longer just ‘vending’, and is very much ‘unattended retail’. It’s a growing category that takes in hot and cold food service, microstores, full-sized retail outlets with not a cashier in sight and more. Some people even regard self-service kiosks as a form of unattended retail, because they allow for transactions without any contact between customer and the vendor’s staff.

But it’s fair to say, while kiosks have long been the poster children of retail innovation, vending and micro retail are enjoying a moment in the spotlight. According to recent research released as a series of webinars by industry publication Automatic Merchandiser, the number of unattended micro retail outlets in the US grew by 30% in 2024 alone, reaching $34bn in revenue.

Along with the latest generation of AI-powered ‘smart’ vending machines, which offer benefits like optimized temperature control for storing and dispensing hot and cold food, and even preparing food and beverages to order, this growth is a reflection of one thing in particular. Vending is no longer a limited category for sodas and confectionery. Advances in technology mean it is now a serious player across the food and drink category, opening doors to vendors in places that were previously inaccessible.

So the question is, could it be an option for your business?

Adapting in tough times

One explanation goes that the spark that set off the recent explosive growth in unattended was the preference for non-contact vending models seen during the COVID-19 pandemic. But we’re several years out from that and still the trend continues. What could explain this?

The pandemic might have faded from memory, but the tough times that came with it for vendors haven’t. Supply chain disruption, high inflation, low consumer confidence, tariffs – retailers have seen their business models hit from all angles, pushing many to look for alternative revenue streams just to survive.

Smart vending and micro markets represent an attractive option for everyone from mom and pop convenience stores to delis and fast food joints. The big markets for vending machines and micro retail outlets – office complexes, hotels, hospitals and health centres, college campuses, shopping malls – are places where traditionally you’d have to have a full-blown concession to operate in, complete with staff and all the attendant costs that go with it.

Smart vending in particular represents an affordable yet potentially lucrative way to extend your reach into these and other places without the cost and complexity of opening up entire new premises. It capitalizes on consumer preferences for convenience and immediacy. And once you establish a presence and recognition, there’s the option to scale up into micro markets in the locations that perform best.