Ice cream machines can bring extra sales; investment depends on operator's goals: a new generation of ice cream machines gives operators more opportunity to expand into ice cream. Upfront costs for expanding into ice cream varies depending on how much of this business the operator plans to add.(Business basics: building blocks for small and medium size operations)

Fiscal 2002 was one of the worst years in the vending industry's history, as every vend product category posted a net revenue loss from the prior year, with one exception--ice cream. The 2003 Automatic Merchandiser State of the Vending Industry Report, published in August, revealed ice cream as the lone product segment posting a sales gain, not including manual foodservice, which also posted a gain.

Ice cream, long viewed as a chore by the average vending operator, has gained new importance. To a large extent, it's riding the expansion of the frozen food machine, the one machine that continues to grow despite customer downsizing, as also noted in the State of the Vending Industry Report.

While ice cream manufacturers have yet to focus a lot of marketing support on the vending channel, vending operators of all sizes have begun to recognize the segment's unique opportunities.

Many operators, particularly smaller ones, have expanded into ice cream almost by accident. Frozen machine manufacturers have noticed that many vending operators see the new-generation frozen food machines as a preferable alternative to refrigerated machines, due to the elimination of product waste. And while many operators buy frozen food machines to vend food, they inevitably find themselves in the ice cream business.

It isn't long "after operators buy their first frozen machines that they realize ice cream is more profitable than food, that it tends to have stronger brand recognition, and is an excellent account pleaser.

Success in ice cream does require an education for the first-time ice cream vendor, however. Operators experienced in handling food are usually able to make the transition fairly easily, as the same storage and transport equipment is needed for ice cream as frozen food.

But for the operator who has never vended ice cream or food, an understanding of handling and transportation practices and equipment is necessary. Operators do not, however, need trucks with built-in freezers to operate ice cream machines.

One thing is for sure: the new-generation, multi-product machines are replacing the single-price, 3- and 4-select machines of yesteryear. Established ice cream vending operators, many of whom service ice cream machines for other vending operators, have been quickly replacing the old-generation machines with the new …