2 months ago, i was second-guessing, directionless, and impatient.
i had just paused our franchise program. i didn't know what was next. i questioned my judgment.
today, i'm running a specialty vending company that pivoted from franchising to a City Launcher operating model and is now diving headfirst into trading card vending.
quick recap:
β’ 1,237 applications
β’ $0 spent on paid ads
β’ entered 31 new cities
β’ awarding another 12 cities this month
β’ growing at a rate of 20 new installations per month
β’ avg machine is generating $2,000/month in revenue
here are 5 decisions, big and small, that compounded into the company we are now:
1. pausing is a strategy
for 12 months we were a franchise business with real momentum. applications were flying in.
but we weren't building the company we wanted to build.
in March, i paused franchising to focus on a different operating model. people thought i was crazy.
the pause wasn't a step backward. it was a chance to look at the next 5 years instead of the next 5 weeks.
if something works today but doesn't fit the future you want, pausing it isn't quitting. it's clarity.
2. the operating model is the competitive advantage
most vending companies recruit operators. we're building something different.
the City Launcher model gives operators 25% profit share (we buy the machines & inventory, they don't), full ops support, and a path to building a real business in their cities.
franchises attract people with capital. City Launchers attract people with relationships.
3. build new channels before old ones get stale
every channel i've built peaks eventually.
my organic videos peaked at 1M views. they'll cap. and my founder-led DMs scale only as far as my hands can type.
the discipline isn't "find the perfect channel." it's adding new ones before the current ones run out.
in the last 2 months we've added: a Strategic Growth Advisor with national accounts experience, a partner program with 5% revenue share for each location locked down for 24 months, and a category-management content arm targeting category managers at grocery chains.
4. niche always wins (riches are in the niches)
most vending companies stock the same things in every machine. snacks. drinks.
we picked specialty: nightlife products first, then Pokemon, then trading cards more broadly, now TikTok viral NeeDoh squishies.
each one is a category most operators dismiss as a niche.
going broad looks safe. but in my eyes it's actually the most competitive category in retailβ¦AND you become a commodity.
5. the boring middle is the moat
every viral product fails one of three tests: wholesale availability, machine coil fit, or demographic mismatch.
right now we're chasing NeeDoh squishies from TikTok. we're measuring new SKUs against our different coil sizes. we're pulling machines from locations that don't fit the demographic.
this is the boring middle. the work most operators won't do.
it's also the only work that compounds.