Coffee is part of the daily rhythm in almost every New Zealand workplace. For many office managers and procurement teams, the question isn't whether to provide good coffee, but how to get the right machine onsite without a large upfront cost.
Two of the most common options are a free on loan coffee machine or a rental coffee machine. Both give you access to a commercial coffee machine without buying it outright, but the way you pay for them is different.
We've supplied both options to Kiwi workplaces for years. In our experience, the right choice usually comes down to one thing: how much coffee and other consumables your workplace regularly uses.
Free on Loan vs Rental at a Glance
| Free on Loan | Rental | |
|---|---|---|
| Upfront machine cost | None | None |
| Machine fee | No rental fee | Fixed rental fee |
| Minimum consumables spend | Yes | No |
| Installation & training | Included | Included |
| Servicing | Included | Included |
| Best suited to | Workplaces with consistent coffee and consumables usage | Workplaces with lower or variable usage |
What is a Free on Loan Coffee Machine?
A free on loan coffee machine is provided with no upfront purchase cost or separate machine rental fee. In return, your workplace commits to an agreed minimum monthly spend on consumables purchased through Coffee Suppliers, such as coffee beans, powdered milk, hot chocolate and chai latte.
Pros
- No capital outlay or separate rental fee for the machine
- Installation, servicing and training included
- Your regular coffee and consumables spend effectively supports the machine arrangement
Cons
- You need to meet an agreed minimum consumables spend
- You're committed to purchasing the agreed consumables through your supplier
- It may not suit workplaces with low or inconsistent coffee usage
Who it suits: We generally find free on loan works best for workplaces with consistent coffee consumption. If you're already using enough coffee and other consumables each month to comfortably meet the minimum spend, paying a separate machine rental often doesn't make much sense.
What is a Rental Coffee Machine?
With a rental coffee machine, you pay a fixed rental fee for the equipment rather than committing to a minimum monthly consumables spend.
Pros
- No minimum monthly consumables spend
- Clear, predictable rental cost
- Better suited to workplaces where coffee usage varies from month to month
Cons
- You pay a regular rental fee regardless of how much the machine is used
- For higher-volume workplaces, free on loan can often be the better-value option
Who it suits: Rental tends to make more sense for smaller workplaces, businesses with variable staff numbers, or sites where coffee consumption isn't high enough to consistently meet a free on loan minimum spend.
The Flexibility to Switch
Your coffee requirements can change. A growing team might start using enough coffee to make free on loan the better option, while a change in staff numbers or working patterns can move things the other way.
With Coffee Suppliers, you can switch between free on loan and rental during your agreement, or upgrade your machine as your requirements change. See our coffee machine contract options for more detail.
Which Option Makes More Sense for Your Workplace?
The main question we look at is your expected usage. Team size is a useful starting point, but two workplaces with the same number of staff can go through very different amounts of coffee.
If your workplace has steady usage and will comfortably meet the required monthly consumables spend, free on loan will often make more sense. You're buying coffee and consumables you would need anyway, without adding a separate machine rental fee.
If usage is lower or harder to predict, rental gives you more flexibility because you aren't trying to meet a monthly consumables target.
The type of machine doesn't have to dictate the arrangement either. Fresh milk and powdered milk options are available under both models. If you're still deciding which milk system suits your workplace, read our guide to fresh milk vs powdered milk coffee machines.
Not Sure How Much Coffee Your Team Will Use?
You don't need to work it out down to the last cup. We can look at your team size, expected daily usage and the type of drinks your staff prefer, then recommend a machine and contract structure that makes sense.
If you're still working out which machine suits your workplace, take our Machine Quiz to narrow down your options.
We also offer free workplace trials, so you can see how the machine works for your team before making a longer-term decision.
Book a free trial and find the right coffee setup for your workplace.
