Nick Grillo, an Air Force veteran, launched Elevate Vending as an alternative to old-fashioned vending machines. “Tap any digital payment. Take what you want and close the door,” Grillo said. (Nick Grillo/Elevate Vending)
Air Force veteran Nick Grillo’s 12-year military career involved roles as a mechanic repairing unmanned aircraft in Afghanistan and providing support stateside during natural disasters and for anti-terrorism initiatives.
Post-military, Grillo launched Elevate Vending in 2023 with the lofty aim of modernizing vending machines with consumer touch screens, AI-equipped cameras and open shelves filled with healthy snacks and freshly made meals.
Though many retail businesses have taken a hit from higher gas prices and inflation, Elevate Vending keeps rising, according to supporters and backers of the fast-growing startup.
Since 2025, the company has landed contracts with the Washington Capitals and Wizards, University of Maryland Athletics and 365 Retail Markets, an equipment manufacturer.
As part of the rollout for the Capitals, the company launched a promotional video on social media starring the team’s mascot, Slapshot, grabbing a drink from one of the company’s computerized vending machines.
“We offer smart-driven coolers as an alternative to old-fashioned vending machines. Tap any digital payment. Take what you want and close the door,” Grillo said.
There are 1.6 million veteran-owned businesses in the U.S., generating $1 trillion in revenue annually, according to the U.S. Small Business Administration.
Grillo, 34, of Virginia, attributes much of the early success of Elevate Vending to the technical and operational skills he learned in the military, as well as the mentoring and assistance he received from a nonprofit foundation.
“It’s the veteran’s drive — the determination not to stop but to figure the problem out. It’s tied back to service,” he said.
But the rapid growth, while promising, yielded a set of new challenges, from hiring staff to securing financing, to keep pace with the costs and demands of servicing more clients.
“You don’t have a perfect battlefield picture. But you are making the best decisions with the information you have on hand,” said Grillo, who launched Elevate Vending about a year after leaving the military.
Veteran business owners are more likely to be turned down for loans or to be given smaller loan amounts than non-veterans with comparable credit scores, according to the Small Business Administration.
Research indicates that veterans are somewhat more likely to lack the established credit histories or sufficient assets required by traditional lenders, the Small Business Administration said.
For example, some lenders may be unfamiliar with the kinds of skills and experience veterans gained from military service or even the specific business for which a veteran seeks financing, according to a 2025 blog post by the Government Accountability Office.
Critical to Elevate Vending’s expansion was assistance from The PenFed Foundation for Military Heroes, Grillo said.
PenFed provided mentorship and a six-week boot camp that Grillo described as an “eye-opener.”
“Just being small and not having experience in the business and financial worlds posed challenges,” Grillo said. “PenFed helped to fill in those gaps.”
Since 2018, PenFed’s Veteran Entrepreneur Program has supported more than 120 veterans and military spouses who were starting or expanding their businesses, according to the organization.
“By focusing on business fundamentals and practical guidance, we help veterans and military spouses gain the confidence and skills they need to develop, improve and launch their ideas,” said Terry Williams, director of PenFed’s Veteran Entrepreneur Program.
Grillo, who participated in 2025, said the program underscored a critical lesson, which is “not to go it alone” as a new business owner.
Nick Grillo, right, and Chris Schaefer are partners at Elevate Vending, a 3-year-old company that services the Washington Capitals and Wizards, among other clients. Elevate Vending received technical support in 2025 from a foundation that guides veteran-owned companies just starting out or expanding. (Nick Grillo /Elevate Vending)
Grillo runs his business with partners Joe Allnut, a 16-year Air Force veteran who handles government contracting; Sebastian Rivera, chief financial officer; and Chris Schaefer, chief operations officer. Rivera and Schaefer are non-veterans.
Allnut and Rivera were co-founders but initially acted in an advisory role, Grillo said.
Grillo launched Elevate Vending after he and his wife, a master sergeant in the Air Force, left New York for her new post at the Pentagon in the Washington D.C. area.
Grillo said he believes that Elevate Vending fills a niche that others overlooked — providing freshly prepared and local foods with the convenience of a vending machine.
The fresh fast foods and meals are sourced from other independent small businesses.
They include My Dad’s Chips, Zenjoy herbal teas and Mighty Meals, which offers mac-and-cheese, Louisiana shrimp pasta and other hand-prepared meals.
Elevate Vending’s “smart coolers” have a continuous internet connection to process transactions, track payments and give customers greater access to browse and choose products.
Just as drones have become an efficient alternative to traditional manned surveillance and airstrikes, the computerized vending machines are transforming an old business model, Grillo said.
But for all the high-tech wizardry, Elevate Vending relied on PenFed’s help to expand successfully, Grillo said.
“It’s not an accident that we got here. There is a team of people behind us who’ve helped along the way,” Grillo said.
Nick Grillo, who served in the military from July 2010 to June 2022, was deployed during Operation Enduring Freedom, including to Afghanistan. Grillo, who achieved the rank of technical sergeant, worked as an unmanned aircraft mechanic and also provided support during natural disasters and with anti-terrorism initiatives in the U.S. He is shown here in Kandahar, Afghanistan, in 2013. (Nick Grillo)
Veteran-focused programs — at federal agencies, peer-to-peer lending platforms and private nonprofits — offer a range of assistance, from direct loans to technical support, according to Victory Capital.
The Small Business Administration’s Office of Veterans Business Development, for example, provides training, counseling, mentoring and financial help.
The Agriculture Department also has loans for veteran-owned small businesses engaged in farming, ranching and other agricultural activities in rural communities.
PenFed offers both an incubator for startups and an accelerator program for businesses seeking to expand.
The nonprofit does not provide direct loans or grants to businesses, or take a financial stake in a company, the organization said.
“Programs like PenFed help create the business relationships, recognition and trust that can carry a small business through challenging environments,” Grillo said.
Elevate Vending, for example, received help from PenFed in renegotiating a contract with a primary lender, Grillo said.
In May, PenFed announced a new class of veterans and military spouses who will receive intensive education through its accelerator program.
The lineup includes Ascend HealthTech Systems, founded by Army veteran John Meseroll.
Ascend runs an online clearinghouse that helps hospitals track and redistribute unused medical supplies before they expire.
“By improving visibility across departments, the platform prevents unnecessary purchases, reduces supply shortages and lowers operational costs,” the company said.
PenFed has a competitive application process for accepting candidates to its programs.
Veteran or military spouse entrepreneurs with an idea-stage business concept may apply at https://penfedfoundation.org/our-programs/incubator/.
PenFed plans three more accelerator programs in 2026. For details, including the schedule and locations, go to: https://penfedfoundation.org/our-programs/accelerator/.
“PenFed has been there for us — to celebrate the big wins but also to provide help through the growing pains, as we secure financing, hire additional staff and negotiate contracts,” Grillo said.
“Running a small business is a moving target. It’s never linear. There is no straight pathway to success.”
