Like most people here, I'm not in the business of Bitcoin ATMs, but I can tell you what would incline me to use one (it's simple stuff, but it seems like ATM providers just fail to grasp it):
1. Good location (center of the city is usually optimal), which is not uncommon, but still.
2. This is a very important one: LOW fees. The most common reason I've heard why people avoid BTC ATMs is because of ridiculous 10-20% fees! Make it 5% and suddenly your ATM is the best. 5% profit is still profit, definitely better than if it's 15% but nobody uses it.
3. Reasonable and clear KYC requirements. Say, up to $1k with no KYC or something like this. And a clear warning PRIOR to the transaction that KYC will be required under such and such circumstances.