Probably they use it for tax avoidance, that's why even though people are really rare to use ATMs, but the number of Bitcoin ATMs are still high. There are no stupid businessmen, there must be something that they can use it to take advantage or benefit.
Have you ever see small business in your country that have no customer and still survive until now? it's the another example.
It's not a good choice for tax avoidance. In my country, crypto ATMs require you to submit your ID number and confirm that by receiving a message on your phone number and entering that into the ATM. Also, I have heard that in some countries sometimes you have to pass a KYC procedure. It's not a good way for tax avoidance. Besides KYC, ATM fees are so high that it's better to pay taxes.
Never used a Bitcoin ATM but curious about what the fees are.
ATM owners set the fees but from my experience, fees are sometimes up to 25%. I have never seen fees lower than 10%. I include the spread in it.