Punters can chose from 15 options at the machine. As well as hot pies customers can choose a bacon rolls, bridies, sausage rolls, spinach rolls and even macaroni cheese and stovies.
The machine works by accepting money like any other vending machine. Hot items are then dispensed into a small internal microwave and cooked for around a minute before coming out of a slot near the bottom - piping hot and wrapped in paper.
But councillors have blasted the "inappropriate" move, claiming it will spoil the image of the historic seaside town.
Ben Milne, manager of Fisher & Donaldson, said the machine is so popular that it sells out twice a week.
He said: "The feedback has been amazing, I've only had positive responses - people just seem to really like the idea.
"The idea came about when me and my wife were in Glasgow and there was a machine for cupcakes and she thought it would be a good to get a pie one.
"I wasn't convinced there would be such a thing, but I Googled it and there it was, so I bought it immediately."
The bakery had over 13,000 hits on Facebook from fans of the vending machine and has already sold out on Friday and Saturday nights.
Mr Milne added: "Obviously you've got the students coming out of the pubs early in the morning, so they're our biggest customers and there's only one shop open 24 hours a day - the Shell garage.
"There's a few pizza and kebab shops open till about 2am, but nothing that sells sausage rolls, stovies and pies.
"Other people who have come forward and said it's great are the taxi drivers, who are obviously stuck about waiting around in the cold on nightshift.
"The vending machine is in a temporary location at the moment as we wanted to gauge how successful it would be.
"Results have been really good though, so we'll probably make it a permanent fixture at the front of our Church Street shop."
But some locals are furious at the sight of a pie vending machine in the heart of a conservation area.
St Andrews Labour councillor Brian Thomson said: "I first became aware of the vending machine by someone posting a photo of it on Facebook and, having subsequently viewed it, I am very surprised to see it located in such a prominent location?
"I am sure it will be appreciated by some people looking for something to eat on the way home from a night out, but it's completely inappropriate in the St Andrews Conservation Area, where a lot of effort goes into maintaining the character of the overall streetscape.
"I have raised the matter with the council's planners, and they are looking into whether or not it requires planning permission."
But Jim Birrell, Fife Council development and buildings senior manager, said: "The vending machine does not require planning permission.
"The premises have also been visited by environmental health officers and there are no concerns in relation to food safety and/or health and safety legislation enforceable by the council."
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