A method of fabricating coffee pods at a point of sale location using a coffee pod dispensing device with shell less, expandable coffee pods. The fabrication is initiated by tactile input from a control panel that determines the parameters of the coffee pods to be fabricated and generates the operational signals for the dispensing device. Fabrication there after progresses sequentially through a series of operations that involves the loading of the coffee pods onto a pod advancing means which then takes the coffee pods through the steps of expansion, filling, sealing and delivery. To accomplish this the pods are compressible pods arranged in a linear array that allows for pleated or stacked storage in a pod loading means within the device's enclosure, as well as continuous feed capabilities.