Heron Foods in Roseville, Dudley, is closed today after the raiders destroyed part of the front of the store in the early hours.
The gang smashed their way in to the Castle Street store at around 2am - causing major damage to the shutters, frontage and ceiling - and stole the cash machine before fleeing.
It is not known how much money was inside the ATM.
A cordon remained in place around the shop this afternoon.
A West Midlands Police spokesman said: "We were called at 1.56am to reports of three masked men.
"A white van used to ram raid the shutters causing extensive damage. There was a cash machine stolen."
The spokesman confirmed an investigation has been launched and that enquiries are on-going, but nobody has been arrested.
Tony Sheldon, a nearby resident and Coseley Focus member, said neighbours had been calling for police action after a string of crimes in the area.
He said: "Crime is on the increase around here really. Since the neighbourhood watch group was started online there has been a lot of stuff shared on Facebook.
"People are posting CCTV and still images. There are quite a few cars being stolen, there are a few motorbikes being stolen, there seems to be a lot going on at the minute.
"People are really disappointed with the police, there seems to be a lack of effort on their part and people are asking 'what are they doing?' and 'what are they getting paid for?' – that seems to be the attitude at the minute."
Heron Foods refused to comment when contacted by the Express & Star.