Where to Operate Your Roaster (Coffee Roasting Startup Business)

[bvalentin]

I've finally convinced myself to make the big investment to buy a professional grade roaster and begin my small business on the side. Once I made the decision, I realized I have no where to roast. I live in an apartment, and I cannot operate a gas roaster in a multi-tenant residential unit.

I was originally sold on the Mill City 1-Kilo Gas Roaster. Small enough to afford, fit in an apartment, and begin learning on - and big enough to build the beginnings of a business until I can invest in a 15-Kilo.

After contacting the Mill City staff, Steve helped me understand that it's a bad call to attempt to operate the gas 1-Kilo in my apartment.

What are my options?

• Is the 1-Kilo electric version safer for an apartment?
• Is there anyone with ideas for affordable space to operate out of?
• Is there a safer and smaller (Yet still efficient for business) roaster to consider?

Just curious if anyone has any suggestions to get me passed this first hump. I'm sure there will be many more issues to work through once I find my way through this one.

I appreciate any comments or suggestions!

 

[lbeery]

I have heard of small roasters that rent time on their machines, like a small bakery business that rents out a commercial kitchen for a few hours to make batches of goods. You might reach out to area small roasters and see if this is an option to help you start out and bypass the space requirements and initial equipment cost for awhile. Then I would say look for a very small warehouse or commercial space that is not for retail walk up but more production. You may also be able to rent a corner space in someone else's primary spot. Another idea would be contacting a coffee shop that is in your area and see if they are interested in having a roaster "in house".


Sent from my iPad using Tapatalk

 

[bvalentin]

Great input! There's actually a small town coffee shop near me that might be open to this - I'll have to set up a meeting with the owner.

I really appreciate the thoughts!

 

[John P]

bvalentin,

You have to think about the coffee shop as well. Once a roaster is on premises, there are liability issues to think of and to understand that from any perspective there is not "in house roasting" or a "roaster in house" until what you are producing is at the very least, comparable to or better than the best coffee available in your area. Don't forget about the cost of proper ventilation and fire suppression as well.

My option would be to rent a small space in an industrial area. A lot of these you can get for $3-$5 per sq. foot. I know you are excited about the idea of roasting, but if you want to make a profession out of it, you have to think like a professional -- and that means that the "where" to roast should have been solved by you before hand. Perhaps someone who loves you who has a garage may be an option, provided you following all local zoning ordinances regarding smoke production, and operation. You don't want someone from the city to knock on said person's door. I wouldn't use any shop size -- even a 1 kilo -- roaster in an apartment. There's venting to consider. And you WILL need it. Frankly, if you can't afford a space, you really shouldn't invest in a roaster yet. No cash reserve is not a good place to start from.

As far as a better roaster to start with, I would consider this IR-3 HERE posted on coffeeforums, if it's still available. If not, this SOLAR roaster from Coffee-Tech is a great roaster. I am aware that these are at a slightly higher price point than you are thinking, but this would be my advice: If you are confident this is something you will be good at, you can't nickel and dime it. You will regret getting too small of a roaster. Get a smaller one, like a 2.5 to 3 kilo, but smaller than that will be detrimental if you are any good at all. And if you can't get a loan, or find $10K here or there to start, perhaps you should put on you professional hat and ask yourself "Is this the best course of action?"

Make smart decisions, and always taste your coffee.

 

[Musicphan]

John's advise is spot on... and the North/Mill City roaster is for LOW vs. commercial volume. You would so quickly outgrown this you would regret the decision. IMO - a 5K is the smallest to start with... especially if your going after wholesale customer buying 5lb bags. On the North roaster it would take you 3 roasts to fill a single 5lb bag... your labor costs will eat you alive. If you want to start learning.. check out a Quest or Hucky roaster.. I would also HIGHLY suggest building a business plan. It

 

[MillCityRoasters]

John's advise is spot on... and the North/Mill City roaster is for hobby vs. commercial volume. You would so quickly outgrown this you would regret the decision. IMO - a 5K is the smallest to start with... especially if your going after wholesale customer buying 5lb bags. On the North roaster it would take you 3 roasts to fill a single 5lb bag... your labor costs will eat you alive. If you want to start learning.. check out a Quest or Hucky roaster.. I would also HIGHLY suggest building a business plan. It

Hobby roaster? Don't be a hater. We've helped launch over 500 commercial roasteries in the last couple of years. IMO, they'd all disagree.

Here's a tiny handful of them that got noticed by Roast Magazine:

http://dailycoffeenews.com/2016/12/12/lets-talk-about-the-new-wesley-andrews-shop-in-minneapolis/

In Lincoln, Nebraska, Meta Coffee Lab Increasing Coffee Cognition | Daily Coffee News by Roast Magazine

With a New Café, It?s All Good At Pura Bean Coffee in Jacksonville | Daily Coffee News by Roast Magazine

Don?t Be Fooled: Amateur Coffee is For Real in Omaha | Daily Coffee News by Roast Magazine

Lost Sock Finds Itself Roasting in Washington D.C. | Daily Coffee News by Roast Magazine

Bestslope Coffee Comes to Fruition in Fruita, Colorado | Daily Coffee News by Roast Magazine

A Great Deal of Experience at the New Goodman Coffee Roasters | Daily Coffee News by Roast Magazine

It?s All Systems Go for Red Light Roastery in Hot Springs | Daily Coffee News by Roast Magazine

Tiny House Coffee Roasters Has Big Plans for Farmer Compensation | Daily Coffee News by Roast Magazine

 

[Musicphan]

Hobby roaster? Don't be a hater. We've helped launch over 500 commercial roasteries in the last couple of years. IMO, they'd all disagree.

Clearly I hit an unexpected nerve... and I'm far from a hater. I think the machines are very nice and even considered one for a profile roaster. However, when you add in labor costs when operating a small roaster it's difficult to be profitable. Assuming 80% capacity and 3.5 load per hour ... that's a little over 6lbs an hour. Say a labor cost of $20 / 6 lbs = $3.33 per lb... That's pretty hefty costs per lb.

 

[MillCityRoasters]

Clearly I hit an unexpected nerve... and I'm far from a hater. I think the machines are very nice and even considered one for a profile roaster. However, when you add in labor costs when operating a small roaster it's difficult to be profitable. Assuming 80% capacity and 3.5 load per hour ... that's a little over 6lbs an hour. Say a labor cost of $20 / 6 lbs = $3.33 per lb... That's pretty hefty costs per lb.

Guys that love coffee enough to want to share the experience have to start somewhere. For many, that means tinkering in a garage or basement and selling at a farmers market for a couple of years. It's a pretty simple business plan and definitely not a get rich quick scheme, but there's no shame to a small beginning and people very often learn best by doing.

We're here to share the love of coffee too. If you want to start out small, whether you buy from us or not, I'll let you watch our videos (free to you, not to me btw), attend our classes, and share our cupping notes and profiles. About 20% of our 1 kg customers go on to 6 and 10 kg machines within 18 months and most pay cash. Something's working and we'll keep rolling with it until the wheels come off.

 

[Musicphan]

but there's no shame to a small beginning and people very often learn best by doing.

Never said he should be shameful... just providing input as small business owner myself. He just needs to build a solid business plan / financial model. Calculating labor costs is an important factor.. if not one of the most important.

 

[lbeery]

Bvalentin,

Oh my goodness! This thread! Seriously I would ask about renting time on a roaster or space at a coffee shop. I know you would have to figure out specs and logistics but sometimes a cooperative is a great place to start. The Mill City roaster is a great roaster that is overbuilt and NOT a hobby roaster. Remember you are building YOUR business, follow your vision and never get to the point where you are closed off from learning and listening. I know a guy selling packaged coffee and running a good business with a tiny roaster. He is happy and so are his customers. Mill City is a wealth of information, contacts, industry ideas (standards), and just a group of great people ( I am not being paid, they probably have no idea who I am, Lol). The best business advice I can give you would be, don't burn bridges. Stay in touch and tell us how and what you are up to! I am excited for you!

 

[MillCityRoasters]

Never said he should be shameful... just providing input as small business owner myself. He just needs to build a solid business plan / financial model. Calculating labor costs is an important factor.. if not one of the most important.

So why exactly are labor costs so important in this scenario? If he's doing a part time thing for the sheer joy of it, he doesn't need a business plan. He just needs to roast some coffee and see where the chips fall. If he likes it and things line up, he'll sell some coffee and try to expand. If he hates it, he'll sell his roaster and drink tea.

When he does want to expand maybe by borrowing some money, buying a big roaster and quitting his day job, then labor costs become very important, but that's not what I see this thread.

 

[Musicphan]

Gees... not once did I call the North roaster a hobby roaster... it was a comment on its capacity. I've edited my original post... hopefully the nomenclature change will unwrinkle feathers and make this a positive/productive thread.

 

[MillCityRoasters]

Gees... not once did I call the North roaster a hobby roaster... it was a comment on its capacity. I've edited my original post... hopefully the nomenclature change will unwrinkle feathers and make this a positive/productive thread.

Musicphan, don't sweat it. I'm not mortally offended and my intent was not to offend you.

My intent was merely to illuminate the distinction between the small number of guys that actually earn a living roasting coffee and the much larger number of guys that are really jazzed about roasting and would like to try to develop a side hustle doing so.

These guys don't have a bunch of capital at risk and they certainly aren't giving up their day jobs. They simply want to see if there's any possibility that they can actually do this thing before they commit to a career change.

Your points are all good and valid, but I get calls every day from people that have read online that the only way that makes sense to start is to buy a big roaster. My point is only that in many cases, an interim learning step is a small roaster as a test bed for proof of concept which can later double as a sample roaster if things work out.

Please forgive my stridency.

 

[bvalentin]

Phew! I've only been away from my computer for one day. A lot to catch up on.

Each one of you holds valid points that I'm learning from!

I'm currently the Assistant Director of Operations (Currently being groomed to take the GM's position) at a $12 Million business that processes upwards of 65,000 pounds of linen per day. I'm familiar with business plans, operations, and have the utmost intent to build a big coffee business on my own. All of Musicphan's points on starting smart are very valid - While Steve with Mill City is completely accurate as well.

In my situation, I'm not at a point where I can leave my job to start full time in coffee, and I do not have the capital to invest in a larger roaster at this time. I can handle a loan for the smaller roaster with the intent to run this out of my home so that I can have the flexibility to LEARN the roasting side of the business. When it comes to profitability, operations, sales, metrics and business models, I have plenty of ideas. The time to expand on these ideas will come soon enough. What I need to be learning now is how to roast and operate a roaster. Which is why I would rather not invest in the larger roaster at this time. Granted, I'm not 100% against the larger roasters. I've considered a 3kg, or even a 6kg. But to be honest, since I'm considering operating this out of my home for the time being, the smaller roaster seems more practical.

My apartment lease is up in February, so I've actually begun looking at renting a house (Potentially with a garage) so that I won't have any issues setting up the roaster at home. Now I need to look into state laws and regulations, ventilation, etc.

More advice is great! I really appreciate everyone's advice on here!

 

[bvalentin]

The best business advice I can give you would be, don't burn bridges. Stay in touch and tell us how and what you are up to! I am excited for you!

Thanks for the encouraging advice and helping keep the peace!