Starting a coffee roasting business

[Kbeans]

I currently have a Behmor 1600 that I roast with. That's why I was wondering if I should order smaller batches before I dive into buying full bags. I have been looking into ordering from http://www.greencoffeestore.com. They sell 1-25lb at a time. I understand it is probably more expensive then buying full bags but would allow me to roast samples before diving into large purchases. Thoughts?

 

[eldub]

it would appear that you have considerable experience roasting small batches on your current roaster. Unfortunately, if you buy small sample batches to roast at first, all you will be doing is gaining more experience on your small roaster. You won't be learning the nuances of a bean in enough detail before your little purchase is gone and you need more beans. Then you will be starting all over again on another sample batch.

It took me about 100 lbs of beans to figure out the sidamo I'm currently roasting. Luckily I've managed to purchase 3 bags of the same lot over the last six months.

Is this going to be a hobby or a business? Because if it's going to be a business, buying less than a full bag of most any bean just doesn't make any sense to me. But that's just my opinion.

lw

 

[Kbeans]

This is absolutely a business. (See 2 ago of my previous thread posts). I meant more when I get my 5kg roaster if I should buy smaller batches at first. I am ready to move on from my Behmor. I agree that I can only do so much with that roaster and it doesn't allow me to adjust a lot of things such as temperature on the fly or preheat.

 

[eldub]

If you are starting a coffee business it doesn't make sense to me to buy beans in quantity of a hobby roaster. Even if you are only selling 25 lbs. of peans per week, you will go through 1000 lbs. (9+ bags) in ten months.

This might be a bit tough to understand at present, but for getting to know each bean and consistency of blend, buying in larger quantities is much better. And then you have the price factor.

If you buy small sample lots of green beans and roast a bunch of batches to learn the beans and let potential wholesale customers taste your product you will have to be reordering beans before you really fill any orders. If you then order full bags from another supplier, the beans you will use to fill the orders won't even necessarily taste like the samples you presented a few days/weeks back.

We've been in this business less than a year and I'm already ordering multiple bags of certain beans that we really like, as they tend to go fast and we want to maintain consistent quality.

 

[sae]

A few comments:

• next to getting sales, cash flow is the biggest thing you need to think about. Green bean is not cheap and I would recommend you buy as much as you think you might need for a few months. What are the carrying costs of warehousing your own green bean vs paying for freight. Which is cheaper?
• how much time do you want to spend roasting? Between book keeping, sample roasting, developing sales, deliveries, packaging, etc I think you should estimate that you want to get all your rasting done in 2 days. Then figure out how many beans per week you'll go through and size your roaster accordingly. I'd also say if you're serious and this will be your main income you'll want to be at least in the 12kg range.

 

[eldub]

I agree 100%, sae.

We initially ordered a 5 Kg machine but upgraded to the 12Kg model before they started building the smaller unit. We want a roaster to grow into, rather than out of.

On the other hand, I could understand why someone would want to go with the 5Kg initially, from a cost perspective.

 

[Kbeans]

The more I talk with everyone I agree with buying a larger roaster and growing into it rather than growing out of it. How much does the us roasters corp 12kg roaster run? This is a business that will initially be run out of my house with future ambitions to have a coffee shop/roasting warehouse I understand these machines are not small and i understand that the beans will take up some room. Do you think doing this in a home with a 12kg roaster is achievable? I just want to keep overhead costs at a minimum just starting out.

 

[sae]

I think doing it out of your house would pose serious problems from a by-law and food sanitation perspective. I know in Canada we have to follow specific rules about what is needed for food sanitation reasons. Also, I wouldn't be able to roast from my house because I wouldnt be able to get a business license that would allow me to exhaust that much smoke in a residential area. The other option would be to get an after burner but those cost just as much, or more, than the roaster.

12 kilo roasters will be in the mid $20,000 range.

 

[eldub]

I doubt you will be allowed to launch a commercial coffee roasting operation from your home for the reasons mentioned above. I recommend keeping it at the hobby level until you have enough money to fund the operation.

 

[Kbeans]

My thoughts are that I want to build this business while I'm still working my full time job. I would rather spend less money initially and then grow with my profits over time and as my demand grows. That is why initially i was thinking about purchasing a smaller, 2kg or 5 kg roaster. I thought I could really learn my roasting style and test the market in my area. As I grow and become more familiar and confident with my roasting I figured I could easily sell my roaster and purchase a 12kg or larger depending on where my business is. At that point I would need to move to an actual site. I live on 5 acres of land in the country and therefor I am not to worried about smoking anyone out. I'm not sure about food sanitation laws in my area but I figured I probably don't need to worry to much about that until I grow into an actually facility other than my house. I would just rather have to cash to start this business instead of going into debt without having any customer base yet. I plan on starting selling locally at farmers markets, local market places, small restaurants, small businesses, family and friends initially with the smaller roaster and then see where things go from there. My goal is to be financially sufficient with this business alone in the next 3-4 years. There is hardly any independent roasters in my area and we have a huge population and one of the largest tourism destinations in the states. I know of one other small batch roaster in my immediate area and he is basically where I want to be right now with a 6lb roaster doing it out of his garage. I hope that kind of clears up my vision and goals a little for you. Thoughts and criticism welcomed.

 

[eldub]

You will need a food processing license to sell beans whether working out of your house or a shop. Most of the stores that carry our beans asked to see that document before committing to do business with us. However, I know nothing about the rules and regulations of your state.

I would honestly consider it a hobby until you quit your job, move into a roasting facility and start working the business full time. I'm not sure I would/could be successful with this roasting venture of ours if I had another full time day job.

 

[sae]

The fact that you live in the country side tells me that you have a building available for you to use. Check what the minimum requirements are making it certified food safe - this might mean drywall, a sink, etc and it might not be very expensive if you do the work yourself. At a minimum get a 5kilo roaster or you could be roasting every evening! You'll also want to budget for bags, a sealer and a scale that is approved for commerce (at least that is a requirement for me).

From what you're describing this could easily be a hobby you can grow into as it sounds like you have the space to be able to do it.

 

[Kbeans]

I do have the room to roast and I was planning on converting the upstairs into my roasting room. My father inlaw owns a contracting business so should be fairly cheap to convert. I will check with the state laws and requirements. Do you know if the 5kg can be oportated by a typical propane tank and if so you many roast do you think is achievable on one tank? I've also heard that pro pain burns hotter than natural gas but is more expensive. Does that effect the roasting?
Also, do either of you have websites that I could check out?

 

[sae]

I wouldn't do an upstairs as you'll be hauling heavy bags up the stairs.

You can roast about 400 lbs on a 20 lb propane tank. If you buy a roaster that's setup for propane then the nozzles and everything will be correct. If you then try to hook up the roaster to natural gas you'll have to convert the injector jets and maybe other things also.

 

[eldub]

I'm not sure about the logistics of hauling a shop roaster up a flight of stairs. Keeping that area cool would be another consideration, imo. Roasters get hot. And they are heavy. (Our 12kg unit weighs about 1,000 lbs.)

You can check us out @ Corazoncoffeeroasters.com