Any Pointers

daredvl_edm

New member
Mar 30, 2006
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Edmonton
This is all new to me, the form that is. I am currently just finishing my business plan to start up my coffee shop and could not be more excited. I am going to be having Organic and Gourmet Coffee, both wholesale beans, and over the counter service per cup. Any pointers or hidden secrets would be greatly appreciated.

Thank you all,

Steven :p
 

wag

New member
Oct 1, 2004
22
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Houston Texas
how do you plan to onsite roast? Asfter 20 min of your labor roasting and packing, plus cost of product and overhead how much profit is left over. I think you would be much more profitable selling coffee.

beans 2,50 lb
labor 20min 5.00
label and bag .80
overhead ( lets just use 1.00) iit is actually much more buy we will let the coffee drinkers share in the most
cost 9.30
sell 12.50
profit 3.20 x 3 per hour + 9.60 hour@ 10 hr day 96.00
Thats if you keep the roaster busy. So I do not think Roast on demand will work.
 
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daredvl_edm

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Mar 30, 2006
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Edmonton
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Thanks for the information. I will have onsite roasting by the order at the beginning until I get busy then I will of course pre package all the roasting. I will also have gourmet beans on site as well, not just the organic beans. I want to venture into this market, but still keep with the gourmet market along the way.

Thanks again.
 
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daredvl_edm

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Mar 30, 2006
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Edmonton
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Gourmet coffee or Specialty coffees, which doesn't necessarily mean Organic coffee, as these terms are used interchangably. Since Organic beans are without pesticides, some gourmet beans, and in some cases most are not Organic.
 

wag

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Oct 1, 2004
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Houston Texas
Actually Gourmet doess not denote anything .Speciallity coffee does in that it is distingushed from comidity coffee. Organic has nothing to do with either, it is simply a farming method.

I see some of the large roasters using the words gourmet along with thier comodity coffee. This term is used everywhere in the food industry.

Just simply state you sell speciality coffee and some might happen to be organic certified. Explain to your customers why specialty IS so special. Consumer Education 101
 
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daredvl_edm

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Mar 30, 2006
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Edmonton
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Thanks again. I am curious to know one other thing. I really do want to get into the roasting market since in Edmonton, this market is lacking. If I were to go to wholesale roasting beans for other coffee shops and possibly restaurants, along with individual customers. When I purchase from my wholesaler, and then sell them to my business market. What is the cost return on this, since you must be comparable in price to stop them from going to your supplier. This could be a very profitable market, but the cost turn around could be a disadvantage.

I am curious to know your thoughts on this.

Thanks gain for all your input.
 

wag

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Oct 1, 2004
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Houston Texas
if you can not see your self doing 25k lbs per year I would not venture into roasting. you really need 75k-100k lbs. you might see 2.00 net per lb
 

ourcoffeebarn

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Nov 8, 2004
174
1
Wisconsin
wag said:
if you can not see your self doing 25k lbs per year I would not venture into roasting. you really need 75k-100k lbs. you might see 2.00 net per lb

Hey wag,

Us small home based business people like to be very Artisan with the beans we roast! I don't see being an Artisan if you are roasting 100,000 pounds of coffee a year. What can't you see? A small business that wants to enter the coffee roasting world that has a LOT of room in it for more small Artisan roasters is very welcome to me! Quit trying to discourage people! We all had to start someplace!
 

mrgnomer

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Jan 22, 2006
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Canada
daredvl_edm said:
This is all new to me, the form that is. I am currently just finishing my business plan to start up my coffee shop and could not be more excited. I am going to be having Organic and Gourmet Coffee, both wholesale beans, and over the counter service per cup. Any pointers or hidden secrets would be greatly appreciated.

Thank you all,

Steven :p

I've got no personal experience running a business but from what I've experienced and read coffeewise quality and consistency is very important. Personally I haven't been to a local cafe whose beans and espresso are better than what I make at home. Either the bean roast quality/freshness, equipment maintainence or barista skills are lacking to make an espresso or even a cup of coffee I'd go out of my way to enjoy again.

I don't know how many people would be interested in excellent coffee but if you invested money into quality at every level maybe your product would be something a customer couldn't duplicate or find elsewhere. Offer it at a reasonable price and hopefully repeat business would get you and keep you going. Your roasts would probably sell well.

I know of one green bean supplier where I live that goes out of it's way to develop a relationship with it's customers by not only offering green beans for retail sale but roasters, coffee equipment and coffee roasting/brewing demonstration/courses. The first time I visited this green bean supplier it was their coffee course day and they were closed to walk ins. They not only opened the doors to me but gave me a tour of their place, let me pick a green bean to roast, used a FreshRoast roaster to roast it, ground and brewed it while I waited then demonstrated a cloth filter drip brew. That was really cool. Their green bean prices are too high for me and I've done coffee research on my own so I haven't been back there since but even while I was being courted a couple walked in for the course so I imagine they do a good business.

I think if you love what you do and sell that effort will relect in the quality of your establishment and product and others who never knew coffee could be so interesting and good will find you and support you. Good coffee is not hard nor expensive but so many people who really like coffee think that it requires a skill and resources inaccessible to the average consumer. I used to think that but it's really not the case. Showing and offering to teach people and provide them inexpensive products to duplicate excellent coffee brewing might interest more than a few people and give you sometiing special to offer that sets you apart.
 
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