coffee roasting business plan in ethiopia pdf

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Business Plan: Coffee Industry in Ethiopia

Business Plan for the Coffee Industry in Ethiopia

The coffee business plan provides a detailed roadmap for entrepreneurs seeking to dive into the coffee industry in Ethiopia. The plan offers an in-depth analysis of essential commercial elements, equipping you with actionable insights to build a robust foundation for your venture. It meticulously explores the nuances of your business idea and considers the local market dynamics, competitive landscape, and the driving forces behind market growth.

The coffee business plan is focused on a particular product group within the coffee industry in Ethiopia. Specifically, it will be tailored for one of the below product groups:

• Coffee : Roast coffee; Instant coffee

Designed to be an indispensable resource, the coffee business plan serves is an essential guideline for both new and established enterprises in the industry. It addresses business planning, operations, marketing, organizational structure, and finance and outlines how to effectively manage them. Moreover, the document includes a detailed financial model crucial for attracting investors and securing loans or venture capital to fuel business growth.

The comprehensive business plan provides a framework for establishing a solid foundation for your coffee business in Ethiopia, keeping you on track to meet your goals. The tailored business plan will effectively analyze and present the details of your business, communicating its current state and future goals both internally and to interested third parties. It will serve as a foundational document for your business analysis, tracking, and development.

The coffee business plan offers a realistic, flexible, and data-backed action plan. It will assist you in calculating the risks associated with necessary decisions. The analysis is designed to cover business growth opportunities and challenges in Ethiopia, effectively navigating market complexities.

You will receive the business plan within 3 to 5 months after purchase. After project delivery, your team will have enough time to study it thoroughly and ask questions. Our team will be available for any clarifications or questions you might have in up to 3 months after the project delivery.

In the same industry and geographical region, we also offer detailed market reports, feasibility studies, due diligence studies, market entry, market development, product launch and product development studies, direct access to millions of potential new consumers, partner search and selection and more. Contact us for more information.

Business Description

This section of the coffee business plan involves an overview of your company. It will contain a detailed description of your business vision, goals, and key value proposition. In addition, the chapter provides an analysis of your products, including their unique features, benefits, and limitations.

The section answers the following questions:

• What are your company's goals, vision, mission, and values?
• What are the different types of products offered by your coffee business?
• How do your products solve problems or add value?
• What is the unique value proposition of your offering?
• What are the implications and the recommendations of the feasibility study conducted for it, if any?

Market Research

The market analysis section of the coffee business plan provides an overview of the market size, dynamics, and segmentation in volume and value terms for the last five years. It contains data on the trends and other aspects related to the development of the coffee industry in Ethiopia. The section also gives a forecast for the market development in volume and value terms in the next six years.

This chapter answers the following questions:

• What are the size and the dynamics of the market in Ethiopia in volume and value terms?
• How is the market segmented (by origin, product type, application, end-use, etc.)?
• Is the domestic market self-sufficient?
• What are the major trends and regulatory factors that affect the market?
• What are the drivers and challenges behind recent market developments?
• What is the degree of competition based on Porter's five forces?
• How has the volume, value, and segmentation of domestic production changed over the past five years?
• How is the value chain of the market formed? What is the structure of price formation?
• What are the average producer and retail prices on the market and how have their dynamics changed for the last five years?
• How has the volume, value, and segmentation of imports and exports changed over the past five years?
• What are the average import and export prices? How have their dynamics changed over the last five years?
• How has the consumption and the consumption per capita changed over the past five years?
• How will the market within the coffee industry in Ethiopia develop over the next six years under three possible scenarios (base, optimistic, and pessimistic)?

Consumer Behavior Survey and Customer Insights

A representative consumer behavior survey pinpoints the sentiments and thought processes behind consumption decisions. The coffee business plan will include a survey with 250 respondents who align with your target audience profile. This feature brings you insights that are directly applicable to your market, analyzing your target audience, and its segmentation. For a deeper understanding, you have the flexibility to add extra respondents at an additional fee and customize questions to get specific answers. Contact us with your specific requirements.

The consumer behavior survey and customer insights chapter answer the following questions:

• What products does your target audience purchase, and why?
• Which product characteristics are valued the most?
• Are consumers brand-loyal, or are they more likely to experiment?
• What are the needs and preferences of your customers?
• Which are the dominating price and product segments?

Marketing and Sales Strategy

This section of the coffee business plan presents you with a comprehensive guide outlining steps for the successful promotion and distribution of your products. The analysis focuses on estimating the penetration rate of your products, the total serviceable market, and the actual realistically obtainable market. Thus, it assesses the growth potential of your products in Ethiopia. That will help you select the proper strategy and market penetration tactics. As a result, it will support the establishment of your products and brand name, promoting loyalty and positive word-of-mouth advertising.

The marketing and sales strategy chapter answers the following questions:

• What are the values of key demographic indicators in Ethiopia?
• What are your key target segments and their demographics, needs, and preferences?
• What is the current marketing strategy of choice? Which communication and distribution channels are used to reach the target audience?
• What specific tactics are employed to achieve marketing goals and generate sales?
• How to communicate your value proposition to customers consistently and compellingly, and effectively connect with and appeal to the target audience?
• What is your brand positioning and how can you build brand awareness?
• How easy is it to expand the penetration rate of your brand and broaden the number of new customers in Ethiopia?
• What is the cost of your products and the pricing strategy that your venture currently relies on?
• What is the size of the total serviceable coffee market by product, price, and positioning segments?
• What is the size of the total realistically obtainable market within the coffee industry in Ethiopia?

Competitive Analysis and Strategic Comparison

This section of the coffee business plan analyzes the products of your top competitors in Ethiopia. It compares them with your own market offering, focusing on product characteristics and unique selling propositions (USPs).

• Which are the major companies in Ethiopia? What are their main characteristics and market shares?
• What is your company's market share (if any)?
• How intensive is the competitive landscape?
• What are the USPs of competing products? What are their strengths and weaknesses?
• How do your products distinguish themselves from the offerings of others?
• How to position your business on the market to create a unique value proposition?

Supply Chain Management

This supply chain section of the coffee business plan outlines how your business executes its day-to-day operations. It analyzes your supply chain management in several stages - raw materials procurement, core production phases, inventory management, and logistics. It also presents the key assets required for your business to operate effectively, including facilities, equipment, machinery, and key technology.

• What are the strategies employed by your business? What is their operational impact?
• What are the core operational activities required for your business to function effectively (manufacturing, logistics, etc.)? How are they managed?
• Where are the main business facilities (production plants, offices, warehouses, retail locations) situated? How do they support operational processes?
• What technologies and machinery do you need to ensure efficient operations?
• How does your business manage production capacity and stock levels?
• How can your business achieve its operational efficiency and productivity? How can it enhance overall performance?
• What are the specific operational goals that your business aims to achieve in the short- to medium-term through the long-term? Who might be a suitable future strategic partner?

Organizational Structure and Staffing

This section of the coffee business plan analyzes your business' recruitment needs, organizational structure, and management team. It provides a comprehensive overview of the decision-makers and the key employees within the team, focusing on their qualifications and roles. This chapter answers the following questions:

• What is the organizational structure of your company?
• Who are the key leaders and executives in the management team?
• What is the number and type of employees by department and geographic location?
• What are the backgrounds, experiences, and qualifications of the most important employees and managers? Can they support the strategic investment considered?
• What recruitment and onboarding strategy do you utilize?
• How is the company culture characterized?

Financial Analysis

This chapter of the coffee business plan includes a custom financial model with different scenarios, which allow you to better prepare for the future. The financial model will provide you with a forward-looking perspective on the financial health of your business for the next 15 to 25 years.

It will show you a clear path to profitability by analyzing the investment model, required financing, project revenues and expenses, cash flows, and discounted cash flows. It also incorporates a number of key project performance indicators such as net present value (NPV), discount rate, internal rate of return (IRR), return on investment (ROI), profitability index (PI), investment payback period, etc. They will enable you to optimize your business model from different financial standpoints.

The financial analysis section answers the following questions:

• What are the values of key local economic indicators in Ethiopia?
• What are the assumptions used for the financial projections?
• How is your business forecast to fare during the next several years financially?
• What is the expected revenue, profit margin, and return on investment of your coffee business?
• What is the cost breakdown of the operation?
• What is the anticipated level of cash inflows and outflows?
• What is the amount of the investment needed? How will it be utilized?
• What is the overall effectiveness of the investment?
• How profitable is the investment project expected to be based on the internal rate of return (IRR)?
• How long does it take for an investment to pay back its initial cost?

The financial model is built on three different scenarios, which allow you to better prepare for the future. The high-level data of the financial model can support optimizing your financial efficiency and help you determine whether your financial expectations are economically sound and likely to come to fruition.

During the actual project implementation phase, you can use the financial model as a checklist, tracking, and updating of financial projections. Some of the largest global financial institutions have already backed up new business ideas and projects, based on our financial models.

Risk Management and Mitigation Strategies

The risks section of the coffee business plan in Ethiopia outlines the risks that can impact your project's success. Companies face several types of risk, including market risk, financial risk, operational risk, technological risk, and legal and regulatory risk. The chapter also includes risks associated with commodity pricing, regulatory changes, interest rates, foreign exchange exposure, future capital requirements, product life cycles, etc. It is imperative for your company to carefully evaluate these risks and implement mitigation strategies to ensure a realistic assessment of the venture's viability.

• What risks of technical, operational, market, financial, and legal nature is your business exposed to in the short- and medium-term?
• What strategies are employed as a way to mitigate those risks or work around them?

Action Plan

The action plan section of the coffee business plan provides a step-by-step guide for your business. It will outline the various stages your company will have to go through and a reasonable timeline for each step in the process.

This section answers the following question:

• What are the different stages that your business will have to go through?
• What is the implementation timeline for the various stages of the business plan?

Short Methodology

The coffee business plan is prepared using WMStrategy's research methodology. It includes a blend of qualitative and quantitative data. The market information comes from official sources and includes insights from at least 20 market experts (representatives of the main market participants), gathered through semi-structured interviews.

A crucial component of the methodology is the consumer behavior survey. It is an indispensable tool for monitoring customer sentiments and preferences. The business plan includes a survey with 250 respondents who align with your target audience profile. The survey methodology utilizes precision targeting to identify and engage respondents who closely match the profile of your target audience. Depending on your requirements, a survey with a larger sample of respondents can be commissioned and you can ask specific questions to get verified insights.

The approach also includes an in-depth financial analysis, which is built on carefully researched data, creating actionable insights for your business. The classic valuation method of discounted cash flow (DCF) is utilized. In the process, some key financial indicators are developed to serve you as a tool for performance tracking. The collected data is then applied in the analysis of the main business strategies, maximizing your probability of success in light of current market dynamics, trends, and challenges.

Business Plan Benefits

• Get an insight-based plan, 100% developed for your specific business, taking into account your goals, needs, and targets;
• Appeal to different investors and meet their diverse interests and criteria, including venture capitalists, angel investors, and private equity firms;
• Gain a comprehensive marketing strategy and tactics, developed to effectively reach and engage your customers;
• Get a clear understanding of the fundamental requirements, such as the physical resources, facilities, technology, and operational processes, necessary for your coffee business;
• Benefit from detailed financial projections and budgeting aimed at creating a coffee business that achieves sustainable and profitable growth;
• Back up your coffee business plan with a financial model that serves as a benchmark to track your current performance;
• Obtain evidence of your company's growth potential and alignment with market trends;
• Save invaluable time and resources and easily secure a loan approval;
• Get a detailed overview of your supply chain, along with current and possible future partnerships;
• Strategically compare your products to your competition;
• Acquire a concise coffee business model to present to stakeholders for a quick understanding of your activities;
• Provide stakeholders with information about the realistically obtainable market in the foreseeable future;
• Acquire an expert analysis of the strengths, weaknesses, opportunities, and threats of your endeavor;
• Effectively communicate your company's objectives to employees;
• Strategically assess the competitive position of your main rivals;
• Quickly and cost-effectively receive a strategic analysis of key indicators on the market;
• Find out what and why your target audience likes and purchases;
• Identify and reach the most relevant audience, making sure that the insights you gather are directly applicable to your strategic goals;
• Receive a clear outline of the risks faced, along with strategies to mitigate them.

Business Plan Users and Target Audience

The coffee business plan is ideal for people who plan to start or expand a company and want to bring their ideas into reality. The coffee business model provides real market data, clear and comprehensive analysis, and sound strategies. It will help make your coffee business more profitable, attract funding, establish new goals, mitigate expected risks, aim at higher growth, and uncover more opportunities. The coffee business plan is tailored for an audience, which could include the following stakeholders:

• Bank managers;
• Investment managers;
• Shareholders;
• Financial professionals;
• Angel investors and venture capitalists;
• Franchisors;
• Business partners;
• M&A managers;
• Family and friends.

This document is also suitable for people who want to gain a comprehensive understanding of your current operations, including internal and external users such as:

• C-suite executives;
• Industry strategists;
• Marketing professionals;
• Business development professionals;
• Management consultants;
• Product developers;
• Product marketers and strategists;
• Product managers;
• Project managers;

Business Plan - Anticipate Revisions

A step-by-step business plan is crucial when starting a new business. It is an effective tool for measuring success, aligning goals, and taking advantage of new opportunities. You should consider revising your coffee business plan in the following cases:

• Before employing growth strategies or launching new products;
• When implementing a new organizational structure;
• To address changes to the industry or legislation;
• When new market trends emerge;
• When raising capital;
• When preparing to sell your business;
• At regular intervals (e.g., annually).

Deliverables

• Detailed and personalized coffee business plan in PDF format;
• Excel-based, editable financial model covering several possible scenarios that can serve as a benchmark to check and track your business performance;
• Compelling investor pitch deck PPT presentation;
• Business model canvas, a 1-page overview of your business model.

TABLE OF CONTENTS

INTRODUCTION

BUSINESS PLAN METHODOLOGY

BUSINESS DESCRIPTION

• Company Overview
• Contact Details
• Short Company History and Business Operations
• Goals, Vision, Mission, and Values
• Product Portfolio, Characteristics, and Unique Selling Proposition
• Feasibility Study Conclusions and Recommendations

EXECUTIVE SUMMARY

• Business Model Canvas

MARKET RESEARCH

• Characteristics and Analysis of the Market within the Cocoa Industry in Ethiopia in 2019-2023
• Volume, Value, and Dynamics of the Market
• Structure of the Market by Origin
• Structure of the Market by Product Types
• Trends and Insights on the Market
• Five Forces Analysis
• Drivers and Challenges that Will Affect the Future Development of the Market
• Characteristics and Analysis of the Production in Ethiopia in 2019-2023
• Volume, Value, and Dynamics of the Domestic Production
• Structure of the Domestic Production by Product Types
• Characteristics and Analysis of the Prices in Ethiopia in 2019-2023
• Value Chain Analysis and Structure of Price Formation
• Characteristics of the Producer Prices by Product Types
• Characteristics of the Retail Prices by Product Types
• Overview and Analysis of the Imports to Ethiopia in 2019-2023
• Volume, Value, and Dynamics of the
• Structure of the Imports by Product Types
• Main Countries Exporting to Ethiopia
• Average Import Prices by Product Types
• Overview and Analysis of the Exports from Ethiopia in 2019-2023
• Volume, Value, and Dynamics of the Exports
• Structure of the Exports by Product Types
• Main Countries Importing from Ethiopia
• Average Export Prices by Product Types
• Characteristics of the Consumption in Ethiopia in 2019-2023
• Volume, Value, and Dynamics of Consumption
• Volume, Value, and Dynamics of the Per Capita Consumption
• Balance between Supply and Demand in the Market
• Forecast for Development of the Market within the Cocoa Industry in Ethiopia in 2024F-2029F in Three Possible Scenarios (Base, Optimistic, and Pessimistic)

CONSUMER BEHAVIOR SURVEY AND CUSTOMER INSIGHTS

• Background Information and Survey Details
• Analysis of Customer Demographics
• Survey Results and Analysis
• Overview of Preferences and Consumer Behavior Insights

MARKETING AND SALES STRATEGY

• Overall Marketing and Sales Strategy
• Segmentation, Targeting, and Positioning
• Marketing Tactics and Communication Channels
• Sales Channels
• Pricing Strategy
• Analysis and Evaluation of the Obtainable Market Indicators
• Penetration Rate
• Serviceable Market
• Realistically Obtainable Market

COMPETITIVE ANALYSIS AND STRATEGIC COMPARISON

• Profiles of the Main Competitors on the Local Market
• Competitive Landscape on the Local Market and Market Shares of Competitors
• Product Offering of Competitor X
• Product Characteristics and Unique Selling Proposition
• Product Pricing
• Product Strengths and Weaknesses
• Product Offering of Competitor Y
• Product Offering of Competitor Z
• ... (similar analysis process for the top five competitors)
• Strategic Comparison of Product Offering with Competing Products

SUPPLY CHAIN MANAGEMENT

• Overall Strategy and Available Facilities
• Raw Materials Procurement
• Current Suppliers/Partners
• Possible Future Suppliers/Partners
• Production Process Design
• Inventory Management
• Operational Implications
• Planned Changes to Current Operations

ORGANIZATIONAL STRUCTURE AND STAFFING

• Organizational Structure
• Staffing - Key Personnel and Roles

FINANCIAL ANALYSIS

• Characteristics of the Local Economy
• Key Financial Assumptions
• Investment Needed (Amount, Projected Uses)
• Projected Set-Up and Operational Costs
• Projected Revenue
• Analysis of the Effectiveness of the Investment
• Discount Rate
• Return on Equity
• Value of Capital
• Annual Cash Flows
• Cash Flow from Operating Activities
• Cash Flow from Investing Activities
• Cash Flow from Financing Activities
• Project Performance Indicators
• Net Present Value (NPV)
• Internal Rate of Return (IRR)
• Profitability Ratio
• Payback Period (PBP)

RISK MANAGEMENT AND MITIGATION STRATEGIES

• Technical Risks
• Operational Risks
• Market Risks
• Financial Risks
• Regulatory and Legal Risks

SWOT ANALYSIS

ACTION PLAN

Technical data

Country reports.

• Feasibility Study: Coffee Industry in Ethiopia
• Commercial Due Diligence: Coffee Industry in Ethiopia
• M&A Due Diligence: Coffee Industry in Ethiopia

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Coffee Roaster Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their coffee roaster businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a coffee roaster business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Coffee Roaster Business Plan?

A business plan provides a snapshot of your coffee roaster business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Coffee Roasting Business

If you’re looking to start a coffee roaster business, or grow your existing coffee roaster business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your coffee roaster business in order to improve your chances of success. Your coffee roaster business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Coffee Roaster Businesses

With regards to funding, the main sources of funding for a coffee roaster business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings is the other most common form of funding for a coffee roaster business.

Finish Your Business Plan Today!

If you want to start a coffee roaster business or expand your current one, you need a business plan. Below are links to each section of your coffee roaster business plan template:

Executive Summary

Your executive summary provides an introduction to your coffee roasting business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of coffee roaster business you are operating and the status. For example, are you a startup, do you have a coffee roaster business that you would like to grow, or are you operating a coffee roaster business in multiple markets or regions?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the coffee roaster industry. Discuss the type of coffee roaster business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of coffee roaster business you are operating.

For example, you might operate one of the following types of coffee roaster businesses:

• Retail Coffee Roastery : this type of roastery sells roasted coffee to individual consumers, either online or through a brick-and-mortar storefront.
• Wholesale Coffee Roastery: this type of roastery sells roasted coffee to other businesses, such as grocery stores, restaurants, hotels and resorts.

In addition to explaining the type of coffee roaster business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, total number of bags of coffee sold, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the coffee roaster industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the coffee roaster industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your coffee roasting business plan:

• How big is the coffee roaster industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your coffee roaster business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your coffee roaster business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individual consumers, grocery stores, restaurants, hotels and resorts.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of coffee roaster business you operate. Clearly, individual consumers would respond to different marketing promotions than grocery stores, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most coffee roaster businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.  

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other coffee roaster businesses.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes coffee shops and grocery stores. You need to mention such competition as well.

With regards to direct competition, you want to describe the other coffee roaster businesses with which you compete. Most likely, your direct competitors will be roasteries located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What types of coffee do they sell?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide better roasted coffee?
• Will you provide features or services that your competitors don’t offer?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a coffee roaster business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of coffee roaster company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to selling roasted coffee, will you sell brewed coffee, sell teas, provide barista event services, or provide any other products or services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your coffee roaster company. Document your location and mention how the location will impact your success. For example, is your coffee roaster business located in a busy retail district, shopping plaza, mall, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your coffee roaster marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your coffee roaster business, including purchasing supplies, performing inventory, marketing, roasting coffee, and selling and/or delivering coffee.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell your 1,000th bag of coffee, or when you hope to reach $X in revenue. It could also be when you expect to expand your coffee roasting business to a new city.

Management Team

To demonstrate your coffee roaster business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing coffee roaster businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing coffee roasteries or successfully running small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you gain one new customer per month or per quarter (as a wholesaler), or will you sell 100 bags of coffee per day or per week (as a retailer)? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your coffee roaster business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a coffee roaster business:

• Location build-out including design fees, construction, etc.
• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your roastery location lease or descriptions of roasts you are working on.

Putting together a business plan for your coffee roaster is a worthwhile endeavor. If you follow the template above, by the time you are done, you will have an expert coffee roasting business plan; download it to PDF to show banks and investors. You will really understand the coffee roaster industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful coffee roaster business.

Coffee Roaster Business Plan FAQs

What is the easiest way to complete my coffee roaster business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Coffee Roaster Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of coffee roaster business you are operating and the status; for example, are you a startup, do you have a coffee roaster business that you would like to grow, or are you operating a chain of coffee roaster businesses?

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A Pocket-Sized Guide To Roasting Ethiopian Coffee

Widely understood to be the birthplace of arabica coffee, today Ethiopia is the world’s seventh-largest coffee producer, with approximately 400,000 hectares dedicated to its cultivation. A combination of diverse genetic varieties and natural growing conditions have given rise to some of the best coffees on the market.

While its impressive diversity makes it difficult to pin down, Ethiopian coffee can often be identified by its bright acidity, floral aroma, and citrus flavour notes. However, to unlock the distinct characteristics of Ethiopian coffee beans, specialty roasters must learn how to effectively roast them.

To find out about roasting Ethiopian coffee, I spoke with three-time South African Barista Champion and MTPak Coffee Ambassador, Ishan Natalie .

See also: Tips For Minimising Waste In Your Roastery

What Makes Ethiopian Coffee Special?

Every year, Ethiopia produces more than 200,000 metric tonnes of coffee , with the majority of production stemming from three regions: Harrar, Ghimbi, and Sidamo. Yirgacheffe, a town located in Sidamo, is known to produce some of the best coffees in the world. 

With the exception of a few government-run estates, almost all Ethiopian coffee is grown on smallholder farms, generally in the shade, at high altitudes, and without the use of agricultural chemicals. This is in contrast to coffee grown elsewhere in the world, in which farmers often have to plant specific types of coffee and create the perfect conditions accordingly.

It’s estimated that there are between six and ten thousand coffee varieties in Ethiopia. However, a lack of genetic testing means that “heirloom” is often used as an umbrella term to describe a mix of these native varieties. 

Although Ethiopia grows both arabica and robusta coffee, arabica is the species most commonly associated with the country’s specialty coffee. Depending on the region, arabica beans are processed by either washing or drying, which has a profound influence on the final flavour of the coffee.

Typically, natural-processed coffees from Ethiopia have deeper, sweeter, and more robust berry tones. Compared to the complex, bright berry notes of washed, they tend to have a delicate, perfume-like fragrance with refined floral and citrus notes.

Ishan Natalie is three-time National Barista Champion and has played a key role in establishing Starbucks in South Africa. He tells me that Ethiopian coffee naturally sets itself apart because its the birthplace of coffee.

“Unlike most other regions and origins, Ethiopian coffees have not had to evolve and adjust their genetics,” he says. “To me, their trees are the purest in the world.”

In 2016, Black Oak Coffee Roasters won two gold medals at the Golden Bean Competition – one of the largest roasting competitions in the world – with two Ethiopian coffees. Both came from Yirgacheffe, with flavour notes of peach, ripe berries, and vibrant tropical fruit.

How Should Ethiopian Coffee Be Roasted?

As is the case with coffee from other regions, there’s no uniform roast method for Ethiopian coffee; ultimately, the decision is based on the preferences of the roaster and their customers.

For example, some roasters may decide to increase the development of their coffee by lengthening the roast time to create espresso blends. On the other hand, those who want to create more subtle flavours with greater acidity will roast their coffee for a shorter time at lower temperatures. These are known as “filter roasts”.

However, when roasting Ethiopian coffee, there are a few important points to consider. Ethiopian coffees are grown at high altitudes, which typically produce a hard, dense bean. This is particularly true for coffee that’s undergone washed processing, which, according to roasting expert Scott Rao , means it requires more aggressive roasting.

This is in contrast to natural processed Ethiopian coffee, which burns more easily and therefore demands lower charge temperatures.

Ishan tells me that as well as density, coffee beans from Ethiopia are also some of the smallest in size, making it difficult to achieve uniformity across roasts.

“Ethiopian beans are naturally among the smallest in size, often with varying sizes in the same bag,” he says. “This makes it extremely tricky to find a consistent roast.”

For that reason, Ishan suggests starting with a fairly low charge temperature, and going into a more aggressive “first crack”, the stage of the roast in which the beans expand and release moisture. 

“After the charge, first crack is the next most important stage to consider,” Ishan explains. “Due to the varying sizes of Ethiopian beans, first crack seems to trickle along as not every bean is able to expand at the same rate.”

Therefore, it’s important to manage the energy in the roaster during this phase to avoid muting the delicate but complex floral and citrus notes. Preferably, roasters should apply more energy during first crack, before pulling back or adjusting air flow. 

According to an article on Sweet Maria’s Coffee Library , roasters should be aiming for “a nice, rolling vigorous crack”, and should set “a clear endpoint to the crack without too many stragglers”.

For flavour and aroma, roasters can increase development by lengthening the time of the roast. This extends the Maillard reaction, a chemical reaction that occurs during a roast, which more than doubles the number of volatile aromatic compounds in coffee. 

Generally, by lengthening this phase, roasters will be able to increase perception of body, while shortening this phase will help improve flavour clarity and produce a much lighter mouthfeel. It can also bring out a higher sweetness and complexity. 

What’s The Best Method For Brewing Ethiopian Coffee?

Once a roaster has perfected the art of roasting Ethiopian coffee, they must make sure customers know how best to brew it. 

Since coffees from Ethiopia tend to be light in body and brighter in acidity, filter brewing methods generally offer the best option for consumers . 

Using an automatic dripper will produce a great cup, providing the coffee is roasted and ground fresh. The paper filter often gives a lot of clarity to the flavours of Ethiopian coffee, imparting it with the perfect amount of acidity and body.

However, brewing specialists Home Grounds recommend brewing Ethiopian coffee using a pour over method for maximum results. According to an article on their website, this allows for more control in the brewing process and slows down the brew enough to pull out the best flavours of the coffee.

For washed Ethiopian coffee, they suggest trying a V60, which, thanks to its thinner filter paper, helps showcase the syrupy body and bright, acidic fruit notes, while preventing over-extraction of bitter elements.

To ensure consumers make the most of their Ethiopian coffee, roasters might consider including brewing instructions on their packaging, in addition to the roast date, roast profile, and flavour notes. Not only will it help consumers get the best results from each brew, it will also increase the chance of them coming back for more.

Ethiopian coffee is widely recognised as some of the best in the world. It typically offers delicate, complex flavour notes with a pleasant bright acidity. 

However, to bring out the best of Ethiopian coffees, specialty roasters must ensure they finesse their roasting technique, taking into account factors such as its high density and varied sized beans.

At MTPack Coffee, we offer a range of sustainable coffee packaging that will preserve the distinct characteristics of your Ethiopian coffee. With our fully customisable options, you can include information on everything, from its flavour notes to the people behind its production.

For more information on our specialty coffee packaging, contact our team here. Stay updated about MTPak Coffee’s products & services. Sign up to our free newsletter .

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Coffee Roaster Business Plan

Is the aroma of freshly roasted coffee your favorite? Then starting a coffee roasting business might be the best course of action for you.

According to the National Coffee Association, about two-thirds of American people drink coffee every day, making it the fourth most popular beverage in the world.

However, how do you launch your own coffee-roasting company? The solution is, to begin with, writing a business plan.

Need help writing a business plan for your coffee roaster business? You’re at the right place. Our coffee roaster business plan template will help you get started.

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How to Write a Coffee Roaster Business Plan?

Writing a coffee roaster business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Products and services:.

• For instance, you may include roasted coffee beans and private labeling as products & services and mention custom blends as USP.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

• Specialty coffee roaster
• Artisanal coffee roaster
• Wholesale roaster
• Contract roaster
• Retail roaster
• E-commerce roaster

Describe the legal structure of your coffee roaster business, whether it is a sole proprietorship, LLC, partnership, or others.

Mission Statement:

Business history:.

• Additionally, If you have received any awards or recognition for excellent work, describe them.

Future Goals:

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

• For instance, cafes, coffee shops, restaurants, hotels, or offices would be an ideal target audience for a coffee roaster business.

Market size and growth potential:

Competitive analysis:, market trends:.

• For instance, sustainability and ethical sourcing has a growing market now; explain how you plan on dealing with this potential growth opportunity.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your coffee roaster business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your products:

Mention the coffee roaster products your business will offer. This may include products like,

• Single-origin beans
• Unique blends
• Flavored coffee
• Decaffeinated coffee

Describe each product:

Provide a detailed description of each product you provide.

Quality measures:

Additional services:.

In short, this section of your coffee roaster plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

• For example, single-origin focus, ethical sourcing, or customization could be some of the great USPs for a professional coffee roaster business.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your coffee roaster business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your coffee roaster business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & machinery:.

Include the list of equipment and machinery required for coffee roasters, such as coffee roasters, green coffee storage, cooling tray, grinding equipment, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your coffee roaster business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your coffee roaster business, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should summarize your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

• This exercise will help you understand how much revenue you need to generate to sustain or be profitable.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more.These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the coffee roaster, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your coffee roaster business plan should only include relevant and important information supporting your plan’s main content.

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This sample coffee roaster business plan will provide an idea for writing a successful coffee roaster plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our coffee roaster business plan pdf .

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Frequently asked questions, why do you need a coffee roaster business plan.

A business plan is an essential tool for anyone looking to start or run a successful coffee roaster business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your coffee roaster company.

How to get funding for your coffee roaster business?

There are several ways to get funding for your coffee roaster business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your coffee roaster business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your coffee roaster business plan and outline your vision as you have in your mind.

What is the easiest way to write your coffee roaster business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any coffee roaster business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Learning center series

What makes a good coffee roaster business plan?

• Published on March 12, 2024
• by Turgut Arisoy
• Last updated: 3 weeks ago

In the vast landscape of coffee businesses, crafting a solid roaster business plan is not just any old option, it’s your survival kit. Ever looked at the daily consumption stats?

Over 2.25 billion cups of coffee devoured around the globe every day. That's nearly enough to fill 900 Olympic swimming pools with steaming mocha delight!

Yet, amidst this behemoth consumer demand, many coffee roaster operations still teeter and totter. Not because they lack an inviting aroma, but largely from an absence of a tailored, strategic business plan.

“What is a good coffee roaster business plan?” If that question has been gnawing at your consciousness, then buckle up. This post is set to serve you the nitty-gritty essentials of creating the near-perfect plan— the proverbial ‘shot of espresso’ in outsmarting your competition. It’s time to truly brew success with your coffee roaster business.

America's Coffee Craze ☕️ Nearly 3 in 4 Americans drink coffee per day (73%) .

The Blueprint to a Successful Coffee Roaster Business Plan

Step 1: understanding the coffee roasting market.

Coffee roasting is more than an art; it’s a booming industry. You’re not just dabbling in coffee beans and their aroma; you’re diving into a multi-billion-dollar industry inhabited by countless competitors. Can you carve out your niche in this bustling market? To do so, a clear comprehension of the coffee roasting market becomes paramount. At Metrobi, we specialize in optimizing coffee logistics and distribution , ensuring your unique blends reach their destinations efficiently and reliably.

For starters, get to know your customers. They come in all forms – cafe owners, retail customers, wholesalers. Each has unique tastes, preferences, and price points.

Understanding competitors is equally crucial in this landscape. Identify the major players, what they do well, and where they falter. This doesn’t imply launching into a copycat strategy but acquiring cues to stand out.

Pay attention to trends too. The coffee market, like many others, is influenced by global and local trends. For instance, single-origin coffee has seen a surge in demand due to discerning customers. Are there similar opportunities to capitalize on?

Coffee and Health 🌿 48% of people agree that drinking coffee benefits their health .

Step 2: Identifying Your Unique Selling Proposition

Once you’ve got a handle on the market, it’s time to distinguish your coffee. What sets your roasts apart? Perhaps it’s the beans, the roasting process, or your commitment to sustainability. Whatever it might be, this unique selling proposition (USP) adds an irreplaceable dimension to your brand.

Manifest this USP into everything you do – from your packaging to your marketing. A potent USP can be a game-changer that turns coffee connoisseurs into loyal customers. More than enthralling your customers, it can make competition irrelevant, allowing your business to break away from the rest.

Coffee Shop Loyalty ☕ 51% of people purchase coffee from a coffee shop at least once a week.

Step 3: Creating a Comprehensive Business Model

Regardless of your business type, a comprehensive business model is the backbone of your enterprise. With your USP identified, it’s time to sketch out how you’ll sell, distribute, and market your coffee, and who to. Are you primarily targeting cafés or end consumers? Will you adopt a brick-and-mortar, e-commerce, or mix of both models? Answering these questions will streamline your operational strategy. Additionally, it will help outline revenue sources, expenses, and your pricing strategy. An extensive business model mitigates unforeseen challenges and preempts strategies for growth and expansion.

To ensure your coffee roastery business succeeds, it’s crucial to incorporate detailed business planning, including thorough market research and a clear understanding of coffee costs.

A comprehensive business plan should cover all key elements: an executive summary highlighting your aim to produce high-quality coffee; a marketing plan outlining strategies to reach your targeted customer segments; profit and loss statements to forecast financials; considerations for sales tax as your business grows; and operational plans for using commercial roasters.

This foundational document guides every decision as a business owner, from choosing between being a coffee roaster wholesaler or focusing on direct sales, to determining the right marketing approach for your unique coffee roasteries.

Why Most Coffee Roaster Businesses Fail

Lack of market understanding.

One of the main reasons for the failure of numerous  coffee roaster  businesses is the inability to grasp the market intricacies they are attempting to participate in. The coffee market is not limited to brewing; it involves dealing with coffee growers, understanding the complex chain from farm to cup, grasping coffee species and varietals, and keeping pace with ever-evolving consumer preferences.

Multiple Cups a Day 🍵 36% of people drink 3 to 5 cups of coffee a day.

Inadequate Business Planning

Another common failure point is poor planning. Many kickstart a coffee roasting business based solely on passion and limited hands-on experience, neglecting the essentials like a solid business plan, realistic budget, and crucial timelines. Without a comprehensive plan, it’s challenging to ascertain the right roasting equipment, understand inventory needs, identify potential clientele, project sales, calculate overhead costs, and forecast profitability. Ambiguity in these areas can lead to a disaster.

Poor Financial Management

The inadvertent financial management surfaces as another key failure reason. The operational costs of a coffee roasting business can accumulate quickly, from procuring high-quality beans and installing the right roasting and packaging equipment, to managing inventory, rent, utilities, and staff salaries. It’s also crucial to budget for marketing initiatives, potential downturns, regulatory compliance, and unexpected expenses. Moreover, one must decipher the nuances of pricing the product rightly to ensure profitability without scaring away potential consumers. Overlooking these elements can lead to a financial crisis, hampering business growth.

Brewing Up Growth ☕️ The global Coffee Roasters market is projected to grow at a 7.1% compound annual growth rate (CAGR) between 2023 and 2030 , with a market worth of USD 1.93 billion in 2022.

Understanding Profit Margins in a Coffee Roasting Business

Revenue streams in a coffee roasting business.

The backbone of your coffee roasting business is the revenue streams you choose to tap into. There’s no single solution – success comes from a blend of multiple approaches.

Different ways to generate income

Consider the obvious methods: selling raw beans direct to consumers, supplying local cafes, or even providing bespoke roasting services. More industrious roasters might move into offering barista training or collaborating with artisan bakeries to create coffee-infused goods.

A successful blend of revenue streams pays attention to market demand and customer preferences. Regularly assess what’s contributing the most to your bottom line, testing new products and services to find what resonates with your target market.

Maximizing profitability

Don’t confuse activity with profitability. It’s easy to get caught up in the buzz of new offers, but the key is to scrutinize each venture for its potential return on investment. Every initiative should add significant revenue potential or drive customer loyalty to justify its existence. In short, if it doesn’t make money, it doesn’t make sense.

Cost Analysis

No business runs cost-free. A thorough understanding of your ongoing costs is crucial to securing your profit margins.

Breakdown of common costs in a coffee roasting business

Running a coffee roasting business takes more than a roaster. You need high-quality beans, packaging, shipping infrastructure, premises, and, of course, a diligent team. Each aspect contributes to your overheads, meaning you have to continue bringing in sufficient revenue to meet these costs – and, ideally, go beyond them.

Always keep an eye on your balance sheet. Recognise the impact of your major costs. Rent, wages, the price of raw materials – these, among other things, dictate your break-even point and profit potential. Understand their individual impact with deep dive analytics, tracking the ebbs and flows of each cost component.

Strategies for managing and reducing costs

Efficiency is king in a coffee roasting operation. While you can’t avoid costs, you can certainly strive to manage them.

Monitor and investigate any significant cost increases. Review supplier contracts regularly to ensure the best price and seek to optimise your internal operations. Aim for a lean and efficient setup – remember, every dollar saved is an additional dollar of profit.

But remember – cost-cutting should never sacrifice the quality of your product or service. Securing your reputation for quality is paramount to long-term success. In the end, maintaining quality might be the most significant strategy for managing costs in the long run, by fostering customer loyalty and repeat business.

This understanding of revenue streams and cost structures creates a clear framework for profitability potential of a coffee roasting business. Armed with this knowledge, you can take steps to secure and grow your profit margins.

Leading Roasting Technique 🔥 The largest segment in the Coffee Roasters market is the Semi-direct Fire with Half Hot Air Style , holding a share over 65%.

What is a Coffee Roaster Business?

The role of a coffee roaster.

The food-service universe holds companies of all sizes, from multinational giants to single-person operations. In the realm of coffee, a coffee roaster business is a principal player, working behind the scenes to shape the flavor profiles of the coffee that we savor daily. As roasters, these businesses are the guardians of quality, the alchemists transforming green seeds into aromatic brown beans that excite the senses of coffee lovers worldwide.

Coffee roasters are the bridge between the coffee farm and your morning cup, responsible for bringing out the best flavors from the quality raw material. Roasters partner closely with coffee growers, purchasing raw green coffee beans which they then carefully roast to bring out varied flavors and characteristics. The connection between roasters and growers is indispensable, contributing to the traceability and sustainability of our coffee supply.

The Process of Coffee Roasting

Coffee roasting is an art as much as it is a science. It is a complex process involving several principles from chemistry and thermodynamics and requires precision and skill to master.

In essence, coffee roasting is the process of heating green coffee beans in a coffee roaster to transform them into roasted coffee products. The roasting process is what produces the characteristic flavor of coffee by causing the beans to change in taste.

The beans are kept moving throughout the entire process to keep them from burning. As they are roasted, they’ll first turn a yellowish color and the beans will begin to smell grassy. The beans then darken to a light brown and will begin to smell like coffee. After the first crack, the roast can be considered complete at any time according to taste. The further the beans are roasted, the more they lose the inherent tastes of their origins and take on flavor from the roasting process.

Just as winemaking can be broken down into grape-growing and wine-producing, so too coffee can be viewed in two stages: coffee farming and coffee roasting.

Why Start a Coffee Roaster Business?

If you’re flirting with the idea of launching a business, why not consider diving into the coffee world, more specifically, running a coffee roasting business? Pull up your sleeves. Let’s get into the heat of it.

The Growing Demand for Specialty Coffee Industry

Drinking coffee has morphed from a simple morning routine to an intricate experience savored by passionate java enthusiasts. It’s coffee time, and it’s not just about any coffee, but more about pursuing unique, ethical, and skilfully brewed cups – the birth of the specialty coffee market.

While large franchises like Starbucks dominated the industry in the past, today, committed coffee lovers are seeking out local, artisanal roasters who offer unique experiences and flavors. This growing preference for quality over convenience is blowing the doors wide open for specialty coffee roasters. With Metrobi, these businesses can extend their reach, as we offer delivery services across more than 20 U.S. cities, including Denver , ensuring that even the most distinctive coffee flavors find their way to enthusiasts everywhere.

Not only is the demand for specialty beverages on the rise, but the demographics of coffee drinkers are also broadening. Millennials are driving the increase in coffee consumption, with most willing to pay a premium for high-quality brews.

Equally important is the shift towards ethically sourced coffee. Consumers are increasingly concerned about the ethics behind their cups. They are aware that by purchasing from small-scale, local, and ethical roasters, they are supporting sustainable coffee farming practices.

Top Beans on the Block 🏆 The global top three Coffee Roasters manufacturers hold a share over 20% of the market.

The Potential for High-Profit Margins

Undeniably, the coffee business can be a profitable venture if done right. Taking it up a notch by delving into roasting opens another realm. There is potential for high-profit margins when you roast your beans, primarily because you’re controlling the whole process from bean to cup, skipping the middleman. Metrobi aids in expanding your reach by facilitating delivery services across over 20 cities in the US, including offering immediate delivery options in Miami .

Unlike cafe businesses that deal with high overhead and slim margins, a roastery tends to have relatively lower operating costs. Plus, the pricing of roasted beans is often based more on quality than competitive pricing, allowing for larger margins if the product is well received. Discover how our guide unveils viable approaches for a lucrative coffee roasting venture , ensuring a roadmap to sustained success and scalability.

Moreover, as preferences for gourmet, single-origin, and fair-trade coffees continue to grow, consumers are willing to pay more for high-quality, ethically sourced beans. Therefore, the potential to maintain healthier margins is built into the very nature of the market.

This provides an opportunity for those ready to undertake the journey – it’s not just about selling beans, but a rich experience, a unique story, and a taste that leaves an impression.

Coffee Roaster Business Plan: Market Analysis and Future Trends

Current market trends, the newest trends in coffee roasting.

The coffee industry is under constant evolution that is influencing the roasting segment as well. From the demand for eco-friendly practices to the rise of artisanal coffee, consumers’ preferences are reshaping the market landscape. Understanding these trends is crucial in formulating a successful business plan.

In light of these prevailing trends, many businesses are reassessing their operational models and aligning it with the changing coffee world. For instance, many coffee roasters are turning towards organic beans and cleaner roasting methods, responding to the growing call for sustainability.

European Coffee Culture 🌍 Europe is the largest market for Coffee Roasters, holding a share of about 40% .

Leveraging Industry Trends for Business Success

Current trends are not just markers of industry development, but opportunities for growth and success. Being aware of these trends allows businesses to stay competitive and responsive. For instance, if the demand for single-origin beans is on the upswing, incorporating these into your roasting profile can help attract discerning customers. Similarly, offering roast-to-order services could be another route to explore, as it caters to the industry trend of personalisation and freshness.

Future Outlook

Spotting future trends in the coffee roasting industry.

It’s crucial not just to keep an eye on the current scene, but also the horizon. A carefully researched prediction of future trends puts you one step ahead of the market curve. For instance, experts are foreseeing a rise in demand for traceable coffee as consumers become more conscious of the origin of their brew. This means that businesses may need to start closing the gap between growers and customers, perhaps by offering more information about the beans’ journey from farm to cup.

Preparing Your Business for Future Growth

As the saying goes, “The best way to predict the future is to create it.” With that in mind, it’s time to consider how your business can adapt to – and influence – the future of the coffee roasting industry. This could involve investing in cutting-edge roasting technology, partnering with coffee growers to ensure sustainable practices, or even shaping customer tastes with innovative flavor profiles.

A Toast to Your Coffee Roasters’ Success: Concluding Thoughts

Perfecting your coffee roasting business plan isn’t about jumping hoops but understanding the nuances. A compelling vision, robust financial projection, detailed marketing strategy, and effective risk management are your ingredients to a richer, deeper, more successful plan. Now that you’re equipped with this knowledge, it’s your brew of the day that matters.

Remember, your business plan is the lifeblood of your coffee roasting venture. It guides your path and helps secure investments. Keep it flexible, keep it informed, and always tailor it to your business’s unique roast.

So, what’s boiling next for you? Time to review that business plan, isn’t it? Are you ready to refine the elements we’ve discussed and swirl your business in the direction of success? Let’s keep that pot brewing.

Have you identified the unique element that sets your coffee roasting business apart yet? A unique roast, perhaps?

Keep the fire burning, coffee entrepreneurs. Remember, every great coffee roasting empire started with one courageous step. Take yours. Brew tomorrow, today.

How to establish a profitable coffee business

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New Business Ethiopia

Covering Business & Economy Since 2009

New coffee roasting company goes operational in Ethiopia

Melange, a new coffee roasting and packing company, officially inaugurates its coffee processing plant in the capital Addis Ababa around Megenagna area.

The company has imported new and modernized 2019 fabricated machinery from Turkey that helps the company to produce faster and quality products. mainly ‘Hot air’ to roast 720 kilo gram per time, ‘After burner’ to control air pollution and ‘Nitrogen gas’ to canning 1800 synchronized coffee per time.

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Coffee Roasting Business Plan Example

JUL.17, 2018

Do you want to start a coffee roasting business?

Starting a coffee roasting business is one of the best decisions you can ever make given the increasing popularity of coffee uptake. According to statistics from the National Coffee Association, the number of Americans consuming coffee has reached the peak since 2012. Figures indicate over 64% of Americans aged 18 and above have a cup of coffee on a daily basis with a further increase expected which is attributed to the popularity of gourmet drinks. A business  plan coffee roaster is a superb business idea that is poised for success so long you plan adequately. Coffee roasting is more than just a business, it’s an art. Being passionate about your craft and having a good business plan coffee roaster is the secret to succeeding in this business.

Executive Summary

2.1 the business.

The coffee roasting business will be registered as Blonch Coffee and will be located in Harlem neighborhood of New York City. The business will be managed by Maria Rodriguez who is a professional and licensed Q Grader.

2.2 Management Team

Maria Rodriguez, Owner and Proprietor of Blonch Coffee is a licensed and experienced Q Grader with extensive experience in the U.S coffee industry. Prior to starting coffee roasting business , Maria worked for high profile coffee brands across the United States and participated in numerous local, regional and international coffee tasting events.

2.3 Customer Focus

In order for the business plan coffee roaster to succeed, Maria has carefully studied the market and relied on her vast industry experience to come up with an appropriate approach that Blonch Coffee will use to reach out to the target market.

2.4 Business Target

Before starting her own business plan coffee roaster , Rodriguez did extensive market research coupled with her intricate knowledge of the business to identify the right business target. The key is to find creative marketing approaches to effectively reach out to the customer target.

Company Summary

3.1 company owner.

Maria Rodriguez is an experienced Q Grader whose successful career in the coffee making and tasting industry spans over two decades. Having worked for various top brands across the U.S. and participated in high profile events, Maria definitely has what it takes and hands-on skills of how to start a coffee roasting business .

3.2 Aim of Starting the Business

The coffee culture is constantly evolving for this reason, the demand for roasted coffee has increased significantly. Not only is coffee taken as a daily beverage, specialty coffees have now become the norm. Discerning coffee lovers are keen on quality coffee which lays a huge emphasis on how people drink and perceive coffee. To be part of this new exciting culture change, Maria Rodriguez thought of starting a coffee bean business that adopts a unique and transformational approach of coffee roasting.

3.3 How the Business will be Started

With over 20 years of experience in the coffee industry, Maria Rodriguez has a deep understanding of emerging coffee roasting trends and customer expectations. Given her involvement in the industry on a day-to-day basis, she knows what is required to start a successful business plan coffee roaster . To actualize her plan, Maria has worked closely with a team of experienced financial experts to formulate a comprehensive financial analysis and business plan coffee roaster that will guide the entire setup and operation of the business.

Services for Customers

Blonch Coffee has specialized in sourcing, roasting, packaging and organizing delivery for uniquely customized and specialized coffee products. The business offers a wide array of blended and roasted coffees which have been prepared from different kinds of coffee beans. Starting a coffee roasting company poised for success depends on how well blending is done for various kinds of beans.

Blonch Roasters intends to offer a wide range of coffee specialties which include:

• Bistro Blend
• Espresso and Decaf Espresso
• African Roast
• French Roast

Marketing Analysis of Coffee Roasting Business

Coffee is the second most popular traded commodity in the world after oil. The worldwide coffee retail market is a whopping $56 billion industry. Nowadays, coffee consumers prefer taking high-grade coffees with increased focus on quality and unique blending of beans. In the U.S. the coffee market industry has reached unprecedented levels of growth and for this reason, Blonch Coffee plans to rely on an objective coffee roasting business plan to set up its operations. To succeed in this business plan coffee roaster , extensive market analysis has been carried out to identify opportunities available to support business growth. Studying local trends and having a deep understanding of the local coffee roasting market will help Blonch to strategically position its brand.

5.1 Market Segment

In order for Blonch Coffee to achieve its targets, the coffee roasting business will focus on offering various kinds of products and services. Identifying the targeted customer segments is an important step Blonch Coffee has to deal with before as part of the plans to start coffee roasting business . After identifying the right market segment, the business plan coffee roaster can then come up with creative marketing strategy for business in order to woo customers.

5.1.1 Coffee Brewing Premises

One of the largest potential customers for Blonch Coffee is coffee brewing facilities which heavily rely on coffee products on a daily basis to serve their customers. These customers buy roasted coffee beans for the purposes of preparing and selling coffee and espresso drinks. This category includes Coffee Shops , Restaurants, drive-through and Bakeries. With the increasing uptake of coffee, selling directly to various coffee businesses is a sure way of boosting revenues for the coffee roasting business. Because these businesses require coffee products on a daily basis, this is a lucrative market Blonch Coffee must make an effort to reach out to.

5.1.2 Corporates

To start a successful coffee roasting business, you cannot afford to ignore the corporate market which is one of the biggest consumers of coffee products. New York City is a corporate and financial hub with thousands of organizations plying their trade in the city. Office coffee is a popular trend in offices and Blonch Coffee is positioned in a strategic New York neighborhood with easy connections to New York’s Financial District whether a majority of corporates have their offices. Aside from catering for offices, other institutions include schools, hospitals and factories among others.

5.1.3 Retail Specialty Shops

Coffee is a popular item that is stocked in various gourmet and gift shops. People nowadays love and appreciate coffee products as gifts which creates a great opportunity for Blonch Coffee to make unique products that are attractive to retailers focusing on selling specialty and gourmet coffee.

5.1.4 Mail Order

Mail Order coffee is increasing in popularity as many people now order for coffee online. This is an incredible way of boosting revenue for Blonch Coffee as the business can produce coffee for shipping to various places across the U.S. and worldwide. When you start your own coffee roasting business , you must be willing to go beyond the traditional market.

5.1.5 Grocery Stores

Grocery stores buy beans from coffee roasters in bulk for the purposes of resale or prepackaging to their customers. Unlike coffee shops, grocery stores don’t prepare coffee drinks for their customers.

5.2 Business Target

Blonch Coffee has an excellent opportunity to offer its services in the greater New York area thanks to the changing perceptions about coffee. New York is a large city with many coffee bean roasting business establishments, but that doesn’t prevent Blonch Coffee from making an impact.  Using a diversified product range and a good business plan coffee roaster , the business hopes to realize an annual sales increase of 20-30% per annum.

5.3 Product Pricing

Before coming up with product prices, Blonch Coffee has carried out an extensive market research that takes into account the prices of competitors. In order to stay afloat, the business has carefully priced its products to compete favorably.

With the right marketing strategies in place, Blonch Coffee has an exceptional chance to appeal to customers and consistently grow revenue margins. Each marketing strategy is aimed at reaching the target customers with awesome products that exceed client expectations. When planning how to start coffee roasting business , there must be an effective marketing strategy in place in order to remain relevant in a fast growing industry.

6.1 Competitive Analysis

Blonch Coffee plans to come up with a business model that will effectively guide its day-to-day operations and ensure customer expectations are fully met. Even though there are numerous coffee roasting businesses in New York, Maria Rodriguez knows how to start a coffee roasting business and put in place the right mechanisms to remain ahead of competitors.

6.2 Sales Strategy

For Blonch Coffee to meet its sales and revenue goals, the following strategies will be implemented to help advertise the business.

• Print Advertising Campaigns is one of the most effective sales strategies that reaches out to a mass target audience. The business intends to print brochures and put advertisements in local dailies as well as local coffee trade publications and journals. By doing this, the local community is made aware about the coffee roasting business.
• Get the word out and organize an opening party to introduce the business to customers and industry stakeholders. A cupping event is ideal as it allows guests to taste, compare and analyze different varieties of coffee. This is a perfect opportunity for prospective customers to sample what Blonch Coffee has to offer.
• Digital advertising is the new kid on the block. Social media channels such as Facebook, Twitter and Instagram among others are excellent ways of sending out word about the coffee roasting business. Online advertising such as Google Ads allow for localized advertising which is aimed at the local target.
• Attend industry related trade shows and exhibitions with an aim of marketing the coffee roasting business. This is an effective sales strategy that connects the business with right people who will be instrumental in growing revenue margins.

6.3 Sales Forecast

To achieve its goals, Blonch Coffee has come up with a sales forecast to show the coffee roasting business intends to meet its financial goals. Using a comprehensive business plan coffee roaster , the business knows which areas to focus on to achieve financial success.

Personnel Plan

In order to realize its goals, Blonch Coffee intends to hire a team of qualified and experienced staff to manage day-to-day operations of the business. How to start a coffee roasting company and run it successfully depends on the caliber of staff hired. A good business plan coffee roaster should incorporate a personnel budget to enable the business plan coffee roaster know how much will be spent on salaries.

7.1 Personnel Plan

To effectively run business operations, Maria Rodriguez who is the Owner and Proprietor of Blonch Coffee will be in charge of running the coffee roasting business on a daily basis. To ensure smooth running of the business plan coffee roaster , the following staff will be employed in various departments.

• Business Development and Sales Manager
• 2 Support Staff
• 1 Admin Assistant
• 1 Shipping Executive

Successful applicants will undergo training to familiarize themselves with business plan coffee roaster operations.

7.2 Average Salaries

Blonch Coffee plans to pay its staff the following salaries within the first three years of operation.

Financial Plan

Blonch Coffee has come up with a comprehensive financial plan that will be instrumental in driving success and business growth. In this business plan coffee roaster of how to start coffee roasting , Maria Rodriguez will use her savings to start the business but will be assisted by two investors. In addition, a business plan for a bank loan will be secured to help finance the budget deficit to meet expenses. For a business to be successful, there must be a good plan to guide operations and finances. Below is key financial data for Blonch Coffee.

8.1 Important Assumptions

The financial forecast for Blonch Coffee is based on the assumptions below.

8.2 Brake-even Analysis

Blonch Coffee Brake-even analysis is illustrated in the graph below.

8.3 Projected Profit and Loss

Profit and Loss information for the coffee roasting business is calculated on a monthly and annual basis as shown below.

8.3.1 Monthly Profit

8.3.2 Yearly Profit

8.3.3 Monthly Gross Margin

8.3.4 Yearly Gross Margin

8.4 Projected Cash Flow

Below is a summary of Pro forma cash flow, subtotal cash spent, subtotal cash received, subtotal cash spent on operations and subtotal cash from operations.

8.5 Projected Balance Sheet

Below is a Projected Balance Sheet for Blonch Coffee that shows capital, assets, liabilities, current liabilities and long term assets.

8.6 Business Ratios

The following is the Ratio Analysis, Business Ratios and Business Net Worth for Blonch Coffee.

Download Coffee Roasting Business Plan Sample in pdf

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How the Baltimore bridge collapse upended a D.C. coffee chain’s business

When he woke on March 26 to the news that Baltimore’s Key Bridge had collapsed, Michael Haft, co-founder of Compass Coffee, dialed his chief operating officer.

“You have to reroute all of our coffee immediately,” Haft recalled saying.

The collapse upended the supply chain for the D.C.-based roaster, which imports most of its beans through the Port of Baltimore. The crash is expected to cause delays and extra costs for many other businesses that rely on the port, which is responsible for about 52 million tons of imports and exports annually. The U.S. Small Business Administration has received more than 1,000 loan applications in response to the upheaval.

With the port closed to most vessel traffic, hundreds of products, including coffee, tofu and cars , now have to be rerouted to different parts of the country. Three temporary channels provide limited access to the Baltimore port.

To show how the supply chain has been disrupted, The Washington Post looked at the shipping process for some of the products that come from overseas to serve Compass customers.

From around the world to your hands

Compass gets its coffee beans from Kenya, Ethiopia, Indonesia, Brazil, Guatemala and Colombia. Those beans get loaded into shipping containers — 42,000 pounds in each — and sent out to sea.

They arrive at the Port of Baltimore, which receives more than 8 percent of the nation’s coffee beans. Only the ports in Newark, New Orleans, Charleston, Oakland and Houston imported more beans annually before the bridge collapse.

In addition to the beans, Compass uses imported sugar to make simple syrups. Their 12-ounce coffee bean cans are made by a company that imports its steel through the port.

At any given time, Compass typically has six to eight containers of coffee and other products in transit.

Unloading in Baltimore

Once Compass’s beans are unloaded at the Port of Baltimore, they get trucked to a warehouse about 12 miles northeast of the city. That facility also stores beans for other coffee companies, ranging from behemoths like Starbucks to small businesses like D.C.-based subscription service Cam’s Kettle. Inside, 150-pound bags of coffee are stacked on wood pallets.

Then, the beans wind their way to Compass’s 18 D.C.-area cafes. Others go to wholesale and grocery customers, and some are sold to customers to brew at home.

New plan: Newark

The bridge collapse disrupted this process, and the coffee, sugar and tins — among other items — needed somewhere new to go.

Some vessels carrying beans were already at sea when the bridge collapsed, and shipping companies rerouted them to the Port of New York and New Jersey in the Newark area. That port typically handles about seven times as much cargo as Baltimore, a Port Authority spokeswoman said, and has been accepting many other shipments originally intended for Baltimore.

Then Compass had to decide where to route the beans that hadn’t yet shipped. The company considered things like the size of each port, its availability to accept cargo, the cost of transporting products from there to D.C. and the timing of it all, said Matt Brown, who works with Compass as an outside sales manager at the importer Cafe Imports.

Haft decided to send that coffee to Newark. That solved the immediate issue, but also caused a domino effect.

Now that the beans are entering the country through New Jersey, what used to be a 30-minute trip to truck them to the Maryland warehouse is now a five-day journey, including a transfer at an intermediary terminal. Plus, Compass has to return the empty containers to Newark. Sugar will also be expensive to transport from New Jersey because of its density, said Chas Newman, Compass’s chief operating officer.

The roaster’s next order of raw materials for their bulk coffee bags is expected to take 12 weeks — twice the usual time — and other shipments are also running behind schedule. Empty bottles for simple syrup have been delayed by six weeks. One of Compass’s main packaging suppliers, based in Maryland, also expects delays.

What this means for you in D.C.

For now, Compass has kept prices the same for its customers. But Haft hasn’t ruled out raising prices in the future, and he hopes Baltimore’s port will fully reopen before he has to make changes to his operation.

From November: Why does my latte cost so much?

The diversion has been expensive. It used to cost Compass about $1,000 to transport a container from the port to its roastery in Northeast Washington.

Now the company expects to pay $3,500 per container for the trip from Newark to D.C., plus an extra $10,000 on sugar in the next three months. Haft might also purchase more beans at a time to compensate for how long it takes to get the coffee to the warehouse.

There are still other products that could be affected, from paper cups to compostable straws. “The ripple effects are also being felt up and down the supply chain,” Haft wrote in an email. “We are scrambling to find alternative products or alternative shipping routes.”

The U.S. Army Corps of Engineers has said it aims to finish removing the Key Bridge wreckage by the end of May, clearing the way for the Baltimore port to reopen.

“Hopefully that happens,” said Carl Bentzel, a commissioner at the Federal Maritime Commission, which regulates international ocean transportation. “But there’s a lot of steel to bring up from the bottom.”

About this story

Editing by Kanyakrit Vongkiatkajorn and Tara McCarty. Illustrations by Hannah Good. Design editing by Christian Font. Photo editing by Mark Miller. Data editing by Meghan Hoyer. Copy editing by Briana R. Ellison.

Photos by Craig Hudson for The Washington Post. Photos courtesy of Compass Coffee and images from marinetraffic.com were used as illustration references.

• How the Baltimore bridge collapse upended a D.C. coffee chain’s business April 24, 2024 How the Baltimore bridge collapse upended a D.C. coffee chain’s business April 24, 2024
• Baltimore bridge collapse highlights outdated safety standards, experts say April 18, 2024 Baltimore bridge collapse highlights outdated safety standards, experts say April 18, 2024
• Body of third Baltimore bridge victim has been recovered April 5, 2024 Body of third Baltimore bridge victim has been recovered April 5, 2024

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Ryan Willbur and Laila Ghambari Buy Portland’s Guilder and Junior’s Roasted Coffee

Nick Brown | April 26, 2024

The newest Guilder cafe on NE Prescott. Daily Coffee News photo by Howard Bryman.

Portland, Oregon-area coffee professionals Ryan Willbur and Laila Ghambari have purchased the progressive and influential sibling coffee businesses, Guilder and Junior’s Roasted Coffee .

The married couple plans to maintain existing operations and staff while building upon the vision established by the former Guilder/Junior’s owners, Mike and Caryn Nelson, Toby Roberts and Carrie Lind. The Nelsons launched the roasting company in Florida 10 years ago, then moved to Portland for the creation of the Guilder cafe and roastery at NE 24th and Fremont in Portland in 2017

The acquisition includes Guilder’s second location in the iconic  Powell’s City of Books bookstore in downtown Portland, and the Junior’s Coffee cafe  at Upright Brewing’s Beer Station on NE Prescott.

“The co-owners and I, we were ready to simplify our lives,” Mike Nelson told DCN. “We see selling to Ryan and Laila as best-case scenario for us. It’s hard to imagine feeling so good about selling — seeing our staff in such great hands.”

From left to right: Ryan Willbur, Laila Ghambari, Mike Nelson and Caryn Nelson celebrating the deal earlier this week.

Willbur, Ghambari and the Junior’s/Guilder ownership team finalized the deal on Wednesday, April 2024. Willbur declined to detail the financial terms of the purchase, but said he and Ghambari now hold a 100% stake, and that the acquisition was supported by a Small Business Administration (SBA) loan.

“We’ve purchased Guilder and Junior’s Roasted Coffee not because it needs work, but because it does work,” Willbur told DCN. “It’s a wonderful, healthy business living out the values of quality, transparency, and community. For Laila and I, it’s a dream scenario, where we’ve been passed the keys and now we get to see this business into its next phase.”

Willbur enters the new family business after most recently serving as vice president of sales and marketing at commercial coffee equipment supplier Middleby Coffee Solutions Group . After starting in coffee as a barista at the renowned independent shop Lava Java in Ridgefield , Washington, Willbur eventually held numerous roles with coffee companies such as Intelligentsia, Stumptown and La Marzocco USA.

Daily Coffee News photo by Howard Bryman.

Ghambari, the 2014 United States Barista Champion , has been busy in recent months running her own specialty coffee consulting firm By Laila Ghambari . She previously held numerous high-level positions at Stumptown, including leading training and retail operations.

“I’m ecstatic to say this is our lives now,” Willbur said of the Guilder/Junior’s venture. “I have learned so much from my experience with Middleby, but I am excited to turn my focus to an independent business where I can support and participate in my local community. Laila will continue to consult and provide resources for our industry at large. If anything, we want Guilder and Junior’s to showcase the businesses principles she is championing for others within coffee retail.”

The Junior’s Roasted Coffee 10-kilo Proaster machine. Daily Coffee News photo by Howard Bryman.

Since their inceptions, Junior’s Roasted Coffee and Guilder have embraced progressive business concepts such as price transparency and supply chain equity. The company launched an unprecedented (in coffee) CSA-style program in 2022 , designed to ensure income for coffee farmers. The Nelsons have also spearheaded work towards understanding and meeting coffee production costs . Junior’s went so far as to release a free template that other coffee roasters might use to engage in more sustainable sourcing practices.

“We’re benefitting from the handoff of the template and we’ll continue to use the framework going forward,” Willbur said of the company’s sourcing practices. “We want to continue existing relationships for certain. We hope to continue to grow the business so that we can introduce more relationships into the program.”

Mike Nelson speaking at a cost of production event at Portland’s Buckman Coffee Factory in 2018. Daily Coffee News photo by Howard Bryman.

Willbur and Ghambari also have not announced any immediate plans to shakeup the Guilder or Junior’s menus, which lean towards lighter plant-based fare with fresh ingredients alongside expertly crafted drinks using Junior’s roasts. The couple also plan to work with the existing Guilder and Junior’s staff as they dive into entrepreneurship.

“Our goal, first and foremost, is to learn this business inside and out,” Willbur said. “We’re doing our best not to make any major moves until we understand all of the ‘whys’ for how things are operating right now.”

In time, the new owners may transition to a single brand name, although nothing is yet set in stone, said Willbur.

“Throughout our careers, Laila and I have been fortunate to have worked for some really great companies where we’ve gained valuable knowledge and perspective,” Willbur said. “In taking this next step as business owners, our goal is to create a culture and environment where we can share that with new and growing coffee professionals.”

[Editor’s note: This story has been updated. The original version incorrectly spelled Ryan Willbur as Ryan Wilbur.]

Comments? Questions? News to share? Contact DCN’s editors here . 

Nick Brown Nick Brown is the editor of Daily Coffee News by Roast Magazine.

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Tags: acquisitions , By Laila Ghambari , Caryn Nelson , cost of production , Guilder Cafe , Juniors Roasted Coffee , Laila Ghambari , Lava Java , Middleby Coffee Solutions Group , Mike Nelson , Oregon , Portland , Ryan Willbur , SBA loans