Starting up Business with a 2kg Roaster?

[stuartgrant]

Re: Starting up Business with a 2kg Roaster?

Id rather spend 2 hours on a 2kg machine than 1 on a 5kg machine if I was just starting up. When youre starting up, you put a lower money value on your time.

Yeah, I think thats good advice. You can think of the extra time spent roasting as training. Even if it DOES take you twice as long to roast your quota with the 2kg one, youll be learning how to control the roasts better.

[>SupremeRoasters]

Re: Starting up Business with a 2kg Roaster?

Wish you all the luck Goodies! Heres some insights that I hope help you along your journey.

One thing youll have to ask your self eventually is are you a complete cafe supplier or just a coffee supplier? E.g will you be supplying cups, chocolate, sugars, teas, syrups, tampers, jugs and if so what point do you stop? While there may be margin in supplying these items consider the investment you will have to make in order to get distributor prices. You will have to answer this question at some point as it will affect the type of customer you can successfully go after.

Also consider who is your customer base and what businesses you are targeting... small volume cafes/takeaways, espresso bars, large volume cafes, restaurants, chains, home baristas/consumers, etc....and how will you market yourself to these clients and what level of support and services do they require? So therefore just as importantly how well will you be able to service and support these accounts with deliveries, training and generic support when they call you up with a problem at 6am in the morning or in the middle of your shift at work.

That said how you manage your logistics system and in what sort of timetable you can get your product to the customer is an important question you have to answer early on whether it be via personal delivery, auspost or courier. Also what costs will this incur and is it built into the price and if not will you or the customer be incurring it as a itemized cost and will they pay for it without complaints?  With the African Restaurant being an example of using 16 kilos every 8 months that makes their usage at approx 500grams a week. If you are suggesting purchasing on a fortnightly or monthly basis to retain freshness then you will be doing a delivery of 1-2 kilos per order. Depending on your margin how will this affect you in terms of shipping cost/fuel? Not just for this customer but all low volume accounts.

Also why just target the wholesale market when there is a growing awareness of specialty roasted coffee amongst home users (and not just those on CS). If you decide to engage with these customers how are you going to do it at the retail level... via internet, shopping carts, CS, Delis, Markets? This is an element where you can build really strong relationships and customer loyalty if you look after and listen to what they want and help them with their learning experience.

Also consider matters such as (may depend on your final decision re roaster) contract roasting, custom blending, range of origins/blends, marketing material, point of sale material and a million and one other things.

Hope Ive helped in some way and if you have any questions I may be able to help with send us a PM. Really do wish you all the best as I personally believe it is the best job in the world. As proven by the fact Im writing this at 8:13pm and still at the office and couldnt be happier about it.

[JRCoffee]

Re: Starting up Business with a 2kg Roaster?

What prices are we looking at for 2kg roasters? Im going to buy a 300g Gene Cafe roaster soon, makes things a bit easier

[TC]

Re: Starting up Business with a 2kg Roaster?

What prices are we looking at for 2kg roasters? Im going to buy a 300g Gene Cafe roaster soon, makes things a bit easier  

Hi JR,

Youll be on the ugly side of $10k and can easily get closer to $20k

2mcm

[JRCoffee]

Re: Starting up Business with a 2kg Roaster?

What about something like this;

http://www.gobarista.com.au/discaf.htm

TN-1? Up to 500/600g capacity and 3-4 roasts per hour?

[thegoodies]

Re: Starting up Business with a 2kg Roaster?

Thanks for all the advice guys and gals. Really helpful and heaps to keep me pondering over. I am in the middle of a business plan at the moment and have worked out setup costs etc. Still loads to do but hopefully will be in the market soon for the 2kg.

Cheers all and keep the advice coming. Really appreciated.

Steve

[JRCoffee]

Re: Starting up Business with a 2kg Roaster?

Any ideas on products/models/prices for the roaster?

Thanks for all the advice guys and gals.  Really helpful and heaps to keep me pondering over.  I am in the middle of a business plan at the moment and have worked out setup costs etc.  Still loads to do but hopefully will be in the market soon for the 2kg.

Cheers all and keep the advice coming.  Really appreciated.

Steve

[djb3500]

Re: Starting up Business with a 2kg Roaster?

have you considered leasing space / time in someone elses set up ?  From the look of it this is a common issue - the infrastructure is not that scaleable so everyone probably has some excess capacity at some point.  

Also, if you are going to continue to work the time you have available for roasting may well be when someone else wants to be at home having a deep & meaningful relationship with their couch.

It obviously would take careful discussion about boundaries, rules and expectations but it would be a good way of getting access to what you need whilst you build a brand, customer base and some cashflow. An arrangement about poaching clients would probably be first on the agenda but generally as niche suppliers your limitation will not be the size of the market but getting the attention of the guys making the buying decisions anyway so you may not be in as direct competition as you think.

I have no coffee experience but have been in small business for ten years or so and have often had mutually beneficial relationships sharing space & staff etc.   If you need a hand with the legals & etc give me a hoy if in Qld.

[stratford]

Re: Starting up Business with a 2kg Roaster?

I run a small (hobby) business which pays for itself and then some...I started with a 2kg roaster, but found after less than a year, I was regularly overloading the roaster to meet the demand.

After 18 months, I upgraded to a 5kg roaster, and this is far more versatile, in that you can load it up from 2kg to 6kg.

The price difference between a 2kg and 5kg was only about 5k, and the size was not significantly different.

You will find the resale value of roasters is pretty good.

Council requirements, depending on your area would generally not differ from a 2kg to a 5kg roaster.

If you can possibly manage it, I would start off with the 5kg roaster...I wish I had, because it would have saved me a lot of mucking around..

Cheers,

Chris

[JRCoffee]

Re: Starting up Business with a 2kg Roaster?

^^ Just curious as to how much you paid for a 2kg roaster?

Cheers

[Fresh_Coffee]

Re: Starting up Business with a 2kg Roaster?

Hello all,

this has been an interesting discussion.


My opinion, is from a purely business point of view, you are wasting your money on a 2 kg roaster. In 12 months time when you have to buy the 5 kilo machine, you will have bought 2 machines when you should just have bought the 5 kilo in the first place.

Regardz,
Attilio.

[Koffee_Kosmo]

Re: Starting up Business with a 2kg Roaster?

All the advice so far to get a 5kg roaster makes perfect sense from my own business experience perspective

I note that you want to take it slow but what happens if you reach maximum capacity in say 6 months on the 2kg roaster

Get the larger roaster to allow for expansion
Unless you doubt yourself or doubt prospects of growth.

KK

[speleomike]

Re: Starting up Business with a 2kg Roaster?

Hi all

Well I would suggest that Steve look at a 2nd hand 2kg roaster plus filtration system. That will set him back ~ $15,000 if bought new.

Note that he is in a residential area. If he has a means to eliminate odours and smoke to acceptable levels and wont have delivery vehicles coming and going then he likely to be able to get council approval for a small roaster. A 2 kg machine isnt that big and would probably get past as OK. A new 2kg Garanti or Toper will set him back a bit over $10. A new 5 kg one isnt that much bigger but getting council approval might be harder and its more $ cash outlay up front so more risk. If the business is successful then get a 5 kg one and sell the old 2kg one. It will sell at a good price still to the next CSer starting a roasting business :-) Dont over capitalise with a new business.

Contact the site sponsors here that sell roasters and see what new ones cost. Maybe they might also keep an eye out for 2nd hand ones from ex customers. Also register at some of the commercial catering equipment auction places. They are regularly selling equip from failed cafes. Some of those cafes may have a roaster. You may get a bargain. If there is an auction in Melbourne or Brisbane or Syd a knowledgeable CSer might be able to look at it for you, much cheaper than you flying from Perth to look at one. Im keeping an eye out at some auction places for a small roasters too - hobby only.

Also have you worked out a green bean supplier? Storage space for green beans and roasted ones?
Also are you mechanically minded and have a workshop - if so what about a KK roaster design? Or would a CSer build you one for much less than a new 5kg machine for $ or maybe equity in your venture? There are many possibilities....

Mike
PS. I was looking at a TN-1 for home use. Last year it was ~ $12,000 new. For commercial quantities a 2 kg Toper or Garanti is far better value. Is still like a TN-1 though :-)

[thegoodies]

Re: Starting up Business with a 2kg Roaster?

All the advice so far to get a 5kg roaster makes perfect sense from my own business experience perspective

I note that you want to take it slow but what happens if you reach maximum capacity in say 6 months on the 2kg roaster

Get the larger roaster to allow for expansion
Unless you doubt yourself or doubt prospects of growth.  

KK

If this happens great. 2kg a in short supply second hand and could easily be sold. But I would look at keeping it and maybe using this to be my organic or Decaf roaster due to the smaller qty it would produce.

[Thundergod]

Re: Starting up Business with a 2kg Roaster?

Maybe they might also keep an eye out for 2nd hand ones from ex customers. Also register at some of the commercial catering equipment auction places. They are regularly selling equip from failed cafes. Some of those cafes may have a roaster. You may get a bargain.

A good idea.
The new sponsor, OMaras is one such place but in the few years Ive known them, despite all the cafes theyve auctioned off, they havent run across a roaster yet.