How To Start A Coffee Roasting Company | How Much Does It Cost?
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- Опубликовано: 4 авг 2024
- What's some of the equipment you first started using? Curious to hear!
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Hit The Ground Running
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I Got Time and Money
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I get this question A LOT- so I figured I would remake this video, but this time pull from my E-Book and give a few different "tiers" of coffee roasting companies and their associated costs.
This covers absolutely everything you need to be fully functional. The only costs you would have to add would be the cost to incorporate which would be ~$200. So just add that to the tab for each one. This was more focused on the equipment necessary.
I hope this helps anybody who has had this question and was looking for a good place to start!
My E-Book has a better, more in-depth analysis and is available here:
roastedcoffeecompany.com/coll...
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I love how the internet has the “how to” for literally everything!! Great video thank you for the info!
It's a beautiful thing ain't it
I follow your business from February until now. And I just opened my coffee company this month. I will be a fan of your Chanel
That's awesome Jewerly!! Thank you for the support! What's the name of your company?
@@bonde.johnson it is rcoffee: facebook.com/RCoffeevietnam/
I come back to watch your video. Now I am providing coffee to 7 restaurant in Vietnam. I am so happy
It has been a year now... How is your business doing...
What would you do different last year to this year?
Right now.
We are having a team for 3 persons.
We are building up the website and focus on social media: Facebook, Instagram, website.
Now Vietnam is opening the door after closing for 4 months because of Covid-19. We hope that we can develop online and offline together
Great video Bonde, perfect continuation of the last one. This is one of the most important things to know before even deciding to start a coffee business. Well done!
Thank you, Delia! Hope you're getting a lot out of the E-Book.
Love this video , thank you so much for posting!!!
Love this bro. Let's get this bag. Thank you for the info and willingness to share!
I appreciate the support!
Great video. Thanks for breaking it down. I have an SR800 and I'm planning on following a very similar format
Just what i needed it! Thanks so much.
Glad you enjoyed it, Juan!
Killer info! Pretty sure you just saved me hundreds of hours THANK YOU
Im hoping to start my own business so this is very inspiring and helpful thank you.
Wish i watched this 2 days ago before i bought stuff! Loving the channel
Next time haha glad you liked it!
Thank you for the great info! We are in the middle of building our little roasting company!
It's my pleasure! Awesome to hear you are in the process of getting started. Keep me posted on how things go for you!
Very insightful! Thank you!
Awesome video man, appreciate the info. Looking to start roasting soon and this was super informative
I appreciate the comment, Joe. Glad you found it useful!
@@bonde.johnson no prob, I subscribed! If you have any interest and racing/Karting content check out my page!
Like your video man. Other channels blow it out of proportion.
Planning on getting into direct sales
EXACTLY... That is what I want to do too.
Amazing info!
EXCELLENT VIDEO
Thank you so much for sharing this great video.
Thank you, Judi! I appreciate the kind words!!
Thank You for making this video.
Glad you enjoyed it!
Thanks for your very informative video. Really appreciate 😊
Glad it was helpful!
Thank you so much for this info! Big picture I want to own my own coffee shop in the interim I wanted to start a coffee brand and roasters have been ghosting me, esp. since I want a private label. I am considering starting my own roasting business! this is good stuff! TYSM!
Great video man
I appreciate the comment!
Well done mate!!!!
I appreciate the comment!
Thank you for this very informative information.
My pleasure! I appreciate the comment!
Very informative. Thank you for sharing the information.
I think trying to get both mindshare and shelf space in a boutique food store or grocery store will be an insurmountable task
Hey Thomas! Not sure what you mean by 'mindshare' but I'll keep you posted on our progress with the grocery store!
Bonde Johnson I guess I used the wrong word. It’s more like getting word on the street about the product in order to generate demand. But I don’t quite know the word for it.
many thanks for the response
@@thomaswilke6312 Oh! Okay I see what you're saying-- and yes I agree. We're hoping to move right along passed that barrier.
Great content bro. Been watching your videos for a while now. Really useful information and tips for people who want to go into the coffee business. I started a coffee business in the Philippines with my friends. We're currently selling on different online platforms and roasting out of a Behmor. We'll be upgrading our roaster very soon to a 1kg capacity. I would really like to ask you for some tips on how to further grow my business just like yours.
Hey my man, that's awesome to hear! Sounds like you got a good operation underway. I do one-on-one consultations to talk you through everything and give you my insight. Shoot me an email -- bonde.roasted@gmail.com !
Dude, I rarely ever subscribe to anyone but well earned. This was helpful information. How much volume do you sell?
Hey Nathan! I appreciate the comment. Our volume has been changing every week as we've started taking on more wholesale accounts and have been at a great deal of markets. We sell well over 150+ lbs monthly now with some months more than others. Hope that answers your question! Do you roast??
Damn you giving the game 👌🏽
Been roasting for about a year and a half. Using an sr800 fresh roast. For all the home roasters out there wanting to start a small business selling to friends and co workers using this similar set up, any content you plan to create in that area or advice to share? Thank you for all your transparency in your videos, great leadership capabilities and content.Keep it up!
I appreciate the comment! Yes absolutely. I will be getting more specific soon- I wanted to get the ebook out and will now start diving into the topics one by one slowly. Keep it up man- I’ll buy some coffee! haha
Hi I am curious about the capacity/batch per day when you roasting using freshroast sr800 . how many times you use that for selling in a day? thank you Im planning to buy Freshroast and start a business also
Where can you buy the equipment to roast your own beans?
Hello , thank you for the very informative video, my question is , do you know if most beginner roasters , start roasting from home? And if so do any modifications to your home need to be made? Thank you.
You are awesome thank you so much
Decent idea to also include costs of business licenses, (granted different by state and country), Insurance, website design, domain name, logo design, etc.
Shipping costs, taxes, shrinkage, etc.
I am 13 and I'm going to high school in the fall I just got into a culinary high school. it's my life dream to start a coffee roasting business, And even open up my own cafe one day. This video really helped.
Vanessa, it's inspiring to hear you about your drive at 13! If you ask me I say you have nothing in the way of stopping you from doing this. I plan to interview some cafe owners and ask about their experiences so individuals like yourself can start getting an idea of the hurdles you have to overcome and the pain points. Best of luck with everything!
I am so proud of you... YES... YOU can do this... I had my own cafe/restaurant too... loved it...
NOW I want to incorporate my ACTING STUDIO (teaching students how to act on stage and on film... with also Mystery Dinner Theatre).... Why not have my own coffee to also sell at the Dinner Theatre... Right?
PLease let me know how your journey goes... "Keep the Faith"
@@judichristopher4604 hello!! Thank you for these kind words!!! That’s an awesome idea of dinner theater would definitely eat there. It’s been a few weeks in culinary school all going good still have the same dreams as stated super exited to go!
@@vanessaperez7926
So so Happy for YOU...
So PROUD of you too...
Keep the Faith...
You can do this!!!
@@vanessaperez7926
You might want to start your own Dinner Theatre someday... It's crazy good.
Thank for your video. I'm form Vietnam, we have Robusta Dak Lak Provine and Arabica Cau Dat - Da Lat Provine. So famous so good taste.
START SELLING COFFEE BEANS...
Pretty great breakdowns, but you forgot to factor in a couple of things on the Artisan package, the blower, and freight, and installation (if you cant run the vent yourself) This adds another few hundred bucks to the total startup costs
I appreciate the comment, you're right there! I am currently writing the second edition of my ebook making changes where I have gotten good feedback from people like yourself!
Great info. Thanks for producing! Have you ever figured the energy cost (electricity) per bag. I know it depends on the roaster, but it would cut into that 28%, Thanks!
Phillip, this is a question I get often--I am not using a variable costing model or any sort of more granular example of accounting given that my goal is to simplify the process for people so they get started and not intimidated! But I will be making a video with a more in-depth financial analysis.
Thanks for the video! I'm curious if you don't mind sharing, about how many pounds of coffee does your company ship each year?
I have a high quality 3 roll hand mill (that I can connect to my drill) would that grind coffee well or is it going to make the coffee too uneven?
I’m working on a new coffee roasting business and have purchased an Artisan 3e. Your videos are a great inspiration for me to get this launched! Question: what software do you use for roast profiling? Thanks and keep cranking out the videos! 👍
Awesome to hear Sean! I’m an excel fanatic but that’s also just by nature. I have a good friend who’s in the industry and has a couple programs he uses. Are you looking for roast tracking or just logging temps and time manually?
@@bonde.johnson I’m taking about recording and logging roast profiles. One example is the Artisan software that provides a visual “log/graph” of the roast process. I’m looking to be able to duplicate profiles that I like. I’m probably overthinking it. 🤷🏼♂️ I know Ken at Coffee Crafters had a video of one that seemed useful.
@@bonde.johnson Roastmaster software was the one Ken featured in a video.
Could you do a video with big roasters such as Geisen or Mill City roasters and the specificity of each machine ?
That would be a great topic!
well. im convinced. this is what im doing with 2021
That's the attitude I'm looking for.
Well Jeffery... Did you do it?
And if so... how are things going?
It’s crazy how the prices and cost hav gone up in 3 years!
Grinder is not available, what would be a good sub?
Question, if I did something low scale like this selling to friends and family and maybe a little more, do I need permits health inspection etc?
I know I’m a few years late, but what about shipping?
Wow!
Because I haven't done a ton of research and I'm basically hitting the ground running I have a few things I need to get clarified. I know that there's an FDA requirement with regards to not only what the labels are supposed to say with regards to content ingredients and allergens but I also know that there is a matter of being investigated by the FDA. Saying all of that I'm not sure if there's an upfront cost with regards to any of the government related stuff. I also wonder if there is a license requirement as well .
ahhh, i cant find the grinder anywhere in Canada! and your grinder link isn't working for me. any recommendations? thanks!
Hey Kayt! Here’s a link to the grinder new on Amazon: amzn.to/2Zhw4Vm you can search for the same thing on eBay and most likely find one used!
I am an immature roaster with a FreshRoast sr800. I think I could sit and roast with this machine 24 hours a day if that were possible. In my state of South Carolina, to open a business like yours, I will first have to have business license and have my roasting facility inspected by the SCDEHEC. (SCDepartment of Health and Environmental Control). No way the FreshRoast can produce enough coffee to make a profit without blowing up the machine. lol I would love to do this as I may get the fundamentals, start roasting and see if I can sell my coffee. Thanks for the breakdown. Something to think about.
I want to learn more from you. Thanks
More to come!
Nice Video, but I have a question, what is the best way to market a product? To the people? It is difficult to come in shops, you need to have a capital of 10,000 euros. Cafes Shops get a lot equipment from sponsors ...
Which grinder model do you recommend? The link goes to an eBay page with nothing found.
Hey Rich! I would highly suggest looking into Grind Master. Great bang for your buck.
@@bonde.johnson I too looked into Grind Master, but they are now $1,000ish... that's not the ideal unit for just starting out. Ouch.
Thank you thank you thank you!!!!!!
Glad I could help!
Super content, appreciate it! Can you give a link to the other company you get green coffee from? Thanks
Found it. www.ccmcoffee.com
www.ccmcoffee.com, www.sweetmarias.com, www.thetaridgecoffee.com !
Where do I buy seeds or plants. . . I'm into hydroponic systems and used to be a grower for cannabis. . .
I believe he knows about COFFEE... he talks so FAST
he has to drink a lot of coffee.... (ME TOO) LOL
Superb! Do you need a license?
What 2nd category roasters you suggest other than Behmor? which is a bit difficult for inexperienced people .
Great question--I am a big fan of the Fresh Roast either the 540 or 800 which are very easy to operate and are great for learning how to roast.
Hey Mr. Johnson you should look into genuine origin for more deals on coffee beans.
I'll give it a look, thanks for the comment!
Hello, I love your teaching. I am curious about what you think of organic coffee from West Africa straight off the farm?
Hey Adora! All depends on the farm, farming practices, and grade of the coffee!
@@bonde.johnson
Do you have outlest where we can buy straight from the farmer? Beans.
@@judichristopher4604 Hi Judi! I have a few connections that I am happy to share. I would be curious to hear more about what you're interested in with regard to origin!
@@bonde.johnson
When I had my Restaurant... there was a joke... they would yell,
"JuJuMoJaVa" (c)
(Judi more Coffee)...
BAHAHAHAHAHA
Bro have you thought about using alibaba for bags. I see them for like .01- .35 a piece
Yes! Not sure about the quality or breadth of options they have but haven't looked into it for a while!
In regards of Cost of Goods (COGS), you left out the input of energy consumption (mainly from the roaster). I understand this can be highly variable (price of electricity per your geography etc) but on a guess, how what percentage do you think energy consumption adds per sac? 1-4%? Thanks.
That might be fair to use as a general rule of thumb, but honestly it's just so variable, not only depending on geography, but geography + roaster + externalities like other appliances/equipment. I'd leave it at the owners discretion whether they want to factor in the expense. At the end of the day if that's make or break for a roaster, chances are they're not going to last.
@@bonde.johnson Thanks for the reply.
@@tn9753 Absolutely! I appreciate the comment.
You mention price per bag. What size is the bag?
And how is the calculation, if you buy a bigger roaster 11-13lbs/load?
This is something I'd have to run some numbers on but would be happy to answer some questions via email or phone--I will be providing excel sheets soon that help people put together financial analysis for their projects.
Thanks for this. Big help! Cant find that Millstone grinder for $300. Is there a link or an alternative? Thanks
George, your best bet is to keep an eye out for this grinder to become available on eBay. This is how we managed to get ours so cheap. With a motor strong enough to power a small dirt bike, these things last forever.
@@bonde.johnson
LOVE EBAY.... God Bless eBay.
I’m a part of FGCU’s Veteran entrepreneurship program and starting a coffee company. I would love to talk to you about your start up, if possible.
I'd be happy to talk! My email is bonde.roasted@gmail.com
Have prices really gone up this much??? I wish I could buy the grinder and roaster for the price you quoted.
Hi, Great video but your link does not work.
Is the profit already included shrinkage (weight loss from roasting)?
Yes!
hi I would like to get in touch with you and discuss some topic regarding cost, im starting a coffee roasting company in my country im a producer also, but i want to have a discution on some topics let me know if this is possible and lets talk about it and make something out.
I'd be happy to connect Alfredo! Shoot me an email at bonde.roasted@gmail.com
where can you find that grinder?
Hey Blake! I purchased the grinder off ebay--I've found ebay to have the best deals on commercial grade grinders
How are you doing today I am a truck driver that delivers a lot of coffee and they give me gallons of it I'm wondering if I should start a coffee roasting business myself maybe I can have a little input from you
Would be happy to chat Michael!
Do you operate from home or you have a commercial kitchen? Is there food safety licenses required to operate such a business?
Hey! We operate out of a commercial space now, but no commercial kitchen. It isn't necessary given that coffee doesn't fall into the category of a consumable. There's a lot of gray area around coffee with regard to FDA and USDA regulations. Hopefully that helps!
Great video but it's not really the true cost of starting a coffee roasting business. This doesn't include rent for a premises, wages, taxes, fees, marketing, logistics etc etc so the profit margins are nowhere near what you describe. Honestly not trying to be negative but I feel its worth pointing out.
I appreciate the comment! You bring up a good point but those costs aren’t associated with starting a company in the way I am explaining. You could absolutely go that route where you take on employees, pay for marketing, etc-but I got my coffee into a grocery store without paying any of the above. No marketing, no rent, no wages. You’d have to elaborate on taxes and fees, etc. sales tax? Income tax? That all varies by state and county, unfortunately I can’t get that specific in my videos. Coffee is also taxed unconventionally. Fees? Which fees? Impact fees? License fees? Etc. This is essentially the how to of starting a home coffee roasting company where you run the show yourself from your home. Thanks again for the comment!
@@bonde.johnson How did you get into a grocery store without showing current certs from the health department? If you're doing this from home, don't you need to file health certs with the grocer as proof you're following cottage food laws? Also, show city/county permits to the health department that your facility/home is properly zoned for commercial purposes? Clearly, you're not in a major grocery chain. Permits and certs aren't free. In fact, they are very costly.
Great copy. Appreciate your breakdown.
@bonde.johnson it's correct, to start a business, there's licenses, permits and insurance needed, not counting the shipping costs, advertising. ... if you went to a mechanic and wanted your oil change, wouldn't you want a new filter included in the price ❓️
Whether intentional or not, this was more of a cost of goods to produce gross profit. The other expenses that he would need to pay are operating expenses, more day to day stuff, that would be his net income. 3 yrs late too the video 😅
You kept saying "per bag," and maybe I missed it, but can you confirm that the bags you are pricing are 12 or 16 oz?
12oz!
First great video, I will be following you. I just started roasting and people that have tried my coffee want some.
Are there any other costs that you forgot to mention? Such as liscense. Registering your trademark. Registering your company like an LLC. Company insurance? Software? Tax prep, as self employed it can be tricky to do yourself. Website costs? How do you advertise? I have just started roasting and told my wife that there is a HUGE famer's market open near us that nobody sells at that would be really cool make beans and sell there. Also why not print your own labels. Get a nice printer like my Epson Ecotank, and nice labels and the ink is next to nothing. 200 labels 8x5 (half sheet is $12) . At quarter sheets, 400 for $16. Also to buy the labels from that company for 4 different roasts would mean 4 different order of labels.
You said you get 4 types of coffee. Why four? One for a light roast, medium roast, dark roast, and espresso roast?
Huh so these wholesalers ship for free do they?
Awesome, thank you!
🙌🏼🙌🏼
What about costing regulations? Are you using a warehouse?
Hey Aron! This wasn't a look at how much our operation costs but rather what the cost would be to get started at your home. The paperwork for any regulations wouldn't add up to more than a couple hundred bucks and thats on the high end. Hard to answer anything about the cost of leasing space given the different rates depending on type of real estate and location etc. but warehouse space usually goes for around $6-8/sf. Hope that helps!
Is price per bag at 12oz or 16oz?
12oz!
How saturated is the roasting market?
Isn't the roaster too small for sales? You can only roast 4 scoops at a time
There are roasters that are very small and therefore difficult to keep up with demand if you’re selling-but if you get to that point its worth the investment in a larger roaster!
@@bonde.johnson
That is just simple math... start out small and grow your business...
Good advice.
What is the best third party white lable shipper that you know of? That does it all including fulfillment?
Soon to be us! Haha There’s a couple of people I know I can try to dig up their information and get back to you!
@@bonde.johnson Thanks, Please do, Thank You.! send me a PM on Facebook. I'll give you my email address.
@@bonde.johnson just sent you an email.
Sorry, but what is a unit of coffee?
is it 250 g or 9 oz?
Hey Lukas, if you tell me in what specific context I said it in I can answer! I usually mean that as a the final bagged product. So unit=12oz bag.
@@bonde.johnson 340 grams! Thanks mate! :-D
There are lot more costs, then just listed here!
Yes and no--depends on what you're trying to do and how you're operating your business!
Curious how much whole bean to ground your sell. Thanks for the videos. Matthew
Hey Mathew! We sell a pretty equal amount of each. We have put ourselves in front of the right audience!
Using a Behmore until I work out what I am doing.
Are you sure 20% is your shrink rate? We lose about 14% average between shrink and scrap. None of our blends are more than 18%.
you did not do the 'sourcing' for your coffee. Sweet Maria did.....
Sourcing *from an importer
You don't mention time, overhead, space, ventilation, etc. Total cost per bag will actually be higher. Plus with those small setups you're talking about spending a lot of time to roast and sell a little bit of coffee. Even with a 2 lb Aillio Bullet I can't roast enough for some people because I don't have enough time. Otherwise, good content.
Hey! I appreciate the comment--I've allude to this before, this was all based on the assumption you have the space and entity established. I'd be curious what overhead specifically your referring to! Most people go wrong in trying to factor in their time in the early stages and this is a business I don't recommend doing it in. Other businesses I own I have experienced the opposite but coffee does not pay out early. Best to bite the bullet for as long as you can until you build a steady book of business.
@@bonde.johnson
EXACTLY
I’m expecting my behmor to arrive on Monday
That's awesome to hear Tanner. Congrats on pulling the trigger and taking action! Keep me posted on how things develop for you.
Damn. Nowadays and because I live in Canada, this would cost me closer to $2,000 😢
If you buy coffee already roasted I would imagine you cut down on alot of those cost.
That's true.... but then you'd just a be a consumer!
@@bonde.johnson I rather buy made coffee and sell it online! Which I think isn’t illegal to do so! Just don’t know which coffe supplier is best and cheap? You know any?
I'm liking this video, but it's hard to listen to the audio because of the constant "Bing!" Sounds. It hurts my ears.
I couldn't even finish it. I may go deaf
Hi I'm based in Portugal
but I'm working over 10000 farmers in Ethiopia
I'm looking for partner to purchase and sale high quality coffee from Ethiopia
My daddy was a very successful coffee exporter from Ethiopia. He send all of us to America for to pursue a college degrees. No one continued his business. He only had 4 grades education and made a fortune. I am going to luncheon my coffee roasting business in September 1. I love to ask you some questions. Great informations.
I wouldn’t get out of bed for $2.50 per lb
$10 coffee ridiculous
I just left whole foods 14 for 12 oz
If you are in Europe, you will need a professional trade scale. They are much more expensive.
Go back to paid high school instead of free country school. You just want to earn money as a RUclipsr.
I have half this price for specialty coffee, looks like you don't know anything about the business
Thank you for uploading this video. Welcome to Rumbia Coffee Exports Limited. We are from Papua New Guinea, Border of Indonesia hence we produce quality Arabika Coffee readily available for trade at the specialty market.
We hope we can be your distributor of our coffee exports to your country. If you would like to try our our samples, you can contact us anytime.
Hey bro you are amazing hey listen I’m from Peru and I live in Colorado and I want to open a company I got people they’re going to send me coffee from Peru from the jungle... can you give me your email...
Hey Daniel! That's awesome to hear. I'd be happy to give you my email so you may follow-up: bonde.roasted@gmail.com. Looking forward to connecting.
@@bonde.johnson Thank you buddy
@@bonde.johnson I will appreciate if you can post the link for the bags.
@@anisaadem1824 Our bags are custom from www.pbfy.com !