how much does an industrial coffee roaster cost

Startup Costs: How Much Does a Coffee Roaster Cost?

The profit margins of roasting in-house might look good on the surface, but its the initial startup cost that keeps most coffee shop owners from starting down the roasting path. The SCA study revealed that the average startup capital required to open a Roaster Wholesaler & Retailer operation was $120,000.

The largest expense, of course, is the commercial coffee roaster itself. Commercial roasters range anywhere from $20,000 to $150,000. Plus theres the costs of installing ventilation, attaching an afterburner to comply with local regulation, packaging equipment, and warehouse space-often adding another few thousand to the bill.

Beyond the roaster and setup itself, there are additional costs that need to be taken into consideration. One of the biggest ones is training and education.

Back to Jordan from Retrograde:

When a company starts roasting on a traditional gas roaster, youre not really going to be stoked about that coffee quality for at least six months.

Retrograde was selling beans from Onyx Coffee Lab, the most awarded roaster in the United States. They knew that if they started building the skill to roast from scratch, it would take months-if not years-to catch-up to Onyxs quality. They couldnt afford to pay a team to figure out how to roast at a high level in the in-between time of taking out the loan and beginning to sell bags of coffee.

Another hidden cost of launching a roasting operation is the initial waste. During the training and education period, new roasters toss thousands of pounds of roasted coffee away due to the trial and error required to learn the skill. And the cost of those unsold beans adds up.

That was the biggest hang-up, the expense, the waste, and… how long was it going to take before we could have something that could compare to Onyx? It was going to be noticeable if our coffee went downhill.

Despite enjoying higher margins, commercial coffee roasters often find themselves in additional layers of debt due to these high startup costs.

Coffee: How Much Do Green Coffee Beans Cost?

According to our community of shops and roasters, wholesale coffee tends to cost between $8 and $13 per pound of beans. For roaster suppliers with high levels of brand awareness and exceptional quality, costs can go as high as $15 per pound, like in the case of Onyx.

In the specialty coffee industry, green (unroasted) coffee sells for $2.75 to $5.00 per pound. Its possible to pay less, but if flavor quality and consistency are important to you, we dont recommend it.

For Onyx we were paying $9.50 to $15 per pound. When they saw the cost of green coffee, our owners were mind blown, like Wait. We could have been paying $4 per pound this whole time?

For the team at Retrograde, this dramatic drop in Cost of Goods Sold (COGS) meant significant savings on coffee beans. Naturally, this level of savings is one of the benefits of roasting thats most compelling to cafes paying $10 or more per pound of coffee.

When youve installed your roaster, received training, and are finally ready to start selling coffee to customers, its time to set your pricing. Here are two pricing examples based on typical wholesale and retail cost structures.

Wholesale margins are lower, because youre giving customers a price break in exchange for higher volume orders. So despite lower margins over COGS compared to retailers, wholesale roasters generated far more in total revenue according to the SCA study.

Specialty coffee bags retails anywhere between $14 and $24. Most roasters opt for smaller 12-ounce bags to account for “shrinkage”, or the natural loss of weight in beans during the roasting process, per pound of beans.

How To Start A Coffee Roasting Company | How Much Does It Cost?

FAQ

Is coffee roasting business profitable?

How much do roasters get paid?

What is a wholesale coffee roaster?

How much does a coffee roaster cost?

The largest expense, of course, is the commercial coffee roaster itself. Commercial roasters range anywhere from $20,000 to $150,000. Plus there’s the costs of installing ventilation, attaching an afterburner to comply with local regulation, packaging equipment, and warehouse space-often adding another few thousand to the bill.

How to choose a commercial coffee roaster?

If you are one of those Commercial Coffee Roasters with questions, you have come to the right place. One of the most important decisions you will make while in the process of choosing a commercial coffee roaster is, without a doubt, size.

How big is a commercial coffee roaster?

These roasters, used for mass-roasting coffee beans are impressive in size and structure. These commercial coffee roaster machines typically require a dedicated team of trained personnel for operation. Depending on their size, they require about 150-200 square feet of floor space for installation and can weigh over 4000 pounds.

Are commercial coffee roasters worth it?

Commercial coffee bean roaster machines with fewer parts, robust construction, and less tech are often seen as more reliable and durable. However, modern, tech-rich coffee roasters have also proven their worth by simplifying the roasting process and delivering consistent results.