Business & Industry
Starting a Coffee Roastery
Launching a coffee roastery requires significant planning in equipment, sourcing, regulations, and market positioning. This guide covers the practical fundamentals of building a roasting business from facility requirements to first customers.
Before You Roast Your First Batch
Starting a roastery combines passion for coffee with the realities of manufacturing, food safety, and small business management. Successful roasters plan thoroughly before purchasing their first bag of green coffee.
Business Planning
Market Research
Before investing, understand your local market:
- Competition: How many roasters already serve your area? What price points and styles dominate?
- Channels: Will you sell wholesale (cafes, restaurants, grocery), direct-to-consumer (online, farmers markets), or both?
- Differentiation: What makes your coffee different? Origin focus, roast style, sustainability commitment, local identity?
A realistic business plan should project 2-3 years to profitability. Year one is typically about building brand awareness and refining operations.
Legal Structure and Licensing
Requirements vary by jurisdiction but typically include:
- Business registration (LLC is common for liability protection)
- Food manufacturing license from your state or local health department
- FDA facility registration (required for all food manufacturers in the US)
- Sales tax permits
- Zoning compliance (roasters produce smoke and odor — not all zones allow manufacturing)
- Fire department approval (roasters are industrial heating equipment)
Facility Requirements
Space
A small production roastery needs 800-2,000 square feet minimum:
- Roasting area: Roaster, green coffee storage, cooling/destoning
- Packaging: Bagging, sealing, labeling
- Storage: Finished goods, shipping supplies
- Office/cupping: Quality control, administrative work
Floor drains, adequate electrical service (many roasters require 3-phase power), and proper ventilation are essential infrastructure.
Ventilation and Smoke Abatement
Roasting produces significant smoke, particulates, and volatile organic compounds. Most jurisdictions require:
- Afterburner or catalytic oxidizer: Burns off smoke and chaff at 700-900°F
- Cyclone separator: Removes chaff before exhaust
- Stack height: Sufficient to disperse remaining emissions above neighboring buildings
Budget $15,000-40,000 for ventilation and abatement, often the most surprising cost for new roasters.
Equipment
The Roaster
| Capacity | Use Case | Budget Range |
|---|---|---|
| 1-3 kg | Sample roasting, nano-batch | $5,000-15,000 |
| 5-12 kg | Small production | $20,000-60,000 |
| 15-30 kg | Medium production | $50,000-120,000 |
| 60+ kg | Large production | $150,000+ |
Major manufacturers include Probat, Loring, Diedrich, Giesen, and Mill City. Used equipment can reduce costs by 30-50% but inspect thoroughly for worn drums, failing bearings, and outdated controls.
Loring Smart Roasters use a recirculating hot-air system that eliminates the need for a separate afterburner, potentially saving on ventilation costs.
Supporting Equipment
- Green coffee storage: Shelving for 60kg bags, climate-controlled if possible
- Scales: Production scale (50+ kg capacity) and precision scale for cupping
- Cupping lab: Grinder (Mahlkonig EK43 or similar), cupping bowls, water setup
- Packaging: Bagger/sealer, one-way valve applicator, label printer
- Destoner: Removes stones and debris from roasted coffee
Sourcing Green Coffee
New roasters typically buy through importers rather than directly from origin:
- Volume requirements: Most importers sell by the bag (60-69 kg). Some offer smaller lots for new roasters.
- Pre-shipment samples: Always cup before committing. Request samples from multiple importers.
- Relationships: Build relationships with 2-3 importers for reliability and variety.
- Payment terms: New accounts usually require prepayment. Net-30 terms come with established history.
Popular specialty importers include Royal Coffee, Cafe Imports, Genuine Origin, Olam Specialty Coffee, and InterAmerican Coffee.
Pricing Your Coffee
Retail pricing must cover all costs:
- Green coffee: typically 25-35% of retail price
- Labor: 20-30%
- Packaging: 5-10%
- Overhead (rent, utilities, insurance): 15-25%
- Profit margin: 10-20%
A 12 oz bag of specialty coffee typically retails for $14-22 depending on origin, quality, and brand positioning.
Finding Your First Customers
- Farmers markets: Low barrier, direct feedback, builds local brand
- Wholesale: Approach local cafes with samples and competitive pricing
- Online: E-commerce site plus subscription model for recurring revenue
- Office coffee: Corporate accounts provide steady volume
Building a customer base takes time. Most successful roasters grow through quality and consistency rather than aggressive marketing.