Exploring In-House Coffee Roasting
In recent years, the trend of cafes roasting their own coffee in-house has gained significant momentum. With more affordable, high-quality roasters hitting the market and cafe owners seeking greater control over their product and a unique edge in a competitive landscape, it’s no surprise that this practice is reshaping the coffee scene. But is it the right move for your cafe? Let’s dive into the benefits of in-house roasting and weigh them against the potential advantages of sticking with a dedicated coffee supplier.
What Does In-House Roasting Mean?
Roasting your coffee in-house involves sourcing raw, green coffee beans from an importer and roasting them on-site with coffee roasting equipment. Unlike buying ready to use, roasted beans from a supplier, this process gives you full control over the roasting. Drum roasters are the most common type of machine used, where green beans are tumbled in a drum heated by a gas flame or other heat source. By adjusting variables like drum speed, temperature, airflow, and roasting time, you can develop a specific roast profile that suits each individual coffee. After roasting, the coffee is rested and packaged, ready to be brewed in your cafe or sold to customers for them to use at home.
Reasons To Roast In-House
Greater Control Over Your Coffee Selection
Cafes often choose to roast their own coffee to gain greater control over their offerings. For instance, if a café wants to feature a variety of Costa Rican coffees but their current supplier doesn’t stock enough due to low demand, roasting in-house allows them to source green beans directly from an importer and create a unique selection. Additionally, by roasting their own beans, cafés can tailor the roast and flavor profiles to match their specific vision, something that might not be possible with a third-party supplier.
Higher Margins & Scaling Profitability
While the initial investment in roasting equipment can be substantial, many cafes find that in-house roasting leads to substantial cost savings and new revenue avenues whilst the capital costs of buying the equipment can often be made manageable through leasing or financing.
Typically, 1kg of high-quality roasted coffee from a specialty UK roaster might cost between £14-£20 to a cafe. By contrast, sourcing and roasting your own green beans could reduce this cost to around £7-£10 per kilogram. When you think about this in the context of a multisite cafe for example, selling hundreds of coffees a day, this lowers the cost of every coffee sold, in turn boosting the profit margins of your business.
Additionally, selling your roasted coffee in 250g retail bags opens up another revenue channel with the potential for even greater profit margins. With a hypothetical sales value of £28 per kilogram (thats 4x 250g bags sold at £7 each) and production costs as low as £10 (or £2.50 per retail bag), you could see how selling retail coffee could be an exciting new product line with a 64% profit margin in this example. Moreover, retail coffee could be sold through subscriptions on your website, creating a steady income stream.
Diversifying Your Business
Adding coffee roasting to your cafe can be a smart way to diversify your business while staying true to what you already offer. By incorporating roasting, you create new opportunities to engage with customers and expand your brand. For instance, you can participate in trade shows, farmers markets, and networking events, showcasing your roasted beans instead of just serving coffee. This approach allows you to represent your business in new settings and helps shift customer perception from seeing you merely as a cafe to recognising you as a full-fledged coffee business.
Challenges to Consider
While in-house roasting offers many benefits, it also comes with challenges. The learning curve for roasting great coffee and being consistent can be steep, requiring training and practice to achieve consistent results. In almost all situations, when we begin working with a cafe that wants to start roasting we recommend that they take a new roastery training and support package with us to ensure that their new offering starts in a organised and planned manner. This could involve us developing your first couple of roast profiles with you whilst teaching you the fundamentals and theory of coffee roasting or it could be in the form of an ongoing consultation/support package.
Additionally, managing the roasting process alongside daily cafe operations can be demanding and in most situations need dedicated staff and resources. However, many cafes find that the rewards outweigh the challenges, especially with proper planning and support.
Is In-House Roasting Right for Your Cafe?
If you’re considering in-house coffee roasting, start by evaluating your business goals, budget, and the space available for equipment. Investing in a quality coffee roaster and coffee roasting training is essential for success. It could also be beneficial to start small, perhaps with a small-batch roaster, and gradually expand as you become more comfortable with the process.
In-house coffee roasting is more than just a trend—it’s a strategic move that allows cafes to more financially sustainable and profitable. If you’re ready to take your cafe to the next level, reach out to us to discuss how we can support you on your coffee roasting journey.
