Coffee Roastery Business Plan Generator

This business plan outlines the launch of a specialty coffee roastery operating from a 2,800 sq ft facility with a Loring S35 Kestrel smart roaster capable of producing 600kg of roasted coffee per week. The business operates across three channels: wholesale supply to 45 cafes and restaurants (55% of revenue), direct-to-consumer online sales and subscriptions (30%), and an on-site tasting room with 20 seats (15%). Green bean sourcing is managed through direct trade relationships with farms in Ethiopia, Colombia, Guatemala, and Kenya, with annual purchasing commitments of 28 tonnes at FOB prices averaging £4.80 per kilogram.

Startup investment totals £195,000, comprising the roaster and ancillary equipment (£112,000), facility lease and fit-out including ventilation and emissions compliance (£42,000), initial green bean inventory of 4 tonnes (£19,200), packaging equipment, and working capital. The head roaster is a licensed Q grader with 13 years of roasting experience and has developed profiles that scored 87+ on the SCA cupping scale. Monthly revenue targets begin at £22,000 in month one (leveraging 18 pre-signed wholesale accounts), scaling to £58,000 by month nine. Wholesale gross margins average 48% at a selling price of £14.50 per kilogram, while DTC margins reach 68% at £8.50 per 250g bag. Break-even is projected at month five, with 14% net profit by end of year one.

The wholesale target market comprises 180 specialty cafes, restaurants, and hotels within a 40-mile radius, of which 72% currently source from roasters more than 60 miles away. Survey data from 65 venue operators shows 81% would switch to a local roaster offering equivalent quality with faster delivery (next-day versus 3-5 days) and smaller minimum orders (5kg versus 20kg). Average wholesale account value is £680 per month, with larger multi-site operators reaching £2,400 monthly.

The DTC channel targets specialty coffee enthusiasts, estimated at 340,000 consumers nationally who purchase whole-bean specialty coffee online. The UK specialty coffee subscription market grew 24% in the past year, with average subscription values of £14.50 per delivery. Customer acquisition cost for DTC subscriptions in the specialty coffee segment averages £18, with a 14-month average customer lifetime and lifetime value of £203. The tasting room serves as both a revenue stream and a customer acquisition tool, with comparable roastery tasting rooms converting 12% of visitors to online subscribers. Green bean price hedging through forward contracts protects margins against the 18% price volatility observed in commodity-grade arabica markets over the past 24 months.