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When you first decide to open a coffee roasting business, there are many unknowns.
“What type of coffee will I roast?”
“What equipment will I use?”
“Who will I roast coffee for?”
“Where will I roast coffee?”
At the beginning, the answers to these questions are found in the form of expenses: equipment purchases, lease agreements, green coffee contracts…
All before making your first sale.
With so many upfront expenses, it’s easy to see why many coffee companies are choosing to roast out of a co-roasting facility, rather than invest in equipment, labor, and overhead right away. Co-roasting spaces are also popular among coffee roasters for their ability to create community, reduce costs, and help roasters show proof of concept before venturing out on their own.
But is it the right option for your coffee roasting business?
Co-roasting spaces are facilities where coffee roasters can rent out shared roasting, packaging, and quality control equipment by signing up for a designated time slot, often for a monthly membership or hourly fee.
Instead of investing in equipment and a dedicated space for production, new coffee roasters can pay a membership to a co-roasting facility and gain access to equipment including state-of-the-art production roasters, commercial grinders, heat sealers, and more.
On top of access to roasting equipment, many co-roasting spaces also offer:
To join a co-roasting community, roasters will need to pay a membership or hourly fee and reserve a dedicated production time on the facility’s schedule.
Shared Roasting operates two coffee co-roasting facilities in Brooklyn, New York. Co-Founder Jeff Wong explains that these facilities are ideal for coffee businesses roasting less than 5,000 pounds of coffee per week.
“At 5,000 lb per week, you would need [to roast around] 19 hours on a 35 kg roaster. That’s less than 4 hours per weekday of roasting production. You’d be paying rent for the remaining 20 hours of that weekday.”
With this cost savings in mind, co-roasting facilities tend to attract the attention of those such as:
Co-roasting spaces are positive additions to the coffee industry, opening the door for those who aren’t ready to invest in a physical space or equipment just yet. However, these collectives aren’t always the best fit depending on your roasting needs and business model.
Let’s explore the pros and cons of joining a co-roasting space.
Co-roasting spaces offer a variety of benefits for small to medium-sized coffee roasters.
These advantages can include…
“The major benefit of using a shared roasting space is that our clients don’t need to commit to a warehouse of their own, expensive equipment, and construction,” says Jeff of Shared Roasting.
Many coffee roasting businesses don’t have the capital to invest in everything from building rent to roasting equipment. Joining a co-roasting space allows them to continue roasting and production tasks within their budget and without a reduction in coffee quality.
The potential cost savings of a co-roasting facility is a major benefit for newer or smaller coffee roasters. At the beginning of your business, it seems like expense after expense keeps rolling in. From green coffee inventory to rent and overhead, it quickly piles up. The cost savings associated with co-roasting spaces can alleviate some of the early obstacles for coffee brands looking to grow their business.
Running a successful coffee roasting business requires far more equipment than a commercial roaster. You need everything from cupping bowls to hot water towers, scales to weigh-and-fill machines, and beyond!
Each piece of equipment you invest in is another tremendous expense for your business. And although these pieces of equipment are assets and necessities, it can be a difficult expense to commit to in the early stages of a business.
On top of access to equipment, many co-roasting spaces also offer a variety of roasting equipment—giving roasters the opportunity to experiment with different machines, batch sizes, and more. As your business grows, you can use this unique opportunity to determine which equipment you prefer and are interested in investing in for the future.
Best of all, the co-roasting facility takes care of all equipment management and maintenance. Sure, you’ll have to clean up after your allotted roasting time but you won’t have to worry about repairing any equipment issues. Whereas if you bought it, you fix it… or pay someone else to fix it!
There’s a place for every roaster in the coffee industry.
Co-roasting spaces foster a sense of community by bringing together roasters from all walks of life. Some may run their business off of hearty blends sold in bulk to wholesale accounts while others prefer to roast exclusive lots of single origin coffees sold online. Each roaster strives to produce phenomenal coffee based on their respective business goals.
By joining such a community, you’ll actively build a network of coffee professionals to learn from and rely on. When you have a question or a crisis, you can call on your newfound connections for advice or assistance. It can be far more difficult to develop this camaraderie with roasters when you seclude yourself in your roastery alone everyday.
As a coffee roaster, it’s all too easy to become siloed in your own little world. You roast your coffee, sell to your customers, and call it a day. Rinse and repeat, with little to no time for professional or personal growth.
However, in our dynamic industry, being a successful coffee professional means constantly expanding your knowledge base through hands-on experiences and ongoing education. However, for some roasters, access to educational opportunities aren’t always available due to geographic location, income levels, and other obstacles.
Co-roasting facilities seek to alleviate this burden by providing members with opportunities to learn about new equipment, roasting techniques, processing methods at origin, and so much more. Best of all, it’s often included as part of your co-roasting space membership!
Joining a co-roasting space isn’t the best option for every coffee roaster. Factors including roast volume requirements, production needs, and budget may make co-roasting a less than desirable option for some companies.
Jeff from Shared Roasting explains that one of the most obvious—and ironic—disadvantages of a co-roasting facility is the shared nature of the space. “The space doesn’t belong to you and sometimes you have to adhere to other folks roasting. However, at spaces like Shared Roasting, we like to space folks apart physically and in terms of scheduling.”
Let’s explore other downsides of co-roasting facilities.
As your business becomes more and more successful, you’ll need to roast bigger quantities of coffee. Sounds like a good problem to have, right?
If your business operates around a co-roasting facility’s schedule, you may not have access to the roasting equipment and amenities within the timeframe you need to fulfill order demand.
Co-roasting facilities require members to schedule roasting times on designated roasters. And oftentimes, these schedules are filled up well in advance. If a customer needs an emergency order and you can’t find a time slot to roast, you’ll need to work out a scheduling arrangement with another co-roasting community member. Or find other creative ways to get the roasting work done in time for your customer.
As scheduling becomes more difficult or you find yourself needing to roast more often to satisfy demand, it may be time to consider moving on from the co-roasting space and investing in your own facility.
Those who are brand new to roasting coffee may think that joining a co-roasting facility is a great way to learn the tricks of the trade and how to roast on a commercial roaster. While those two things can technically happen inside a co-roasting facility, beginner roasters will quickly find that it’s not the most financially feasible way to gain roasting education and experience.
Because many coffee roasting companies use co-roasting facilities as a means of production, time is of the essence. Each roasting production slot in the schedule is valuable to those whose company’s depend on it, so these environments aren’t always conducive to experimentation.
Plus, each roasting time slot costs money. If you’re a beginner roasting company with little to no sales, co-roasting facilities can quickly eat away at your budget. Instead, look for ways to gain experience within your means. This can include:
Keep in mind that the trade-off of a co-roasting space is that you’re not investing in equipment or a facility. Instead, you’re investing in a membership and/or time slot to roast. This means co-roasting facilities are better suited for roasters who are looking to improve and grow their business, rather than learn the basics of roasting.
To ensure that the co-roasting space operates effectively, some facilities require a minimum production quantity from their members. For roasters who are newer or roast in smaller quantities, achieving the minimum production quantity may be a challenge.
Fortunately, this problem can be easily remedied: increase your revenue.
Of course, we know that this is easier said than done. Landing wholesale clients, ecommerce sales, and new partnerships takes significant effort and isn’t always a linear process.
👉We’ve got a ton of great resources on how you can efficiently and effectively increase sales from your coffee roasting business on our blog! From tactics for promoting your coffee roasting business to strategies for making more money through growth and profitability, we’ve got you covered with actionable and proven insights.
The biggest benefit of a co-roasting facility is cost savings by forgoing equipment expenses. However, once you surpass a certain production threshold, it becomes more conducive to own or lease a dedicated roasting facility and equipment. Yet, your business model is currently based on not having to pay for such expenses. Can you afford to make the leap at this point?
This is why coffee roasters who opt for a co-roasting facility need to keep a sharp eye on their finances as they grow. As your business expands, be mindful to start saving for these new expenses. You don’t want to find yourself in a position of being unable to satisfy customer demand because you’re unable to afford the necessary equipment or investments.
After reviewing the pros and cons, do you think joining a co-roasting community is the right move for your coffee roasting business? If so, take Jeff’s advice: “Ask what the minimums and requirements are. Each shared roasting operation has their own set of rules designed to help make everyone's job easier.”
On top of minimums and membership requirements, be sure to also inquire about:
Co-roasting spaces are a great place to take your business to new heights, but every facility is different. Be sure to have in-depth conversations with the facility team before signing on the dotted line.
At the end of the day, this space is where your business will make significant strides toward overall growth. You need a co-roasting facility that will support you, your company, and your goals through the right equipment, personnel, and opportunities.
Once you’ve settled into a co-roasting community and have found your groove, it may be time to start thinking about scaling. If that sounds like your situation, check out our eBook “Scaling Up Your Coffee Roasting Business: Break Through to The Next Level” for the tips and tricks necessary for growth. Download it for free today!
Wondering what co-roasting spaces are in your area? Here is a short list of a few we know of. Check it out!
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