Brand differentiation has always been a key part of specialty coffee. Roasters emphasise their commitment to quality, sustainability, craft, and consistency to retain customers and draw in new ones.

But rising inflation rates and record green coffee prices are forcing businesses to rethink their strategies. Simultaneously, market competition has intensified, which pushes roasters and coffee shops to find new ways to stand out.

Rebranding has emerged as an effective way to differentiate, keeping brand image modern, fresh, and relevant. Over the last decade, small and large players alike, including Starbucks, Stumptown, and Blue Bottle, have updated their logos, packaging, and brand messaging to reaffirm values and keep up with new trends.

There’s then a growing pressure for specialty coffee roasters to follow in the footsteps of prominent brands and refresh their own branding. Although this venture can certainly be successful, it requires a strategic approach – and value proposition needs to be clear.

I spoke to several people at Belga & Co., a specialty coffee roaster in Antwerp, to learn about the company’s rebranding experience.

You may also like our article on why specialty coffee brands care so much about consumer trust.

Market saturation: The need to stand out

Specialty coffee consumption has proliferated in almost all corners of the world over the last few decades. The National Coffee Association’s latest NCDT report found that the number of US citizens drinking specialty coffee in the past day has increased dramatically between 2020 and 2025. For every 100 cups of coffee consumed, 59 are specialty and 41 are traditional, representing an increase of 18% over the five-year period.

Meanwhile, in Europe, specialty coffee consumption is also steadily increasing, including in less established markets. Between 2013 and 2021, the number of specialty coffee shops and roasteries in Romania increased from only three to more than 120, while Hungary is now home to over 150 specialty coffee businesses.

Naturally, as interest in and consumption of specialty coffee has grown, consumer demand has shifted, and roasters and coffee shops have needed to keep up.

”When I started working in the coffee industry in 2009, the focus was purely on the quality of the product,” says Loïc Installé, the co-founder of Belga & Co., a specialty coffee roaster in Antwerp, Belgium, which also operates cafés in Brussels. “Back then, there was less focus on how and what your brand looked like. 

“People were only starting to discover the different flavours and amazing quality that specialty coffee had to offer, and starting to set standards for ethical sourcing,” he adds. “Sixteen years later, the industry has changed a lot.

“With the rise of social media marketing and consumption of specialty coffee, which has almost become a mainstream product, roasters have to jump out from the crowd. We still have the focus of serving a consistently high-quality product, but we now have to combine that with storytelling and a brand image that our clients can identify with.”

What makes rebranding effective?

The coffee industry is currently facing a challenging period, marked by uncertainty and volatility. Sustained high green coffee prices are forcing roasters to pivot their sourcing strategies to more cost-effective yet high-quality lots, while tariffs and rising operating costs are straining profit margins.

In this difficult climate, roasters need to stay relevant to their core audience while also attracting new customers. Rebranding has emerged as a strategic response to a demand for differentiation and relevance in an overcrowded market.

“Through rebranding, we can redefine our visual identity and packaging, which helps us stand out in an increasingly competitive landscape,” Loïc says. “It also helps us stay relevant in a world where design and storytelling are becoming more and more important.”

Brand identity has always been a key factor in the specialty coffee industry, especially as a way to differentiate from commercial-grade competitors. Given the rapid rate of innovation in the market, it’s all too easy for branding and marketing to feel “outdated”, losing their resonance with consumers.

“After ten years, a rebranding is necessary to give new energy to a brand, without fundamentally changing the company’s culture,” says Charly Meerbergen, the co-founder of Belga & Co. The roaster recently rebranded after celebrating its tenth anniversary, which included updates to its packaging and opening a new café.

“Brand identity is what you need to reflect your company’s DNA and present your products, but it also distinguishes you from competitors,” he adds. “For us specifically, however, it’s more than that – it’s a promise to transform through the constant quality of products, staff training, and customer experience.

“To achieve this goal, we are constantly questioning ourselves and trying to improve our company’s culture through training and education.”

Why rebranding requires a holistic approach

Most businesses refresh their branding once every seven to ten years; however, given the relative youth of specialty coffee, roasters tend to rebrand at a higher rate.

Over the last decade, many prominent small and large roasters have updated their logos, packaging, and brand messaging to remain relevant in a rapidly evolving industry.

With this shift in strategy, there’s then a growing pressure for roasters to follow in the footsteps of their competitors. Rebranding and brand refreshes are investments, but changing visual elements of a business is often less costly than product innovation or continuing to source higher-priced coffees.

“In my opinion, a rebrand goes beyond aesthetics and a new logo; it’s about creating new experiences within the company,” says Roman Melnyk, a roaster at Belga & Co. “Company culture and staff attitudes are central to this transformation. Positive and reliable staff naturally fosters stronger relationships with clients.”

A brand refresh is a significant undertaking for any coffee company and requires effective communication and teamwork. When employees understand the motive and rationale behind the process, it’s likely to resonate more with customers.

“Ten years ago, we started this adventure with the philosophy that we can only do so many things ourselves and that we need motivated staff to help us grow,” Loïc says. “Our staff are the heart of our company, and we recognise and prioritise their involvement throughout the brand refresh process.

“We are also striving to maintain a strong workplace culture that reflects our values, through training programmes and team-building activities. The rebranding is also a way to inspire our staff and give them a sense of pride in working with us,” he adds. “When they support the rebranding, they become brand ambassadors, contributing to a strong connection with our customers.”

Building a foundation for continuous innovation

A highly volatile coffee market is pushing more roasters to rebrand, which can add more pressure on operations and create a sense of trepidation. Roasters may then rush the process, focusing primarily on short-term changes, but cutting corners on quality and value proposition won’t result in success.

Instead, there needs to be an emphasis on the core values of the business.

“Belga & Co. has always been, first and foremost, about providing the best coffee for our customers,” says Krista Stellavato, a business advisor at Belga & Co., who also used to be a regular customer. “This dedication to quality coffee means relentlessly seeking to improve and optimise procurement, roasting and service; however, this is often invisible to the customer. 

“A rebrand is an opportunity to celebrate all the effort, at every stage of the production process,” she adds. “It sends a clear signal to customers that your company has evolved in a dynamic marketplace, that it strives to continuously adapt to serve its customers’ changing needs, while remaining true to the company’s DNA of a commitment to quality coffee.”

From here, roasters have the opportunity to be truly creative and innovative, updating and refreshing different elements of their business.

“At the beginning of the process, we contacted a graphic design studio to help us create new packaging,” Charly says. “We then quickly decided it made sense to undertake a total rebranding, as, after ten years, we are at a key moment of growth as a company.

“A complete rebranding helps us reflect that Belga & Co. isn’t just a coffee brand, but that we also focus on people, planet, and product,” he adds. “We can only achieve this as a team, where every individual has their place in the process.”

Consistency is key

To achieve its purpose, a brand refresh must resonate with customers, whether they are new or long-term. This means that a company’s website, social media, and other communication platforms – including its presence at events – must present a clear, consistent message that is easily understood.

“For our current customers, the refresh shouldn’t feel like a complete departure from the start, but rather a natural evolution,” Loïc says. “It should create enthusiasm and reinforce their loyalty to the brand, showing that we continue to grow while staying true to our origins.  

“With new customers, it gives us an opportunity to make a strong first impression in an ever-evolving market with growing competition,” he adds. “Throughout the brand refresh, we can tell a story, present a visually appealing new identity, and communicate in a clear way that resonates with new audiences.”

Refreshing brand identity is essential when striving to stay relevant in today’s competitive market, but it’s about more than visual storytelling.

The collaborative energy needed for a successful rebranding process stems directly from all staff, who embody the new, innovative mindset of the company. From here, roasters have the leveraging power for continued growth.

“Our rebrand provides us with the toolkit to stay ahead of consumer expectations and trends,” Loïc concludes. “It helps us remain relevant in today’s coffee landscape, where consumers prefer authentic brands with effective communication and clear company values.”

Enjoyed this? Then read our article on whether specialty coffee brands are becoming more and more similar.

Photo credits: Belga & Co.

Perfect Daily Grind

Please note: Belga & Co. is a sponsor of Perfect Daily Grind.

Want to read more articles like this? Sign up for our newsletter!

The post More roasters are rebranding than ever before – but it’s easier said than done appeared first on Perfect Daily Grind.

Specialty coffee originally built its pricing narrative around ethics. But persistently high and volatile green coffee prices have changed this.

Since the industry’s inception, many roasters positioned themselves as transparent, responsible buyers. Their marketing strategies were centred around paying fairer prices for coffee that was traceable, sustainable, and higher in quality.

Arabica futures have more than doubled over the last two years, however. Roasters now need to communicate the reasons behind their rising costs in different ways.

Łukasz Jura at Coffee Machines Sale, Julia Ahn at Stronghold, and several people at Trabocca share their insight.

You may also like our article on whether roasters should sacrifice margins or increase prices.

Specialty coffee’s values-driven pricing model has changed

Over the past two decades, direct trade coffee became shorthand for fairness and integrity. Higher prices, in this context, were aspirational rather than burdensome.

Younger demographics, in particular, embraced this idea. According to research, Gen Z consumers are more likely to prioritise sustainability over brand name when choosing where to buy their coffee. 

This messaging brought about brand loyalty. Past price increases were often framed as a values-driven decision – paying more to producers, investing in higher quality, or supporting sustainable practices. 

But it also created expectations that had to be fulfilled. Consumers wanted to experience the outcomes of these premium prices, whether through improved transparency and traceability, storytelling, or exceptional coffees.

Today, price increases are driven by necessity, and roasters now have to raise prices for reasons that feel less altruistic or positive.

“Roasters have always championed their values, and now is not the time to stop,” says Greg Graves, Business Unit Operations Manager at green specialty coffee importer Trabocca. 

“The narrative is shifting; it’s no longer about paying more because it’s right, but also because it’s necessary. But that doesn’t mean customers won’t understand, especially if you bring them into the reality of the situation with honesty,” he adds.

In the new era of sustained coffee prices, conversations with customers have become more uncomfortable. Roasters aren’t raising prices to “do better”, but to stay afloat. This shift in tone – from mission-led to survival-based – makes today’s pricing conversations more complex.

Roasters adjust their prices again

By late 2023, small-to-medium roasters in Europe were paying between US $5 to $6/lb for specialty green arabica coffee, up from around US $2.80/lb in early 2022. In 2025, prices have remained high, with the C price reaching over US $4.40/lb by February, representing more than a 70% increase from three years prior.

This sustained pressure on green coffee costs is forcing roasters to adjust pricing strategies to maintain business viability.

“The roasters I work with are adapting in ways that are both strategic and brutally pragmatic,” says Łukasz Jura, the sales manager at Coffee Machines Sale, the 2009 World AeroPress Champion, and a World Coffee Roasting Championship head judge

“They’re rebalancing blend compositions, shifting origins, and narrowing product ranges, not to cheapen the coffee, but to protect flavour and pricing stability,” he adds. “Everyone is becoming more data-driven; roasters are done with guesswork.”

While it’s difficult to adjust, such a shift in pricing is somewhat inevitable. 

“Everyone is in the same boat,” explains Salvatore Russo, the commercial director at Trabocca. “While each roaster may want to be the last to increase prices, they’ll inevitably need to or risk a drop in quality.”

Adding to the pressure is ongoing climate volatility. Coffee production in Brazil – the world’s largest exporter – has been repeatedly affected by drought and frost. Meanwhile, logistical disruptions and rising inflation rates continue to drive up costs for energy, wages, and packaging.

“We need to adjust to this new normal,” Salvatore says. “When adjusted for inflation, these ‘new highs’ aren’t as high or surprising as they initially appear.”

Confusion, pushback, and the need for clarity

Understandably, some customers and wholesale buyers are expressing confusion or pushing back on higher prices. Many of them believed they were already paying more to support coffee producers and shield the supply chain from volatility.

According to a Reuters report, major retailers in Europe initially resisted price increases, stocking out rather than absorbing costs, after green coffee prices more than doubled in a year. This highlighted widespread uncertainty over who should bear the majority of the financial burden.

“Roasters need to approach this as an ongoing conversation, not a one-time explanation,” says Julia Ahn, the Director of Business Development at roaster manufacturer Stronghold. “For wholesale clients, open dialogue backed with data helps. For retail customers, storytelling and visual content can bridge the knowledge gap.”

As coffee prices continue to remain volatile, the way roasters respond will shape both their margins and long-term relationships with customers and suppliers.

Clear and consistent communication has never been more important, but words alone are not sufficient. In a period of economic strain, consumers are paying closer attention to whether businesses live up to the values they promote.

“There’s a silver lining in the high C market: farmers are receiving better prices. It’s not just that prices are rising – it’s where the money is also going,” says Fernando Seminario, the Latin Sourcing Manager at Trabocca.

“The challenge for roasters is the speed and scale of green coffee price increases,” he adds. “Communicating clearly with clients, emphasising that price hikes are largely due to paying producers more, is critical.”

While the specialty coffee sector has long prided itself on transparency, many roasters now face the difficult task of explaining price increases that feel more transactional than mission-led. In the context of coffee, this means roasters can’t simply cite rising costs; they must show how they are responding in ways that align with their ethical commitments.

Roasters need to communicate more effectively than before

Consumers and wholesale clients are often more understanding than expected, especially when price increases are framed around preserving quality and continuity rather than profit. From social media to packaging to in-person sales calls, every channel is an opportunity to reinforce these messages.

This could include publishing breakdowns of sourcing and import costs, highlighting how margin pressures are shared across the supply chain, or explaining steps taken to minimise price increases, such as blend reformulation, advance contracting, or reduced internal margins. 

“The best conversations are simple and clear,” says Łukasz. “You don’t need a marketing campaign, just an honest explanation. And then back it up by keeping the product excellent.”

However, transparency also extends beyond customer-facing messaging. For those who have built reputations on direct trade and ethical sourcing, consistency under pressure is critical.

“Now is the moment to prove the value of your relationships and ethics,” says Salvatore. “If you’re quick to switch suppliers to save a few cents, what was the relationship really worth?”

While price increases may be unavoidable, there are still ways to mitigate their impact. Some roasters are adapting blend profiles, exploring new origins, or offering smaller-sized products to save costs. 

Others are revisiting packaging design to highlight transparency, adding QR codes or inserts to explain sourcing and costs, or investing in more efficient operations.

“The right roasting technology can significantly reduce labour needs without compromising output,” Julia explains. “Automation doesn’t mean losing control; it means freeing up human resources to focus on quality and customer engagement.”

However, many believe that exceptional coffee – both in terms of quality and monetary value – still exists for roasters, although planning ahead is what is truly integral to their long-term success. 

“Regular check-ins with your importer are essential in this volatile market,” Salvatore says. “Conditions change rapidly, and opportunities arise often.”

Roasters who are honest about their challenges, transparent in their practices, and consistent in their values are more likely to emerge with their customer base – and reputation – intact. 

“We’re transitioning from a growth phase fuelled by cheap capital and low-cost, high-quality coffee into a more mature, financially demanding era,” Greg says. “But that doesn’t mean our values are obsolete; they must evolve.”

Enjoyed this? Then read our article on why roasters are thinking twice before scaling operations.

Perfect Daily Grind

Want to read more articles like this? Sign up for our newsletter!

The post Roasters raise prices again, but things are different now appeared first on Perfect Daily Grind.

At the same time, coffee consumers are growing more price-sensitive. Inflation and economic uncertainty have impacted household budgets worldwide, prompting consumers to reconsider their daily spending. Yet, quality coffee remains an essential ritual for many. 

This tension between rising costs and maintaining affordability is forcing coffee roasters into a difficult balancing act. While some businesses may choose to absorb these additional expenses, there are limits to how much they can sustain. Meanwhile, others are considering passing some of the burden onto consumers through higher coffee shop prices.

I spoke to Jacob Park of Maru Coffee and Sandra Loofbourow at Openflor and Loupe Coffee to learn how roasters can strike a balance between absorbing costs and increasing their prices.

You may also like our article on how price volatility is shifting roasters’ priorities.

Rising coffee prices – and more

From escalating energy bills to higher wages and the growing expense of green coffee, roasters are feeling the squeeze from every direction. Absorbing these additional costs can erode already tight margins, while raising prices too sharply may alienate customers.

There are many reasons behind rising prices, especially for roasted coffee. Climate change is having a significant impact on production, with erratic weather patterns leading to lower yields in key producing countries such as Brazil and Colombia. Challenges from market volatility, high demand, and shipping difficulties have further compounded the issue. 

Additionally, certified stockpiles are also running low; ICE warehouse inventories dropped below one million bags earlier this year. When supply tightens but demand stays high, prices inevitably rise, adding further pressure across the coffee supply chain.

Roasters are also grappling with higher operational costs. Energy prices remain volatile, labour costs are increasing as businesses compete for skilled staff, and sustainable materials often carry a premium price tag. Even borrowing costs are climbing, with higher interest rates making loans and credit facilities more expensive.

All of these conditions put coffee roasters in a difficult position, forcing them to absorb additional costs or pass them on to customers.

The balancing act for coffee roasters

Raising prices feels inevitable for many businesses, but it’s a delicate decision. Roasters need to weigh the risk of alienating loyal customers against the financial strain of absorbing higher costs. The challenge lies in finding a pricing strategy that maintains customer trust while securing the financial health of the roastery.

“One big advantage of raising prices is keeping your business intact,” says Sandra Loofbourow, the co-founder of Openflor Coffee and a coffee consultant at Loupe Coffee Consulting. “But an obvious risk is pricing current customers out.”

For coffee roasters navigating rising overheads and deciding whether to increase prices, finding the sweet spot is crucial. An overly aggressive increase could drive consumers towards more affordable alternatives, especially since many already perceive coffee as a daily expense rather than a luxury. 

“There’s a long-standing perception, largely held by older generations who aren’t familiar with specialty coffee, that a cup of regular drip coffee should never cost more than US $5,” says Jacob Park, a co-founder of specialty coffee roaster Maru Coffee in Los Angeles, California. “If the price exceeds this level, many customers may feel it’s not worth the value.”

At the same time, keeping prices too low can erode profitability to unsustainable levels, threatening the long-term viability of the business. 

“If the price is too low, the profit margin may suffer, but sales could increase since many customers look for cheaper options,” Jacob adds. “On the other hand, if the price is too high, it’s very hard for customers. Coffee is a daily ritual for many, and if customers have to think about their financial situation while enjoying their coffee, it takes away from the experience.”

While consumers may feel the pinch of rising coffee shop prices, much of the pressure originates further upstream in the supply chain. For decades, coffee producers have retained only a small fraction of the final retail price of coffee, despite specialty coffee markets promising higher returns for better quality.

“Coffee has been historically undervalued, with producers retaining incredibly small amounts of the value created by their product; the ‘dramatic’ market shifts we’ve seen in the past year have not changed this fact,” Sandra says. “Coffee is part of our daily lives, but the people who produce it still deserve a living wage. 

“As an industry, we must shift our focus away from extraction and towards creating shared value across the supply chain, including with consumers.”

Transparent pricing and brand trust

One way to ease the tension of rising coffee shop prices is to be transparent with customers about the reasons behind the increases. Several studies suggest that openly sharing the realities of increased costs can also lead to a more positive perception of price fairness. Such transparency helps manage expectations and reinforces trust, especially in times of economic uncertainty. 

Educating consumers about these factors not only fosters understanding but also builds a stronger emotional connection with the brand, making customers more willing to accept incremental price adjustments.

“A lot of marketing around specialty coffee already relies on the idea of ‘transparency’ – usually backwards through the supply chain to the producer,” Sandra says. “Now is a great time to share that transparency upstream, too. Speak frankly about these challenges with your customers, and consider offering price transparency to them as well.”

Jacob agrees that providing a better experience can help justify higher prices. When customers perceive that they are paying for quality – not just in the cup, but in the overall experience – they are more likely to view the price increase as justified. This perception of quality can be a powerful tool in maintaining customer loyalty, even as costs continue to rise.

“People who aren’t familiar with specialty coffee often undervalue it, and many of us in the industry have been working hard to break that perception,” he says. “Beyond just changing that mindset, we also need to show everything that sets us apart: thoughtful interior design, a clear dress code, great customer service, information about coffee, transparent sourcing, the use of high-quality beans, and how we present everything.

“Only then can everyday customers truly recognise and understand the difference.”

Sustainability also plays a role. Eco-friendly practices can appeal to ethically minded consumers, who may be more willing to pay higher prices if they believe their purchase supports environmental responsibility. Highlighting efforts such as compostable packaging or low-emission roasting can strengthen a brand’s appeal and justify premium or increased pricing.

“The threat of climate disaster is usually not enough to shift consumers away from the most convenient (or cheapest) choice,” Sandra says. “However, we know that perceived morality can increase a customer’s loyalty to one brand over others.

“If transparency and sustainability are part of your brand messaging, it’s likely your customers are trusting that you make eco-conscious decisions on their behalf, even if they’re slightly more expensive.”

Diversifying to reach new customers

For coffee roasters, there’s no avoiding the reality of rising expenses, but the question remains whether to absorb these costs or pass them on to consumers via price increases. 

Some roasters are responding to the challenge in another way, diversifying their offerings. Such measures enable roasters to expand their reach without compromising their leading brand’s premium positioning.

The launch of more affordable sister brands, such as Madcap Coffee’s ‘Dito’, is one example. Many brands are targeting younger and price-sensitive consumers with simpler packaging and more accessible price points, while preserving the premium position of their coffee products. 

Regardless of whether roasters choose to raise prices, absorb a margin hit, or diversify, price rises are inevitable, and consumers can generally expect to pay more for coffee in the coming months and years.

A hybrid approach may offer the most sustainable solution. Gradual, transparent price increases combined with efforts to manage operational costs can help spread the financial pressure without alienating customers.

“It’s possible that some adjustments, like a heavier reliance on lower-quality or commercial-grade coffees, could soften the impact on consumers,” Sandra says. “But then there’s the fact that production is trending down, and will likely continue on that trajectory thanks to many compounding factors.”

Ultimately, the decision hinges on roasters understanding their customers and margins. Those who clearly communicate the reasons behind pricing changes and continue to deliver value — whether through quality, sustainability, or customer experience — are more likely to retain trust.

For now, a careful mix of transparent communication, incremental price increases, and diversified products could help coffee roasters navigate rising coffee prices and higher operating costs. In a challenging economic climate, striking this balance will be crucial for coffee roasters seeking to secure longevity.

Enjoyed this? Then read our article on why roasters are thinking twice before scaling.

Perfect Daily Grind

Want to read more articles like this? Sign up for our newsletter!

The post Should coffee roasters sacrifice margins or increase prices? appeared first on Perfect Daily Grind.

The need to switch to a larger roaster is crucial for coffee businesses to meet the demands of their expanding customer base. In the US alone, the consumption of specialty coffee has increased by 18% between 2020 and 2025, indicating the rising interest in quality, traceable coffee.

But the transition requires much more than simply purchasing a new machine with increased capacity. There are many factors to consider before making the decision, and roasters need to prepare themselves for a significant adjustment.

I spoke with Diego Vidiz, a roaster and technical consultant at IMF Roasters, about the journey roasters take when switching from small-batch to large-scale roasting operations.

You may also like our article on designing a complete coffee roasting facility.

Knowing when it’s time to upgrade a coffee roastery

Most roasters often start their businesses with highly streamlined operations, comprising a small-capacity machine and just a few team members. But as specialty coffee consumption proliferates, including in emerging markets, many businesses seek to capitalise on its explosive growth.

Many spend hours learning the ins and outs of operating a roastery, while also developing production processes that form the base of the business. Once a roaster achieves consistency in their product and has developed strong relationships with their core customer base, expansion becomes much more viable.

“With over thirty years working in the coffee industry, I have personally experienced the transition from a small artisanal roastery to a full-scale industrial plant,” says Diego Vidiz, who collaborates with IMF Roasters as a technical consultant, supporting the start-up of new roasting facilities. The company will exhibit at WoC Geneva at booth no. 2264 from 26 to 28 June.

“It’s a shift that doesn’t happen overnight, but there are clear signs when the time comes,” he says. “The first is practical: when production can no longer keep up with orders and roast days are always full, it becomes clear that the current setup isn’t sufficient anymore.”

Finding the right equipment

When setting up a roasting business, it’s usually recommended to invest in a machine that can accommodate some level of growth from the outset.

Using a roaster that’s too small makes it more difficult to fulfill larger orders, restricting a business’ growth. On the other hand, starting with a machine that’s too big means roastery operators may overestimate their orders, creating potential waste that eats into their costs.

Once a roaster establishes the optimal size of their machine, it’s important to maximise the current setup within the roasting space. Operators must consider the placement of equipment, production lines, and storage areas to streamline workflow and ensure a successful transition to larger-scale roasting.

“From here, you can attract more structured clients, such as large retailers or international operators, that demand higher volumes and consistent quality,” Diego tells me. 

“Internally, the company must also be ready: clear processes, a solid quality control system, and skilled people who can work well as a team are all essential,” he adds. “When these elements are in place, managing significant growth becomes much more feasible.”

What are the main challenges when scaling a coffee roastery?

The transition to using larger roasters has its challenges. 

A significant part of the artisanal experience with specialty coffee involves having close contact with the product itself. Roasters pay attention to sensory cues in the roasting process, such as colour changes and listening for ‘first crack’, to understand how to control different variables, and ultimately maintain and improve quality.

But it’s not always easy to convert these skills from small to large batches. Different batch sizes require varying amounts of energy to achieve the same results, meaning that some trial and error will occur during the early phases of scaling up. 

“The biggest challenge when increasing volumes is maintaining consistent quality,” Diego says. “In an artisanal roastery, you rely heavily on direct experience and visual cues, but at a larger industrial level, you need precise, reliable systems to help replicate each roast profile consistently.

“That’s why investing in well-calibrated technology, with automated controls and data logging, is essential,” he adds. “The team also needs to grow alongside the facility. Technical training, digital process knowledge, and some flexibility in managing new tools are key.”

Leveraging automation

Modern roasters are typically equipped with automated roasting capabilities. Once a roaster carefully dials in a roast profile, the dedicated software takes control, adjusting heat and air during the roasting process using set data points.

These capabilities have made training production roasters easier than ever before, allowing businesses to manage labour costs more closely. As costs rise across the board, from energy to packaging, this has never been more critical.

“I started roasting with an IMF machine in 2001, and since then, it has always been central to my journey, both in artisanal roasting and in scaling up to an industrial operation,” Diego says. “Over the years, IMF has continually improved its machines, making them increasingly precise, efficient, and suitable for all production needs.

“The Vortex system, for example, ensures uniform heat distribution for consistent and even roasting, even with larger production volumes, thanks to precise control of the roast profile and Rate of Rise (RoR),” he adds.

A reliance on automation also ensures that businesses consistently adhere to quality standards, even when training new staff.

What first steps should roasters take?

Once the decision to scale up has been made, the next step is to make sure the company can actually handle the anticipated growth. 

It’s not just about the quality of products and personnel; the roastery location must be able to handle the required volumes. 

Storage capacities and conditions for both green and roasted coffee have to be more than adequate. Green coffee should be stored at a stable temperature to reduce the risk of quality degradation. Processing orders on a larger scale, therefore, requires much more room to store raw materials and packaging.

“From an organisational point of view, everything changes as production scales,” Diego explains. “Warehousing, logistics, timing, and planning must all be restructured.

“Economic planning is crucial; growth should be grounded,” he adds. “You need a solid plan with clear figures and realistic goals. Otherwise, the risk is scaling too quickly and putting the entire business at risk.”

One of the most common reasons a company goes out of business is that it expands too quickly. Stretching resources to breaking point can easily compromise coffee quality and product consistency, as well as staff morale and business viability.

How equipment and technology can assist the transition

When scaling up a roasting operation, a range of different equipment beyond roasters can help support the company during its initial growth period.

“From a practical standpoint, the ability to add modules, such as automatic feeding systems, silos, or quality control units, means that the facility can grow with you, without having to start from scratch,” Diego says. “This is a huge advantage for roasters looking to expand gradually, keeping costs under control while maintaining high-quality standards.

“One of the most interesting aspects of IMF systems is their modularity. It enables you to work with various batch sizes using the same equipment, without compromising precision or consistency in roasting,” he adds. “Whether you’re roasting a specialty micro-lot or selling higher volumes, the machine adapts effectively.”

Specialist equipment that can improve a roastery’s between-batch protocols can be equally as valuable in saving time, energy, and labour. Moving large amounts of green coffee is physically demanding, so utilising additional units like silos and auto loaders can increase capacity.

Looking ahead

When roasters scale up their operations, they typically seek a space that can accommodate immediate growth, while also considering the potential for future expansion.

Creating a plan and vision for the business is crucial to maintaining control over growth and developing sustainable goals. Working closely with experienced roasting plant designers also gives coffee brands access to knowledge and insights that could help them use investment capital more effectively. 

“Growing in the coffee industry means finding the right balance between quality, organisation, and technological innovation,” Diego says. “Thanks to my experience and reliable solutions like those offered by IMF, I’ve been able to face this evolution without compromising brand integrity.

“Scaling is possible – provided it’s done with method, vision, and a constant focus on quality,” he adds.

Moving from small-batch to large-scale roasting is a momentous opportunity for a coffee brand, but the transition comes with its own unique set of challenges.

While the obvious solution is to buy a bigger machine, investing in complementary specialist equipment to assist with the between-batches stage of production is often beneficial.

Enjoyed this? Then read our article on what roasters need to know when upgrading their facilities.

Photo credits: IMF Roasters, Better Days Coffee Company

Perfect Daily Grind

Please note: IMF Roasters is a sponsor of Perfect Daily Grind.

Want to read more articles like this? Sign up for our newsletter!

The post How to transition from small-batch to large-scale coffee roasting appeared first on Perfect Daily Grind.

But with rising costs, high interest rates, and ongoing market volatility, scaling a coffee business today is more complicated than ever.

With these challenges in mind, many roasters are choosing to focus on more controlled, profitable operations rather than rapid expansion.

I spoke with Sahra Nguyen of Nguyen Coffee Supply, Inácio Pires Teixeira of InterAmerican Coffee Europe, and Bryndon Bay of First Crack to learn more.

You may also like our article on how roasters are managing cash flow with higher prices.

The challenges of scaling in a volatile market

Over the past decade, the specialty coffee sector has grown rapidly, with new roasteries emerging in a growing number of countries. As regional industries have matured, market saturation has presented new challenges for businesses looking to scale.

“There are so many roasteries offering coffees and services that meet the needs of cafés, making differentiation more difficult,” says Bryndon Bay, the co-founder of First Crack, a co-roasting space in St Louis, Missouri, US.

The economic reality of 2025 also poses new hurdles for roasters to overcome. A few years ago, financing was more accessible, allowing businesses to scale at a steady rate. Now, borrowing money has become more expensive due to rising interest rates, making expansion a much riskier endeavour. With increased costs across the board, many roasters are questioning whether the return on investment justifies the financial risk.

Beyond cost concerns, staffing has become a growing issue. Hiring and training baristas and roastery staff is expensive, and with high turnover rates, maintaining a strong team is more difficult than ever. When businesses scale, they need a stable workforce, and this has become a significant challenge.

Market instability has made every aspect of expansion harder, from securing capital to maintaining reliable supply chains. Coffee prices also remain high and volatile, making it increasingly difficult to plan for the long term.

“We’ve definitely been impacted by the rise in coffee prices,” says Sahra Nguyen, the founder and CEO of Nguyen Coffee Supply, a Vietnamese coffee importing and roasting company in the US. “The price of robusta in Vietnam is at an all-time high, which means that producers – some of which have received little attention from the global coffee market and never had any control over the prices they receive, or no representation in the industry’s conversations – now have more power and autonomy.”

Sourcing more coffee is now increasingly difficult

The specialty coffee industry has advocated for paying producers higher, and therefore fairer, prices for some time. While many believe sustained high green coffee costs are a long-overdue change, they also present challenges across the entire supply chain – and don’t necessarily equate to a better position for producers.

“A lot of farmers are holding onto their coffee because they want to see the price go up,” Sahra says. “In the past, we could lock in our volume for the year based on relationships with buyers. But now, producers want to be paid immediately, or they’ll opt for the highest price on the market.

“It’s created instability and volatility. As a small business, cash flow is important, so paying for a year’s inventory upfront is a huge challenge,” she adds. “But at the same time, I don’t blame the producers; they’ve never had a market like this before.”

Sourcing green coffee has therefore become more complicated, with availability and pricing shifting constantly. With rising prices, many cafés are hesitant to accept higher costs, forcing roasters to rethink their pricing strategies. 

“I don’t think that the size of specialty roasters matters as much as how they protect their margins,” Bryndon explains. “Risk can be mitigated at any size – the principles are the same. With the cost of green coffee skyrocketing, are roasters able to raise prices or find efficiencies in their operations?”

While scaling a business has become more complex, some advantages have emerged. Consumers are more willing to pay for quality coffee, which means that roasters can maintain higher price points with less pushback, although price sensitivity is still an important consideration.

“For the last couple of years, we haven’t raised our prices,” Sahra says. “We’re absorbing the additional costs and viewing it as a temporary shift, as we foresee that prices will stabilise next year. 

“There will be a new baseline price, which will increase the value of coffee and benefit the entire industry; it will force larger companies who control most of the market to raise their prices, which will support smaller businesses.”

How coffee roasters can hedge against market volatility

Managing financial risk is now a top priority for roasters. Many are adjusting their strategies to maintain stability, such as securing green coffee contracts that lock in prices. Instead of long-term contracts, some roasters are shortening their commitments to allow for greater flexibility. 

“We used to contract for six months, now we contract for three to four,” Bryndon explains. “Additionally, the periods covered by our sales contracts mimic those of our green contracts, rather than having fixed pricing for 12 months.”

For those working with green coffee importers, finding value-priced options has become essential. Some roasters are exploring past crop coffees and lesser-known origins as cost-saving measures.

“Roasters should be prepared for some flexibility in terms of quality, as certain coffees may not be available due to declining stocks in the warehouses,” says Inácio Pires Teixeira, CEO of InterAmerican Coffee Europe, a company of Neumann Kaffee Gruppe. “We recommend, if possible, relying more on regional coffees that score 80 to 82 points.

“In addition, it’s important to stay in close contact with suppliers and keep them informed of the quantities you need,” he adds. “In the event of a possible delay in payment, it is advisable to notify the supplier well in advance. It is also better to purchase coffee as agreed and pay invoices on time, otherwise you’ll need to pay interest and storage charges.”

Coffee roasters need to build long-term resilience

Diversifying revenue streams is another strategy that more roasters are leveraging. Subscription services, online sales, and direct-to-consumer models provide more predictable cash flow and reduce dependence on wholesale customers, who may be more affected by market fluctuations.

As traditional scaling becomes more difficult, some roasters are considering branching into other artisanal products like craft chocolate, natural wine, or specialty tea. The infrastructure needed for these industries is similar: small-batch production, careful sourcing, and a focus on quality.

However, diversification is not without risk. Expanding into new product categories must align with a roaster’s existing business model to ensure long-term success.

Ultimately, the decision to scale or not depends on a roaster’s long-term vision. Some businesses aim for slow, sustainable growth, while others prioritise financial stability over expansion.

The traditional mindset of “grow or die” is shifting, with more businesses opting for controlled, profitable operations instead of aggressive growth fueled by borrowed credit. With coffee prices expected to remain high and volatile, roasters must carefully evaluate whether scaling is worth the risk.

For some, co-roasting models have become a smart alternative to traditional scaling. 

“Because we buy a lot of coffee, all of our customers avail of discounted pricing and group shipping rates,” Bryndon says. “Co-roasting is a cost-friendly solution to roasting your own coffee for small and medium-sized roasters.”

However, scaling down isn’t necessarily the answer either. What matters most is protecting margins and maintaining operational efficiency. Businesses that can effectively manage costs, strategic sourcing, and lean operations will be best positioned to weather market challenges.

“Today’s environment is more challenging, but it’s an opportunity for efficient, well-run roasteries to thrive. During recent years of inflation, roasteries and cafes raised prices to keep margins intact, but now, does the end consumer care that green coffee prices are high?” Bryndon asks. “Will they gravitate towards shops with lower pricing or drink coffee at home? These are the questions we need to ask.”

As roasters navigate an increasingly complex economic landscape, strategic planning and adaptability will be essential for long-term success. While expansion remains an option, many businesses are now prioritising efficiency, resilience, and profitability over rapid growth.

For specialty coffee roasters, the future isn’t necessarily about becoming bigger; it’s about becoming better.

“Not all businesses need to scale indefinitely, or even at all. What kind of business do you want to build? What kind of value do you want to create, and how much do you actually need to generate to achieve that goal?” Sahra concludes.

Enjoyed this? Then read our article on why roasters have to compete on more than just price.

Perfect Daily Grind

Want to read more articles like this? Sign up for our newsletter!

The post Roasters are now thinking twice before scaling operations appeared first on Perfect Daily Grind.

The coffee industry is resilient and has weathered numerous storms throughout its history, but the challenges that coffee businesses are facing in 2025 are unlikely to subside anytime soon, especially as the effects of US tariffs are felt in all corners of the world.

While this can create a sense of trepidation and scepticism, business operators who prioritise effective cash flow management will be best prepared to navigate the months ahead.

I spoke with Zach Dowse, operations manager at Landgon Coffee Merchants, and Jake Leonti, director of coffee at Gregory’s Coffee, to find out more.

You may also like our article on how much coffee shops need to raise their prices.

How new challenges are reshaping the industry

As the C price continues to hover around US $4/lb for the first time in decades, roasters, in particular, are facing unprecedented challenges that are reshaping their green coffee buying strategies.

When coffee prices are low, specialty coffee roasters can source high-quality lots while still maintaining healthy profit margins, positioning them well for future business growth. But as arabica futures remain consistently high, many roasters are switching to offer more cost-effective blends or diversifying to include lower-cost origins like Brazil to manage tighter margins.

Inevitably, this leads to knock-on effects along the supply chain. Traders, also feeling the impact of price volatility, have to adjust their buying behaviour to cater to changing roaster demand.

“We’ll see some short-term changes in green coffee buying habits to accommodate the rapid surge in prices,” says Zach Dowse, the operations manager at Langdon Coffee Merchants, a specialty green coffee importer that operates in the UK, Australia, and New Zealand. “Importers will likely steer clear of heavy spot positions as stakeholders adjust.”

Spot buying happens in “real-time”, whereas forward buying is when sellers and buyers agree to future transactions at a fixed rate. With coffee prices remaining high and volatile, locking in set prices offers a level of certainty that roasters, traders, and producers are currently seeking.

Simultaneously, however, securing the capital to purchase large volumes of coffee upfront has become more challenging. Many roasters rely on short-term loans to cover the costs of large coffee purchases, but because the risks associated with lending have also increased, banks and financial institutions are tightening credit lines and enforcing stricter conditions.

“Cash flow is the most significant issue in the coffee industry worldwide today,” says Jake Leonti, the director of coffee at Gregory’s Coffee in New York City, US. “Exporters at origin don’t have access to enough cash to purchase cherry, and importers don’t have enough to purchase green in large volumes. 

“Roasters don’t have cash to purchase long-term green coffee supplies – the list goes on,” he adds. “This is why we’re seeing a lot of coffee companies seeking investors and selling parts or all of their companies to bring cash into the business.”

Industry dynamics are shifting

Price volatility in the coffee industry isn’t new, but the current period of sustained high prices is creating unforeseen challenges, compounded by rising inflation, climate-driven supply shortages, and increasing interest rates.

US President Donald Trump’s recent global trade tariffs have exacerbated these issues, introducing additional complexity and costs to an already strained supply chain. Trump announced universal import taxes in early April, which initially included levies between 10% and 104% on imports from the majority of the world’s top 20 coffee-producing countries. This caused coffee prices to fall sharply as speculators bet on price depreciation.

Since Trump reduced the levies to between 10% and 25%, the C price has steadily increased to near-record levels again. With coffee prices not expected to retreat until late 2025 – and the ripple effects likely to be felt for at least four years – the industry is grappling with a structural shift rather than a passing trend.

Many point out that this shift is a long overdue change in the industry, as coffee has historically been an undervalued product. But for producers, high prices aren’t necessarily a be-all-end-all solution. The costs of labour, fertilisers, and other inputs have risen alongside coffee prices, meaning their margins remain tight. Producers also face cash flow constraints to cover the rising costs of production, putting them in a similar position to roasters and traders.

In turn, all supply chain actors are exercising a new level of caution and operational awareness. Roasters are seeking to mitigate risks by diversifying their offerings, while producers are focusing on efficiency and exploring ways to add value to their coffee.

Collaboration, communication, and shared risk management have become increasingly essential to support these industry-wide shifts.

“Relationships are incredibly important in the current economic climate,” says Jake. “If roasters have maintained a solid relationship with their importer, then they should want to help their clients succeed as well. If you work with direct trade, you can often purchase at a fixed price rather than being held to the whims of the market.”

Managing costs is the most effective way forward

The entire coffee supply chain is currently navigating uncharted territory, not only with higher coffee prices but also political turbulence and a worsening climate crisis. For roasters, who historically have been in a more advantageous position than most supply chain actors, the situation is particularly challenging.

At the same time, the current volatile landscape creates opportunities to become more innovative and creative, building resilience that businesses can sustain in the long term. Ultimately, the main goal is to manage cash flow while preserving, or ideally improving, coffee quality.

“Don’t wait for a specific C price to make your purchases. Buy and fix when the market is trending down, but if you wait too long, the market will jump right back up again,” Jake says. “If you don’t have a substantial volume to leverage, you can reach out to other roasters to try and combine your volume with an importer to create more purchase power and favourable rates.

“Alternatively, rather than relying primarily on the consistency of your blends, change to a rotating menu of seasonal blends and single origins,” he adds. “Reduce waste as much as possible, too. If you have cafés, make sure your brewing equipment is well kept so you’re not wasting coffee to dial-in more frequently than needed due to dull burrs, for example. 

“Little things along every step of the way; we’re in the period of tightening up every aspect of a business.”

Roasters need to play to their strengths

There is, however, a fine line between balancing new, creative strategies and tried and tested systems. The ongoing market turbulence and uncertainty can cause some roasters to pivot away from “business as usual” in the hope that alternatives will result in more success.

“Too many roasters see mounting pressure within the industry, and all of a sudden, believe they need to change the foundation of what they do to compensate,” Zach says. “Step back and go to the basics of booking coffee as it’s harvested seasonally with importers or producers; this removes massive unknown risk as a business owner.

“Once you know the pricing of your core offerings, then you can start to plan and work around them,” he adds. “Order small and often, maintain reasonable credit terms with clients and work on how to best translate the narrative of the value in your product and service to your clients, maintaining your unique voice in the industry and refraining from compromising. 

“This shows respect for your clients and customers, and underscores why they are supportive of you as a brand, leading to a stronger and better long-term relationship.”

As the specialty coffee industry transitions into a new era, the ability to manage costs is no longer a competitive advantage; it’s a prerequisite for navigating the foreseeable future.

Passion and craftsmanship will always be central to the industry’s values, but effective cash flow management has never been more crucial.

“If you are confident in the value you provide for clients and consumers, then feel empowered to price your coffee in line with what makes sense for your business,” Zach concludes. “Focus on the details, big and small, fine-tune your customer service, and your clients will continue to support you.”

Enjoyed this? Then read our article on how smaller roasters can mitigate risk.

Photo credits: Langdon Coffee Merchants

Perfect Daily Grind

Want to read more articles like this? Sign up for our newsletter!

The post We have entered a new era for specialty coffee – and managing costs is a top priority appeared first on Perfect Daily Grind.

While the specialty coffee sector has weathered various storms before – from pandemic disruptions to supply chain complications – the current pricing predicament forces a particularly difficult decision: how can roasters pass on the necessary price increases to customers without driving them toward competitors, especially those offering lower prices?

I spoke to Mike Verwoert, the co-founder of Doe & Fawn Coffee, and David Jameson, the founder of Danelaw Coffee, to find out.

You may also like our article on how smaller roasters can mitigate risk.

Why communication between roasters and customers is vital

With operational costs already trimmed, many roasters now face the reality that price adjustments are no longer optional but essential for survival in an increasingly volatile market.

Communicating price increases to wholesale and retail buyers is challenging, and the conversation can be uncomfortable for both parties. However, in the reality of today’s market, it’s become unavoidable.

Successful roasters recognise that price transparency isn’t just an ethical approach, it’s a strategic one. By openly discussing specific market pressures and logistical hurdles driving costs upward, roasters can shift the narrative about price increases from a unilateral decision to a collaborative, two-sided conversation.

“My approach is to be frank, honest, and upfront,” says David Jameson, the founder of Danelaw Coffee, an award-winning specialty coffee roaster in Holmfirth, UK. “I told my customers that the price of one component of my blends had increased by 38% in between orders and that it wasn’t possible to hold the price any longer.

“I also made it clear that if the market didn’t fall again, by the time the Central American harvest landed, I might need to apply a second price hike,” he adds. “All but one customer accepted this – I’m still negotiating with the last one!”

Effective price increase strategies require thoughtful communication and comprehensive explanations for all stakeholders. Roasters need to emphasise not just the necessity of the increases but also the tangible benefits that come with maintaining quality and supporting ethical sourcing during turbulent market conditions. 

“The coffee industry has always been built on collaboration and shared knowledge. We frequently connect with other roasters to exchange insights, discuss challenges, and explore solutions,” says Mike Verwoert, the co-founder of Doe & Fawn Coffee, a small batch specialty coffee roaster in Milton Keynes, UK.

“Open conversations – whether through industry forums, events, or articles like this – help maintain consistency in messaging and strengthen the industry as a whole,” he adds. “For new roasters, building a strong network is invaluable. Whether through fellow roasters, other entrepreneurs, or local businesses, a supportive community can provide fresh perspectives and opportunities to navigate difficult times together.”

Adding value for customers

With price hikes becoming inevitable, the specialty coffee industry faces a difficult truth: losing customers can happen quickly, while rebuilding those relationships can take years. Even the most loyal coffee consumers have thresholds where price sensitivity overtakes brand attachment, particularly in a saturated market like coffee.

Building resilience is then crucial in this challenging environment. To do that, roasters need to take measured rather than reactive approaches. Those who implement significant, abrupt price hikes, attempting to recoup losses in a single adjustment, often discover the catastrophic impact on customer loyalty and wholesale relationships.

Instead, adopting incremental pricing strategies that introduce smaller adjustments over a longer period of time is a more constructive path to take. 

“The key is to provide value beyond just the price of a cup of coffee. Transparent communication about the reasons for price adjustments is essential, but so is maintaining consistent quality and continuing to innovate,” Mike says. “Customers are more likely to stay loyal when they feel engaged and excited about what you offer, whether through new product launches, unique experiences, or creative ways to enjoy coffee.

“Additionally, we focus on the lifetime value of our customers rather than just the margin on a single transaction. By building strong relationships and offering an outstanding experience, we create long-term loyalty that withstands market fluctuations.”

By treating customers as informed partners rather than passive consumers, roasters can maintain the trust essential for weathering market volatility while preserving their brand positioning. 

“As a small independent roaster, I can’t compete with big commercial roasters on price. All I can do to differentiate my brand from bigger businesses is to focus on quality,” David tells me. “I believe that there will always be customers out there who are willing and able to pay a little more for great coffee. 

“I’ve changed my packaging sizes over the last few months so that less of the price paid is spent on postage and packaging per amount of coffee purchased. I also offer savings if customers subscribe to a coffee.”

This methodical approach allows customers to adapt gradually while preserving the perceived value proposition that initially attracted them to a brand. By carefully timing these increases and potentially pairing them with small product improvements or packaging refinements, roasters can minimise resistance while maintaining revenue streams.

Strengthening industry ties as coffee prices rise

While the coffee industry faces perhaps the most challenging market conditions in its modern history, these unprecedented times call for renewed conviction in shared values. Demonstrating price adjustments not merely as financial necessities but also as opportunities to reinforce what makes specialty coffee exceptional can help roasters weather the storm.

The most successful price navigation strategies are those embedded within a broader community-centric framework. Forward-thinking roasters recognise that their businesses exist within an ecosystem of relationships – from producers to consumers – and that preserving these connections is paramount during market upheaval. 

“The coffee industry is a small world, and I talk to other local roasters all the time. Knowing that we are all going to need to deal with the same problem is helpful,” says David. “It has certainly helped me to understand how I can maintain quality while managing budgets.”

By positioning a rise in retail coffee prices as a collective challenge that requires shared solutions, roasters can demonstrate their commitment to long-term partnerships rather than short-term profits.

Additionally, doubling down on branding and quality standards resonates with consumers who recognise the integrity behind difficult decisions.

“If you believe in what you do, then hold the line, maintain your quality, and increase your prices when you need to,” David advises. “You need to have faith that your customers believe in what you do, and that they will stick with you if you are honest, open, and respectful.”

Opportunities for coffee roasters to be creative

Beyond conventional pricing strategies, the path forward demands creative thinking. 

“Diversification is key,” Mike says. “Roasters should look beyond just wholesale or direct-to-consumer sales and explore additional revenue streams such as hosting events and coffee tasting experiences, selling merchandise and complementary products, offering B2B support for cafés and restaurants, and collaborating with like-minded brands.”

Working with businesses in other industries can be an effective way for roasters to scale operations in less conventional ways. Selling products other than coffee helps capture the attention of a more diverse range of customers, including those new to or unfamiliar with specialty coffee.

The craft beer industry serves as a useful example. A growing number of roasters have teamed up with breweries to launch artisanal beers that enable them to tap into a global market valued at over US $210 billion, one in which consumers are willing to pay higher prices proportional to quality.

“It’s also worth scouring the offer lists for interesting coffees. Is there a forgotten vacuum-packed past crop coffee that will still be fresh and tasty but looks like a bargain now?” David asserts. “Many well-processed natural coffees only really peak after about a year, so could there be a micro lot option that works well and is still at last year’s prices.

“Think outside the box for different origins, too – could you use a Burundi or Uganda in place of a Kenya or Tanzania in a blend? Cup plenty of samples and see if you can work out a solution.”

Rising prices are a lasting reality for the coffee industry. A recent UN FAO report suggests that up to 80% of coffee price rises will trickle down to EU consumers within the next 11 months, and to US consumers in just eight. It also estimates that the residual effects of these price rises will last for four years.

This undoubtedly presents a number of challenges. But if specialty roasters stay true to their values, manage their finances carefully, and communicate transparently, customers are likely to remain loyal.

Enjoyed this? Then read our article on why roasters now have to compete on more than just price.

Photo credits: Doe and Fawn Coffee, Danelaw Coffee

Perfect Daily Grind

Want to read more articles like this? Sign up for our newsletter!

The post How roasters can raise prices without losing market share to competitors appeared first on Perfect Daily Grind.

Today, as coffee prices rise and operational costs go up across the board, more and more roasters are struggling to manage their profit margins and cash flow, seeking investment opportunities to stay afloat amid market volatility. 

While external funding sources may help them grow and scale, they also raise questions about whether roasters compromise their independence and integrity.

I spoke to Martin Mayorga, the founder and CEO of Mayorga Coffee, about the pros and cons of operating a large coffee business without investors.

You may also like our article on why more coffee producers are diversifying their crops.

Why do coffee brands seek out investment?

Specialty coffee roasters have long emphasised quality over quantity, focusing on direct trade relationships and marketing that highlights their passion and craft. 

Once dominated by smaller players who used their size to remain agile and flexible, the specialty coffee market has grown and diversified in recent decades as more brands have looked to grow their business.

To achieve this, many have sought out external funding and investment, helping them scale more efficiently. 

“Scaling a coffee business without outside investment is difficult because of the capital-intensive nature of the industry,” says Martin Mayorga, the founder and CEO of Mayorga Coffee. Founded in 1997, Mayorga Coffee is a roaster that focuses on supporting sustainable organic farming practices and uplifting smallholder producers in Latin America.

“Sourcing coffee, especially through direct trade, requires well-executed planning and some risk-taking, as you have to project the volumes needed for the entire year,” he adds. “Unlike tech or software businesses, coffee has physical products with logistical challenges, perishable inventory, and tight margins.

“Roasting and packaging quality coffee also requires food-grade facilities and equipment as well as skilled managers and operators. Then you get to the expensive part: marketing and branding. Every step requires significant cash flow, and to have cash flow, you need sales.”

How investment has reshaped specialty coffee

Mergers and acquisitions (M&A) have been a hallmark of the coffee industry over the last ten years. Notable third wave roasters like Stumptown and Blue Bottle were acquired by multinationals in the mid-2010s, while larger companies have steadily absorbed a number of specialty coffee importers throughout the last few years.

Although the growth of the market signals an increase in demand for quality coffee, it can dilute the values that first defined specialty coffee. Investors often expect rapid returns on investment (ROI), which can result in cost-cutting measures that lead to a drop in quality and a compromise in ethical practices.

“Large multinational corporations have flooded the specialty coffee space with lower-quality, ‘ethically marketed’ coffee, making it even more difficult for authentic, value-driven brands to compete on price and volume,” Martin tells me. “Small roasters and independent brands have also appeared, making what I consider reckless, unfounded claims about their impact.”

For instance, some businesses which focus on direct trade and fair prices paid for coffee in their marketing strategies may now rely on commercial blends and cheaper lots to manage tight margins. Without transparency about this shift in sourcing practices, ethical claims are quickly eroded, undermining the industry’s overall values.

The coffee market is more competitive than ever

The coffee industry has always been dynamic and saturated, but recent unprecedented financial pressure is impacting everyone in the supply chain more than ever before. Over the last year, green coffee prices have more than doubled, credit rates have soared, and business costs – ranging from energy to logistics – have reached record highs.

In this landscape, managing cash flow has become more challenging, especially for roasters, which typically rely on short-term loans to cover the costs of large coffee purchases. Once fairly predictable, financial planning and budgeting are now increasingly complicated, which strains profit margins and hinders opportunities to grow operations.

“Recent years have made scaling even harder,” Martin says. “Inflation and interest rates have driven up costs across the board; freight, labour, and materials are all significantly more expensive. 

“The coffee market is volatile, with green coffee prices fluctuating based on weather patterns, speculation, and production cycles,” he adds. “The current market levels are a great equaliser, in my opinion; producers will make more money, and only savvy business operators will stay profitable.

“Without outside investment, the biggest risk is cash flow management. Growth requires capital, and if you don’t have investors, you have to fund everything yourself.”

The risks of self-funding

For many smaller roasters, this proves impossible, meaning the only way to expand is through investment. Others who choose to self-fund their business growth, meanwhile, are faced with a number of risks and challenges.

“Brands can’t expand as quickly as their competitors who have millions in venture capital, most of which is spent on marketing, which I think is a massive mistake,” Martin tells me. “Larger, well-funded competitors can out-market, out-spend, and outmanoeuvre you.

“If demand spikes, fulfilling orders can become a challenge without the proper infrastructure in place,” he adds. “Moreover, many founders use personal savings or take on significant debt to fund growth.”

The pros and cons of investment

Most roasters will want to scale operations at some point in their career trajectory, and many question whether investor funding is an inevitable part of this. The decision to accept funding undoubtedly comes with benefits.

“Access to immediate capital helps businesses expand infrastructure, scale production, invest in marketing, and mitigate risk during economic downturns,” Martin says. “Alternative investment opportunities, like crowdfunding, can also build consumer loyalty and awareness while raising capital at the same time.”

Depending on where funding comes from, however, there is a huge risk that outside investment can lead to less control over internal decision-making. 

“Investors, especially large multinational ones, often want decision-making power. This can dilute the original vision and priorities of the brand,” Martin tells me. Funders are likely to seek a high ROI, which often results in cost-saving measures to squeeze out higher profit margins. 

“Many companies start with a strong mission but shift focus under investor pressure to maximise profit,” he adds. “There are also debts and obligations. Crowdfunding means owing something to backers, and investor deals often require aggressive growth targets that aren’t always sustainable.”

Is it possible to scale without investors?

Ultimately, the question of whether scaling and maintaining brand values can coexist remains. Mayorga Coffee, which started 27 years ago, proves that it’s possible to grow a business while staying true to its ethics and sustainable practices.

“We focused on strategic growth, modest margins, continued profitability, and reinvesting in ourselves instead of taking outside money,” Martin tells me. “Instead of taking profits and cashing out, we reinvest back into the business, whether it’s new equipment, better logistics, or brand development. We’ve grown without taking on excessive loans, which gives us financial flexibility and stability.”

This has served as a springboard for Mayorga Coffee to retain its core values of sustainable sourcing, paying living incomes for farmers that lift them out of poverty, and supporting employee wellbeing.

“We work directly with farmers and make sure our relationship provides a premium for them. Not just financially, but across the board,” Martin tells me. In July 2024, the company donated over 30,000 coffee seedlings to smallholders in Guatemala, generating US $2.8 million in income for the local farming community.

“We focus on efficiency at every stage, from logistics to roasting. We’ve built a strong brand with a loyal following, allowing us to grow without massive marketing spends,” Martin adds. “A strong, authentic brand attracts loyal consumers and can drive long-term growth and create lifelong customers.”

The company’s Latino-forward ethos and approach underscore this focus on values and roots, supporting brand loyalty. In addition to producing exceptional coffee, Latin American countries and expats also have a long-standing coffee-drinking culture. According to the National Coffee Association’s 2024 National Coffee Data Trends report, 63% of Latinos had consumed specialty coffee in the past week – the highest of any demographic in the US, signalling their huge buying power that is often overlooked in majority-consuming countries.

Maintaining brand values is essential

Although beneficial, one of the biggest drawbacks to receiving investment is how external factors can influence brand identity. Many investors are typically looking to maximise revenue, even if it comes at the expense of diluting or veering away from core values.

In the long term, this can damage consumer confidence and trust, which ultimately means less revenue and profits. According to research from Deloitte, 88% of customers who trust a brand will buy its products again. Moreover, workers who trust their employers are 260% more motivated to work (and 50% less likely to leave) and trusted companies outperform their peers by up to 400% in terms of market value.

“We’ve never compromised on who we are. Mayorga Coffee is unapologetically Latino-forward, and every decision we make aligns with our values. We prioritise cultural representation; our branding, messaging, and approach all reflect our heritage. We don’t water it down for mass appeal.”

By scaling through self-funding over the last 27 years, Mayorga Coffee has been able to retain its core values, leverage its products and services for sustainable growth, and invest in long-term relationships.

“Mayorga only works with Latin American farmers and focuses on organic, sustainable practices. We support Latino communities and ensure our business uplifts our people, from producers to consumers,” he adds. “By staying independent, we don’t have outside pressure pushing us toward short-term profit over long-term impact.”

Every business will have its own unique short and long-term goals, but finding a balance between growth and brand values is essential. Succumbing to the pressures of rapid growth often won’t result in the success that specialty coffee roasters are seeking.

“At the end of the day, scaling a business is about consistency, patience, and discipline,” Martin concludes. “Taking outside money is the easy route, but it comes with long-term costs – often at the expense of the very values that made the company special in the first place.”

Ultimately, coffee businesses need to stay true to their integrity, no matter the size they aim to grow to.

Enjoyed this? Then read our article on why more producers are choosing to diversify their crops.

Photo credits: Mayorga Coffee

Perfect Daily Grind

Please note: Mayorga Coffee is a sponsor of Perfect Daily Grind.

Want to read more articles like this? Sign up for our newsletter!

The post Can you operate a large coffee business without investors? appeared first on Perfect Daily Grind.

When prices rise, roasters must pay more for coffee, whether they are purchasing spot coffee or negotiating future contracts. However, smaller roasters often have fewer resources and less capacity to manage this risk effectively. This leaves them particularly vulnerable during periods of market instability. 

Without forward planning, they risk higher costs, limited supply options, and difficulties in maintaining consistent quality. Many small roasters have already been forced to close due to poor cash flow management and rising prices, leading to fundamental shifts in the industry.

I spoke to Chris Kornman, Director of Education at Royal Coffee, and Richard Keane, Head of Sales Operations at Balzac Brothers & Company, to find out how smaller roasters can mitigate risk while still sourcing high-quality coffee.

You may also like our article on how roasters are managing cash flow with higher prices.

The impact of rising coffee prices on roasters

A rising C price affects all roasters, but its impact largely depends on their purchasing strategy. As prices rise, smaller roasters may struggle to secure contracts with favourable terms, particularly when importers prioritise larger buyers who can commit to bigger volumes. 

Unlike larger roasters that have financial mechanisms in place to hedge against price fluctuations, smaller businesses often rely on short-term purchasing strategies. This dynamic often leaves smaller businesses at a disadvantage, forcing them to purchase coffee at higher rates or settle for lower-quality options. 

“Most small roasters buy coffee in small increments to last them at most a couple of months,” explains Chris Kornman, the Director of Education at green specialty coffee importer Royal Coffee in California, US.

“When market prices go up, they need to pay more for that coffee just like everyone else. Most small roasters are already paying more per pound than large roasters who can buy in bulk.” 

Additionally, unexpected price increases can lead to cash flow constraints, making it harder for small roasters to invest in marketing, equipment upgrades, and staff training, ultimately affecting their long-term growth and stability. Roasters who purchase coffee on the spot market must adjust to price increases immediately. Those who have locked in contracts based on previous C market levels may find themselves paying above-market rates if prices drop, making their coffee more expensive than competitors who are buying at the current lower rate.

Chris explains that most small roasters buy coffee in small increments to last them at most a couple of months – and unlike larger roasters who purchase at and are somewhat protected by scale, increases in market prices may disproportionately affect smaller roasting businesses.

“Small roasters are subject to the whims of market volatility, which can be risky, but they also aren’t moving container loads of coffee every day, so the risk is mitigated by scale,” Chris adds.

This puts smaller roasters in a precarious position. Without the ability to hedge or plan forward, they are more susceptible to sudden price spikes, making it harder to maintain stable pricing for their customers.

Why smaller roasters are at greater risk

Market volatility is persistent at the moment, compounded by political instability. On 2 April, in a shocking yet predicted move, US President Trump announced sweeping tariffs on more than 180 countries. There is a universal 10% tariff on any imports coming into the US. For some countries, including major coffee-producing nations like Vietnam, Indonesia, and India, the “reciprocal” tariffs are higher.

Despite Trump’s claims that other countries pay for price hikes, it will be US importers that foot the bill, which will inevitably trickle down to consumers. Many products, including coffee, will become more expensive in the US in the coming months.

While US roasters are already feeling the effects of high coffee futures, they must now prepare to cover even pricier costs of goods as tariffs ranging from 10% to as high as 46% come into effect. 

Hedging is a financial strategy that larger coffee roasters and traders use to protect themselves against price fluctuations in the coffee market. It is a standard management tool for large businesses seeking to avoid risk.

As smaller roasters often lack the resources to engage in hedging strategies, this leaves them exposed to price fluctuations – an increasingly common occurrence in a volatile coffee market.

“Hedging for any commodity, like coffee, requires a substantial amount of capital and expertise to manage,” says Richard Keane, the Head of Sales Operations at green specialty coffee importer Balzac Brothers & Company in South Carolina, US.

Many smaller roasters have assumed that the C market would remain relatively low, making them ill-prepared for sustained high prices. When coffee prices rise unexpectedly, these businesses face cash flow issues and must make tough decisions about passing costs on to customers or absorbing losses.

“If they don’t leverage future contracting or hedging, then roasters or coffee buyers can leave themselves extremely vulnerable to price volatility. The availability of coffee is also a huge risk if roasters do not manage future contracts and hedging properly,” Richard says.

“The current market has made it very difficult to find spot coffees that suit everyone’s needs, so working with your importer to ensure current and future coffee needs are met before it is too late can help roasters gain a competitive advantage.”

Strategies to mitigate price risk

One way for smaller roasters to manage price risk is by closely monitoring origin-specific pricing trends. Understanding upcoming harvests, supply shortages, and quality variations allows them to make more informed purchasing decisions. 

In addition, sourcing coffee from different origins can help roasters navigate market fluctuations and avoid excessive dependence on one region. Such diversification can also prove useful in garnering more interest from consumers who prefer to buy a wider variety of coffees.

Flexibility in sourcing can also help to manage cost fluctuations. When prices in one region rise, switching to another producing country with similar flavour profiles can help maintain margins.

“Flexibility and adaptation should be the norm for a small roaster’s green coffee supply,” Chris advises. “Under normal market conditions, a small roaster should have their inventory needs covered for two to three months.”

Building strong relationships with importers also provides financial and logistical benefits. Importers can also aggregate smaller hedges for multiple clients, offering smaller roasters some of the benefits of hedging without requiring them to take on large contracts themselves. 

“The advantages of good importer relationships start with honest conversations about risk, not taking on too much expensive coffee, and an assurance that everyone everywhere is dealing with the same problems,” Chris says.

Many supply chain facilitators, such as importers, are typically more willing to allow price flexibility and assumption of risk if they know that a roasting business is willing to invest in the same producer year after year. The implication is that if an importer can count on a roaster’s repeated investment, the risk for producers and importers is mitigated. 

“Repeatable and sustainable business is significantly more valuable to the farmer and the importer when compared to one-time high cost ‘impulse’ purchases from roasters,” Richard says. “As a roaster, you should think of your coffee purchases as a vote for the producer to continue to invest in their farms and to establish repeatable quality for every seasonal cycle.” 

In an attempt to circumvent potential issues with supply chain actors, some roasters turn to direct trade to secure stable pricing and supply chains. However, this approach also comes with its own risks. Regulatory compliance, contract execution, and financing are all challenges that roasters must be prepared to navigate. 

“Direct trade can be a great way for roasters to connect with the folks who are the most vulnerable to price volatility and industry changes,” Richard says. “But if roasters manage the entire importing process by themselves, they can be exposed to a plethora of obstacles.”

With ongoing market volatility, smaller roasters must take proactive steps to mitigate risk. Establishing strong importer relationships, staying informed about origin market trends, and maintaining sourcing flexibility can help ensure long-term sustainability. 

Many roasters are already shifting their strategies, focusing on alternative origins and cost-effective sourcing methods to remain competitive. While they may not have the same resources as larger companies, strategic planning and industry partnerships can provide a safety net during periods of uncertainty.

By embracing these approaches, smaller roasters can better navigate price fluctuations and continue offering high-quality coffee to their customers without compromising their financial stability.

Enjoyed this? Then read our article on why roasters have to compete on more than price alone.

Photo credits: Royal Coffee, Balzac Brothers & Company

Perfect Daily Grind

Want to read more articles like this? Sign up for our newsletter!

The post How can smaller coffee roasters mitigate risk? appeared first on Perfect Daily Grind.

A well-planned facility isn’t just about fitting in all the necessary machinery; the layout directly impacts the success of a roasting operation. Poor design choices can lead to workflow bottlenecks, safety hazards, and even costly redesigns when looking to scale.

By putting more intention behind the design and layout of their facility, roasters can create a safer, more efficient workspace that supports higher output and greater long-term growth potential. 

I spoke to Gian Pietro Balboni, a technical process engineer at IMF Roasters, about how to design a functional roasting plant that meets needs and demand both now and in the future.

You may also like our article on what roasters need to know when upgrading their facilities.

How roastery design impacts workflow efficiency and safety 

In the beginning stages of opening or designing a roasting facility, many roasters primarily focus on all the equipment they’ll need. This ranges from essential tools like scales and scoops to more costly items like roasting and packing and sealing machines. 

This focus is only natural. Equipment like roasting machines and storage silos are huge investments, take up a lot of space, and dictate other equipment requirements like ventilation systems.

Although these choices are critical, they’re just one piece of a larger puzzle. Even the best equipment won’t perform efficiently if the facility’s space and layout aren’t designed with workflow in mind. As such, roasters must understand how to optimise the design of their roasting facility. Overlooking this step can lead to operational bottlenecks and even safety risks down the line, harming productivity and profitability.

IMF Roasters, a leading Italian commercial roasting equipment manufacturer, designs fully customised roasting plants that take into consideration both equipment and overall workflow.

“We begin with a detailed analysis of the facility’s available area to determine the correct sizing and placement of equipment,” says Gian Pietro Balboni, a process engineer at IMF’s technical office. “This includes planning sufficient maneuvering space for operators during production and maintenance, which not only boosts efficiency but also upholds stringent safety standards.”

The design of a roasting space should take into account how coffee moves through the facility at each production stage – from receiving and storing green beans to roasting, cooling, packaging, and shipping. Every step should transition smoothly to the next without backtracking or bottlenecking.

Optimising the roastery’s layout and workflow ultimately helps minimise unnecessary movement and handling while saving time and energy. It also helps ensure that every piece of equipment works at peak performance and guarantees operator safety.

Considering operation size and future growth

There’s no one-size-fits-all approach to designing a roasting facility. Every decision should be tailored to an operation’s size, ensuring it meets anticipated production volumes without inhibiting future growth.

“For smaller setups, the design tends to be simple and flexible,” Gian Pietro says. “In contrast, larger industrial-scale operations require dedicated zones for each phase of production, including receiving and sorting green coffee, roasting, blending, and packaging.” 

At the initial planning stage, he explains that the IMF team collaborates closely with roasters to understand their specific needs and preferences.

“This collaborative approach allows us to design a customised layout that aligns with the client’s production needs, facility constraints, and future expansion goals,” he says. “We provide detailed documentation, including an installation layout and a plant flow diagram that maps out equipment placement and product flow, ensuring that every design decision supports both immediate operations and long-term growth.”

A plant flow diagram or process flow chart illustrates a roastery’s daily processes, allowing operators to pinpoint where each process happens in the facility and which equipment is involved at each stage. This tool can also help set equipment parameters and physical space constraints.

“For a smaller facility, the essentials include a roaster (whether manually or pneumatically loaded), a storage area for roasted coffee, and a packaging section,” Gian Pietro explains. 

However, he adds that a plant operating on an industrial scale will typically require the following equipment and systems or zones:

• An area to receive green coffee
• A cleaning and sorting section
• Automated storage with blending capabilities for green coffee
• A dedicated roasting zone
• A storage area for roasted coffee
• Zones for blending and/or grinding
• Storage for ground coffee
• Primary and secondary packaging lines

Building flexibility into a roasting facility’s setup is also crucial to accommodate future growth without requiring a complete design overhaul. Using modular storage systems and moveable workspaces helps roasters keep up with seasonal demand fluctuations and scaled operations.

“Our approach is modular by design, so it’s straightforward to scale operations,” Gian Pietro tells me. “By anticipating future expansions right from the layout stage, we minimise the need for expensive reconfigurations later on.”

Essential equipment and systems in a roasting facility

No matter the size of their facility, most roasters rely on the same core equipment, which includes a roasting machine, scale, coffee storage, analysis tools, and a system to pack and seal roasted coffee bags. 

Most roasting facilities will also need systems for receiving, storing, rotating, cleaning and sorting, and dosing green coffee. 

Optimal storage conditions are critical to preserving the freshness and quality of green coffee. Ideally, humidity levels should be between 60% and 65%, with temperatures ranging from 15°C to 25°C (59°F to 77°F).

To achieve these conditions, roasters must invest in the appropriate ventilation systems and green coffee silos: storage containers designed specifically for green coffee to prevent exposure to moisture and oxygen. 

Storage needs will vary by operation size, so IMF designs custom green coffee silos in various shapes (polygonal or circular), dimensions, and layouts (vertical or linear) to fit each facility. 

Just as with green coffee, roasted coffee requires dedicated storage spaces, as well as systems for blending, grinding, storing, and packaging products. Gian Pietro explains that to ensure an efficient process, it is crucial to implement solutions allowing optimal management of ground coffee storage systems tailored for capsule or pod production, single-dose packaging, and vacuum packaging lines.

While not essential for every roastery, many operators find roasting management software helpful. Technology like inventory management systems and automated and AI-driven roast profile software can help streamline workflow and minimise manual errors, saving labour costs.

This has never been more important for roasters. Over the last year, green coffee prices have more than doubled, credit rates are climbing, and business costs – ranging from energy to logistics – are at record highs.

In this landscape, managing cash flow has become more challenging for roasters, so investing in cost-cutting measures is particularly useful.

The benefits of working with a roasting plant specialist

Starting a roastery is no small task. Operators must know how to install and arrange all of their equipment to optimise and streamline operations, setting them up for long-term success.

Navigating this level of detail, however, can be challenging for roasters, especially those with less experience.

“Collaborating with an experienced plant designer ensures that every aspect of the facility is meticulously planned,” Gian Pietro says. “Each component needs to be integrated within the overall design to ensure seamless workflow and quality control throughout the production process.

“The installation layout outlines the exact positioning of equipment based on the client’s facility blueprints, complete with plan views, elevations, and section drawings,” he tells me. Meanwhile, the plant flow diagram shows how all equipment interconnects to form an efficient, streamlined production flow.

“These tools are invaluable for ensuring that the plant not only meets current production needs but is also adaptable for future changes,” he adds. “If budget constraints arise, we’re prepared to rework the design to deliver a more cost-effective solution without compromising on safety or scalability.”

IMF also fully customises each facility layout based on the roaster’s unique needs, factoring in production volume, expansion plans, and even additional space for workshops or cuppings.

Opening a roastery is an exciting milestone, but it certainly doesn’t come without its challenges. To be successful, roasters must avoid one of the most common pitfalls: designing their facility around their equipment without considering the overall layout and workflow.

By approaching coffee roastery design more holistically and prioritising optimal space and workflow, roasters ensure an efficient, safe operation from day one. With thoughtful planning, roasters can create a facility that not only meets their current needs but can also adapt as their business evolves.

Enjoyed this? Then read our article on how to know when it’s time to upgrade to a new roaster.

Photo credits: Caffè Mokarico, Fausto Kaffeerösterei Gmbh, Verzì Caffè, Sputnik Coffee Company, Viva Sara®

Perfect Daily Grind

Please note: IMF Roasters is a sponsor of Perfect Daily Grind.

Want to read more articles like this? Sign up for our newsletter!

The post How to design a complete coffee roasting facility appeared first on Perfect Daily Grind.