• Many people dream of opening a coffee shop or roastery, but the romanticism quickly fades when reality sets in.
• The Specialty Coffee Association estimates that opening a roastery requires roughly US $120,000 in startup capital.
• In 2025, roasters are under more financial pressure than ever, as green coffee costs remain high.
• Passion helped build the specialty coffee industry, but a roastery can’t survive on it alone in today’s challenging economic climate.

The romantic notion of opening a “passion-project” roastery appeals to many people, both in and outside of the coffee industry. From experiencing the aroma of freshly roasted beans every day to being your own boss, there are many idyllic aspects to running a small roastery.

The reality, however, is more sobering. Fierce competition, high start-up costs, and complex regulations are just some of the hurdles that new business owners will face.

This year is also posing unfamiliar challenges. In February, green coffee prices reached an all-time high of US $4.41/lb, and have remained around US $3/lb ever since. On top of rising operating costs, increasing interest rates, and staggering import tariffs, this means roasters are under more financial pressure than ever.

Marius Nica of Olivo Coffee Culture shares his insight into why now isn’t a good time to open a passion-driven roastery.

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

Passion helped build specialty coffee, but it’s now not enough

Third wave and specialty coffee culture were built on the desire to “do things differently”.

Many third wave roasteries began as start-ups or passion projects, led by hopeful entrepreneurs wanting to change the coffee industry for the better. Passionate and aspirational café and roastery operators built their brands on craftsmanship, artisanry, quality, and transparency. They advocated for fairer prices for higher-quality coffee and a culinary appreciation of coffee akin to wine and craft beer.

Countering the convenience and “soullessness” of larger chains, third wave coffee shops also offered spaces for consumers to connect with coffee in new ways, creating a sense of community that helped these businesses thrive.

In the earlier days of specialty coffee, millennials considered themselves “cool” for drinking pour over coffee – black, of course – and appreciating its nuanced flavour notes. The passion for excellent coffee was shared between business owners and customers, especially as the prosumer market proliferated and diversified.

As more coffee enthusiasts invested in high-end home espresso machines, premium grinders and manual brewers, and even sample roasters, the idea of starting their own passion-driven coffee shop or roastery became more appealing – and even feasible. Tasting great results at home, many budding home baristas and roasters honed their skills and fuelled their passion for coffee in the hopes of one day running their own business.

This sentiment still persists, as seen on forums like Reddit, where people express interest in starting a small roasting set-up as a side hustle. The romantic idea of opening a roastery still appeals to many people, but the current challenges of the coffee industry expose the reality.

“Passion is the spark. It gets you in the game, but it won’t pay rent, cover green coffee costs, or fix a faulty roaster,” says Marius Nica, the CEO and founder of Olivo Coffee Culture, the first specialty coffee roaster in Transylvania, Romania.

Why 2025 has been a challenging year for specialty coffee

Despite its young age, the specialty coffee industry has grown at a remarkable rate. Specialty coffee consumption recently reached a 14-year high in the US, signalling further maturation of one of the world’s biggest markets for specialty coffee.

Although growth has been consistent, the coffee industry has faced a number of unprecedented challenges this year. 

Green coffee prices hit a record US $4.41/lb in early February and have remained volatile ever since, forcing roasters to rethink their sourcing strategies and product offerings to better manage already tight margins. Operational costs – from milk to packaging to labour to rent – have all increased, while banks have become stricter with loan agreements, which roasters need to cover the costs of large green coffee and equipment purchases.

“Everything costs more in 2025: logistics, green coffee, energy. The volatility of green coffee prices and supply chain logistics has never been seen before,” Marius says.

Sweeping US tariffs are a case in point. President Donald Trump recently hit Brazil – the world’s biggest coffee grower – with staggering 50% import levies, effectively reshaping global coffee trade as exporters and roasters do all they can to avoid such hefty fees.

“On top of this, consumers are more value-conscious,” Marius adds. “Romania is now an EU Schengen country, so consumers have easier access to roasters from across the EU. They can buy roasted beans at better prices with no transport fees in some cases, so suddenly, you have competition from all over Europe.”

Even “big coffee” is under threat. Coca-Cola is “rethinking” its US $5.1bn investment in Costa as sales continue to decline, demonstrating the scale of financial pressure that the coffee industry is now under.

“Passion was key in Romania 11 to 13 years ago when the specialty coffee scene first emerged. But passion without a business plan, without understanding cash flow, logistics, green coffee sourcing, and customer acquisition, is now not enough,” Marius says. “The specialty coffee industry today is very different; it runs on margins, consistency, and trust. 

“If you open a roastery purely on passion, without solid financial planning, operational skills, or market understanding, you’re risking a lot.”

Roasters need to be more business-savvy than ever

In its early days, specialty coffee was a novelty: something new and exciting. Pioneering roasters used this to their advantage, building unique and recognisable brand names that developed loyal followings.

But specialty coffee shops and roasters, once outliers, have become increasingly mainstream in many countries. Brands like Japan’s % Arabica and California’s Reborn Coffee have recently secured millions in investment to fuel international expansion, including in emerging markets.

Market competition is fierce, and the need to build a lasting brand that can weather a number of financial storms is more pertinent than ever. The sobering reality is that operating even a small micro roastery in today’s industry can no longer survive on enthusiasm alone.

“You need a lot more than just passion to be able to open a roastery and make it work,” Marius says. “I’m really passionate about roasting coffee, and coffee in general, but very quickly after I started Olivo Coffee Culture, I realised I needed a team of people who can do all the other things – accounting, sales, marketing, branding, logistics, and training.

“In time, I understood that these aspects of a business are just as important as roasting coffee.”

The “soft” aspects of developing a coffee brand – the look and feel of the business – should certainly remain fun and exciting. But in 2025’s complex economic landscape, a methodological approach is vital for success.

The Specialty Coffee Association estimates that opening a roastery requires roughly US $120,000 in startup capital. This includes costs for equipment like roasters, ventilation, and afterburners, as well as permits and training to ensure consistency.

“Consistency beats creativity. Roasting is repetitive, meticulous work. If you can’t execute the same profile 100 times, you’re not ready,” Marius tells me.

As traditional financing becomes harder to access, more roasters have turned to alternative funding sources. But whichever option they choose, operators need to know how long it will take to receive a return on investment.

“Know your numbers: cost of goods, break-even point, cash flow runway. If you can’t do basic forecasting, get help or don’t start,” Marius says.

Navigating shipping delays, tariffs, and landmark legislation like the EUDR has become a reality for the coffee industry. Effectively, it demonstrates how operating a roastery is about more than simply buying and roasting green coffee, as many passion-driven enthusiasts may believe.

“Sourcing isn’t just about taste; it’s logistics, trust, and timing. Be ready for delays, quality variation, and sourcing risk,” Marius says. “Sales are everything. Roasting great coffee doesn’t guarantee demand, so build sales channels before you fire up the machine. You also need very good marketing and social media.”

Finding ways to channel passion

The specialty coffee industry has matured. After the early days of experimentation and obsession with novelty, roasters are less willing to take risks as they navigate a tougher economic landscape.

Still, passion is a crucial element in entrepreneurship. It provides the drive, motivation, and resilience that owners need to manage the challenges of starting and growing a business.

In today’s uncertain coffee industry, roasters need to find new ways to channel their enthusiasm and fervour.

“Let it fuel your discipline. Passion should drive you to cup more carefully, to source more ethically, to train your baristas better, and to communicate your story with precision,” Marius says.

The coffee industry is also creative, allowing passionate roasters to build their brands for long-term success in new ways. Events like the Global Coffee Awards and Producer & Roaster Forum, for example, give roasters the opportunity to join international networks, develop lasting working relationships with coffee producers, and receive global recognition for their skills and expertise.

Starting a “passion-project” micro roastery is a dream many have. But the current realities of the coffee industry dispel this idealism.

“Passion is your edge when things get hard, but only if you harness it with purpose,” Marius concludes. “Fall in love with systems, with improvement, with the boring parts of the job; that’s how passion survives the grind.”

Enjoyed this? Then read our article on why price volatility means roasters’ priorities are shifting.

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