To go mobile or bricks and mortar, that is the question...
I've been a small, yet growing, roasting company for almost 3 years now, and I'm considering taking the next step so I can get out into the public and display some of this passion that dwells within me. You all know that passion, too!
The stumbling block is the huge overhead that comes with a bricks and mortar location versus a mobile operation that specializes in festivals, farmer's markets, etc. I'm considering all concepts right now, even just growing the roasting facility as more of a wholesale operation, but that doesn't connect me to the public nearly like I want to be connected. I have a fantastic spot in our nearest big town (45,000) being held for our business (as the owner of the building and city really want us there), but haven't signed any contracts yet. And, I just acquired a great espresso machine, grinder, etc, for mobile use, so I've got some of the gear needed for all applications.
What words of wisdom can you offer, speaking from experience, of these different aspects of "public coffee"? It's also worth mentioning that I have 3 and 6 year old boys, so that certainly makes this decision a bit more complex for us as a family. Thanks, everyone!
Troy
Replies to This Discussion
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Permalink Reply by Mike Sabol on
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Lucas, it sounds like you have been working hard to build your business and getting your name and your coffee well known and respected in your area. That is huge. Opening a retail operation is a giant undertaking and can be a massive distraction and time/money sink. I think you should consider not opening your own retail outlet. Try and find one of your customers that is already running a succesful cafe and offer to partner with them on expanding their coffee program. You provide the equipment and expertise and they provide the space and the labor. You provide the coffee and training for their people and then work out a deal where you each get a fair cut of the coffee proceeds. If your customers like you and your coffee then there have got to be a few of them that would love to partner and help get you to that next level. You just have to find the win/win situation with the right partner.
If your operating margin is thin as an up and coming wholesale roaster and you are still doing most of the work yourself, a retail operation could drain your reserves in a few months and you could find yourself not being able to buy green beans. And then where would you be?
I would recommend that you focus on what is bringing you success right now and keep doing that. There are plenty of wholesale roasters that are known for their passion, commitment, and knowledge without having a cafe to their name.
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Permalink Reply by Mike McGinness on
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If I understand correctly you currently roast strictly wholesale or internet sales, no retail front. But you wish to have more public presence and interation. Assume your current roasting facility is such that adding a coffeehouse element would not work for one reason or another. Or would it? Would adding a small retail front to your existing roast location be an option?
Mike's input is certainly spot on. A coffeehouse or cafe can certainly be a time and money sink. Can also be rewarding, if you survive long enough to make it profitable. Hell it can be rewarding without being profitable, just in a different way! As long as you can keep the doors open of course. Which is different than actually making a profit but can also be a challenge in itself.
If you really have the desire and drive to be more of a public face for your coffees, personally feel a brick & mortar situation would be more rewarding building your coffee community than a transient mobile type operation. If the location you speak of is really a good retail location (and current roast location not), moving your roasting operation there combining your wholesale and retail could really bring your full range of coffee passion public. Many customers are facinated and drawn to the roasting side. Opens the doors to all kinds of conversations about all aspects of coffee. Oh sure sometimes can be distracting when you have a bunch of orders to roast, coffees to cup etc., and at those times sometimes just have to politely let an inquisitive customer know you need to focus on roasting at the moment. (Assuming your roast area is open to the public like mine is rather than a glass enclosed "fish bowl" operation where you're seen and not heard.)
But back to the coffeehouse side, it really is adding another business with it's own demands and challenges.
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Permalink Reply by Troy Lucas on
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To give a little more detail, I am currently operating out of a building on my residential property that was built specifically for the roasting operation, but it's 300 sq ft roasting and 276 storage...very tiny and with growing need to have more space. No possibility of a cafe addition here and insurance and town regulations keep it from being a "coffee shop" or "retail walk-in location."
I have considered partnering with a number of existing clients, but locations of the most desirable partners are not optimal, but we have already been kicking these ideas around a bit. The space in front of me is prime and owned by an entity that would work with us to get going and stay opened as a landmark location.
Mike S, you hit the nail on the head as i consider my current margins of profit and the desire to always have money to bring in new green every month. That is alone a huge expense, and putting payroll and rent, etc, on top of it is a lot to think about. However, Mike M. is also hitting the aspects I am looking at...making the store a destination for people to be fascinated in seeing how their coffee is produced.
I thank you both for your comments, and certainly welcome further thoughts and ideas :)
Troy
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To the Mike's:
Thanks much for your thoughtful conversation here. I've actually decided against the retail location at this time and am going to sink my time and money into what we are currently doing well, and also looking at doing more things relating to mobility like weddings, festivals, etc. Your thoughts were both spot-on, and I really appreciated you chiming into the discussion. Plus, with little kids, I actually don't want to work around the clock when someone doesn't show up to work...not yet, anyway ;)
Troy
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Permalink Reply by Shadow on
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Well my wife and I operate a mobile espresso van out of NC and love doing it. First started off with the idea of just doing events on the weekends, but soon saw there was a demand for daily commuter traffic as well and now we are in the van 5-6 days weekly. Had originally thought about a kiosk, but that would involve alot more time, money and energy (which I don't have in surplus) so we then went the mobile route. This allows us to go to the people instead of relying on them to come to us and it is working quite well in our area. Later!
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Thanks, Margo and Shadow! The public is where I want to be anyway, and yeah, the mobility will feel better than feeling trapped. I've already gotten some weddings and other events lined up, so that will be fun.
Shadow, is there anything you would recommend for the betterment of the mobility experience? You are in a van? Can you share a picture of your setup? I've been looking at trailer setups to pull behind my truck. Do you have any advice between either a van or a trailer?
I've now shifted gears and become quite passionate about the mobility, so thank you for chiming in with tips and opinions!
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Permalink Reply by Sean Comer on
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Troy, I’v been working at coffee shops for over 15 years and have manage everything from startup to StarBuck and everything in between. Now it’s my turn, I am finely opening my own place. A shop with hard wood floors and big couches has always been a dream of mine but after doing all my homework a mobile unit is the best fit for me at this time. I do think going mobile can work for you if you find the right fit. The only thing you have to me concerned about is making sure the mobile look works for your image. Being a mobil facility can be a slippery slop if not done right. You really need to make sure it’s sit up right and looks good. Like I said it my turn and I ‘v been working on the mobile thing for over a year now. My trailer is being made as we speak and I am hoping to be open by mid June. So if you have any question on the #’ s or need the spics or drawing of my trailer let me know. Having the right flow can make or brake your shop.
Sean
spillthebeans.comer@gmail.com
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Sean,
I very much appreciate the response. I'd love to see some pics when you have them. I've been in other trailers set up for this application and have some great layout ideas for myself, but haven't priced everything out just yet. I have the majority of the equipment necessary to do just coffee and espresso, but have to expand for the iced side of things. Somehow, I want to emphasize my life as a roaster in the same concept of the "coffee bar" so that is something I'm still working on for "mobile". I've actually gotten accustomed to this new idea of coffee for me, anyway, as it allows a lot of flexibility. AND after having managed a Java City in a very busy environment for a year, I know what inflexibility is and don't really want to go back to that, not yet anyway ;)
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Permalink Reply by Jason Shipley on
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There has not been a better time to negotiate a lease and build out. If you have the funding to do it go for it. You have to chase your dreams.
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True that...
Jason Shipley said:There has not been a better time to negotiate a lease and build out. If you have the funding to do it go for it. You have to chase your dreams.
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We use a heavily modified Dodge Sprinter van. Most mobile setups use vehicles such as step vans, have even seen some modified mini vans, but my favorite so far was an mobile espresso setup made out of an older ambulance. That one was on Craigslist awhile back. Very creative!
We had considered a smaller setup such as a tow behind trailer, but the smaller ones we looked into required the operator to be exposed to the elements and this is a problem for me. The larger tow behind trailers are fine as some events around us will only allow that sort of setup and not the van we use. We happened to find a killer deal on the van we did buy as it was one of those too good to be true things. We made lots of changes to suit our needs and it is killer. I don't have enough time at the moment as we have yet another event to attend, but message me and I will reply with either pics or a link for the pics.
Troy Lucas said:Thanks, Margo and Shadow! The public is where I want to be anyway, and yeah, the mobility will feel better than feeling trapped. I've already gotten some weddings and other events lined up, so that will be fun.
Shadow, is there anything you would recommend for the betterment of the mobility experience? You are in a van? Can you share a picture of your setup? I've been looking at trailer setups to pull behind my truck. Do you have any advice between either a van or a trailer?
I've now shifted gears and become quite passionate about the mobility, so thank you for chiming in with tips and opinions!
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Permalink Reply by Joseph Robertson on
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How much money do you have for this....?
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