WORKING TOO MANY HOURS? Haven't had a vacation in a couple of years? Spending your weekends trying to get prepared for the coming weeks production? Or trying to catch up with last week's? Are you killing yourself and your little roaster too?
Most small roasters dream of the day when they can pick up the phone and tell their roaster manufacturer to "go ahead and pull the trigger on that larger roaster." It is no doubt a milestone in the life of your business--a business metric that is both true and tangible and a sure sign of your and your business's success.
All of these questions and more should be considered when you are thinking of moving to a larger capacity roasting platform. This decision, more than any other, will require all your experience and knowledge--of roasting, packaging, material handling, general operations and personnel management.
Additionally, you should plan on doing some serious research as well, asking yourself some tough forecasting and growth questions. In the everyday business environment that most of us operate in, this problem is potentially the most dangerous to the overall health and long-term survival of our businesses.
Here are 10+1 questions that can help you determine what size roaster would be most beneficial to your business. These questions fall into three categories: capacity questions, facility questions and money questions.
CAPACITY QUESTIONS
1 What is the largest batch size I need/wish to roast?
One answer here has to do with freshness. When you are considering a larger roaster, you must also consider your ability to adequately store and/or quickly package coffee for freshness. After first purchasing a larger roaster, you may for a short period (hopefully very short) have the ability to run all your production in a shift or two. This ability requires you to more carefully manage your roasted coffee stocks for freshness. If roasting all your coffee in a day causes you to store coffee for too long, then this roaster may be too large for you. For freshness' sake, you would like your roasted coffee out of your facility within a week--less if possible.
Another answer has to do with growth. If purchasing a larger roaster today gets you to a place where you are just able to cover your expected production within a short period of time, then you might need to consider a roaster that is even larger. You do not want to go through the heartache and headache of installing another roaster soon after you have installed a larger one. Constantly installing roasters is inefficient and potentially disruptive to production. Likewise, if you only do a few blends (or origins of coffee) then you can consider a roaster with a much larger capacity than a company that is doing 30 plus types of coffee--even as you do similar levels of production.
The final answer has to do with quality. Very simply: What is the largest batch I believe I can roast and still have enough control to maintain my award-winning profiles? Finding this answer requires a good understanding of the science of roasting and may require you to challenge your own long and dearly held beliefs about coffee roasting, coffee roasters and yourself. The answer here may force you to buy two roasters or more to get the desired production capacity.
2 What is the smallest batch size I need/wish to roast?
As roasting equipment gets larger, the smallest controllable batch size also gets larger. So, if you need to consistently do 15-pound batches, a 60KG roaster is going to make your life difficult. More importantly, your marginal per-pound labor will increase as it should take the same amount of time to roast 15 pounds as it would 100 pounds. In addition, it will take more skill and a more watchful eye to roast the 15-pound batch than the 100-pound batch.
A good rule of thumb is: If you are going to continuously be doing batches below half-batch capacity, then the roaster you are considering is probably too large for your needs. Of course, this problem can conceivably be solved by keeping your smaller roaster when you buy a new larger one.
3 How many days per week do I want to run production?
How many days a week do you wish to operate the roaster to fulfill your current roasting production? If you are the only operator and you need to package and ship the coffee as well as roast it, then you need to spend less time overall on the roasting stage. In this case you may only wish to roast two shifts per week to free up the rest of the week for your other duties. On the other hand, if you have many full-time workers, you may wish to roast four, five or even six shifts a week, or even double it by running multiple shifts. The first scenario would require a larger capacity roaster, the latter a smaller.
A word of caution: When running your production too lean on one piece of machinery, scheduled maintenance tends to get neglected in favor of production realities; this can have disastrous consequences if the equipment then "goes down" for something a routine maintenance program would have avoided.
4 How many hours per shift do I want to run production?
This labor question is closely related to the days-per-week question above. It matters little whether the labor is your own, your family's or an employee's--as a business person you must always be aware of labor costs, as they are likely your most expensive input. It is unrealistic to think that a single roaster operator can handle eight straight hours standing next to and efficiently operate a roaster. Operating a roaster, especially a larger one, is a very fatiguing duty. So, if you are basing your projected production on a single operator cranking out three batches per hour for eight straight hours, you are more than likely going to run into a number of issues, including overtime, the need to hire additional employees, a higher employee turnover, increased roasting errors and possible workplace injuries.
Additionally, maintenance comes into play here as well. If the roaster operator is also the maintainer of the equipment, you must allow for adequate time for the cleaning and servicing of the roaster.
This is an equation that you can use to figure out your roaster capacity per hour: Desired roaster production / desired shifts x Desired hours per shifts = Needed roaster capacity/hr.
5 Is the roaster large enough to handle my projected growth over the next two years? Five years? Ten years?
This question is one that forces you to sit down and realistically evaluate your growth potential as well as set goals. Market segment, product, geography, potential new markets, competitors and your own personal goals can all help you determine what size roaster will best suit your needs in the foreseeable future.
FACILITY QUESTIONS
Here are four more questions based on what size roaster your facility can handle that you need to ask yourself before you purchase.
6 Will my current facility realistically handle a larger roaster?
Is your facility large enough to handle the size roaster you believe you need after answering the questions above? Is the ceiling high enough to allow for easy loading? Is there enough space for the roaster and any other production equipment (grinders, packaging equipment, material handling equipment, etc.) to be safely operated without roasting with your back against the wall, or running the risk of running over someone with a forklift? Will the roaster fit through the door? It is very difficult to modify a roaster to fit in an inadequately sized or shaped space. It is almost always preferable to modify the space if possible.
7 Will I need to upgrade my facility to handle a larger roaster?
As roasters increase in size, they often have very different gas and power requirements. Here is a list of questions that can help you determine if your current facility will need to be upgraded:
a) Is my current gas supply large enough and does it have enough pressure to supply a larger roaster (or two roasters if you are going to keep your current one)?
b) Does my building have enough electrical power to satisfy my increased needs safely?
c) Does my building have the correct electrical power to operate a larger roaster safely and efficiently (single-phase vs. three phase, 100-amp vs. 200-amp service)?
d) Will I need to make physical changes to the building? [Remove or move walls, widen or move doors, move or add restrooms or other plumbed fixtures, increase A/C or add make-up air blower(s)?]
The four questions above are extremely important and may require some in-depth investigation. While it may seem to be a fairly simple matter to have your landlord or the power company upgrade your power feed, it is not always possible, say to get three-phase power, nor is it always cost effective. The same can go for your gas supply--it is not always possible or cost effective to get more natural gas volume or increased pressure, nor is it always possible to have a larger LPG tank installed at your current facility.
Physical changes to both the interior and exterior of your building may require your landlord's approval (not always given) as well as meeting local building and fire safety codes. It is always best to research these questions thoroughly before committing to a larger roaster and finding out that you may not be able to hook it up in your current location.
8 By increasing batch capacity, will I now need additional equipment?
The first piece of equipment that comes to mind here is a pollution control device-- will I need an afterburner where I didn't need one before? And do I have the required gas supply to run the afterburner and the roaster safely and efficiently? This is not always an easy question to answer, as it is often difficult to determine if your neighbors will be concerned with the increased volume of smoke and/or intensity of the smell from the increased batch sizes of a larger roaster. And while pollution control devices are, more than likely, the most important consideration when purchasing larger roasters, they are not the only pieces of additional equipment you may need or want. Loaders, destoners and degassing bins come quickly to mind.
Questions 6-8 all lead to one final facility question: Will I need to move to a larger or more strategically located facility?
9 Does increasing my capacity violate my business/use license?
This question applies primarily to retail roasters that are transitioning to wholesale roasting. Many retail roasters have business/ use licenses that allow them to retail only, and while it is nearly always possible to do some small wholesaling in these retail spaces if you install a larger roaster in one you may very well find a faceless, nameless bureaucrat knocking on your door and telling you, that you are in violation, or asking to audit your books, neither of which are pleasant situations. And both will no doubt lead to a forced move.
MONEY QUESTIONS
And of course the inevitable money questions--what size roaster can I afford to buy?
10 Where is the money coming from?
No analysis of needed equipment can be complete without looking at how you are going to pay for your new, larger roaster. Cash, cash and trade, home equity loans, credit cards, commercial leases, bank loans, family loans, or SBA loans are some of the most frequently used places where money is acquired for buying capital equipment.
11 Can I really afford this?
After all the questions are answered and financing is secured for your new, larger roaster; stop and ask yourself: Can I really afford this? If I'm using cash, is there a better use for this cash (opportunity cost)?
If financing, can I afford the payments with my current production? If borrowing from family, can I handle the increased stress? If you have done your research, have an adequate space, have secured your financing and can afford it, buy your bigger roaster and feel secure that, whatever happens, you did your research.
For the rest of you, you need to ask yourselves these questions: Is this really the best way to increase my production? Are there any alternatives?
Alternatives to Larger Roasters
IT IS NOT ALWAYS possible or even desirable to move to a larger roaster when faced with production bottlenecks or labor inefficiencies (too high labor costs). There are in fact two major categories of alternatives to purchasing a larger roaster: upgrading your current roastery or moving to a different location or both.
Upgrading Your Existing Roaster or Roastery
Perhaps your current roaster has enough capacity and flexibility to grow your business for a while longer--you just need to make it, and you, more efficient. Look hard at your current operation and you may find ways to increase your production without adding more labor or buying a larger roaster.
What can I do to get more capacity and run more efficiently with my "little roaster"?
1 Fix that poor ducting installation. You have known, or at least suspected, for a long time that your current ducting installation may be hindering the efficient operation of your roaster. Incorrect diameter size (mostly too small), too many angles, long horizontal runs and incorrect termination of exhausts all combine to become the number-one cause of diminished batch capacity in roasters. Furthermore, any of these ducting deficiencies increases the frequency of cleaning and maintenance of your roaster. Additionally, poor airflow can cause per pound marginal labor rates to rise and potentially cause longer term damage to the equipment. So, if you think or know that you have some of these issues--get some help if you need it and fix that ductwork! Then see what kind of capacity you get out of your roaster. You should be able to produce a better-quality coffee as well.
2 Add a separate cooling blower. If you have a roaster that uses a damper (other than a table top) and a single blower to cool the coffee you may find that adding a dedicated cooling blower could help increase your roaster's production up to one batch per hour.
3 Update the controls on your roaster. If you haven't done this yet, you should. At the minimum you should be operating with a bean probe and a digital controller. The efficacy of this type of system has long been proven to be more efficient, safer and more consistent, and therefore it can increase the quality of your coffee. While you are at it, take a look at the newer generation of roast control systems offering more control, greater consistency and the ability to safely multi-task, making for a more labor-efficient roastery. These systems won't change the way your roaster roasts, but they can change the way that you roast.
4 Look at packaging possibilities. Sometimes adding a weigh-and-fill, band or foot sealer can help you run a more efficient operation overall. Remember, roasting is only one piece of the production puzzle. Conveyors and loaders also fall in this category. (For more information about packaging, see the July/August 2007 Roast magazine article, "The Bottom Line on Packaging.")
5 Reconfigure. Change the layout of your roastery. Perhaps all you need to increase the production of your little roaster is to change the way your production flows in your space. Reducing the distance from the raw coffee stocks to the roaster; putting the packaging operation in a more convenient location to the packaging personnel. If you are traipsing across the warehouse to load every batch, or if you have employees tripping over one another, you should look at changing the layout of your space. Visiting others roasteries can help you get ideas about making your own space more efficient.
MOVE YOUR ROASTERY
Maybe all you need to do to increase your production is move to a space that is more conducive to production, roasting and accepting deliveries. This can be especially true for retail roasters that have developed significant wholesale operations while still roasting in a retail environment.
In most retail environments space is minimal and distractions are at a maximum. Ringing telephones, customers looking over your shoulder, staff sending potential whole bean coffee buyers to you--all the things that made retail roasting such fun in the beginning can come together to make your wholesale operation a drag.
Worse yet, the slimmer margins of wholesaling make labor efficiency even more important; an efficiency that is very difficult to obtain in most retail roasting environments. Taking delivery of raw coffee, measuring, roasting, blending, flavoring, packaging and shipping all become more labor-intensive.
So, take a good hard look at renting a small off-site space or walling off part of your existing retail space, if it is large enough, and setting up your operation to run as a wholesale roastery. You may lose some of the "fl ash" of roasting in the front of your store, but you will sleep better at night and have more night in which to sleep, because you will spend less time roasting.
Moving and Upgrading
Of course, if you are going to undergo the pain of moving your roastery, you may as well consider upgrading at the same time. Whether you decide to add a control system to your roaster or an automatic scale to your new roastery, a good time to do it is when you are already planning a move.
GROWTH=PAIN
Of all the difficult problems roasters face, perhaps none is as difficult as successfully managing growth. It often seems that we need to spend more money just as we are beginning to finally make money. It is this dichotomy that makes growth so painful for all businesses. Managing growth in your roasting operation is not unlike trying to manage pain in your life. Try and avoid the pain by being too timid and your business may wither and die; try and avoid the pain by throwing money too quickly at the problem and you may find yourself growing while making no money; try and manage the pain by fully researching your options and judiciously increasing your production capacity and you may finally be able to take that vacation, and pay for it too!
