Thanks to Silver Chef, deciding to grow your business as a coffee roaster is not the risk it used to be.
In a world where more and more people are venturing out of the territory of large corporations and into the realm of small business, finding the right finance product for your needs can be tricky. The products on offer can be like trying to squeeze a square peg through a round hole, with specific industry needs rarely met.
For this reason, Silver Chef took a good look at the burgeoning Aussie coffee roasting industry and asked: what do they need?
Coffee is growing bigger and better than ever before. Australians drink, on average, 9.2 cups of coffee a week, and not just any old coffee, either. The demand for boutique brands, specialty coffee houses, and single-origin beans is booming. Riding this wave of success is our local coffee roasting industry, with more and more popping up around the country with their unique blends and loyal local following.
Growth is showing no signs of slowing down, which has presented a somewhat bitter-sweet conundrum for these smaller coffee roasters: do they manage their current demand, or look to grow larger?
Growth would require brand new equipment, larger premises, the prospect of moving, pre-ordering bulk products, and hiring additional staff. Yes, it would guarantee more money in the long run, but what about the short-term effects? For small business, this is a significant sacrifice to make.
Kieran Westlake, Coffee Channel Manager for Silver Chef, noticed this conundrum, and spotted a window of opportunity to craft a Silver Chef product specifically for coffee roasters. No one else in Australia was helping our local coffee roasters grow, so the Roaster Advantage Program was born.
The product can be used for any equipment required in the production of roasted coffee. This varies from the roaster to packaging and distributing. The Roaster Advantage program is a 4 year finance lease with 6 months of no payments.
Typically, the process of buying a new roaster looks like this:
1. Deposit of 50% is required to place the order
2. The unit is built in 6 – 8 weeks.
3. Remaining 50% is required before shipping from overseas
4. Unit arrives 4 months after your first payment.
This means that 100% of the new equipment cost - upwards of $150,000 - was paid before even receiving the roaster! Finding $150,000 in a roasters cash flow for new machinery is just not realistic.
Silver Chef is now removing that initial burden, and postponing payment until you're up and running with the new equipment, and turning over a healthy revenue.
Our new system looks like this:
1. Silver Chef pays in full for the roaster on order
2. The unit is built in 6-8 weeks
3. Unit is shipped and arrives 4 months after order
4. You still have 2 months before any payments to Silver Chef
So far the Coffee Advantage Program has helped facilitate the growth of many Silver Chef coffee partners here in Australia and overseas. Like Silver Chef, two of our early adopting clients hail from sunny Queensland, where 25% of our nation's coffee is consumed.
Tim Adams founded Tim Adams Specialty Coffee on Queensland's Sunshine Coast in 2010. As well as producing coffee for wholesale customers, Tim also owns Lamkin Lane Espresso Bar in Caloundra, and a mobile service coffee van.
"It just wouldn't have been possible without Silver Chef."
Already a loyal Silver Chef customer, Tim jumped at the chance of growing his business with the Coffee Roasters Program. Tim has seen his business double in the last twelve months, and knows that his growth would not have been possible without the 6 month grace period provided by Silver Chef to make repayments. By this stage, says Tim, he had bought on more staff, and grown his customer base.
"The success has been having a funding partner - not only for myself, as way as introduction to other businesses too."
Also from Queensland is local coffee legend Peter Wolff of Wolff Coffee Roasters. Peter has burst onto the Brisbane scene with his innovative and trendy coffee shops, including the recently launched 'Queen of Pops' - a coffee-popsicle specialty cafe. Having worked with Silver Chef in both a partner and customer capacity, Peter didn't hesitate before signing up to the Coffee Roaster Program.
As well as using the finance to grow his own business, Peter now supplies coffee roasting equipment to other Silver Chef clients using the program. He has watched more and more roasters pop up, and attributes the program's success to its swift nature: "They (Silver Chef) have a very reactive, dynamic financial model - you can get an answer in 48 hours."
If you are a coffee roaster looking to take your business to the next level - you know who to call! Our friendly team at Silver Chef are always here to walk your through our variety of products and services. Call us today on 1800 337 153 or email [email protected]f.com.au.
 Compak Golden Bean Roaster Survey 2015, pg 7.