Stephen Houston is a well-known figure in specialty coffee roasting circles, having competed in many of the SCA competitions and helped with many events. He is also well known for a large variety of very colourful shirts and for having the time to help those in the specialty coffee community. It was a natural step for Stephen to set up his own business and apply many of the skills he’d learned working at Bailies Coffee in Belfast. When Stephen looked to set up we were thrilled he got in touch to discuss how we could support him and help supply a Diedrich IR-12 Roaster. He had a little bit of experience with Diedrich from competing in the SCA UK roasters challenge where he used the IR-5. Stephen was looking for a roaster that could be very flexible, not only in batch size but also in the style of roasting. He also was looking for a cleaner coffee, so airflow was very important, but he was clear he wanted a drum roaster. Stephen wanted to have as much support as he could to make the transition as easy as possible and hit the ground running. He was also keen to look at financing options to make that all import start-up capital stretch further.

The story of Stephen and Lucid Coffee Roasters

Stephen worked for several years at Bailies Coffee Roasters of Belfast as a roaster, competing and helping with the local SCA chapter. Not only does he roast exceptionally but he is also an excellent coffee brewer and has won the Irish Brewers Cup twice. It made perfect sense for Stephen to get into roasting; he had all the skills and all the contacts, he just needed some help with getting started and kit. Stephen got in touch with Jamie at Rubiaceae Consulting to help him make that step.

One of Stephen's main concerns was the capital cost to set up a roastery. Whatever you have budgeted, you should add at least add 50% to cover the actual costs. There are cheaper ways to get into coffee roasting, by buying used/older roasters for instance, but that is also riskier. Stephen wanted Lucid to be one of the very best micro-roasteries he could set up. He wanted a new IR-12 roaster with some bespoke extras including a matt black faceplate. This meant a cost of about $48,000 delivered to him. Add on top of that rents, deposits, fitting out a new roastery, ducting installation, gas and electric installation and costs can rise very quickly. That’s before you buy green coffee and packaging or even roast a bean.

Jamie has been importing and supporting Diedrich Roasters since 2012, with a proven track record of support to clients all over the UK and Ireland as well as parts of Europe. We were able to import and finance a new roaster to Stephen and Lucid Coffee Roasters. This helped Stephen to leap into coffee roasting more quickly and with a little less pressure.

Lucid Coffee Roasters is one of the very latest of the growing group of start-up coffee roasteries. It’s an exciting time in specialty coffee, with new processing techniques at origin pushing the boundaries of what we can expect to taste in world-class coffee.

The cost challenge of setting up Lucid Coffee Roasters

Stephen already knew a lot of people in specialty coffee. He knew what good coffee was and how to roast it; so he was confident that he could provide an excellent product and he had good access to the market. He was confident that he had a good opportunity that he could make work. His next challenge was to work out what he needed, at what cost, and then to raise that capital; all with a young family to provide for. This is what owning a small business is all about!

Coffee roasting is a cash-flow-negative business. Stephen understood this from his days with Bailies and was keen to have as much working capital in the bank as possible, but he did not want to compromise on quality. This is where financing options can really give a company that crucial extra working capital needed to grow.

Why Stephen chose Diedrich Roasters & Rubiaceae Consulting

Stephen's concerns in those first calls and meetings were the same as many start-ups or indeed established roasteries. Is the roaster the right tool for the job? Who do I call if there is a problem? Can I afford it? Another consideration for him was lead times; waiting 6-9 months for a roaster whilst paying rent and going nowhere was not an option.

Jamie Banwell could answer those questions. Diedrich Roasters are world-class coffee roasters, on a level with only a few other machines. Stephen had experience with them and was comfortable with the brand. He had visited the showroom and was reassured that we held parts and had trained consultant engineers. The last two concerns, lead times and costs, are often the hardest to help with. Diedrich Roasters have invested considerable sums to hold stock of certain roasters in the EU. This meant that Stephen could have a roaster in roughly 10 days if he wanted, as opposed to 6 months if he ordered a made-to-order roaster. We talked this through early and he was keen to be just a little different, for him that was having a matt black faceplate. Rubiaceae Consulting ordered that spec roaster for EU stock, meaning we could reduce lead times without the need to put up large sums upfront.

Last but definitely not least, financing helped Stephen move forward and to get his roaster delivered in a timely fashion whilst keeping his cash in the bank.

How Rubiaceae Consulting responded 

One of the less glamorous parts of setting up a new business is the small and not-so-small details needed to get your roastery off the ground. Shipping, importation, installation, ducting, emissions, gas and electric services, roaster commissioning and on-site operator training are all crucial. Rubiaceae Consulting was on hand throughout the process to advise about the best solutions (most often the most cost-effective solutions) to meet his needs and obligations.

Shipping in Northern Ireland post-Brexit was a little more challenging but Rubiaceae Consulting's experience and import agents kept these costs to a minimum. Services for the newly refurbished site needed to be installed from scratch, meaning help with installation specifics, mainly around ducting and gas systems. Gas pressure is important but not as important as the flow rate.

There were the inevitable minor issues and delays on-site but Rubiaceae Consulting was able to help and hold the roaster in stock until it was absolutely needed. Jamie was in close communication with Stephen so that he could be on-site as soon as Lucid Roasters were ready to commission the roaster and get them roasting.

The results

Stephen has been vindicated by his decision to take that step and start his own roastery. He was surprised by the level of support and has been able to hit his 12-month target in 7 months; when the cashflow pressure is on that really helps. His focus on quality and some colourful branding has helped him generate good interest from a diverse customer base, with wholesale clients happy with the quality and level of customer service. Getting up and running quickly was especially key for Lucid Roasters. Rubiaceae Consulting helped at every step to manage his time frame, get the roaster up and running quickly and keep those upfront costs down to the bare minimum. We’re proud to have helped him, and a great business get going in specialty coffee in Northern Ireland.

If you’re thinking of setting up a roastery, or looking to expand an existing operation, please get in touch and we’ll see how we can best support you to make that happen.