Transparency of Coffee Costs
Understanding where your food is coming from is super important. Understanding why it may cost more is also very important. My goal is to provide you with a clear understanding of why our prices differ from those of other roasters. This can help you make informed decisions based on my first hand understanding of this industry.
Quality
+ Availability
+ Operational Cost
+ Cost of Living
Final Cost
Just like food products, the world of coffee is filled with remarkable variations in production methods and flavors. Take cheese, for instance; while all cheese starts from milk, the journey from farm to table can greatly influence its price and taste. American cheese, for example, contains additional ingredients and can be produced anywhere globally. In contrast, Parmigiano Reggiano is crafted from just a few ingredients, exclusively in a specific region of Italy, and must be aged for a minimum of 12 months. This highlights the vast differences within a single category. Similarly, our coffee may not undergo lengthy aging processes, but it embodies a commitment to quality and craftsmanship that does come with its own set of costs.
Quality and Availability
The quality of the coffee that we carry differs greatly from grocery store brand or even other large roasters. We only source specialty grade, single-origin, Arabica coffee. Specialty grade coffee is coffee that scores at least 80 points on a 100 point scale. The scale is based on how coffee tastes and if there are defects from insect, fungal or foreign material. Single origin means that the coffee comes from a single location (farm, region or country). We only bring in coffee from a specific farm, town or region of one country. This means there is a lot less coffee available making the price to buy it much higher. We choose to buy this grade and level because it always roasts and tastes better than a blend of coffee from one country.
Coffee Shelf Life
We take pride in fact that the roast date is included on the back of each bag we sell. The age of roasted coffee plays a massive impact on quality and taste. This is one of the reasons we don't stock our coffee in local grocery stores. Most of the coffee in local stores is 3-12 months old. Nothing on our store shelves is older than 1 month (then it heads to the discount bin). This is a massive factor in what sets us apart from everyone else. While coffee may not go bad after a few months, it will taste significantly different from when it was roasted and how it's supposed to taste.
Operational Costs
As Americans, we cherish the freedom of choice when it comes to shopping. Here at Fig Leaf Coffee Company, we’re proud to showcase 23 unique specialty coffees, each available in three different sizes. My travels have shown me countless coffee selections, but none compare to what we offer. Unlike many other roasters, we embrace the challenge of providing such diversity; each coffee we source requires a full upfront investment, meaning we commit our resources before a single bag reaches your hands.
For example:
Just last year, we dedicated around $8,000 to sourcing raw coffee from Costa Rica. While that doesn't sound like a lot, we have 23 distinct options in our collection. The total annual investment in green coffee balloons to about $140,000. That's just to buy raw coffee before we begin roasting. That raw coffee can sit in our warehouse for an additional 9 months before it's roasted and sold.
The carrying costs I must assume are very high in order to offer such an extensive menu. Sure, less options would cost me less money but what I carry may not be what you like to drink. Again, options in America are key for this business. It's a tough position to be in when deciding what coffee and how many bags to buy in one season. Also, certain coffees are only available during certain times of the year. If I want to buy coffee from Burundi or Panama, I need to buy in late Spring in order to get prime lots. After that, we might get bottom of the barrel options.
Additional Operational Costs
It's essential to remember that roasting also incurs moisture loss; from every pound of green coffee, we only yield about 75% of the final product due to nearly 25% evaporation. And don’t forget the cost of essential items like bags, CO2 valves, tin ties, and stamps—all of which are necessary before considering our basic operational overhead (rent, gas, electric, water, employee payroll, marketing and advertising, and more). We will also begin adding tariffs as part of our operating costs. Why? On a pound of coffee from Brazil, we'll begin paying around $4.00 of additional fees on that green coffee.
Cost of Living
During our start-up phase, 2016-2019, I didn't pay myself anything. That's 3 years of not making a single dime. Expenses were 1/10th of what they are today so it wasn't too bad adding costs to the credit card and using savings. Today, things are way different regarding costs. If you found a way to "time-machine" back to when costs were more reasonable, hit me up. We eat pasta, chicken, potatoes and once in a while pork and salmon when it's on sale. We don't hit the expensive cuts of beef or rare fish that's off-the-hook expensive. We survive. On a good day, I make about the same as a McDonald's manager.
Owning a business where I am physically operating a production line is demanding and exhausting. I operate this business to make a living. This is not a retirement job, a part-time hobby, or a quick scheme to get rich. I don't have a match on a company 401(k) or pension plan waiting for me when I decide to move on from this business. I don't have a company subsidized health, dental or life insurance program. We don't have a line of credit to draw on or generous investors that finance our operating costs. All those costs need to be included in the cost of each bag of coffee. We genuinely rely on every dollar that comes into our small business.
What's Next?
The next 9 months you will see a slow change in what we continue to offer. I will need to begin cutting back on certain coffees that don't move as fast and we're struggling to find certain coffees from specific countries going through weather changes. I will however, give you advance notice on those that will be leaving.
I will continue to operate this business with the following goals:
- Provide you with the highest quality coffee selection, including an expanded decaffeinated selection and additional rare offerings everyone loves
- Continue providing you with a great experience by offering our extensive coffee knowledge, passion and trust.
- Offer high quality brewing equipment including Baratza Grinders, Breville Espresso machines and Chemex Brewers.
If you made it this far, I want to take a moment to thank you. As customers, you have helped me grow this business and become a coffee destination in Ohio. You have kept me focused on what really matters and why I continue to roast. I appreciate you more than you know. Now go to our website and buy some coffee!