What We’ve Learned From 3 Years of Owning a Coffee Roastery in New Zealand

It’s hard (but worth it).

Three years ago, we took a leap by leaving the corporate world behind and buying a coffee roastery in Nelson Tasman. We knew it would be hard, and it is, but it’s also one of the most rewarding decisions we’ve made.

Before buying Rabbit Island Coffee Co. in Mapua, we did our research. We spoke with other coffee roasters and financial advisors. The general advice:

  1. The market’s saturated
  2. Green coffee beans are at an all-time high (this was mid-2022 and it’s sure gone crazy since then)
  3. It’s tough to make good money
  4. Don’t do it

We did it anyway.

Why? We’d previously been in the centre of a perfect storm which we created. We were watching life and all the stresses of working in the corporate environment and full-time employment, fly around us, whilst constantly slapping us in the face. Something needed to change, and we wanted out.

So, we Googled: “Businesses for sale in Nelson Tasman.

And there it was. An independent specialty coffee roastery that we already knew well, and no more than 100m from our house. I floated the idea by Carley, fully expecting her to knock it back, but she didn’t. I was all in. A dog with a bone. I couldn’t shake the idea of having creative control over a business that was within walking distance, and it wasn’t just any sort of business. A premium coffee brand. No commuting. No upward reporting line. No board papers. No corporate shit to deal with. It was hard to shake the idea.

I’d jog past the roastery on the Mapua Wharf before sunrise and imagine what life could look like. It certainly made the run easier as my mind would wonder with possibility. The idea to buy the business was to help slow the storm down around us, so, we decided to jump headfirst and buy it. Little did we know at the time, but soon after taking the keys, a new storm was very slowly conjuring up and was starting to throw upper cuts rather than light slaps to the face… it was called small business ownership.

The balance
Three years in, we’re still taking hits and battling the storm, but there is much relief. 

Pros:

  • Much more family time
  • Much more flexibility
  • Greater job fulfillment
  • Creative control over the business and decision making
  • Choose who we work with (our staff are ALL amazing)
  • Time to coach kids sport and attend ALL games
  • Deeper level of respect with customers and suppliers as it’s our business
  • Work with my wife everyday
  • Optimism is still at an all-time high (the future is very much exciting)
  • Showing our kids there’s another path to take (this is a monumental one)
  • A whole lot of learning, development and new doors to walk through
  • Proud of what we do
  • Rabbit Island Coffee Co. is the best coffee in New Zealand 😊

Cons:

  • Earning a lot less than before
  • Work doesn’t really stop
  • It's hard to escape
  • No more weekends as we knew before
  • Aged a few years quicker…
  • We didn’t go on an overseas holiday like every second family we spoke to during the July school holidays…
  • Work talk often dominates our personal life…

All of what we dreamed of is playing out, but the drawbacks are not for the faint hearted… However, I wouldn’t change any of it. It’s hard, it’s a juggle, but it seems like most people we talk to, regardless of their situation, are caught in their own version of chaos, getting knocked around by life.

Lesson’s to ponder
1. The power of three
We soon had Post-it notes, diaries, outlook reminders, alarms set on our phone, and to-do lists constantly tripping us up… It was a mess, and we knew this wasn’t efficient. By streamlining our tasks/things to-do into the Reminders app on our iPhone, we did away with losing Post-it notes and all the other things to record our ‘tasks’. We also reduced our expectations of what we wanted to achieve each day as we were never satisfied, no matter how much work we got through. There are only ever three things on our list each day now, and unless it’s a critical task that comes up, we stick to the three things until they’re done before adding more the following day.

2. Cashflow is critical
Managing large capex or opex budgets for the business you work for is not the same as managing a cashflow budget for a small business. If your money in, is less than your money out, then it’s a slippery slope and slow to turn around. We’ve got spreadsheets out the wazoo, and fortunately they don’t lie. We keep tight grips on our cashflow forecast to help us navigate the seasonal nature of our pristine waterfront destination (one of the most beautiful places in New Zealand that we call home) and to help manage projects. We’ve been fortunate to have good sales growth since taking over the business and send coffee to people all over New Zealand, EVERYDAY. We’ve been approached by new wholesale café clients and now in 5 star accommodation, air bnb’s, corporate offices and coffee carts all around the top of the South Island. HOWEVER, the cost of green coffee beans has increased 100% since we bought the business, three years ago, so all our growth has been offset by the rise in our main cost… sigh.

3. Don’t skimp on quality
When times are tough, don’t skimp on quality. When the price of green coffee beans started skyrocketing, we made a strategic and moral decision to maintain a high-quality product, so we doubled down on higher grade coffee beans and improved our roasting techniques to differentiate our coffee further. 

4. Know why you’re doing it
No sane person works long hours for less money without a good reason. For us, prioritising core family values is the most important thing in the world and although it’s tough at times, we’re confident that we’re doing this all for the right reasons. Taking this approach has also helped streamline decision making. If it makes business sense, but not family sense, then it’s a hard NO.  

5. Build for the future
We’ve built on, and strengthened, the foundations of the business by adding countless processes and procedures to help set us up for success. We were pretty action orientated when we first took the reins and were excited and proud of the changes that we were making. We moved fairly quickly from one project to the next but started to see that the pace that we had set, was not sustainable. We were creating a new storm around us which was starting to have an impact on our family. So, we streamlined our tasks and expectations (as mentioned earlier) and holding onto our core values, we set a new pace to strive for a more sustainable business and lifestyle going forward. 

Running a coffee roastery in New Zealand has tested us, stretched us, and shaped us. But it’s also created space for our family, connection with our community, and work we genuinely believe in.

To anyone who’s supported us, thank you. Whether you’ve bought our coffee, brewed a cup, or just followed along, we’re so grateful.

Bryn