Conflict of Interest
When opening a café, training staff, and buying equipment, should you rely on a coffee roaster—especially one who also owns coffee shops? To us, the conflict of interest seems obvious, yet many entrepreneurs don’t recognize it.
Here’s the issue: when you buy from a wholesale roaster who operates a coffee shop, you’re giving them access to critical insights about your business. They can see the volume of coffee you’re selling, your sales patterns, and your busy times. Armed with this information, they gain a significant advantage if they decide to open a café near yours.
Today’s coffee equipment makes this even riskier. Modern espresso machines and grinders can log detailed usage data, which service providers—like your roaster—can access. This means they can track your sales performance down to the cup.
Traditionally, business advice warned against working with suppliers who could become competitors. Yet in the coffee industry, these lines have blurred. Many roasters who supply coffee to cafés now own their own retail shops, creating a direct conflict of interest.
Why Don’t People See This?
In most industries, buyers avoid suppliers with conflicts of interest. But coffee is different. The low barriers to entry attract many inexperienced entrepreneurs who don’t know the right questions to ask—or don’t recognize the risks.
Some new café owners operate under a “kumbaya” mindset, believing everyone in the coffee world is just there to help. They assume their suppliers won’t use their business data against them. But business isn’t always a friendship circle—it’s competitive. Imagine a roaster openly sharing their sales data with you. Not very likely!
The Trap of “Free” Training
Another risk is the allure of “free” training when you purchase equipment or coffee. This appeals to nervous entrepreneurs looking for guidance. Meanwhile, they profit. They earn commissions on your equipment purchases and may even profit from referrals to contractors or brands they recommend. At the end of the day, their priority may not be your business—it’s more likely their own bottom line. If times get tough for them financially, competing with you might become their next move to dig themselves out of a financial hole.
What Are the Alternatives?
Many entrepreneurs are drawn to franchises, seeing them as a shortcut to café success. Franchises offer branding, training, and operational frameworks—but these perks come at a price. Franchise fees, royalties, and advertising charges often take 4% to 14% of your gross revenue. On top of that, you’re locked into purchasing their branded supplies, often at marked-up prices. Shouldn’t the savings from bulk buying be passed on to you? Instead, you’re investing in building their brand, not your own. If financial independence and control matter to you, it’s worth asking: Are you sure you can’t achieve this on your own?
The Reality of Ownership
Owning and operating a café on your own is challenging. But it’s also rewarding. You get to build your own brand, negotiate & control costs, and chart your own course. The freedom and independence can outweigh the comfort of prepackaged solutions for many.
Protect Your Edge
In summary, a supplier who also owns cafés isn’t just a supplier—they’re a potential competitor. Similarly, franchises may offer convenience, but they come with financial and operational limitations.
To succeed, you need to protect your competitive edge. Look beyond the illusion of support and ask the hard questions. Build a business and brand that are truly your own. That’s where the real reward lies.
