Scaling to meet demand: Rosso Coffee
Rosso Coffee Roasters was founded by David Crosby in Calgary, Alberta in 2007. The company originated as a coffee shop; when a bakery vacated its premises, David presented his concept to the landlord and established the first Rosso Coffee shop just eight weeks later. Today, the company roasts premium coffee beans and operates multiple cafés. It is also B Corp Certified.
Learning to be more efficient as you grow
At first, the company got by with a small team. Crosby managed everything, from baking to sourcing ingredients. By 2020, Rosso Coffee included seven coffee shops and 82 employees.
At the time, the business roasted coffee in one of its cafés and then bagged it off-site at the office. Staff had to make 20 to 30 daily trips to their facility, pack the beans and then distribute the bags to cafés and wholesale clubs. The process was cumbersome.
In addition, Crosby and his team struggled with managing multiple cafés, an in-house kitchen, pop-up events, catering, and trade shows. Although these activities generated revenue, they did not consistently yield profits and shifted focus away from the primary business operations.
And then the COVID-19 pandemic struck.
Rosso Coffee’s revenue from cafés dropped by as much as 90%. Crosby and his team refocused their efforts on wholesale and online sales, which increased by 450%.
Rosso Coffee needed to be more efficient to keep up with demand and to keep growing.
Developing a game plan
Crosby developed a strategic plan. It featured clear performance indicators and milestones for the next five years, the next decade and beyond.
Rosso Coffee had a roadmap to increase efficiency.
Better processes mean better quality
With help from BDC Advisory Services, Rosso Coffee made several changes to increase efficiency.
They centralized production by moving to a larger space and investing in a larger roaster, which increased their capacity. Then, they introduced technology—a silo for storing green coffee and sorters that use AI and spectrometry—to ensure bean quality.
We always ask ourselves: how can we make it more efficient? How can we implement technology? How can we push the coffee to a better quality? How can we make this company run better and make it easier for team members and customers?
David Crosby
Founder, Rosso Coffee
The team also optimized their warehouse layout to reduce the time and steps required for picking and packing orders. Centralizing this process and upgrading from a 12-kilo roaster to a 45-kilo roaster improved efficiency. Rosso Coffee also invested in an enterprise resource planning system (“ERP”) to integrate all business aspects, and adopted route optimization technology to be more efficient with deliveries.
“We always ask ourselves: how can we make it more efficient? How can we implement technology? How can we push the coffee to a better quality? How can we make this company run better and make it easier for team members and customers? It’s getting better and bigger, and that’s wonderful. Once that engine is in place, what it can do is incredible,” says Crosby.
These changes significantly improved the business’s throughput. They allowed Crosby to focus on other elements, such as sales and marketing, to generate more income.
Attracting robust talent
New ways of working and updated technological tools require employee training.
As Rosso Coffee changed its processes, it became apparent to Crosby that enthusiastic employees would make the company even more efficient. Team members open to exploring opportunities to improve workflows are valuable assets. Crosby supports their ideas and allows everyone to contribute, strengthening the company.
Embracing change and being flexible in adapting to new strategies and technologies is essential for long-term success.
David Crosby
Founder, Rosso Coffee
Better results with less effort
These improvements brought significant advantages. The cost of roasting decreased by almost two-thirds, while deliveries increased dramatically. Now, Rosso Coffee does two to three times the volume of business with half the input cost.
Moreover, the team can now bag coffee at a rate of 10 to 12 bags per minute, compared to its previous capacity of 6 bags per minute. These changes have strengthened the company’s bottom line and allowed it to grow even more. The results speak for themselves:
- Two to three times the volume of business with half the input cost.
- Reduced roasting costs by over 66%.
“One key takeaway is the importance of discipline and focusing on the core business. Saying yes to opportunities is crucial in the early stages. Still, as the business grows, it’s equally important to say no to distractions and focus on what leads to profitability,” says Crosby.
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