Coffee Roaster Terms Of Trade For Wholesale Customers

Supplying cafes can be a brilliant way to grow your roasting business. Once a cafe loves your beans, the orders can become steady, predictable and great for cash flow.

But recurring wholesale supply also brings a few pressure points. Late payments, last-minute order changes, disputed deliveries, machine loans and questions about product consistency can quickly eat into your margins if your terms are vague.

Your coffee roaster terms of trade don't need to be complicated. They just need to clearly set out how you supply, how you get paid, what happens when something goes wrong and where each party's responsibilities start and end.

Do You Need Coffee Roaster Terms Of Trade?

Yes, if you're supplying cafes on a repeat or wholesale basis, you should have written terms of trade in place.

A handshake might feel fine when you're dealing with a friendly local cafe. The problem is that when an invoice is overdue, a grinder breaks, or a cafe says the latest batch tastes different, everyone can remember the arrangement differently.

Your terms of trade act as the rulebook for the relationship. They help you manage:

• how orders are placed and accepted
• minimum order quantities
• delivery fees, timing and risk
• payment due dates and late payment consequences
• equipment loans, such as espresso machines and grinders
• quality issues, credits and returns
• price changes
• ending the supply arrangement

For regular wholesale customers, your terms may sit inside a broader wholesale coffee supply agreement or cafe supply contract. For smaller accounts, they might be attached to a credit application, quote, order form or onboarding pack.

The key is making sure the cafe actually receives and accepts them before supply begins. Terms printed only on the back of an invoice sent after delivery can be much harder to rely on.

What Should Your Wholesale Coffee Supply Agreement Cover?

Your wholesale coffee supply agreement should cover the full supply cycle, from order and roasting through to delivery, payment, complaints and termination.

Think of it as a practical operations document, not just a legal document. It should match how your roasting business really works.

Orders And Minimums

Set out how cafes place orders and when an order becomes binding. For example, you might accept orders through email, an online ordering portal or a standing weekly order.

Your terms can also cover:

• minimum order quantities per delivery
• cut-off times for next roasting or delivery days
• standing orders and how much notice is needed to change them
• what happens if a cafe regularly orders below the agreed minimum
• whether you can reject an order due to stock shortages, credit issues or delivery limits

Minimums matter because small deliveries can quickly become unprofitable once you factor in roasting time, packing, freight and admin.

Pricing And Price Changes

Coffee pricing can move quickly, especially where green bean prices, exchange rates, freight or packaging costs shift.

Your agreement should say:

• whether prices are fixed or can change
• how much notice you'll give before a price change
• whether special blends or single origins have separate pricing
• whether prices include or exclude GST
• when delivery fees apply

If a cafe is relying on a set menu price, sudden increases can cause tension. A clear price review clause helps you protect your margin while giving the cafe a fair heads-up.

Delivery, Risk And Missed Deliveries

Your delivery terms should say when delivery happens, who pays for delivery and when risk in the coffee passes to the cafe.

For example, risk might pass when the beans are delivered to the cafe, left in an agreed safe place or collected by a courier arranged by the cafe.

You should also cover what happens if:

• the cafe is closed during the agreed delivery window
• there's no safe place to leave the goods
• the delivery address is wrong
• a courier delay affects delivery timing
• the cafe asks for an urgent delivery outside your usual run

Say you roast in Melbourne and supply a busy cafe in Brisbane. The cafe places a late Friday order and expects beans by Monday morning. If your terms clearly say interstate orders require two business days after dispatch and courier delays are outside your control, it's much easier to manage that conversation.

How Should You Deal With Equipment Loans To Cafes?

If you're lending or subsidising equipment, you need clear written terms that protect your ownership, access and return rights.

Equipment loans are common in wholesale coffee relationships. You might provide an espresso machine, grinder, water filter, scales, signage or brewing equipment to help secure the account.

The risk is that the arrangement can become messy if the cafe stops ordering, falls behind on invoices, sells the business or refuses to return the equipment.

Your equipment terms should cover:

• who owns the equipment
• whether the cafe pays rent, a bond or installation costs
• minimum coffee purchase commitments linked to the equipment
• who is responsible for cleaning, servicing and repairs
• whether the cafe must insure the equipment
• whether the cafe can move the equipment to another site
• when you can inspect or retrieve the equipment
• what happens if the equipment is damaged, lost or not returned

You should also consider the Personal Property Securities Act 2009. If you provide valuable equipment to a cafe but retain ownership, registering your interest on the Personal Property Securities Register can help protect you if the cafe becomes insolvent or tries to sell the equipment as if it owns it.

This is an area where tailored wording matters. A simple line saying equipment remains our property may not be enough if the practical arrangement looks like a lease, hire arrangement or long-term supply incentive.

What Payment And Late Payment Terms Can A Coffee Roaster Use?

You can use clear payment and late payment terms, as long as they're drafted fairly and don't operate as an unlawful penalty or misleading charge.

Common wholesale payment structures include:

• payment on order
• payment on delivery
• 7 day, 14 day or 30 day accounts
• direct debit for approved account customers
• payment by card, noting that from 1 October 2026 businesses generally can't add surcharges for Visa, Mastercard, American Express or eftpos card payments, so card acceptance costs should usually be built into your pricing. Any other fees or payment-related discounts should be clearly disclosed and not misleading.

If you're extending credit to cafes, your credit terms should say when invoices are due and what happens if payment is late.

Late payment terms often cover:

• interest on overdue amounts at a reasonable rate
• recovery of reasonable debt collection costs
• suspension of further supply while invoices are overdue
• moving the cafe back to payment on order
• requiring a deposit or direct debit authority
• ending the agreement after ongoing non-payment

Without a written agreement, you may struggle to recover unpaid invoices or justify stopping supply when a cafe is relying on your beans for service.

Be careful with very harsh late fees or automatic charges that don't reflect your likely loss. If your terms are standard form terms offered to small business customers, the unfair contract terms regime under the Australian Consumer Law may apply. Since the November 2023 reforms, unfair terms in standard form small business contracts can attract significant penalties.

A cafe may be a small business if it has fewer than 100 employees or annual turnover under $10 million. That means your coffee supplier terms and conditions should be firm, but not one-sided in a way that goes beyond what you reasonably need to protect your business.

What Happens If A Cafe Complains About Quality Or Consistency?

It depends on the issue, but your terms should give you a clear process for assessing complaints and deciding whether to replace, credit or reject the claim.

Coffee quality can be subjective. One cafe might say a batch tastes different, while the issue is actually grinder calibration, water quality, storage, extraction, milk, staff training or the age of an opened bag.

Your terms can help by setting measurable expectations. For example, you might refer to:

• the blend or origin ordered
• roast profile or intended flavour notes
• packaging size and roast date
• reasonable variation between seasonal coffees
• storage requirements after delivery
• the time period for reporting damaged or defective goods

You can also require the cafe to keep the disputed product, batch label and packaging so you can inspect it or compare it with your roast records.

Under the Australian Consumer Law, you can't mislead customers about your products, quality, origin, certifications or performance. Consumer guarantees may not apply in the same way where goods are bought for resupply or use in producing cafe drinks, but the ACL rules on misleading or deceptive conduct still matter. If you supply equipment or services worth under the relevant threshold, consumer guarantees may also be relevant depending on the circumstances.

Your terms shouldn't try to exclude rights that can't legally be excluded. A better approach is to set a fair and practical process for complaints.

For example:

• the cafe must notify you within a set period after delivery if goods are damaged or incorrect
• you can ask for photos, batch numbers or return of the product
• you decide whether the issue is due to your supply, delivery damage or the cafe's storage and handling
• your remedy may be replacement, credit or refund, depending on the issue
• you aren't responsible for losses caused by misuse, poor storage or equipment settings outside your control

For recurring supply, it's also worth keeping roast logs, batch records and cupping notes. If a dispute pops up months later, those records can help you respond calmly and commercially.

What Legal Requirements Apply To Coffee Roasters In Australia?

Yes, coffee roasters in Australia have legal requirements, even though roasted coffee is usually considered lower risk than many other food products.

The exact rules depend on your state or territory, where you roast, whether you package, whether you import green beans and what products you sell.

Food Business Registration And Food Safety

You may need to register or notify your local council or state food authority as a food business. Requirements vary across Australia, so it's worth checking the rules for your premises and activities.

You should also comply with the Australia New Zealand Food Standards Code. This can affect hygiene, premises, traceability, labelling and recall processes.

If you roast and package beans, your labels may need to include details such as:

• product name
• business name and address
• lot identification or batch details
• net weight
• country of origin information
• date marking if required
• allergen information if you add flavours or other ingredients

Pre-packed goods also need to comply with measurement rules overseen by the National Measurement Institute, including accurate net weight statements.

Claims, Certifications And Marketing

If you describe your coffee as organic, fair trade, single origin, Australian made, ethically sourced or carbon neutral, make sure you can back it up.

Marketing claims are covered by the Australian Consumer Law. If a claim could influence a cafe's decision to buy from you, keep records showing why the claim is accurate.

Business Details And Privacy

Your customer documents should correctly list your legal entity, ABN and, if you're a company, your ACN. If you trade under a business name, make sure it's registered and connected to the right entity.

If you collect contact details, direct debit information or online account logins from cafe customers, consider your privacy obligations under the Privacy Act 1988. Even where the Privacy Act doesn't strictly apply to your business yet, good privacy practices help with trust and account security.

How Do You Make Your Cafe Supply Contract Work Day To Day?

Your cafe supply contract works best when your documents, ordering process and invoicing all line up.

It's one thing to have terms sitting in a folder. It's another to make sure customers accept them and your team follows them.

Useful steps include:

• send the terms with your wholesale onboarding pack
• ask the cafe to sign a supply agreement or credit application
• make it clear that placing an order means accepting your terms
• refer to the terms on quotes, order confirmations and invoices
• keep a signed copy or acceptance record
• train your team on minimum orders, payment holds and complaint handling

If you change your terms later, don't assume the new version automatically applies to existing customers. Your agreement should explain how changes are made, how much notice you'll give and when the updated terms apply.

You should also think carefully about termination. A good termination clause might allow either party to end the arrangement on written notice, while giving you immediate termination rights if the cafe doesn't pay, misuses your equipment, becomes insolvent or seriously breaches the agreement.

If a cafe has your machine or grinder, termination shouldn't just say supply ends. It should also explain how and when the equipment is returned, who pays removal costs and what happens if the cafe keeps using it.

Templates can be a helpful starting point, but coffee wholesale has details that generic documents often miss. Your terms will usually work better when they're tailored to your ordering model, delivery area, equipment arrangements and customer base.

Key Takeaways

• Written coffee roaster terms of trade help you manage recurring supply, payments, deliveries, complaints and equipment loans.
• Your wholesale terms should cover minimum orders, cut-off times, delivery risk, pricing, GST and price changes.
• If you provide machines or grinders to cafes, set clear ownership, maintenance, insurance, return and PPSR protection arrangements.
• Payment and late payment clauses can be useful, but they should be fair, reasonable and consistent with the Australian Consumer Law and card surcharge rules.
• Quality dispute clauses should give you a practical process for inspecting products, checking batch records and offering fair remedies.
• Coffee roasters should also check food safety, labelling, measurement, marketing and business registration requirements.

If you'd like help with your wholesale supply terms, cafe customer agreements, equipment loan clauses and payment terms, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.