# Second Roastery decision

Proceed with a staged Westhaven site

Authorize phase one for an April 2027 opening, but sign only after the landlord accepts a six-month break option and one anchor wholesale customer commits conditional volume.

Binding owner decision · Lease signature target: 18 July 2026

02 Recommendation
Executive summary

Stage Westhaven to protect service and limit demand risk

111%
East Yard utilization in the 690 t 2027 base case
860 t
Reliable internal capacity with staged Westhaven
€1.12m
2031 cumulative benefit versus outsourcing
3.6 yrs
Cash payback for the staged option
Decision logic

Confirmed demand already takes East Yard to 95% utilization. Staging supplies enough headroom for the upside case while avoiding the full lease’s higher up-front and fixed commitment.

Source: user brief. Financial figures are fictional planning estimates.

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03 Capacity case

East Yard runs beyond its service-safe range in 2027

Demand versus East Yard thresholds · tonnes
548 t

2026 forecast

590 t

2027 confirmed

690 t

Base

770 t

Upside

90% service threshold: 558 t Practical capacity: 620 t
95%
utilization on confirmed 2027 demand

The base case exceeds internal capacity by 70 t. The upside case exceeds it by 150 t.

Source: user brief. Utilization and overflow are derived from supplied demand and 620 t practical capacity.

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04 Options

Staged Westhaven best balances capacity, cash and commitment

Option Up-front Fixed cost Variable effect Capacity Start Main drawback
Stay at East Yard€0.18m€0.00mNo change, then +€0.74/kg overflow620 t2 moMisses base demand internally
Outsource overflow€0.05m€0.06m+€0.74/kg outsourced820 t3 moQuality and supplier dependence
Full Westhaven€1.84m€0.62m−€0.19/kg above 520 t1,050 t9 moCommits before demand is secured
Staged Westhaven€1.16m€0.44m−€0.11/kg above 520 t860 t8 moSecond fit-out above 820 t

Source: user brief. Financial figures are fictional planning estimates.

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05 Capacity bridge

Phase one adds 240 t and covers the upside case

Current internal network
620 t

East Yard practical capacity

Staged internal network
860 t
+240 t phase one
East Yard · 620 t
Westhaven · 240 t

90 t headroom above the 770 t upside case.

Upside demand: 770 t

Margin note · Staging buys headroom, not surplus

Source: user brief. Phase-one addition of 240 t is derived from 860 t staged capacity less 620 t East Yard capacity.

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06 Value

Staging creates more near-term value and pays back sooner

Cumulative cash benefit versus outsourcing · €m
2029

€0.46m staged · €0.31m full

2031

€1.12m staged · €1.39m full

Staged Westhaven Full Westhaven
3.6 yrs
Staged cash payback
4.1 yrs
Full lease cash payback

The full lease overtakes staged value only by 2031, while requiring €0.68m more up-front cash and €0.18m more annual fixed cost.

Source: user brief. Financial figures are fictional planning estimates.

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07 Sensitivity

The staged case depends on demand clearing the downside

Downside

610 t in 2027

2028 demand: 645 t

−€0.18m

2031 cumulative benefit versus outsourcing

Base

690 t in 2027

2028 demand: 735 t

€1.12m

2031 cumulative benefit versus outsourcing

Upside

770 t in 2027

2028 demand: 835 t

€2.06m

2031 cumulative benefit versus outsourcing

Implication

The 74 t prospective grocery customer separates much of the 690 t base forecast from confirmed demand. A conditional volume commitment is therefore a lease-signing gate, not a commercial afterthought.

Source: user brief. Financial figures are fictional planning estimates.

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08 Risk controls

Five controls make the staged opening executable

RiskExposureMitigationStatus
DemandUnsigned grocery customer represents 74 tSecure conditional volume commitment before lease signatureGate
LeaseProposed term is eight yearsRequire six-month break if permits or anchor volume failGate
HiringSix roles needed; benchmark is ten weeksStart two lead-operator searches at signingWatch
QualityEquipment differs from East YardFour-week parallel validation and 30 blinded panelsControl
LaunchThree weeks contingency on a 36-week pathProtect contingency and monitor the critical pathWatch
If no decision is made

East Yard remains above the service threshold on confirmed demand, and base-case overflow shifts to outsourcing with +€0.74/kg cost, eight-week commitments and the pilot’s quality record.

Source: user brief.

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09 Decision gates

Sign only when both protections are in place

Gate 1 · Demand

Anchor customer signs

Conditional wholesale volume commitment secured.

Gate 2 · Lease

Landlord accepts break

Six-month option if permits or anchor volume fail.

If both pass

Sign staged lease

Target: 18 July 2026. Begin eight-month opening plan.

Both conditions satisfied

  • Commit up to €1.16m phase-one fit-out
  • Target April 2027 opening

Either condition fails

  • Do not sign the lease
  • Retain outsourcing as the overflow alternative

Source: user brief. Financial figures are fictional planning estimates.

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10 Immediate plan

The first 90 days secure, staff and de-risk the site

Workstream0 to 30 days31 to 60 days61 to 90 daysOpening path
CommercialOwners

Secure anchor

Conditional volume commitment

Confirm demand evidence

Maintain lease gate discipline

LeaseOwners

Negotiate break

Permits and anchor volume

Sign if both pass

Target 18 July 2026

Protect critical path

Three weeks contingency

PeopleOperations

Start lead searches

Two roles begin at signing

Build six-role team

Ten-week benchmark

QualityOperations

Plan validation

Parallel roast protocol

Prepare cutover gate

Four weeks and 30 panels

Timing is relative to approval except for the supplied lease-signature target.

Source: user brief.

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