The Customers: Small to Medium Hospitality Venues

Every week, small to medium-sized hospitality venues across the country rely on their coffee supplier to keep them running. For many of these businesses, coffee is their single largest recurring expense—an essential cost that keeps their customers coming through the door.

Yet despite this, coffee invoices often go unpaid for weeks, creating major cash flow issues for roasters.

The Problem: Overdue Payments on Coffee Invoices

The hospitality industry is notorious for delayed payments. Many venues operate on razor-thin margins and unpredictable cash flow, making it common for suppliers to be pushed to the back of the queue. But why should coffee roasters—who provide a consistent, essential product—suffer from this?

Why Venues Should Be the Easiest Customers to Deal With

Coffee roasters should, in theory, have one of the simplest customer relationships in the hospitality industry. Consider the following:

Consistent Orders – Coffee orders don’t vary much. Venues order nearly the same quantity every week, meaning there are no surprises in supply or demand.
Fast Product Turnover – If a venue orders coffee every week, it means they’ve sold it. The revenue has already been generated.
Predictable Invoicing – Weekly invoicing should make cash flow predictable, both for the venue and for the roaster.
Equipment Support – Many roasters provide machines, grinders, and servicing as part of the deal, creating an even stronger business relationship.
Lack of Supplier Switching – Unlike other suppliers, coffee roasters don’t face rapid turnover. A venue can’t easily change coffee suppliers on short notice without impacting taste, branding, and customer expectations.
Given all of these factors, coffee roasters should be getting paid on time. So why aren’t they?

Why Coffee Roasters Struggle With Late Payments

The reality is that many roasters unintentionally set themselves up for slow payments. Here’s why:

No Clear Expectations From the Start – Many coffee suppliers operate on handshake deals. Without formalized expectations, venues assume payment terms are flexible.
No Standard Onboarding Process – Roasters often lack structured onboarding, including:
1. Supply agreements
2. Credit applications
3. Direct debit authorization
4. Payment terms reinforcement
No Tools to Enforce Payments – Many venues simply ignore invoices until they absolutely have to pay them. Without automated payment solutions, reminders, and enforcement, invoices get pushed further and further down the list.
No Deterrent for Late Payments – Without consequences for late payments, there’s no urgency to settle invoices. Venues prioritize wages, rent, and urgent supplier costs, while coffee gets pushed back.

How to Get Venues to Be Good Payers

The problem isn’t the venues—it’s the system. Coffee roasters need to take control of their accounts receivable processes from the start. Here’s how:

Set Clear Expectations at Onboarding – Ensure every new venue signs a supply agreement, understands the payment terms, and agrees to automated payments.
Implement a Standard Process – Have a structured onboarding process that includes credit applications and direct debit authorizations before the first order is delivered.
Use Automation to Take Control – Instead of chasing payments manually, use a platform like PencilPay to:
1. Automate payment reminders
2. Enforce direct debits
3. Track overdue invoices in real-time
Create a Deterrent – With PencilPay, venues can’t just ignore payments. By securing payment details upfront and automating collections, you ensure your invoices stay at the front of the queue.

PencilPay Puts You Back in Control

As a coffee roaster, you put your customers first. But if they’re putting your invoices last, your business suffers.

With PencilPay, you eliminate overdue payments, streamline your collections process, and secure your cash flow—so you can focus on roasting great coffee instead of chasing payments.

It’s time to take control. Get started with PencilPay today.