For more than a century, one company quietly shaped how America drank its coffee.

From the early days of the twentieth century through wars, economic collapse, and massive cultural change, Farmer Brothers grew from a tiny operation in Los Angeles into a national supplier serving tens of thousands of restaurants.

Built entirely in California, the company survived the Great Depression, expanded through World War Two, and reached hundreds of millions of dollars in annual revenue.

Yet after one hundred three years, executives concluded that remaining in California no longer made economic sense.

By moving to Texas, the company calculated it could save between eighteen and twenty million dollars every year.

That decision ended a long California legacy and became another example of how state level business conditions can reshape corporate geography.

The story began in 1912, a year marked by global change.

Woodrow Wilson was preparing to enter the White House.

The Titanic had recently sunk in the North Atlantic.

In Los Angeles, a twenty year old named Roy E Farmer was frustrated by the quality of coffee served in local restaurants.

At the time, coffee was often treated as an afterthought, brewed poorly and served without care.

Farmer believed restaurants could do better.

With no formal business training and limited resources, he began roasting coffee beans himself.

Farmer started small.

He worked from the back room of his brother Frank Farmer bicycle shop on East Eighteenth Street in Los Angeles.

There was no office staff, no investors, and no elaborate plan.

The entire operation consisted of two brothers, basic equipment, and a commitment to quality.

Roy Farmer roasted beans and personally went door to door selling coffee to restaurants.

Demand grew quickly, driven by consistency and flavor that stood out from competitors.

Within three years, the brothers earned enough to invest in a new coffee roaster and delivery vehicles.

Some of those vehicles were still horse drawn, reflecting the era in which the company was born.

Innovation soon followed.

The brothers developed and patented a new type of coffee roaster that improved efficiency and quality.

They formed a separate company called Western Earn Manufacturing to produce coffee equipment, allowing them to control both production and machinery.

By 1923, the business had grown large enough to incorporate as Farmer Brothers, becoming an official California corporation.

Roy Farmer demonstrated a strong ability to anticipate growth.

He studied population trends and identified cities likely to expand rapidly.

Branch offices were opened in San Francisco and other emerging markets.

While many competitors remained local, Farmer Brothers expanded across California, building distribution routes and long term customer relationships.

During the nineteen thirties, Roy Farmer made a strategic decision that reshaped the company.

He realized that delivery trucks already visiting restaurants weekly could carry more than coffee.

The company began offering cups, spices, and other essential supplies.

This diversification transformed Farmer Brothers into a full service supplier for restaurants.

Over time, nearly half of company revenue came from non coffee products, reducing risk and strengthening customer loyalty.

World War Two marked another turning point.

The Western Earn Manufacturing facility was retooled to support the war effort.

The company produced precision components and equipment for the military, including ejection seats for fighter aircraft.

Female machinists filled critical roles on the factory floor, reflecting broader changes in the American workforce.

Farmer Brothers became part of the industrial backbone that supported national defense.

After the war, Roy Farmer anticipated a period of rapid economic expansion.

In 1949, the company built a massive twenty acre headquarters and manufacturing complex in Torrance, California.

The site was strategically located next to the Southern Pacific rail line, with a dedicated spur allowing direct loading and unloading.

The facility was among the most advanced of its kind, capable of producing more than fourteen million pounds of coffee per year.

Farmer Brothers emerged as one of the largest coffee companies in the western United States.

In 1951, Roy E Farmer died at the age of fifty nine.

Leadership passed to his son, Roy F Farmer.

The transition was difficult, and financial pressure forced the company to go public in 1952 to raise capital.

Shares began trading on the NASDAQ under the symbol FRM.

Despite early challenges, the younger Farmer proved capable.

He focused on improving efficiency, expanding margins, and broadening the product portfolio.

Over the following decades, Farmer Brothers expanded steadily.

Herbs, spices, and seasonings were added to the catalog.

An office coffee service division launched in the early nineteen seventies.

By the late nineteen eighties, the company had gone national, serving restaurants, hotels, casinos, hospitals, and convenience stores across the country.

At its seventy fifth anniversary, Farmer Brothers sold products in three quarters of the United States.

Roy F Farmer led the company for more than fifty years.

During that time, employment grew from fewer than four hundred workers to more than eleven hundred.

Annual revenue increased from fifteen million dollars to nearly two hundred million.

The company became known for its secrecy, releasing minimal information beyond regulatory requirements.

This culture reflected a family controlled mindset focused on long term stability rather than publicity.

In 2004, Roy F Farmer died after a long illness.

One year later, his son Roy E Farmer died by suicide, ending nearly a century of family leadership.

For the first time since 1912, Farmer Brothers would be run by executives outside the founding family.

New leadership brought a different perspective shaped by financial markets and competitive pressure.

In 2012, Farmer Brothers celebrated its one hundredth anniversary.

Michael Keon was appointed chief executive officer and president.

Under his leadership, the company evaluated its long term competitiveness.

California had changed dramatically since the company founding.

Taxes were higher, regulatory requirements were more complex, and infrastructure at the Torrance facility was aging.

In February 2015, Farmer Brothers announced it would close its Torrance headquarters and move operations to Texas.

The decision shocked employees.

Roughly three hundred fifty workers learned they were losing their jobs.

Security presence during the closure added to the sense of abruptness.

Management framed the move as purely economic, supported by clear financial calculations.

By relocating to Texas, the company expected to save eighteen to twenty million dollars annually.

For a business reporting eight million dollars in operating income, those savings were transformative.

Texas had no state income tax, while California imposed one of the highest rates in the nation.

Workers compensation costs were significantly lower.

Shipping coffee from a central location reduced logistics expenses.

Green coffee beans from Latin America could be shipped more efficiently through Houston than through Los Angeles.

Additional savings came from outsourcing trucking and distribution.

Texas also offered incentives.

The Texas Enterprise Fund contributed between one and two million dollars.

Local governments in Denton County and the town of Northlake offered major property tax reductions.

California provided no comparable incentives and made no public effort to retain the company.

In August 2015, Farmer Brothers broke ground on a new twenty eight acre site near Texas Motor Speedway north of Fort Worth.

The facility covered more than five hundred thirty thousand square feet and consolidated roasting, distribution, research, training, and corporate offices under one roof.

The roasting plant alone could process up to twenty eight million pounds of coffee annually, with room for expansion.

More than three hundred jobs moved to the Dallas Fort Worth region.

Only a small number of California employees relocated.

The decision angered some members of the founding family.

A granddaughter of the founder criticized the layoffs and launched a proxy fight, arguing the move betrayed company values.

Shareholders ultimately supported management, accepting that the business case outweighed tradition.

The Torrance property was later sold for forty three million dollars and redeveloped into an industrial park.

By 2017, the Texas headquarters officially opened.

The company continued acquiring competitors and expanding brands.

In later years, Farmer Brothers streamlined operations, sold the Northlake facility, centralized roasting in Oregon, and leased a smaller headquarters in Fort Worth.

Today, the company processes more than ninety million pounds of coffee annually, serving customers nationwide.

The Farmer Brothers story reflects a broader trend.

A company built in California, sustained for generations, ultimately concluded that remaining there was too costly.

The move was not driven by greed but by arithmetic.

When savings of nearly twenty million dollars per year were available elsewhere, loyalty to place could not compete.

For California, the departure marked the loss of another historic business and raised an enduring question about what the state offers in return for its costs.