business plan of coffee shop in the philippines

• STARTUP COURSE AND DOCUMENTS

How to Write a Coffee Shop Business Plan for the Philippines

A business plan is essential in any business that you plan to operate. A business plan can be described as a road map of objectives and strategies on how to reach the goals for the business.

In the Philippines, there are two types of business plans that are written. The first is to raise capital with a business plan and the second is a managerial guidance business plan.

• Table of Contents

To open a coffee shop in the Philippines, you need to consider these six factors:

• Promotions and Loyalty Programs

It is important to make sure that you incorporate these factors into your business plan.

Raise Capital with a Business Plan:

This business plan is designed to raise money for your business in the Philippines. In this particular business plan, you will provide information on your products and services that you will provide to your customers.

Here are some examples of what products you may provide to your customers: Brewed Coffee (hot, iced, or frozen)

• Fruit Smoothies
• Biscuits/Sandwiches

You may even decide to have bags of your signature coffee that your coffee shop provides to your customers. This allows them to pick up a bag in travel so they can enjoy your signature coffee in the comfort of their home.

Most raised capital business plans focus on selling equity or debt to investors. If you are selling equity, you will sell an ownership stake. This is common in Corporations and is commonly known as stocks or shares that are being sold. If you are selling debt, you will need to issue some type of bond or note to investors.

If you decide to sell stock in your company, you are enticing more potential investors to invest in your company by offering the security that they will eventually recoup their investment. However, you are also giving investors partial ownership in your company’s everyday operation.

Check out our additional article HERE on writing a business plan!

Managerial Guidance Business Plan:

In the Philippines, a managerial guidance business plan has two different angles that are focused on. The first is no capital raising and the second is recommendations.

A no capital raising plan is not focused on raising money. This particular plan is focused on a strategy or strategies that the company should employ for growth opportunities. Basically, the more people you reach, the more opportunity for growth.

A recommendations plan is again not focused on raising capital. A recommendations plan is to strategically plan the next move of the business.

Your Business Plan:

Your business plan should look almost like a book. Here is a basic outline:

• Executive Summary
• Business/Industry Overview
• Market Analysis and the Competition
• Sales and Marketing Plan
• Ownership and Management Plan
• Operating Plan
• Financial Plan
• Appendices and Exhibits

Your title page will have information on your coffee shop. This will include the name, address, phone number, and website (if available) for your coffee shop. The table of contents will help your investors and/or lenders to jump straight to the section that they are most interested in reviewing.

The executive summary is an overview of the coffee shop. It should not be more than two pages long and should give a brief description of each section of the plan. The business industry overview will explain the coffee shop industry, your position in the industry, and your competition.

In the market analysis and competition section, you will explain who your target market is and what products you will provide. You will also explain your seating options as well as your parking strategy. The sales and marketing plan is where you will explain the prices of your coffee shop. What will charge and why? You will explain what promotions and/or loyalty programs your coffee shop will offer. How, when, where, and what will you advertise your coffee shop.

The financial plan is going to be the most important part of your business plan. You will want this to be as detailed as possible. This section is to demonstrate that the coffee shop will grow and be profitable. Some things to provide in this section will be projected income statements, cash flow statements, and balance sheets. Lastly, you will have an appendix and/or exhibit. In this section, you will provide any additional information that is important to your coffee shop. Some things you may include are:

credit histories for business owners

Detailed market research and analysis of competitors, resumes of owners and key employees, industry information, products/services information, site/building/office plans, marketing brochures, three levels of business plans:.

Did you know that in the Philippines, there are three levels of business plans? Level one is the start-up business plan. Next, level two is the expansion or Series B. business plan. Finally, level three is the enterprise business plan.

The start-up business plan includes complete financials, potential cash-flow, market analysis, market strategies, the break-even analysis, and a separate executive summary.

The expansion business plan helps to define concepts, target markets, and market potential, as well as financial clarity necessary to define business concepts, identify the business market potential, and identify the capital requirements.

The enterprise business plan serves established companies seeking to raise additional capital to expand their business.

In simpler terms, each business plan level serves each level of your coffee shop. If you are wanting to open a new coffee shop, a start-up business plan is what you will need. Looking to expand your current coffee shop, you will need an expansion or series B. business plan. Or looking to raise additional money for your coffee shop, you will then need an enterprise business plan.

Importance of the Six Factors:

As stated above, there are six factors that you need to consider as you put your business plan together. Those six factors are market, location, budget, employees, suppliers, and promotions or loyalty programs.

Your market and location will work together in your business plan. The market target is very important because it will help you to find the perfect location for your coffee shop. For example, if you are looking to focus more on tourists, you will have your location set up in a tourist part of the Philippines. If you are wanting to focus on a small community, you may consider setting up shop in a Filipino neighborhood.

Your budget will play the biggest role of all as you are creating your business plan. You must be aware of how much money it will take to operate your coffee shop. Your budget will consist of how many employees you can comfortably hire, which suppliers you will use (based on quality, quantity, and price), and your advertising expenses.

Promotions and loyalty programs are very important. Advertising your coffee shop is well needed and there are many ways you can advertise. A few examples can be to cross-market with neighboring businesses, having brochures at the airport for tourists to review. Loyalty programs will make your clients feel appreciated. This will create customer retention as well as referrals. Promotions for a coffee shop may be seasonal such as pumpkin flavor for the fall season or peppermint for the winter season.

Frequently Asked Questions

You should prepare a business plan to define and focus on your objectives. Your business plan can be used as a selling tool with your lenders, investors, and banks. A good business plan can also uncover commissions and/or weaknesses in the planning process.

You can write your own business plan if you choose to. The prospectus is a business in the Philippines that specializes in business plan writing. If you are about to open your coffee shop, and you are a good writer, writing your own business plan will help reduce your start-up cost.

To learn more on how to start your own coffee shop checkout my startup documents here

Please note: This blog post is for educational purposes only and does not constitute legal advice. Please consult a legal expert to address your specific needs.

Hi! I’m Shawn Chun

My adventure in coffee began when I first launched my first coffee shop back in the early 2000s. I had to figure out so many things on my own and to make it worse within 2 years of opening two large corporate coffee chains moved in just blocks away from me!

As I saw smaller and even some larger coffee shops in the neighborhood slowly lose customers to these giant coffee chains and slowly close up shop, I knew that I had to start getting creative…or go out of business.

I (like you may be) knew the coffee industry well. I could make the best latte art around and the foam on my caps was the fluffiest you have ever seen. I even had the best state-of-the-art 2 group digital Nuova Simonelli machine money could buy. But I knew that these things alone would not be enough to lure customers away from the name brand established coffee shops.

Eventually, through lots of trial and error as well as perseverance and creativity I did find a way to not only survive but also thrive in the coffee/espresso industry even while those corporate coffee chains stayed put. During those years I learned to adapt and always faced new challenges. It was not always easy, however, in the end, I was the sole survivor independent coffee shop within a 10-mile radius of my location. Just two corporate coffee chains and I were left after that year. All told the corporate coffee chains took down over 15 small independent coffee shops and kiosks and I was the last one standing and thriving.

Along the years I meet others with the same passion for coffee and I quickly learned that it is not only “how good a barista is” that makes a coffee shop successful, but the business side of coffee as well.

Hence why I started this website you are on now. To provide the tools and resources for up and coming coffee shop owners to gain that vital insight and knowledge on how to start a coffee shop successfully.

Stick around, browse through my helpful blog and resources and enjoy your stay! With lots of LATTE LOVE!

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How to Start a Coffee Shop Business in the Philippines: Ultimate Guide for Aspiring Coffee Shop Owners

The coffee shop business in the Philippines is one of the most in-demand businesses an aspiring entrepreneur can start today. It is a booming industry with over 2,752 café and coffee shops (2020 data source from PSA ). 

We are a country of coffee lovers. Nine out of 10 Filipino households consume coffee regularly . And total coffee consumption in the Philippines in 2020 alone was about 3.3 million 60-kilogram bags . 

These speak volumes of the enormous potential of starting a coffee shop business.

Before jumping into the step-by-step guide on how to start a coffee shop business, let’s first see why you want to venture into this million-peso industry. 

Why Start a Coffee Shop Business?

Like any business, you first start by defining your purpose.

If you know your purpose, you will quickly learn the nitty-gritty of starting a business.

In our survey of aspiring coffee entrepreneurs and franchisees on why they start a business, we summarize them into five primary reasons. Here are as follows: 

Be An Entrepreneur

The majority of the people we surveyed want to experience dreamt of being entrepreneurs. They aspire to lead teams, make calls for important decisions, and leave a legacy through their business. 

Increase More Income 

Financial stability is also another reason why people start a coffee shop business. Most people want another income stream while working full-time in their corporate job. No hassle for them as they can have someone work in the industry.

Positively Impacts The Lives of Others

There is no better thing than providing other people with jobs. Giving others an opportunity to make an income is a good source of happiness and one that’s meaningful in your own life.

Unleashing Your Creativity 

Maybe, you’re a barista from your previous coffee business. You may want to explore more creative opportunities for your career – having your coffee shop is an excellent way to unleash your barista skills. You can create different beverages based on your taste and preference and make them good on a menu. 

Turning Your Dream into Achievement 

You dreamt of owning a coffee shop. Hearing success stories of coffee shop owners is one thing. On the other hand, you probably have tasted good coffee, and it intrigues you to start a coffee shop business. That desire to turn your dream into a reality is your primary reason to create one. 

You Get To Be A Part of Coffee Culture 

The coffee culture here in the Philippines is interesting. Supplies, manufacturers, small coffee retailers, and baristas gather at conventions and seminars to learn more about each others’ best practices and the latest coffee industry trends. 

By owning a coffee shop business, you become part of a coffee culture, helping each other grow in their business endeavor and making society a better place. 

Flexibility For Your Family 

Who doesn’t want flexibility? That freedom of time and money you can invest in your loved ones is precious. Anyone would want to sacrifice just to have it in their lives.

As a coffee shop owner, you can experience a flexible time when you have systems and processes in place. You can grow your café while having more time with your family. 

Identify your reason for starting a coffee shop business. Be it your source of courage and determination as you grow your business. 

The best part is learning the steps to starting one. 

How to Start a Coffee Shop Business Philippines (7 Simple Steps) 

In this section, we’ll go through the exact steps on how to start a coffee shop business in the Philippines.

I’ve taken the Filipino context to suit your needs as an aspiring coffepreneur. While we provide basic coffee business principles that apply when you start a café in other industries, you’ll find most of the actionable tips applicable in the Philippines. 

1. Decide on a Budget

The first capital in any business is financial capital. Knowing your numbers, you can prepare well for any expenses you’ll incur as you start your coffee shop business. 

What specific budget in mind do you have? It is best to start this conversation with yourself if you’re going solo, or if you have a family, best to discuss it first with your spouse. 

How much are you willing to invest in a coffee shop? Set the amount and write it on paper. You may not have it now, but you can save money every month to reach your target budget. 

How much capital is needed for a coffee shop?

It depends on whether you want to start your coffee shop brand (startup) or franchise an existing coffee shop business.

In most cases, you need a higher budget when you franchise a coffee shop business than when you create your own. There are franchise fees involved when franchising a business. 

Net, you must decide what route to go: startup or franchise. 

2. Choose Between Coffee Franchise Or Starting Your Own Brand

Once you have decided on a budget, your next step is to choose between coffee shop franchise in the Philippines or starting your own brand.

Both have benefits and drawbacks, which you must weigh to see what fits your needs and goals. 

Coffee Shop Franchising  

This is the most common type of coffee business, given that most aspiring entrepreneurs want a brand with existing systems in place. They don’t have to worry about starting from scratch. Instead, they can rely on the coffee franchisor for operations, marketing, and business support.

Here is a contrast of the effects of coffee franchising in the Philippines:

Benefits of Coffee Shop Franchising

Established Brand Reputation – By joining the franchise family of a popular coffee shop, you can benefit from the reputation and brand recognition in the local market. This is best as marketing your product and increasing daily sales for your coffee shop business will be easy.

Proven Business Model – The coffee shop franchise has a successful business model that has been tested in the market. This reduces your risk of failure when you jump into a business venture. 

Training and Support – The best coffee shop franchise in the Philippines offers comprehensive training and ongoing support to its franchisees to make their operations run smoothly. With business support, coffee franchisees are more confident in leading their baristas and conducting their operations properly. 

Scalable Marketing and Support – With brand recognition and a good reputation, coffee franchisees can benefit from their franchisor’s national and regional marketing and advertising campaigns. All benefits from their marketing campaigns can affect the sales generated from every coffee branch. 

Drawbacks of Coffee Shop Franchising

High Initial Investment – Starting a coffee franchise requires a higher upfront investment, as it includes franchise fees to pay for using the trade name and all of its products. It is not negative, as you’ll add only more to the tested business model the franchisor has made over the years.

Royalty Fees – Some coffee franchising agreements have franchisees pay their franchisor ongoing royalty fees, ranging from 3 to 8% of the monthly gross sales. It is best to ask for this percentage from your potential coffee franchisor. 

Limited Control Over The Business – Franchisees are required to operate their business within the boundaries set by the franchisor. Franchise agreements have guidelines and standards that may limit your flexibility as a coffee franchise. For example, in most cases, you can’t simply add any products to the menu, as the franchisor himself will provide new products for their coffee franchises. 

Restrictions On Location and Territory – Franchisees may be restricted in operating a business in a certain location to not compete with similar branches. However, you can agree with your franchisor on the number of franchised branches you want to put up in specific areas. 

Hills & Valleys: Best Coffee Shop Franchise in the Philippines

If you’re considering franchising a coffee shop in the Philippines, Hills & Valleys may be a great option. Here are some reasons why:

Proven Profitable System: Hills & Valleys Coffee has a proven track record of success in the coffee industry. By offering affordable yet high-quality coffee beverages, you can attract and retain a solid customer following for your business.

Targeted Market: Hills & Valleys Coffee focuses on serving the rural markets that other expensive competitors may not be catering to. This makes it a strategic choice for entrepreneurs looking to tap into these markets while being located in high-traffic areas.

Holistic Approach: Hills & Valleys Coffee offers a holistic approach to franchising as one of the best coffee franchises in the Philippines. In addition to sharing our knowledge, we provide skills training for your staff, including barista training, and help you market our best-selling products through an effective marketing strategy.

By becoming one of our franchisees, you will receive support every step of the way, from training and marketing to ongoing assistance in running your business.

Startup Coffee Shop 

This is another route that you can take if you want to start a coffee shop business. There are many benefits of doing so, while a list of drawbacks to balance it out. 

Benefits Of Startup Coffee Shop 

Creative Control. As a startup coffee business owner, you have complete creative control over the menu, branding, and the entire direction of your business. You can decide where your next branch will be and what type of decor and coffee theme you wish to create. All this is one primary benefit of a startup coffee business. 

Flexibility. This is related to the first benefit but more to the constraints of a franchise agreement. In a startup coffee business, you can experiment with new products, menu items, and even the latest marketing strategies to find what works best for your business.

Lower initial investment. Starting a coffee business from scratch can be less expensive than getting a franchise of a popular brand. Depending on the size and scope of your operation, you can choose a more affordable option that fits your budget. 

Strong Customer Relationships. Given that you’re starting, you can build a loyal customer base by implementing personalized service options and creating a unique atmosphere inside the cafe. 

Potential for Higher Profits. A startup coffee business has the potential to generate higher profits as you don’t have to pay royalty fees to your coffee franchisor. You can even put new branches in your store without paying additional franchise fees. All these can lead to decreasing the cost and getting more profit for your coffee business. 

While there are benefits to starting your own coffee business, there are also drawbacks you have to consider, mainly: 

Drawbacks of Startup Coffee Shop

Lack of Brand Recognition: At the start, you have to put a hundred percent effort into building your brand by establishing a customer base from the ground up. This may be challenging, but you can build brand awareness for your startup coffee business with effective marketing strategies. 

Limited support and resources: If you’re a sole proprietor, this is even more challenging as there is only one mind thinking about what to do in your operations, marketing, and other important things in running the business. You don’t have access to the resources and support offered by a larger franchise network. 

Higher risk of failure:  Starting a business from scratch involves more risk than getting a franchise. There is no proven track record or business model you can replicate, which means you’ll have a 50/50 chance of succeeding in a startup cafe. 

Limited Bargaining Power: You also have to build relationships with suppliers from scratch, which is crucial in lowering the cost of goods sold. If you can negotiate better, you can have lower operating costs, which means higher profit for your business. Otherwise, supply costs can eat up largely your profits. 

Time-intensive: Starting a coffee business requires significant time and effort, from looking for the right suppliers to creating a menu and marketing your brand. All these are necessary to ensure you’re likely to succeed as a coffeepreneur. 

Types of Coffee Shop Businesses

Whether pursuing a franchise coffee shop or starting your coffee business from scratch, you need to identify the type of coffee shop business that suits your preference, style, and taste.

Coffee Bar, Cart, or Kiosk

A coffee bar, cart, or kiosk is a small, compact coffee shop offering customers grab-and-go beverages. These coffee shops are popular in urban areas, airports, and train stations, where people always hurry and need their coffee fixed quickly. 

You can choose this type of coffee shop if the location has a fast-moving flow of foot traffic. This means that people are less likely to dine in and enjoy their coffee inside the store. You may not maintain your customers longer as they either rush home or have errands. 

Coffee Store

A coffee store is a more traditional coffee shop with indoor seating and a relaxed atmosphere. Customers can sit, enjoy coffee, socialize with friends, or work on laptops. Coffee stores often have a wider selection of food items, such as pastries, sandwiches, and salads.

Choose this coffee type if you dreamt of interacting with your customers, making them feel at home, and creating an atmosphere of true coffee lovers you’d love to serve with your coffee. 

Drive-thru Coffee Shops

Drive-thru coffee shops are perfect for customers who are on the go and don’t have the time to sit down and enjoy their coffee. These shops offer a convenient way to grab a quick cup of coffee without leaving the comfort of their car.

Some popular coffee brands here in the Philippines, like Starbucks , The Coffee Bean and Tea Leaf , and Dunkin Donut, combine both a coffee store and a drive-thru, making them cater to both markets of people wanting to dine in and on the go. 

Pop-up and mobile coffee shops

Pop-up and mobile coffee shops are a newer trend in the Philippines and other Asian countries. These coffee shops, such as farmers’ markets, festivals, or special events, are usually located temporarily. They are designed to offer customers a unique coffee experience and often serve specialty drinks unavailable in traditional coffee shops.

If you want to locate your shop in major locations with a wide range of customers, the pop-up and mobile coffee shop is for you. It is also good for anyone who is looking for a lesser cost on their rent. 

3. Comply with Legal and Regulatory Requirements

The registration process here in the Philippines can be quite complex, so it’s important to be prepared and know what documents you need to secure.

First, if you’re setting up a corporation or partnership, you must secure the SEC Articles of Incorporation . This document proves that your business is registered under Philippine laws. You will need to provide documents such as a name verification slip, articles of incorporation, joint affidavit of two incorporators to change the corporate name, and more. 

If you’re registering as a sole proprietorship, you’ll need to get a DTI Registration Certificate , which authorizes you to use your trading name and secures it from being used by someone else.

You will also need to get a BIR Clearance , which is required before you can get other permits. This clearance is issued by the Bureau of Internal Revenue and can be obtained by filling up one of the BIR forms depending on your business type. 

You also need to secure a Barangay Clearance , which certifies that your business complies with the local requirements of the barangay where your business is located.

Last, you must secure a Mayor’s Permit , also known as a business permit. This permit ensures your business is safe to operate under your city’s ordinances. You can only obtain this permit after you’ve registered your business with DTI and SEC, and secured the necessary clearances.

It’s important to note that compliance with local zoning and building codes is also essential in setting up your coffee shop. You should be aware of the tax requirements for your business. By ensuring you have all the necessary permits and clearances, you can ensure that your coffee shop is legally registered and operating smoothly.

Here are resources you can check out for more references on how to register your business: 

• https://www.securitybank.com/blog/how-to-register-your-online-business-in-bir-and-dti/  
• https://grit.ph/register-corporation/  

4. Learn About Cafe Management

Cafe management is a huge part of running a coffee shop business in the Philippines. There is where you learn about hiring and managing employees, inventory management, bookkeeping, accounting, and maintaining a clean and safe environment.

Let’s first start with hiring and managing employees.

Hiring and Managing Employees

The coffee shop is a service business and will require tremendous time to invest resources in your people. They’ll be the ones to brew coffee and serve your customers, so it’s important to have the right people in your cafe. 

In hiring good employees, you must first set the criteria for an employee who works in your coffee shop. You can use the Iceberg Model of Competencies to identify an ideal employee. Competencies include knowledge, skills, social role, self-image, traits, and motives. 

Here are some actionable tips for choosing the right barista based on each competency.

Quick note: Set expectations for the required experience you’re looking for in a potential candidate. For startup and even franchise coffee shop businesses, you can consider fresh graduates with no skills and knowledge in coffee brewing. 

This list below gives you ideas about the competencies you should aim for your baristas for training. 

• Look for applicants who understand coffee brewing techniques and espresso-based drinks well.
• Consider applicants who know different coffee beans and their flavor profiles.
• Give preference to applicants who have some knowledge of the history and cultural significance of coffee.
• Look for applicants with latte art experience who can make drinks quickly and efficiently.
• Look for applicants with a strategy for managing multiple drink orders simultaneously.
• Consider applicants who have experience dealing with difficult customers and complaints.

Social Role:

• Look for friendly, approachable applicants who can create a positive customer experience.
• Consider applicants who have experience working collaboratively with other baristas and team members.
• Look for applicants who understand and can represent the coffee shop brand and culture.

Self-Image:

• Look for applicants who can stay calm under pressure and handle unexpected situations.
• Consider applicants who have experience staying organized and efficient during busy periods.
• Look for applicants who have a positive attitude and energy throughout their shifts.
• Look for detail-oriented and focused applicants who take pride in their work.
• Consider applicants who are adaptable and able to handle unexpected situations.
• Look for applicants who have a friendly and approachable personalities.
• Look for applicants who are passionate about the coffee industry and motivated to learn and improve their skills.
• Consider applicants who have experience staying motivated during slower periods.
• Look for applicants open to feedback and willing to learn and improve continuously.

This list may not be exhaustive, but enough to give you a head start for your exam and/or interview process. 

For franchise coffee shops, you mostly get assistance and support when hiring baristas. This lessens the workload you need to start your cafe. 

Inventory Management 

Inventory management is another critical competency in running a successful coffee shop. This includes managing the supply of coffee beans, milk, syrups, sauces, and other ingredients you need to craft your beverages. 

You must also monitor other supplies, such as cups, napkins, straws, and stirrers. 

It is important to keep track of supplies and have your own inventory management system and documents to ensure you’re not completely running out of stock.

For franchise coffee shops, there is an advantage of having specific inventory management from the franchisor to help you monitor all ingredients and supplies.

Effective inventory management can help organize your supplies, keep track of inventory levels, and avoid waste. 

Bookkeeping and Accounting

Bookkeeping and accounting are essential in keeping accurate records of sales and expenses, managing payroll, and paying taxes. 

To keep track of sales, you can have Point of Sale software to capture every transaction and its corresponding amount easily. So you can easily export a file whenever you want, such that at the end of every month, to know your gross sales. 

At our coffee shop in Bulacan , we use Utak POS , an affordable POS most coffee shops here in the Philippines use for in-store transactions. 

For expenses, you can hire a bookkeeper or a professional accountant to help you organize all receipts and track all expenses. This would allow you to focus on other cafe management areas, helping you grow your business further. 

Maintaining a clean and safe environment

Customers want a clean and safe environment inside coffee shops. So it’s critically important to have a system to maintain cleanliness. 

Here are simple tips for maintaining a clean and safe environment post-pandemic: 

• Regularly clean and sanitize all surfaces and equipment, including countertops, tables, chairs, and coffee machines.
• Ensure that all food is stored and handled properly and that all staff is trained in food safety and hygiene practices.
• Implement regular hand washing and sanitizing protocols for both staff and customers.
• Use disposable or single-use items, such as paper cups and utensils, to minimize the risk of contamination.
• Provide customers with a welcoming and comfortable atmosphere by maintaining a clean and tidy shop and offering high-quality coffee and food. This can help to build a loyal customer base and attract new customers.

5. Find a Suitable Location and Select the Right Equipment 

If you find a great location for your coffee shop business, you win 50% of the battle. The reason is that physical stores in locations where there is medium to high foot traffic get more customers than those in distant areas.

Here are two location points where you can place your cafe to make it a winning coffee shop, even if you’re not starting yet. 

Best Nearby Locations 

Near hospitals/schools/parks

Set up your coffee shop near hospitals, schools, or parks where there is a high volume of foot traffic. Scout the area first and see the flow of potential customers in your target location. The higher volume of foot traffic, the higher chances you can attract more customers and increase your sales.

Inside malls 

Malls can be a good location for a coffee shop business as they already have a steady stream of customers throughout the day. However, you need to take note of the sale percentage the mall requires, as it can affect your profit margin. 

Purchasing Equipment and Supplies

A huge part of your investment if you decide to start your coffee shop from scratch goes into purchasing equipment and supplies.

This is where you should be most careful, as the right equipment and supplies can affect the quality of your coffee.

Here is the top equipment you’ll have to purchase for your cafe: 

Coffee brewing equipment : Invest in high-quality coffee brewing equipment that can produce consistent, great-tasting coffee. This could be coffee makers, French presses, and drip machines.

Espresso machines: If you plan to offer espresso-based drinks, invest in a good quality espresso machine. The better your espresso machine is, the better quality of coffee you can make. Example is this list of Starbucks drinks in the Philippines . 

At Hills & Valleys Cafe, we prefer to purchase espresso brewing machines. 

Some good recommendations for brewing machines are: 

• La Marzocco
• Nuova Simonelli
• Rocket Espresso

Coffee grinders: A coffee grinder is another essential piece of equipment that helps you grind coffee beans to the perfect consistency for your brew.

Refrigerators and freezers: You’ll need refrigerators and freezers to store milk, cream, and other perishable items.

Cups, saucers, and utensils: Don’t forget to stock up on cups, saucers, and utensils. Choose sturdy, high-quality options that can withstand repeated use.

Coffee beans and other ingredients: Invest in high-quality coffee beans and other ingredients, such as syrups, to create delicious drinks that keep customers returning.

The Philippines produces several types of coffee beans, including:

• Arabica: This type of coffee is grown in the highlands of the Philippines and is known for its mild, fruity flavor and aroma.
• Robusta: This type of coffee is grown in lowland areas and is known for its strong, bitter flavor and high caffeine content.
• Excelsa: This coffee is grown in the southern part of the Philippines and has a unique flavor often described as fruity and smoky.
• Liberica: This type of coffee is grown in the Batangas region of the Philippines and has a distinctive aroma and flavor, often described as nutty and floral.

In coffee shops in the Philippines, you will typically find a variety of coffee beans available, including blends that combine different types of beans to create unique flavors and profiles.

Marketing materials and suppliers : You’ll also need to find suppliers for menu boards, A4 posters, and other marketing suppliers. Finding a good graphic designer to help you with your daily social media content to attract new customers to your cafe is best. 

6. Select Your Ideal Coffee Shop Aesthetics and Concept

Your cafe design and theme will determine the atmosphere you want to set for your customers. It is best to choose it based on what your customers want in your city or location. An appropriate cafe design and theme makes it more enticing, plus gives the vibe you’re caring for your customers.

There are several popular coffee shop themes in the Philippines, including minimalist, Korean, rustic, industrial, boho chic, indoor garden, and pop culture-themed.

Here is a run-down of what each of these types means for you: 

A minimalist coffee shop theme is characterized by clean lines, neutral colors, and simple decor. This cafe type is ideal for customers who want a quiet and calming environment to work or relax in. 

Korean coffee shops are inspired by the trendy cafes in Seoul, focusing on minimalist design, pastel colors, and unique food and beverage offerings.

Rustic coffee shops often have a cozy and inviting atmosphere, with wooden furniture, exposed brick walls, and vintage decor.

Industrial coffee shops feature raw materials like concrete and metal, giving them a modern and edgy vibe.

Boho chic coffee shops are characterized by bright colors, bold patterns, and an eclectic mix of furniture and decor.

Indoor garden coffee shops incorporate plants and natural elements into the design, creating a serene and refreshing atmosphere.

Pop culture-themed coffee shops are perfect for customers who are fans of movies, TV shows, or music. These cafes often have decor and menu items inspired by popular franchises or artists.

7. Understand How Sales and Marketing Work 

Sales are the lifeblood of a coffee shop business. Marketing drives new customers to your cafe. These two key business components are essential to growing your coffee business, whether a startup or a franchise.  

As an aspiring entrepreneur, you can apply sales forecasting to your business. 

Sales Forecasting  

Sales forecasting is estimating how much revenue you can expect to generate. Though many variables affect sales, it is still important to have a good sales number in mind to target every month. 

Coffee shops typically consider the number of customers served daily, average ticket price, and operating hours to calculate sales.

To calculate profit, coffee shops subtract their total expenses from their revenue. This includes the cost of goods sold (COGS), rent, labor, utilities, and other operating expenses.

Here are more resources to learn basic knowledge about sales forecasting:

• Sales Forecast Formulas and Methods by Shopify
• The Ultimate Guide to Sales Forecasting  

Factors That Affect Sales of Coffee Shops in the Philippines

Several factors can impact the sales of a coffee shop in the Philippines. 

One primary key factor is location. If a cafe is easily accessible and located in high-traffic areas, you can expect it will have more sales as it attracts more customers.

Another thing to do considers is customer demographics. Coffee shops cater to different age groups or interests and may have different loyal customer bases.

If you have identified your target customer and ensure you’re doing the right marketing strategy to appeal to them, you’ll get more sales in return. 

Lastly, competition. The higher the competition in your location area, the more challenges you may have to attract customers. 

Effective Marketing Strategies

You need to promote your coffee shop and attract customers to get more in-store and delivery sales.

There is a misconception for franchise coffee shops that they don’t need to do any marketing campaigns. Partly true, given that the main branch or franchisor has an existing marketing team and effective marketing campaigns to promote every brand, including its franchise cafes.

However, it is best to own your franchise store and do the necessary marketing to attract new customers – aligned with your franchisor’s overall marketing strategy.

For startup coffee shops, here are some ways to get new customers and entice existing customers to buy more from you.

Social Media Marketing Strategies 

Invest in creating social media posts that are appealing to your target audience. You can hire a freelance graphic designer or do it yourself with Canva. Then, write captions that entertains or educates, alongside call-to-actions, to encourage your audience to visit your stores.

Social media platforms like Facebook, Instagram, and Tiktok are some places to publish content to bring more awareness to your brand.

You can invest in Facebook Advertising to push more discount promos and holiday or seasonal promotional campaigns to get more reach in your target area. 

In the Philippines, you can use Facebook Ads to get as low as Php10.00 to acquire a customer by sending you a message on your Facebook page. 

Customer Loyalty Programs 

Customer loyalty programs are another effective marketing strategy as you encourage customers to return to your cafe and make repeat transactions. You can add freebies to every number of purchases they make; this gives your customers a reason to buy more from you. 

Live Events 

Live music performances are one of the trending and effective marketing strategies of coffee shops in the Philippines. By giving their customers free entertainment and good vibes, they improve their customer experience. 

Ask For Google Business Reviews

If you’ve made a great customer experience, it is best to ask your customers for a review on your Facebook page or, better, on your Google Business.

First, you have to set up your Google Business. You can read this guide to start your own . 

You can create an A4 poster with a QR code and/or link to your Google Business review section. Your customers can scan the QR code, go to the link, and write a review about their experience in your coffee shop. 

Customer reviews serve as testimonials of the level of experience and quality of products your cafe offers to customers. This brings in new customers when people search for specific keyphrases, looking for available coffee shops within the area (e.g. coffee shop san jose del monte bulacan). 

8. Familiarize Yourself With Cafe Operations and Customer Service 

Cafe operations.

Cafe operations refer to the various activities involved in running the day-to-day workflow of a coffee shop or cafe. 

These include menu planning and pricing, food safety and sanitation, workflow optimization, quality control, staff training and development, and customer experience (more on this topic later). 

Menu Planning and Pricing 

You must offer a range of beverages and pastries catering to your target market’s tastes and preferences. This will comprise your menu. Knowing what type of menu and its inclusions is critical to ensuring your customers get the best products from you.  

It is best to conduct market research among all coffee shops in the Philippines, as well as upcoming trends in the global coffee scene, to get insights into what beverages and food you should cater to your customers. 

Aside from menu planning, consider the pricing of your coffee. Pricing your products affects your monthly profits. So ensure you know what your target product pricing is. 

Here is an example of a menu for a coffee shop in the Philippines: 

Food Safety and Sanitation

For any food-related business like a coffee shop, maintaining high food safety and sanctification standards is critical to success. Look for the basic and advanced relevant regulations and guidelines to protect your customer’s health. 

Workflow Optimization 

Streamline your coffee shop’s workflow to serve your customers quickly and efficiently. If you can reduce wait teams, this can increase customer satisfaction and thus, improve their overall customer experience. 

Analyze your operations. Check your production areas. What are the things you can improve to remove any inefficiency and things which may be causing delays? Consider rearranging your furniture and equipment to develop a more efficient store layout. 

Quality Control

Consistency in product quality is essential in a coffee shop. This is particularly important if you’re expanding your coffee shop to other locations, i.e. adding more branches for your startup coffee shop. 

You want to ensure all your products meet the same high standards every time. So seek quality control by regularly conducting a taste test of your coffee and other products to ensure they’re up to par. 

Customer Service and Experience  

The coffee shop with the best customer experience wins. Why? It is simply because if your customers feel they’re being served well and have the highest level of customer touch and experience, they’re likely to return to your store, increasing your overall sales.

So, think of ways how to create a positive customer experience. Consider factors such as ambiance, music, lighting, vibes, and anything else to design your coffee shop well.

You can also engage with your customers and ask for direct feedback, so you know any room for improvements in their customer experience. 

It is also important to train your baristas to deal with customer complaints. Not all customers you’ll be able to please, so have your staff trained enough to handle complaints effectively and empathetically. Develop a process for resolving issues quickly. 

Coffee Shop Success Factors and Challenges

What makes a cafe successful.

What makes a cafe successful is the quality of products and services, atmosphere and ambiance, location and accessibility, and strong customer base.

Let’s dive into each coffee shop’s success factors. 

Quality of products and services. The quality of your coffee, pastries, and service will greatly impact the success of your coffee shop. People buy your products, so use high-quality ingredients, invest in quality equipment, and always train your staff to provide excellent customer service. 

Atmosphere and ambiance: Create an inviting atmosphere where customers love to enjoy, relax, and return for more. Consider decor, lighting, music, and seating arrangements to create a safe and positive vibe that people will want to invest time in your store. 

Location and accessibility: Choose the right location with high foot traffic to attract more customers. Always consider the demographics of your customers and ensure you’re hitting it head-on with the proper location. 

Strong customer base: Apply the marketing strategies shared earlier to attract new customers and retain your existing customers. By providing customer loyalty programs, live events, and social media promotions, you can create a marketing campaign appealing to your target market.  

Challenges Faced by Coffee Shop Businesses

Starting and running a coffee shop business in the Philippines can be challenging. Here are some of the most pressing challenges faced by coffee shop owners.

High competition: High demand for coffee equates to high competition in the number of coffee shops constantly opening up. So you must find ways to differentiate your coffee shop from others in your location. 

Rising costs of ingredients and supplies. With inflation and many other factors, the costs for ingredients like coffee beans and milk can fluctuate, impacting your cost of goods sold and profit margins. It’s important to regularly review your costs and adjust your prices accordingly to remain profitable. 

Customer retention and loyalty: It is not easy to retain customers today. The more options your customers have, the fewer chances it is to get customer loyalty. Creating a solid customer atmosphere and developing new marketing strategies can build a great customer experience and customer base. 

Employee turnover: Hiring and training new employees is resource-intensive. And thus, you need to retain your employee as long as possible to reduce employee turnover and training costs. 

These challenges can be difficult to overcome, but staying current on current industry trends and best practices can improve your operations and properly set up your coffee for success.

Coffee Shop Philippines Frequently Asked Questions

How much does it cost to open a coffee shop in the philippines.

Opening a coffee shop in the Philippines can cost around ₱1,250,000 for the shop setup, equipment, and permit, plus about ₱155,000 for monthly expenses like rent, utilities, supplies, marketing, and staff costs.

How to start a small coffee shop business in the Philippines?

To start a small coffee shop business in the Philippines with a low budget, carefully plan your expenses, choose a strategic location, and consider offering specialty coffee or unique blends to attract customers. Additionally, consider cheaper alternatives for furniture and equipment, utilize social media marketing, and establish relationships with local suppliers to minimize costs.

Is a coffee shop a profitable business?

Yes, a coffee shop can be a profitable business. Generally, most coffee shops start to generate profits within the first few years, with sales expected to double by year five. To ensure profitability, managing startup costs, budget contingency funds, and carefully monitoring operations costs in the first year is important.

What qualifications do you need to run a cafe?

There are no specific qualifications required to run a cafe in the Philippines.

However, it can be helpful if you attend training, seminars, workshops, and certifications to have experience in the food and beverage industry. 

Is owning a coffee shop stressful?

Owning a coffee shop can be stressful, especially starting it from scratch.

However, with careful planning and proper execution, many coffee shop owners find it to be a rewarding and fulfilling business.

Is coffee a good investment?

Coffee can be a good investment, as it has a high demand and profit margin. 

What percentage of cafes fail?

Some studies show up to 60% of cafes fail within the first year. This highlights the importance of careful planning, management, and market research before starting a coffee shop.

Can I run a cafe with no experience?

You can run a cafe with no experience. 

However, having enough experience or a business background is important to avoid mistakes and succeed early in running a cafe.

What does a small cafe need?

A small cafe needs basic equipment such as an espresso machine. It also needs a menu, a point-of-sale system, and business permits and licenses to operate legally.

What are the problems in a coffee shop business?

Some common problems in a coffee shop business include high competition, rising costs of ingredients and supplies, customer retention and loyalty, and employee turnover.

Do coffee shop owners make money?

Coffee shop owners can make money, depending on location, competition, pricing, and management. It’s important to plan and manage the business to ensure profitability carefully.

Author’s Note : This entry was optimized by the best  Link Building Services Agency in the Philippines – SharpRocket.

Venchito Tampon

Venchito Tampon is the Founder and CEO of Hills & Valleys Cafe , a Philippine coffee brand, SharpRocket , an SEO company, and Blend N Sips , an eCommerce coffee distributor company. He is also the Founder and Lead Trainer of Rainmakers Training & Consultancy and motivational speaker , and Go Negosyo Mentor with a decade of experience in business and marketing. His expert advice has been featured in renowned publications such as Semrush, Ahrefs, Huffington Post and Forbes. He is also an international SEO spoken and has delivered talks in SEO Zraz, Asia Pacific Affiliate Summit in Singapore, and Search Marketing Summit in Sydney, Australia.

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How to Start a Coffee Shop Business in the Philippines

The coffee shop industry in the Philippines is thriving, with over 2,752 cafes and coffee shops in 2020. This growing demand presents a lucrative opportunity for aspiring entrepreneurs to enter the coffee shop business . Whether you dream of running a cozy neighborhood café or a bustling coffee hotspot in a prime city location, starting a coffee shop business requires careful planning and execution . In this step-by-step guide , we will explore the essential elements of starting a successful coffee shop venture in the Philippines .

Key Takeaways:

• Starting a coffee shop business in the Philippines offers significant growth potential, given the high demand for coffee and the increasing coffee culture in the country.
• Before diving into the business, it’s crucial to understand your motivations and set clear goals for your coffee shop venture.
• A coffee shop business can provide various benefits, including the opportunity to be your own boss, increase income , positively impact the community, unleash your creativity , and be part of the vibrant coffee culture .
• To start a coffee shop business in the Philippines , follow a step-by-step guide that includes market research, location selection, obtaining permits and licenses, designing the menu , marketing strategies, and maintaining customer satisfaction .
• By investing time and effort in planning and execution , you can increase your chances of success in the competitive coffee shop industry.

Why Start a Coffee Shop Business?

Starting a coffee shop business offers the opportunity to fulfill various personal and professional goals. Many aspiring entrepreneurs are drawn to the idea of being their boss and leaving a legacy through their business. Others see it as a way to increase their income while still working a full-time job. The chance to positively impact the lives of others by providing job opportunities is also a significant motivator.

For those with a background in the coffee industry, opening a coffee shop allows them to unleash their creativity and explore new beverage creations. Additionally, owning a coffee shop makes individuals a part of the vibrant coffee culture in the Philippines and offers flexibility in managing their time and spending quality moments with their families.

Entrepreneurship and Income

• Become your boss and have control over your business
• Potential to generate a steady income and increase financial stability

Impact and Creativity

• Provide job opportunities and positively impact the community
• Unleash your creativity by creating unique coffee beverages and menu items

Dream and Coffee Culture

• Turn your passion for coffee into a reality and fulfill your dream of owning a coffee shop
• Be a part of the growing coffee culture in the Philippines

Flexibility

• Manage your schedule and have the flexibility to spend time with your family

How to Start a Coffee Shop Business in the Philippines (7 Simple Steps)

Starting a coffee shop business in the Philippines can be an exciting and rewarding venture. With the country’s growing coffee culture and high demand for quality coffee shops, now is a great time to enter this industry. Follow these 7 simple steps to kickstart your coffee shop business:

• 1. Develop a Business Plan: Start by creating a comprehensive business plan that outlines your goals, target market, competition analysis, and financial projections. This plan will serve as your roadmap to success .
• 2. Secure Financing: Determine the amount of capital you need to start your coffee shop business, including leasehold improvements, equipment, inventory, and marketing expenses. Explore different financing options, such as loans or investors, to fund your venture.
• 3. Find the Perfect Location: Choose a strategic location with high foot traffic and proximity to your target market. Consider factors such as accessibility, parking, competition, and lease terms. A prime location can significantly impact the success of your coffee shop.
• 4. Acquire Necessary Permits and Licenses: Comply with the legal requirements for starting a coffee shop business in the Philippines . This includes securing permits and licenses from the local government, health department, and Bureau of Internal Revenue.
• 5. Set Up Your Coffee Shop: Create an inviting and functional space for your customers. Invest in high-quality equipment, comfortable seating, appealing decor, and a well-designed layout. Consider hiring skilled baristas to provide excellent coffee-making skills.
• 6. Source Quality Coffee Beans and Ingredients: Establish relationships with reputable coffee bean suppliers to ensure consistent quality. Offer a variety of coffee options, from single-origin to specialty blends, to cater to different tastes. Source fresh ingredients for your food offerings as well.
• 7. Launch and Market Your Coffee Shop: Generate buzz for your coffee shop through effective marketing strategies. Utilize social media platforms, create an appealing website, offer promotions, and collaborate with local influencers. Aim to build a loyal customer base and engage with your community.

By following these 7 simple steps, you’ll be on your way to starting a successful coffee shop business in the Philippines . Remember to prioritize quality, customer service, and uniqueness to differentiate your coffee shop from the competition. Good luck!

How to Open a Café with a Low Budget in the Philippines

If you’re looking to open a café in the Philippines without breaking the bank, here are some steps to follow:

1. Start with a Solid Business Plan

An effective business plan is crucial for any aspiring café owner, particularly when operating on a low budget . Outline your goals, target market, financial projections, and marketing strategies in detail. A well-structured plan will help guide your decision-making process and attract potential investors or lenders.

2. Find a Cost-Effective Location

Look for areas that offer affordable rent and have the potential for high foot traffic. Consider neighborhoods near colleges or business districts. Keep in mind that a smaller space can help minimize rental costs without compromising the overall customer experience.

3. Source Affordable Equipment

Choose practical and cost-efficient equipment that meets your café’s needs. Consider purchasing used or refurbished items from reputable suppliers. This can significantly reduce your initial investment without sacrificing quality.

4. Optimize Your Menu

Develop a menu that focuses on affordable yet delicious offerings. Prioritize ingredients that are locally sourced and budget-friendly. By maximizing cost-effective ingredients, you can maintain quality while keeping your pricing competitive.

5. Emphasize Efficiency and Productivity

A well-designed layout and efficient operations can help save money on staffing costs. Consider an open kitchen concept to reduce the need for additional staff. Additionally, invest in systems and processes that streamline operations and enhance productivity.

6. Utilize Low-Cost Marketing Strategies

Maximize the use of free or low-cost marketing channels to promote your café. Leverage social media platforms, create engaging content, and encourage customer reviews and recommendations. Collaborate with local influencers or communities to boost your online presence without significant financial investment.

7. Build Customer Loyalty

Focus on providing exceptional customer service and creating a welcoming atmosphere in your café. Offer loyalty programs, discounts, or incentives to encourage repeat visits and attract new customers through word-of-mouth. Engage with your community by hosting events or partnering with local organizations.

With careful planning , creativity, and resourcefulness, it’s possible to open a café on a low budget in the Philippines . Remember to prioritize customer satisfaction , offer a unique experience, and continuously adapt and improve your operations to stay competitive in the market.

Developing Your Menu for a Coffee Shop Business

Creating an enticing menu is a crucial aspect of running a successful coffee shop business . Your menu should not only showcase a variety of specialty coffee options but also offer delicious food items that complement the overall coffee experience.

When deciding what coffee drinks to include in your menu, consider whether you want to focus on serving specialty coffee . Specialty coffee is made from high-quality beans and brewed using specific techniques to bring out their unique flavors. It’s important to invest in the right coffee beans and brewing equipment to ensure the best cup of coffee for your customers.

Coffee Menu Suggestions:

• Espresso-based drinks: Offer classic options like espresso, cappuccino, latte, and macchiato. You can also experiment with flavored variations such as caramel, hazelnut, or vanilla.
• Pour-over coffee: Include options like V60, Chemex, or Aeropress for customers who appreciate the art of pour-over brewing.
• Cold brew and iced coffee: Provide refreshing options for those hot and humid days.
• Single-origin coffee: Highlight different coffee origins to showcase the diversity of flavors.

To enhance the overall coffee experience, pair your coffee drinks with food items that complement the flavors and aromas of the beverages. Consider offering a selection of pastries, sandwiches, salads, and even brunch items.

Food Menu Suggestions:

• Freshly baked pastries: Include options like croissants, muffins, scones, and cookies.
• Gourmet sandwiches and paninis: Offer a variety of fillings and accompaniments to cater to different preferences.
• Salads and wraps: Provide healthy and refreshing options for customers looking for lighter fare.
• Brunch specialties: Create signature dishes like avocado toast, eggs Benedict, or breakfast burritos.

When developing your menu, it’s essential to calculate the capital per cup for each coffee item and consider the overhead costs associated with food preparation and storage. By carefully evaluating the costs and pricing your menu items accordingly, you can ensure profitability while providing value to your customers.

Remember, the key to attracting and retaining customers is to focus on providing high-quality coffee and delicious food. Invest time and effort in sourcing ingredients, training your staff, and creating a welcoming ambiance to enhance the overall coffee shop experience.

Offering a well-curated menu that combines specialty coffee and flavorful food items is sure to delight your customers and keep them coming back for more.

Marketing Strategies for a Coffee Shop Business

Implementing effective marketing strategies is crucial for the success of your coffee shop business. By utilizing various tactics, you can increase brand awareness, attract new customers, and retain existing ones. Here are some key strategies to consider:

Social Media

• Establish a strong presence on popular social media platforms such as Facebook, Instagram, and Twitter to engage with your target audience.
• Showcase high-quality images of your coffee offerings and create compelling captions to entice potential customers.
• Run promotions, contests, and giveaways to encourage user participation and increase brand visibility.

Free Wi-Fi Email Capture

One effective way to capture customer information and build long-term relationships is by offering free Wi-Fi in your coffee shop. Require customers to provide their email addresses or log in via social media to access the internet. This allows you to develop a database of customer contacts for future promotional campaigns and email newsletters.

Facebook Advertising

Facebook advertising is a cost-effective way to target specific demographics and reach potential customers in your local area. Create engaging ads that highlight your unique selling points, such as specialty coffee blends, cozy ambiance, or mouthwatering pastries. Monitor the performance of your ads and make adjustments based on audience engagement and conversions.

By implementing these marketing strategies, you can effectively promote your coffee shop business and attract a steady stream of customers. Remember to regularly analyze the success of your campaigns and make data-driven adjustments to optimize your marketing efforts.

Maintaining Customer Satisfaction in a Coffee Shop Business

Maintaining customer satisfaction is crucial for the success of your coffee shop business. To ensure that your customers keep coming back for more, here are some key strategies to focus on:

Deliver High-Quality Coffee Beverages

Consistently delivering high-quality coffee beverages should be your top priority. After all, the primary reason customers visit coffee shops is for a good cup of coffee. Pay attention to the selection of coffee beans, brewing methods, and the skills of your baristas to ensure that every cup of coffee meets or exceeds your customers’ expectations.

Host Events to Engage Your Community

Hosting events is an excellent way to keep your café top of mind in your community. Consider organizing coffee-tasting sessions, latte art workshops, or live music performances. These events can create a sense of belonging and add value to your customer’s overall experience. It’s an opportunity to foster a stronger connection with your customers and showcase your expertise in the coffee industry.

Train Your Staff for Friendly and Attentive Service

Human interaction plays a vital role in customer satisfaction. Train your staff to provide friendly and attentive service, ensuring that each customer feels valued and appreciated. Encourage your employees to engage in good conversations, suggest personalized beverage options, and go the extra mile to meet customer preferences and needs. Positive interactions can significantly enhance the overall customer experience and build customer loyalty.

By focusing on these aspects, you can ensure that your coffee shop business not only serves excellent coffee but also creates a welcoming and memorable experience for your customers, encouraging them to keep coming back for more.

Building a Successful Coffee Shop Business: The Importance of Planning and Execution

Building a successful coffee shop business requires careful planning and effective execution . By following a strategic roadmap and paying attention to key factors, you can increase the chances of creating a thriving coffee shop that stands out in the competitive market.

1. Develop a Solid Business Plan

A well-structured business plan is the foundation for a successful coffee shop business. Start by outlining your goals, target market, financial projections, and marketing strategies. Conduct thorough market research to understand the demand for coffee shops in your area and identify any gaps or untapped opportunities. This will help you tailor your business plan to meet the specific needs of your target audience.

2. Find the Perfect Location

Choosing the right location is crucial for the success of your coffee shop. Look for areas with high foot traffic, such as commercial zones, business districts, or near universities or colleges. Consider factors like accessibility, parking availability, and proximity to complementary businesses. A well-chosen location can significantly impact the visibility and profitability of your coffee shop.

3. Create an Inviting Ambiance

The atmosphere of your coffee shop plays a vital role in attracting and retaining customers. Pay attention to the interior design, lighting, furniture, and overall ambiance to create a comfortable and welcoming space. Consider incorporating cozy seating areas, soothing music, and appealing decor that aligns with your brand image.

4. Craft an Impressive Menu

The menu is one of the core elements of a successful coffee shop business. Offer a variety of high-quality coffee drinks, including specialty brews, espresso-based beverages, and seasonal options. Complement your coffee selection with a range of delicious food items that cater to different dietary preferences. Present your menu in an enticing and visually appealing way to entice customers to try new offerings.

5. Implement Effective Marketing Strategies

Utilize various marketing channels to promote your coffee shop and attract customers. Leverage the power of social media platforms like Instagram and Facebook to showcase your coffee offerings, engage with your audience, and run targeted advertisements. Consider offering free Wi-Fi and implementing an email capture system to build a customer database and drive repeat business. Collaborate with local influencers, host coffee-tasting events, and offer loyalty programs to further enhance your marketing efforts.

6. Prioritize Customer Satisfaction

Delivering exceptional customer service is crucial for the success of your coffee shop business. Train your staff to be friendly, attentive, and knowledgeable about your coffee offerings. Encourage meaningful interactions with customers and seek feedback to continuously improve your service. Create a warm and inviting atmosphere where customers feel valued and appreciated.

By focusing on these key factors and executing your plans effectively, you can build a successful coffee shop business that attracts loyal customers and stands the test of time.

Starting a coffee shop business in the Philippines can be a rewarding and profitable endeavor. By following our step-by-step guide and investing time and effort in planning and execution, you can significantly increase your chances of success. It’s essential to stay focused on providing high-quality coffee and creating a welcoming atmosphere that keeps customers coming back for more.

When opening your coffee shop, prioritize meticulous planning and execution to ensure a smooth operation. Conduct thorough market research, choose a suitable location, and pay attention to the interior design and ambiance. Hiring a sufficient number of well-trained staff members is critical to providing excellent customer service and delivering a memorable experience.

Additionally, make sure to develop a menu that showcases your specialty coffee offerings and pairs them with delicious food items. Implement effective marketing strategies, such as utilizing social media platforms, offering free Wi-Fi with email capture, and leveraging Facebook advertising , to reach a wider audience and attract more customers.

Ultimately, success in the coffee shop business hinges on prioritizing customer satisfaction. Consistently deliver high-quality beverages, host events that resonate with your community, and foster positive human interactions to enhance the overall customer experience. With dedication, perseverance, and the right strategies, you can transform your coffee shop dream into a flourishing reality in the vibrant coffee culture of the Philippines .

Why should I start a coffee shop business?

Starting a coffee shop business offers the opportunity to fulfill various personal and professional goals. It allows you to be your boss, increase your income, positively impact the lives of others, unleash your creativity, turn your dream into reality, be part of the coffee culture, and have flexibility for your family.

How do I start a coffee shop business in the Philippines?

To start a coffee shop business in the Philippines , follow these 7 simple steps:

1. Develop a solid business plan.

2. Conduct thorough market research.

3. Identify a suitable location.

4. Pay attention to interior design and ambiance.

5. Hire an adequate number of staff members.

6. Create a coffee and food menu.

7. Utilize various marketing strategies to promote your coffee shop brand.

How can I open a café with a low budget in the Philippines?

If you want to open a café with a low budget in the Philippines , follow these steps:

1. Find a small and affordable space.

2. Focus on serving affordable menu items.

3. Explore partnerships with local vendors for cost-effective supplies.

4. Utilize social media and word-of-mouth marketing to promote your café.

How do I develop a menu for my coffee shop business?

When developing the menu for your coffee shop business, consider whether you want to serve specialty coffee and which coffee beans and brewing equipment are required. Pair your coffee drinks with food items to enhance the overall experience for your customers. It’s important to compute the capital per cup for each menu item and consider overhead costs. Focus on providing high-quality coffee and delicious food to attract and retain customers.

What marketing strategies can I use to promote my coffee shop business?

Utilize various marketing strategies to promote your coffee shop business:

1. Establish a strong presence on social media platforms.

2. Offer free Wi-Fi and capture customer emails for targeted marketing.

3. Utilize Facebook advertising to reach a broader audience.

4. Collaborate with local businesses for cross-promotion.

How can I maintain customer satisfaction in my coffee shop business?

Maintaining customer satisfaction is crucial for the success of your coffee shop business. Focus on consistently delivering high-quality coffee beverages, as this is the primary reason customers visit coffee shops. Host events relevant to your community to keep your café top of mind. Train your staff to provide friendly and attentive service, as good conversations and positive interactions can enhance the overall customer experience and increase customer loyalty.

What is the importance of planning and execution in building a successful coffee shop business?

Building a successful coffee shop business requires careful planning and effective execution. Start by developing a solid business plan that aligns with your goals, conducts thorough market research, and identifies a suitable location. Pay attention to the interior design, ambiance, café flow, and hire an adequate number of staff members. Pay attention to both the coffee and food menu, and utilize various marketing strategies to promote your coffee brand. Finally, prioritize customer satisfaction and work on building lasting relationships with your patrons.

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How to Start a Coffee Shop in the Philippines 

Disclosure: Small Business Philippines strives to provide relevant and accurate information in all its articles. However, some information in our articles may differ or might be outdated from what you can see or read directly from the establishments’ or businesses’ websites. Please get in touch with us directly for any discrepancies.

Coffee shops have become an essential part of the Filipino lifestyle, serving as spaces for socializing, working, and relaxation. As the demand for quality coffee and unique experiences continues to rise, there’s never been a better time to start your own coffee shop in the Philippines.

Starting a coffee shop in the Philippines can be a profitable venture if you:

• Understand your target market
• Offer quality coffee and unique experiences
• Have a strategic business plan in place

In this comprehensive guide, we’ll walk you through the steps to launch a successful coffee shop in the thriving Philippine market , covering everything from concept development and location selection to marketing strategies and business growth. Whether you’re a passionate coffee lover or an aspiring entrepreneur, this guide will equip you with the knowledge and tools needed to turn your dream of opening a coffee shop into a reality.

Unique Coffee Shop Ideas

Tips for writing a business plan, ideal locations for coffee shops, step 4: obtain necessary permits and licenses, equipment checklist for a coffee shop, supporting local coffee farmers, popular filipino coffee shop menu items, step 8: hire and train staff, offline marketing strategies, setting goals for growth, step 1: develop your coffee shop concept.

Before you dive into the details, you need to have a clear concept for your coffee shop. Consider the following factors:

• Theme and ambiance: Will you focus on a cozy, rustic atmosphere, or a modern, minimalist look?
• Menu offerings: Will you serve just coffee and a few pastries, or will you have a more extensive menu, including sandwiches and desserts?
• Target customers: Are you targeting students, office workers, or a specific niche audience?

To stand out from the competition, you might want to explore unique concepts for your coffee shop:

• Board game café: Offer a wide range of board games for customers to play while they enjoy their coffee.
• Art café: Showcase local artists’ work on your walls and host art events or workshops.
• Pet-friendly café: Create a space where customers can bring their pets and offer pet-friendly menu items.

Step 2: Write a Business Plan

A solid business plan is crucial to the success of your coffee shop. Your business plan should include:

• Executive summary: Provide an overview of your coffee shop, including your concept, target market, and unique selling points.
• Market analysis: Research the local coffee shop market, identify your competitors, and outline your target audience’s preferences.
• Marketing strategy: Explain how you will promote your coffee shop, including online and offline marketing tactics.
• Financial projections: Estimate your startup costs, ongoing expenses, and potential revenue.
• Use simple language: Avoid jargon and write in a way that anyone can understand.
• Be realistic: Base your projections on market research and make sure they’re achievable.
• Seek professional advice: Consult with a business advisor or accountant to ensure your plan is sound.

Step 3: Choose the Perfect Location

The location of your coffee shop is crucial to its success. Keep these factors in mind when searching for a location:

• Accessibility: Choose a spot that’s easy to reach by foot, car, or public transportation.
• Visibility: A visible location with good foot traffic will help attract more customers.
• Competition: Consider the nearby coffee shops and ensure there’s enough demand to support your business.
• Budget: Balance the benefits of a prime location with the costs of rent and other expenses.
• Near universities or schools: Cater to the student market with study-friendly spaces and student discounts.
• Office areas: Target busy professionals by offering quick, convenient coffee options and lunch items.
• Shopping malls or commercial centers: Benefit from the high foot traffic of shoppers and visitors.

To operate a coffee shop in the Philippines, you’ll need to secure the following permits and licenses:

• Barangay Clearance: Obtain clearance from the barangay where your coffee shop will be located.
• Business Permit: Register your business with the local city or municipal hall.
• Bureau of Internal Revenue (BIR) Registration: Register your business with the BIR and obtain a tax identification number.
• Food and Drug Administration (FDA) Permit: Secure a permit from the
• FDA to ensure the safety and quality of your food and beverage offerings. 5. Sanitary Permit: Obtain a sanitary permit from the local health office to ensure your establishment maintains proper hygiene and cleanliness.
• Department of Trade and Industry (DTI) Registration : Register your business name with the DTI, especially if you’re a sole proprietorship.

Step 5: Design and Set Up Your Coffee Shop

After securing the necessary permits and licenses, it’s time to design and set up your coffee shop. Consider the following aspects:

• Interior design: Create an inviting atmosphere that reflects your coffee shop’s concept and appeals to your target audience.
• Furniture and seating: Provide comfortable seating options and tables to accommodate various customer needs.
• Equipment: Invest in quality coffee machines, grinders, and other essential equipment for your café.
• Kitchen and storage: Set up a functional kitchen and storage area to prepare food and beverages efficiently.

Here’s a list of essential equipment for your coffee shop:

• Espresso machine
• Coffee grinder
• Brewing equipment (e.g., pour-over, French press, Aeropress)
• Coffee bean storage containers
• Refrigeration units
• Oven and toaster (for pastries and sandwiches)
• Display cases for food items
• Cash register or point-of-sale (POS) system
• Cups, glasses, and utensils

Step 6: Source Quality Coffee Beans and Ingredients

The quality of your coffee and menu offerings is crucial to your coffee shop’s success. To ensure you serve the best coffee, you need to:

• Research and source high-quality coffee beans, preferably from local or regional farmers.
• Sample different beans and roasts to find the perfect blend for your coffee shop.
• Build relationships with reliable suppliers to ensure a consistent supply of ingredients.

Sourcing your coffee beans from local farmers in the Philippines not only provides you with fresh, high-quality beans but also supports the local coffee industry . Some popular coffee-growing regions in the Philippines include:

Step 7: Develop a Delicious Menu

Offer a menu that appeals to your target market and complements your coffee offerings. Consider the following tips:

• Keep it simple: Start with a small, manageable menu and expand as you learn more about your customers’ preferences.
• Offer variety: Provide options for different dietary needs, such as vegan, gluten-free, and sugar-free items.
• Price competitively: Research your competitors’ prices and ensure your prices are competitive without sacrificing quality.
• Highlight local flavors: Incorporate Filipino ingredients and dishes to showcase local cuisine and appeal to both locals and tourists.

Consider including these popular Filipino menu items in your coffee shop:

• Pandesal: A traditional Filipino bread roll often served with butter, cheese, or jam.
• Ensaymada: A sweet, brioche-like pastry topped with butter, sugar, and grated cheese.
• Turon: A deep-fried banana roll with a sweet, caramelized exterior.
• Tsokolate: A rich, Filipino hot chocolate made from locally sourced cocoa.

A well-trained and friendly staff is essential to creating a welcoming atmosphere and providing excellent customer service. To ensure your team is ready for success:

• Hire staff with experience in the food and beverage industry, preferably with knowledge of coffee.
• Provide comprehensive training on your coffee shop’s menu, equipment, and customer service standards.
• Empower your staff to make decisions and provide suggestions to improve your business.

Step 9: Market Your Coffee Shop

Effective marketing is essential to attract customers and build a loyal clientele. Implement a mix of online and offline marketing strategies to promote your coffee shop:

H3: Online Marketing Strategies

• Create a user-friendly website: Provide information about your menu, location, and unique selling points. Ensure your website is mobile-friendly and optimized for search engines.
• Establish a social media presence: Engage with customers on platforms like Facebook, Instagram, and Twitter. Share regular updates, promotions, and eye-catching photos of your coffee and menu items.
• Use email marketing: Collect customer email addresses and send out newsletters with updates, promotions, and special offers.
• Register on online directories: List your coffee shop on popular directories and review websites like Google My Business, Yelp, and TripAdvisor .
• Distribute flyers and promotional materials: Hand out flyers in high-traffic areas, like malls, schools, and office buildings.
• Offer opening promotions: Attract customers with special discounts or freebies during your opening week.
• Host events: Organize events like workshops, live music, or poetry readings to draw in a crowd and create a buzz around your coffee shop.
• Network with local businesses: Collaborate with nearby establishments to cross-promote each other and generate referrals.

Step 10: Monitor and Adjust Your Business Strategy

Once your coffee shop is up and running, it’s essential to regularly evaluate your performance and adjust your business strategy as needed. Consider the following:

• Track sales and customer feedback: Keep a close eye on sales trends and listen to customer feedback to identify areas for improvement.
• Analyze the competition: Stay informed about what your competitors are doing and adapt your strategy accordingly.
• Seek customer input: Ask customers for feedback on your menu, service, and ambiance, and make changes based on their suggestions.
• Review your marketing efforts: Assess the effectiveness of your marketing strategies and adjust your tactics to maximize your reach and return on investment.

To ensure your coffee shop continues to grow set measurable goals for various aspects of your business, such as:

• Revenue targets: Aim for specific sales figures or growth percentages.
• Customer satisfaction: Strive for high ratings and positive reviews on online platforms.
• Social media engagement: Set goals for increasing your followers and engagement on social media platforms.
• Staff development: Encourage staff to improve their skills and knowledge, and provide opportunities for advancement.

Starting a coffee shop in the Philippines requires careful planning, dedication, and a focus on quality and customer satisfaction. By following the steps outlined in this comprehensive guide, you’ll be well on your way to launching a successful coffee shop in the thriving Philippine market .

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Complete Guide On How to Start a Coffee Shop Business in the Philippines

The Philippines is a country with a thriving coffee culture, making it an ideal place to open a coffee shop. Many factors contribute to the success of a coffee shop, including a well-developed business plan, effective marketing strategies, and cost-effective operations. Here are ten essential things to consider to help you start a successful coffee shop business in the Philippines.

**Before moving down the list of things to consider to start your coffee business, we will like to invite you to join us for an upcoming workshop and panel discussion by leading experts from tertiary institutions.  👇

Free workshop - collaboration with Skills future Singapore and Temasek Polytechnic. With full access to free market reports . 

Learn more about this Selling Food Online workshop . 

Type of Coffee Shop: 

There are different coffee shops, such as a traditional café, speciality coffee shops, or a franchise. Determine the kind of coffee shop you want to start and what sets it apart from existing coffee shops in your area.

This would also impact the investment you are putting into this venture. Have a look at the Coffee Shop Start-Up Cost Breakdown and the investment required for the different types of coffee shops. 

Business Plan: 

A well-written business plan is essential to help you outline your vision, mission, target market, financial projections, and marketing strategies. It should also include a detailed budget plan and a break-even analysis to determine when your coffee shop will become profitable.

To help you start a business plan, start with the exceedingly popular and easy-to-use business model canvas (we included a coffee shop BMC for your download and usage). 

You will also find the cafe value proposition canvas to be instrumental in building and readying your business plan. 

Location: 

Choosing the right place for your coffee shop is vital to its success. Look for areas with high foot traffic near office buildings, shopping centres, or busy streets. Consider factors like parking, accessibility, and visibility when selecting a location.

We have compiled and summarised eight factors that are essential when it comes to the analysing of a coffee shop location . If you are hands-on, use the free research analysis tool to sieve and find up the intent of your audiences at the different locations (e.g. malls, shopping places etc). 

Free access to generate and download food and beverage data analytics on ( this is the platform that we use to generate all the reports ): 

• F&B industry (Market Analysis) 
• Competitors stats (Competitor Analysis) 
• Competitors advert (what they are buying and how much they are spending) and more... 

Access this platform (Free)

Interior Design: 

Your coffee shop's interior design can significantly impact your customers' experience and perception of your brand. Choose a plan that fits the type of coffee shop you want to create, whether it be cosy and inviting, modern and chic, or eclectic and quirky.

Learn how the interior design, i.e. the size of your service area and your kitchen, impacts your coffee shop rental .

Case Study: Starbucks vs Mcdonalds

This case study sheds light on the importance of location, customer engagement and, most importantly, that having more location need not necessarily meant higher sales revenue. 

Read more: Starbucks vs Mcdonalds’ case study. 

Coffee Shop Equipment: 

Invest in quality equipment to serve top-notch coffee. Consider space, cost, and energy efficiency when choosing your coffee-making equipment.

For a start, consider renting a coffee machine, and learn about the coffee companies' various business models for you to have a coffee machine. 

Learn more about the rental of coffee machines . 

Coffee Menu: 

Offer various coffee options to cater to different tastes and preferences. Experiment with varying brewing methods, such as pour-over, French press, or espresso, and consider offering tea, pastries, and light snacks.

One of the most important of writing a coffee menu is understanding price framing. Read on and learn how to “persuade” customers to buy the items you want to sell by correctly pricing your items.

Here is a look at a mechanic known as price framing .

So, how much do you need to start your coffee shop? It might differ significantly from Makati Greenbelt to Cebu Mactan Island. Use the calculator to start building your dream cafe! 👇

Cost-Effective Operations: 

Running a coffee shop can be expensive, so finding ways to cut costs without sacrificing quality is crucial. Consider sourcing your coffee beans directly from local farmers, using energy-efficient equipment, and reducing waste using recyclable materials.

You make money with the net profit margin, deducting your expenses (operation, cost of goods) from your revenue (sales of your coffee shop). So, the more cost-effective your operation is, the better your profit margin. 

Read more about how to improve your restaurant operations . 

Marketing Strategies: 

Effective marketing strategies can attract new customers and build brand awareness. Use social media, local advertising, and referral programs to promote your coffee shop.

One of the most important channels for marketing is the use of social media. This article details how to use social media to grow your influence and positively impact your coffee shop revenue. 👇

Read Digital Marketing strategy for a coffee shop .  

Franchising Coffee Shops: 

Franchising is another option for starting a coffee shop business in the Philippines. It allows you to leverage an established brand, proven business model, and marketing support to create your own business.

While this is an easy way to start running your own coffee shop business, you need to decide the levels of control you want in your industry. Read about the various pros and cons of franchising coffee shops. 

Existing Coffee Shops: 

Keep an eye on existing coffee shops in your area to see what works and doesn't. Study their marketing strategies, customer experience, and product offerings to help you create a unique and successful coffee shop business.

In conclusion, starting a coffee shop business in the Philippines requires careful planning and execution. You can increase your chances of success by considering factors such as the type of coffee shop, business plan, location, interior design, equipment, coffee menu, cost-effective operations, marketing strategies, franchising, and existing coffee shops. Remember that success takes time and effort, so be patient and keep striving towards creating a successful coffee shop.

If you enjoyed this guide, check out our other articles and guide similar to “ How to Start a Coffee Shop Business in Philippines ”. Drop us a message on issues and matters related to starting or managing a cafe or coffee shop. 

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About US | OCM Profile

OCM (OnCoffeeMakers.com) was started in 2007 with the first webpage about coffee machines. And for a number of years, we focused on helping people find their desired coffee machine (we still are helping folks with that! So, if you are looking for coffee machines for office or restaurants - check out the link). 

In 2010, we started getting enquiries on restaurant marketing and we start to help food and beverage brands with their marketing. Below are campaigns and events that we have done over the years: 

OCM's campaigns: F&B Marketing Ideas by OCM 

OCM's Events: F&B Industry events by or with OCM

Check out this restaurant marketing guide to learn more about the many campaigns and companies we have worked with. 

Since then, we have also created many marketing workshops and classes for the F&B industry . Many of these modules are still running in tertiary institutions such as Temasek Polytechnic Skillsfuture Academy and also ITE College East COC classes, below are some snippets of our lectures and workshops: 

OCM’s F&B workshops: Food and Beverage Marketing Lectures | Workshops - click to watch classes on customer journey map, JTBD and more. 

So, if you are looking for industry practitioners to help you scale your coffee or F&B businesses, do drop us a message or book an appointment . Do also check out our various social media platforms on regular F&B and coffee market updates: 

For regular coffee (F&B) related videos: OCM Youtube

For Daily Coffee Inspiration (fun coffee content): OCM IG

For insights into the coffee (F&B) industry: OCM LinkedIN 

PS: For the coffee lovers, we continue to share coffee articles (and videos) and have also started a free coffee class section (with free online coffee training supported by coffee partners).

Contact Us  

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How To Start A Cafe Business Philippines 2024

How to start a cafe business in the Philippines?

As the Philippines economy is continuously changing…

You may be thinking about starting a cafe business.

Certain businesses such as cafes and coffee shops are getting so popular across the Philippines!

This leads to the main question: How to start a cafe business in the Philippines?

Throughout this article, we will be looking at…

1. How much capital to start a small coffee shop in the Philippines.

2. The expected income of a coffee shop.

3. Other frequently asked questions.

Before we begin, we will be using the words cafe and coffee interchangeably throughout today’s article.

Table of Contents

How To Start A Cafe Business In The Philippines In 7 Steps

So how do you start a cafe business in the Philippines?

In this section, we have broken down the process of setting up a coffee shop in the Philippines into seven easily readable sections.

Each section can be slightly adjusted.

Nonetheless, each step covers important areas when beginning a coffee business.

1. Decide If You Will Franchise Your Café Business Or Go, Solo 

One of the first decisions you will make when you start to look into how to start a cafe business in the Philippines is whether you will franchise your business or go solo.

We have recently spoken about a food cart business .

This covers the pros and cons of franchising, which may benefit you.

I have attached this full article above for your reference.

If you are looking to franchise a coffee shop…

There are a few different options.

Here is a list of available companies that are currently open to franchising coffee shops in the Philippines.

• Barako Frappe
• Bialetti Caffe Philippines
• Caffe La tea
• Coffee Bean
• Coffee Break
• Figaro Coffee
• Mocha Blends Café
• Seattle Best coffee
• Star Frappe

When looking at franchising coffee shops in the Philippines (or cafés)…

The most important thing is the overall costs.

Will a franchising business be worth your time financially speaking?

Many of the franchising coffee shops and franchising cafes in the Philippines have several options.

This can include small coffee bars, kiosks, or larger coffee stores.

Business terms and capital required will depend on these two factors.

We have included the franchising coffee shop’s cost in the relevant hyperlinks above for your convenience .

If you have the a good-sized amount of capital to start a coffee shop in the Philippines.

And you don’t feel 100% confident.

Then, you may benefit from the business support.

In that case…

Franchising is often a more appropriate decision.

On the other hand.

If you feel comfortable with the business and/or your capital is low.

You may see better results in starting a coffee shop business in the Philippines independently.

In other words – Going solo.

2. Legal Register Your Coffee Shop Business In The Philippines

The next step is the overall legal registration of your coffee shop business.

We have added this as the second step as it’s always an important area to focus on when starting any new business in the Philippines.

Nonetheless, if you are unsure of any parts of the business, it may be worth postponing registration until you are ready to open your business officially.

• Barangay Registration
• Business permit & Mayor’s permit
• Department of Trade and Industry registration
• Register your business in the Bureau of Internal Revenue (BIR)

We always recommend seeking legal advice at this stage.

(As we always do in every business).

But additionally…

Apart from registering a coffee shop business in the Philippines, is there anything else you need to know?

There are specific laws regarding foods and drinks to protect the welfare and wellbeing of the public.

This includes sanitary preparation and the health and safety of food.

I’ve attached information on the reference above.

If you are thinking about starting an Internet cafe business in the Philippines.

It would be wise to study SBN 908 .

When researching how to open a coffee, cafe, and internet cafe business in the Philippines…

We found that different areas have their own rules and processes.

For example, check out the guide for internet cafe regulations by the city government of Baguio.

We recommend visiting your local government office to see any requirements that are needed for this type of business.

3. Choose Your Café / Coffee Store Location

The following part of how to start a cafe business in the Philippines is choosing your location and theme.

Before we look at the location for your new coffee business in the Philippines.

We must first look at your original plan, which includes the type of coffee or cafe business you intend to open.

If you plan to start a small coffee kiosk business in the Philippines…

You will most likely find suitable locations near malls or call centers.

If you are opening up a larger establishment, then you may benefit from choosing a location downtown that is highly accessible to your customers.

The location is one of the most critical factors.

It’s not the only factor, however, but it can impact business growth and impact the overall financial earnings of a cafe business.

4. Select Your Café Design And/Or Coffee Theme

The theme is also another part that ties in with the location.

If you are in a tourist area.

A unique idea may work very well.

But if you are in a non-tourist area.

You will most likely target locals.

Therefore, your cafe business or coffee store needs to bring customers back again and again.

Remember the 80/20 law.

20% of your customers bring in 80% of sales.

So it’s wise not to go over the top with your theme.

But instead, focus on what will bring your ideal customer back again and again.

A great example of this is in Manila.

Close to the airport is a coffee shop that is zoo-themed.

The staff wore zookeeper outfits, and there were lots of animals all across the café.

This was a fantastic experience, but it would not be my new regular coffee shop as I go to coffee stores to work.

So it’s essential to have a balance.

Often coffee stores do very well when there is a balance between the location and the theme.

5. Purchase Your Café Equipment & Supply

When starting a cafe business in the Philippines, your equipment is a focus point.

If you have chosen to franchise a coffee business in the Philippines, equipment and supplies often have been taken care of to a certain degree.

This may be covered in your overall financial investment.

(Rules change depending on the chain of coffee stores you are working with).

Alternatively…

If you are starting a coffee business in the Philippines on your own…

You will need to find your equipment and supplies yourself.

Suppose you are trying to save capital.

(Which is always a wise decision when starting a new business).

You may be able to purchase second-hand equipment from coffee stores or even on Facebook!

Another option to reduce the costs is purchasing equipment in countries such as China.

Still, import tax and delivery must be taken into account.

If you are looking to purchase new equipment for your coffee store, several companies sell business equipment, such as mycoffeelab , mkphil , and coffeellera .

There are also several Facebook pages of companies advertising the rental of coffee equipment in the Philippines.

6. Recalculate Financial Figures And Projection

This is perhaps one of the essential areas of any business.

This has made our number 6th spot on how to start a cafe business in the Philippines because the decisions you will make on the five steps above will determine your financial figures and potential projections for the future.

Doing a rough guide of your finances is crucial before making any solid decisions.

One of my biggest mistakes is starting a business without careful calculation.

Here is a stupid mistake I made when I started one of my businesses in 2022…..

I purchased all the equipment and supplies but ran out of money :(.

Thus I recommend doing this before and after opening your business.

In other words, business owners must make a rough projection of costs when starting a new business.

Still, as more information is gathered, the costs and profit from a coffee shop business in the Philippines become clearer.

At this stage, you may need to adjust some aspects of your business.

So what do you need to include, and how much does it cost to open a coffee shop in the Philippines?

Towards the end of this article…

We have gone through how much it costs to open a coffee shop in the Philippines.

So we will leave this question for the time being and focus on the original question…

What do you need to include in the costs and prices?

Here are a few things to consider if you haven’t already added these to your café / coffee business plan.

• 12, 24, And 36 Months Projections
• Advertisement And Marketing Costs
• Break-Even Point
• Cleaning And Maintenance Fee Of Equipment And Property
• Coffee Equipment And Supply Price
• Customer Reward Program And Financial Implications
• Delivery/Takeaway Supply Costs
• Emergency Funds And Exit Strategies
• Franchisee Free
• Internet And Wi-Fi Costs
• List Of Total Cost And Price Of The Product Including Profit Margin
• Profit Reinvestment Plan
• Rental Costs
• Tax And Employees Benefits

You may wish to consider a few different areas depending on the size and idea of your coffee store.

Additionally, many franchising companies will already have the majority of this information, which makes your life much easier if this is your business decision.

7. Stop, Start And Continue.

At the beginning stages of starting a business in the Philippines…

Many different opportunities and challenges await.

If you have a robust business plan and have taken all the appropriate steps, you stand a much higher chance of succeeding when opening a coffee business in the Philippines.

Nonetheless, at this stage, it’s all about stop, start and continue.

The first stages stop.

For example, you have a small coffee kiosk, and after you have started your coffee business, you notice that you are spending 5000 pesos a month on marketing that is not bringing in any new customers.

This is an example of business behavior that may need to stop (or change) for the business to grow.

The second stage is starting.

What actions does your business need to start doing to help your business grow and transform?

Perhaps you need to start a referral program or offer a particular type of product that your customers want.

Don’t be afraid to combine a few different ideas to produce something unique.

The third stage is continued.

On the timeline of how to start a cafe business in the Philippines, you are probably at the beginning stages, and your business is likely relatively new.

However, over the past few weeks or months, what things do you need to continue doing to bring success to your business?

How Much Does It Cost To Open A Coffee Shop In the Philippines

The cost to open a coffee shop in the Philippines depends on several factors, including size, location, and type of coffee business.

A large coffee shop will cost upwards of 4,000,000 pesos.

A small kiosk or coffee bar will cost as low as 100,000 – 150,000 pesos.

It’s important to note that the costs above are based on several factors, and the total cost could be higher or lower depending on these factors.

There are a few things that you can do to lower the cost of opening a coffee shop business in the Philippines.

These include negotiating with suppliers, choosing a good but less expensive location, and renting equipment.

Alternatively, you may be looking at increasing capital to open a cafe business in the Philippines.

If this is the case, you may wish to look into business loans or crowdfunding.

What Is The Income Per Day Of Coffee Shop In the Philippines

Working out the income per day a coffee shop could earn in the Philippines is challenging without some basic information.

Nonetheless, as an estimate, if a small coffee shop makes an average of 10 pesos profit per cup and sells on average 30 cups of coffee, then the daily income excluding other costs will be approximately 300 pesos.

To answer this question…

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We have made some assumptions.

But it is possible to work out your expected income per day if you were to open a coffee shop business in the Philippines if you have the cost, price, and daily expenses of your business.

Download Coffee Shop Business Plan Philippines PDF

So as you know, opening a cafe in the Philippines or starting a coffee shop business is an idea that may entail many questions.

Perhaps you are looking to download a coffee shop business plan PDF ?

If so, Filipino wealth has you covered.

By clicking on the hyperlink above all by clicking on the business plan at the top of this page, you will be redirected to our official business plan template for small businesses in the Philippines.

You can use the plan to input your cost prices and other important information through the template.

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Starting a Coffee Shop Business in the Philippines: A Comprehensive

Explore our comprehensive guide on starting a coffee shop business in the Philippines. Learn about the initial capital required, potential earnings, industry growth, and why it’s a good investment. Discover unique business ideas, franchise opportunities, and the importance of a solid business plan.

The coffee shop industry in the Philippines has seen significant growth over the years, making it a potentially lucrative business venture. This article aims to provide a comprehensive guide on how to start a coffee shop business in the Philippines, addressing key questions such as the initial capital required, potential earnings, and the industry’s growth prospects.

Initial Capital: How Much Do You Need to Start a Coffee Shop in the Philippines?

Starting a coffee shop business in the Philippines requires a substantial initial investment. The startup cost for a coffee shop might reach up to ₱4.5 million. This budget includes various expenses such as securing a suitable location, purchasing the necessary equipment, and complying with legal and regulatory requirements.

The cost of opening a coffee shop can vary significantly depending on several factors. These include the size of the shop, the location, the type of coffee shop (franchise or independent), and the cost of equipment and furnishings. For instance, a franchise coffee shop can range from ₱6 million to ₱12 million, while a small independent coffee shop might require a lower capital investment.

It’s important to note that these are startup costs and do not include ongoing operational expenses. Operational costs include rent, utilities, salaries, supplies, and marketing expenses. It’s crucial to factor in these costs when planning your budget to ensure the financial viability of your coffee shop.

Coffee Shop Franchise vs. Starting Your Own Brand

When starting a coffee shop business, one of the first decisions you’ll need to make is whether to franchise an existing brand or start your own. Both options have their pros and cons. Franchising can provide a ready-made business model and brand recognition, while starting your own brand allows for more creativity and control over your business.

Franchising a coffee shop is a viable option for those who prefer to operate under a recognized brand. There are several coffee shop franchises available in the Philippines, each with its own set of franchise fees and requirements. Franchising can provide you with a proven business model, training and support, and instant brand recognition. However, it also comes with franchise fees and ongoing royalties, and you’ll have less control over your business operations.

On the other hand, starting your own coffee shop gives you more freedom and control. You can create a unique coffee shop concept, choose your own suppliers, set your own prices, and manage your business as you see fit. However, it also comes with more risks as you’ll be responsible for all aspects of the business, from creating a business plan to marketing your brand.

Is Coffee Shop a Good Investment in the Philippines?

The coffee shop industry in the Philippines has shown promising growth, making it a potentially good investment. However, like any business venture, it comes with its own set of challenges and risks. It’s crucial to conduct thorough market research, understand the industry trends, and create a solid business plan to ensure your coffee shop’s success.

The high demand for coffee, coupled with the country’s love for coffee, makes the coffee shop business a lucrative venture in the Philippines. Moreover, the coffee shop industry’s growth trend indicates a promising future for new entrants in the market. However, the success of your coffee shop will depend on several factors, including the quality of your products and services, your location, and your marketing strategy.

Potential Earnings: How Much Do Coffee Shops Make in the Philippines?

The potential earnings of a coffee shop in the Philippines can vary greatly depending on various factors such as location, size, and customer base. A small to medium-sized coffee shop in a good location with a well-curated menu and effective operations can generate a substantial income.

A small to medium-sized coffee business in the Philippines can typically make between Php 10,000 and Php 30,000 each day. However, these figures are estimates, and actual earnings can vary. Factors that can affect your earnings include your coffee shop’s location, the size of your customer base, your operating hours, and the prices of your products.

It’s also important to note that your earnings will also depend on your ability to manage your costs effectively. This includes your cost of goods sold (COGS), labor costs, rent, utilities, and other operational expenses. By managing these costs effectively, you can increase your profit margins and ensure the financial success of your coffee shop.

Monthly Salary of a Barista in the Philippines

The salary of a barista in the Philippines can vary depending on their experience and the size of the coffee shop. It’s important to factor in staff salaries when calculating your startup costs and ongoing expenses.

A typical salary range for a barista in the Philippines is around ₱95,000 per year. However, this can vary depending on the barista’s experience, skills, and the location of your coffee shop. In addition to salaries, you’ll also need to factor in other employee-related costs such as benefits, training, and uniforms.

The Growth of the Coffee Shop Industry in the Philippines

The coffee shop industry in the Philippines has been experiencing steady growth, driven by the increasing popularity of coffee and the evolving consumer preferences towards specialty coffee and unique café experiences. This growth trend suggests a promising future for new entrants into the coffee shop business.

With over 2,752 café and coffee shops in the country, it’s evident that the Philippines is a nation of coffee enthusiasts. The increasing demand for coffee, coupled with the country’s love for coffee, has led to a boom in the industry. This growth trend makes the coffee shop business a promising venture for aspiring entrepreneurs.

Coffee Shop Business Ideas

When starting a coffee shop, it’s important to have a unique selling proposition to stand out in the competitive market. Some business ideas include offering specialty coffee, providing a cozy and comfortable ambiance, hosting live music events, or even combining the coffee shop with a bookstore or art gallery.

Offering specialty coffee can help you attract coffee enthusiasts who are looking for unique and high-quality coffee experiences. You can source your coffee beans from local farmers or import them from renowned coffee-growing regions around the world. You can also offer a variety of brewing methods, such as pour-over, French press, and cold brew, to cater to different customer preferences.

Creating a cozy and comfortable ambiance can help attract customers who are looking for a place to relax, work, or socialize. You can invest in comfortable furniture, create a warm and inviting interior design, and provide amenities such as free Wi-Fi and power outlets.

Hosting live music events can help attract customers who are looking for entertainment. You can host live performances by local musicians, open mic nights, or even music-themed events. This can help create a lively and vibrant atmosphere in your coffee shop, making it a popular destination for music lovers.

Combining your coffee shop with a bookstore or art gallery can help attract customers who are interested in culture and the arts. You can sell books or artworks by local authors and artists, host book readings or art exhibitions, and create a cultural hub in your community.

Coffee Shop Franchise in the Philippines

Franchising a coffee shop is a viable option for those who prefer to operate under a recognized brand. There are several coffee shop franchises available in the Philippines, each with its own set of franchise fees and requirements.

Franchising can provide you with a proven business model, training and support, and instant brand recognition. However, it also comes with franchise fees and ongoing royalties, and you’ll have less control over your business operations.

When choosing a coffee shop franchise, it’s important to consider several factors. These include the franchise fee, the ongoing royalties, the training and support provided by the franchisor, the reputation of the brand, and the fit with your business goals and values.

Coffee Shop Business Plan

A well-crafted business plan is crucial for the success of any business, including a coffee shop. The business plan should outline the business’s objectives, target market, marketing and sales strategy, financial projections, and operational plan.

The business plan should start with an executive summary, which provides a brief overview of your business and your plans for its success. This should be followed by a company description, which provides more detailed information about your business, including its legal structure, location, and the products and services it will offer.

The next section of your business plan should be the market analysis, which provides information about your target market, including its size, demographics, and buying habits. This should be followed by the organization and management section, which outlines your business’s organizational structure and the roles and responsibilities of your team.

The next section of your business plan should be the products and services section, which provides detailed information about the products and services your coffee shop will offer. This should be followed by the marketing and sales section, which outlines your strategies for attracting and retaining customers.

The final section of your business plan should be the financial projections section, which provides detailed forecasts of your business’s revenue and expenses. This should include a sales forecast, an income statement, a cash flow statement, and a balance sheet.

Why Coffee Shop is a Good Business in the Philippines

The high demand for coffee, coupled with the country’s love for coffee, makes the coffee shop business a lucrative venture in the Philippines. Moreover, the coffee shop industry’s growth trend indicates a promising future for new entrants in the market.

The Philippines is a country of coffee lovers, which ensures a steady stream of customers for coffee shops. The increasing demand for coffee, coupled with the country’s love for coffee, has led to a boom in the industry. This growth trend makes the coffee shop business a promising venture for aspiring entrepreneurs.

However, the success of your coffee shop will depend on several factors, including the quality of your products and services, your location, and your marketing strategy. By offering high-quality products, selecting a strategic location, and implementing effective marketing strategies, you can attract a loyal customer base and ensure the success of your coffee shop.

In conclusion, starting a coffee shop business in the Philippines can be a rewarding venture, given the industry’s growth and the country’s love for coffee. However, it requires careful planning, a significant initial investment, and a deep understanding of the market. Whether you choose to franchise or start your own brand, success in this industry relies on offering a unique coffee experience, selecting a strategic location, and effectively managing your business operations.

Starting a coffee shop business in the Philippines can be a rewarding venture, given the industry’s growth and the country’s love for coffee. However, it requires careful planning, a significant initial investment, and a deep understanding of the market. Whether you choose to franchise or start your own brand, success in this industry relies on offering a unique coffee experience, selecting a strategic location, and effectively managing your business operations.

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How to Start a Coffee Shop in the Philippines: Costs and Considerations

Last Updated: January 21, 2023

If you’re dreaming of opening a coffee shop in the Philippines, you’re probably asking yourself a lot of questions, like: “How much does it cost?” , “What things do I need to budget for?” , or “What factors should I consider?”

There’s no hard and fast answer on how much it costs to open a coffee shop – your costs will depend on the type of coffee shop you want to open, the costs of retail space in your community, and several other factors. 

Types of Coffee Shop Startup Costs: Terms You Need to Know

There are several terms associated with costs when starting a coffee shop that you should be aware of. Knowing these terms can help you figure out your coffee shop budget and ultimately determine your total costs.

• Coffee Shop Startup Costs. These costs are exclusively associated with starting your business. Often, they include the costs for any security deposits, legal fees, equipment, administrative paperwork, etc. 
• Fixed Costs. Typically, fixed costs are costs that don’t change month to month. These costs can be your security payments, monthly rent, insurance premiums, etc. 
• Variable Costs. Variable costs can fluctuate depending on your hours of operation, sales volume, etc. These may include the amount of coffee beans, milk, sugar, cups and lids, etc. 
• Consumable Costs. Consumable costs are costs that are regularly expended because they are used up. They could be anything from cups, lids, paper napkins, towels, etc. 

Coffee Shop Cost Analysis. Your coffee shop cost analysis should include your initial startup costs, materials used for building out your coffee shop, design and layout services, contract work, etc. It must include your operational costs too.

Your cost analysis will help you determine how much money you need to take out as a bank loan, utilize personal investors, or pull out from your personal savings. 

Factors That Affect Coffee Shop Costs

The answer to the question, “How much does a coffee shop cost?” , always rests with the same first question: What type of coffee business are you planning to start?

For instance, do you want to open a small coffee kiosk/coffee stand? A coffee shop with seating? A coffee shop with a bookstore? 

Would you like to open a coffee shop that operates in the city or in the suburbs? Are you franchising or starting a coffee shop from the ground up?

So, let’s talk about those basic elements that make up the majority of the costs of a coffee shop. Generally, your coffee shop startup costs depends on several factors, including:

• Your coffee shop concept
• Coffee shop menu
• Furniture and fixtures
• Branding and marketing
• Legal and administrative costs
• Labor costs 
• Other additional costs based on your location or personal situation

Together, these costs can add up quickly. Nevertheless, it’s important that you tally up all of these costs and create a working budget. Throughout the process, make sure to stay honest with yourself about the cost of each element. Remember, the more you know, the better you will be able to manage the costs associated with starting your coffee shop. 

Cost Breakdown: How Much Does It Cost a Coffee Shop in the Philippines? 

There is no fixed price for how much it costs to open a coffee shop. How much your coffee shop costs largely depends on the kind of setup you’re going to build. However, here’s a rough cost breakdown of how much it costs to start a coffee shop in the Philippines.

• Location: Central Business District
• Floor Area: 30 sq. m
• Staff: 4 (depending on café hours)
• Food: Reheating Only
• Capital Expense: PhP 50,000 (Business Permit), PhP 450,000 (Fit Out), PhP 450,000 (Equipment)
• Operating Expense: Php 10,500 (Utilities), Php 101,250 (Supplies), Php 10,000 (Marketing Spend), Php 45,000 (Rent, assumed Php 1,500 per sq. m) Php 77,500 (Monthly Staff Cost; remuneration may vary)
• Floor Area: 50 sq. m
• Staff: 10 (depending on café hours)
• Food: Small Kitchen
• Capital Expense: PhP 50,000 (Business Permit), PhP 750,000 (Fit Out), PhP 750,000 (Equipment)
• Operating Expense: Php 17,500 (Utilities), Php 198,450 (Supplies), Php 20,000 (Marketing Spend), Php 75,000 (Rent, assumed Php 1,500 per sq. m) Php 182,500 (Monthly Staff Cost; remuneration may vary)
• Floor Area: 150 sq. m
• Staff: 12 (depending on café hours)
• Food: Full Kitchen
• Capital Expense: PhP 50,000 (Business Permit), PhP 2,250,000 (Fit Out), PhP 2,250,000 (Equipment)
• Operating Expense: Php 52,500 (Utilities), Php 472,500 (Supplies), Php 30,000 (Marketing Spend), Php 225,000 (Rent, assumed Php 1,500 per sq. m) Php 217,500 (Monthly Staff Cost; remuneration may vary)

Things to Budget for When Opening a Coffee Shop 

What do you need to budget for when opening a coffee shop? 

• Space. This includes the construction and design costs for turning it into a coffee shop, as well as the ongoing rent, maintenance, utilities, and insurance. 
• Equipment. This includes coffee brewing equipment, an espresso machine, both coffee and espresso grinders, a refrigerator, cooking equipment, blenders, point of sale system (POS), etc. 
• Supplies. This includes drinks (i.e. coffee, teas, syrups, milk, etc.), food (any breakfast and lunch items that you want to offer), and supplies (i.e. stirrers, cups, napkins, etc.).

You also need to budget for licensing and legal fees, advertising costs, payroll costs, taxes, and money to cover cash flow. 

The Bottom Line

There’s no hard and fast answer on how much it costs to open a coffee shop. Generally, your coffee shop startup costs depends on several factors, including your coffee shop concept, location, equipment, menu, labor costs, and other additional costs. 

Every coffee shop is different, so costs will vary greatly. While some owners are willing to pay a fortune for interior design for their café, others may prefer to design and decorate it themselves.

The final costs will change according to your own needs and desires. We hope our article will help you get started with your new coffee shop venture in the Philippines!

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How to Start a Coffee Shop Business in the Philippines

Coffee is the go-to beverage for people who wake up in the morning, students who pull all-nighters, or just people who generally want to get their caffeine fix for the day. Metro Manila, with its booming workaholic lifestyle, has people on their feet all day and as such, a cup of Joe is a perfect energizer for us.

The popularity of coffee shops in the Philippines does not seem to dwindle as more and more pop-up after the emergence of a local Starbucks. With coffee, its high demand and profitability would make it a smart investment. These tips will guide you in the dos and don’ts of basic coffee shop procedure that will ensure you have a proper and successful business!

1. Know your target market

Depending on your investment, if you could spend a little more on capital, then the more appropriate type of pricing you want is for high-end customers who consider coffee more prestigious and exclusive compared to your standard everyday coffee shops.

On the other hand, if you have a tight budget, it would be make more sense to cater to the everyday men and women who just want affordable but quality coffee. Set the price you think will be okay with the buying power of your prospective customers.

2. Research on your business location

In relation to your target market, the location should be similar in concept, choose the location that best complements your customers and where you think you would find them. If your target market would be people who spend more money, you certainly would not find them in a poorer part of a city.

A note for start-ups, malls are usually the most expensive place to set up, as their rental fees are exorbitantly high.

3. Invest in quality equipment

You can buy cheap equipment but the trade-off would be the performance and durability, whereas the more expensive stuff would be more reliable and process coffee quicker. This all depends on your budget and your instinct so it is best to keep in mind when comparing the operating capacity of either machine.

4. Introduce innovation

Often serving the usual Frappuccino does not satisfy the tastes of customers, so why not introduce your own take of the flavors? Offering a variety of dishes as well such as bagels and pasta can entice your customers to just dine in your shop instead of going somewhere else after buying a cup of your coffee.

5. Provide convenience

Most people go to coffee shops for the ambiance: warm and cozy. Go for the relaxing aesthetic look and soon you will be flourished by many visitors.

Another important thing you should take care of is having free Wi-Fi! A lot of people that visit coffee shops bring their laptops to take care of their e-mails.

6. Establish good supplier and customer relations

A good friendly interaction with both your supplier and customer can benefit everyone. First, your supplier may give you discounts and also the best quality coffee beans that they have in their inventory as well as tips on having better coffee roast.

Your customers will admire your customer-friendly attitude and service, and in turn will be a regular as well as making referrals to their friends and family. In addition, providing loyalty rewards to your faithful customers can further deepen their relationship with your coffee shop.

7. Employ staff with eager attitudes

Your manpower for the whole operation of the coffee shop is important. The way they treat the customers, their effectiveness in making coffee, and devotion to the company image will play a big role on how your customers will perceive your business.

15 responses to “How to Start a Coffee Shop Business in the Philippines”

Interested to start a small Coffee shop Business for a while now.. And with this article that i read, it really gave me a good knowledge of how to make my dream possible. Thank you

i am interest in coffee shop business

I might help you to put up coffe shop business just call or text 09556443247.

hello sir bryan how can you help me for me to start my own small coffee shop?

Im planning to start cafe shop business in my province in negros occidental. I don’t know from where i found good suppliers for coffee beans.

I want to open a beverage concept in Philippines but i don’t have enough money to do it.

I’m working as a Beverage Developer/Creator in United Arab Emirates, Dubai for 12 years, Please let me know what is the steps that i need to do for to start making business or if anyone interested to collaboration with that would be awesome.

Hello I would to know and planning on how to start a coffee shop in our province in pangasinan

I’d like to start my own coffee shop in Iloilo City. I already have planned menus and kinds of coffee to make. The only problem I have is how to set a budget. Target market is general population. People of all walks of life can come and enjoy our coffee and service.

Interestes to put up a coffee shop business? We will cover you just call or text 09556443247.

How much is the cost for coffe shop business

I love hearing comments…

I convince myself to put up one in my hometown.region v111 Leyte..I am just waiting for the right time.

I am currently now employed in Dammam City Saudi Arabia..

DID ANYONE OF YOU THINK OF A JOINT VENTURE, U CAN PARTNER UP WITH AN EXISTING ESTABLISHMENT, EATERY, FASTFOOD ETC. JUST PICK THE RIGHT LOCATION, DO A MARKET SURVEY USING THE STEPS ABOVE. MY NOVICE ADVICE, CIAO.

I am planning to start a coffee shop business however I don’t the place/building at this point. I would like to learn how the process how to start a business plan together.

I my self a coffee lover and at this moment i decided to put up my own coffee bar in my place.I have a fair amount of capital but no idea how to start.Any advice will be greatly appreciated.

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A business plan for "Kopinoy"

The essence of coffee as a satisfying drink that most people are looking for, considering that Filipinos consume about 21,600,000 cups of coffee a day according to Nestlé’s consumer marketing division, drove the owners to start a new coffee shop business, “Kopinoy”. The name, “Kopinoy”, is a combination of the word ‘coffee’, the primary product of the business, and ‘Pinoy’, the mainstream term used in referring to Filipinos, will be a newly established coffee shop that will put up a new way of making coffee and will provide a different and enjoyable customer service experience.

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How Much Does It Cost to Start a Coffee Business in the Philippines?

Updated: Dec 21, 2021

What is it like to break free from the 9-5 grind? Well, here’s the thing: you can’t really know for sure if you don’t try. But here’s the other thing: it’s one thing to say it, and another thing to do it.

In short, it’s hard. Especially when we’re talking business, when there’s a lot of money involved. Sadly, not everyone can just whip out a wad of cash and get into business. For many of us, money is most definitely an object.You know that you want to do it, but you don’t know how, or if you even can do it.

On this post, we’re looking at a real-life cost breakdown of starting a coffee business in the Philippines to help you get started with your own.

3 Ways to Start a Coffee Business in the Philippines

If you want to start your coffee shop in the Philippines, you have at least three ways to go about it.

First, you can franchise. There’s a whole breadth of established coffee brands should your heart desire to franchise. Popular brands such as Starbucks, The Coffee Bean & Tea Leaf, Tim Hortons’, UCC, and the like are all open for franchising. Many first-time entrepreneurs are encouraged to franchise because deployment is typically easy and low-stress. Plus, the business model is already established. However, the cost is anywhere from 6 to 12 million pesos, a sizable investment that has no guarantees ROI-wise. More importantly, there’s little flexibility on the concept and innovation.

Second, and perhaps the least popular in our list, is buying an existing coffee shop. You’d be surprised that there are entrepreneurs who actually buy established and well-performing coffee shops. Who can blame them? It’s the safer, much easier route. There are a handful of great reasons why you’d want to do this, chief among them is the opportunity to deliver specialty and good-quality coffee. However, it’s hard to find a very profitable business that is out for sale. What’s more, you’ll be bound to the existing branding, vision, and design and remodeling it will likely come out to be even more expensive than simply starting your own.

Finally, there’s the option of building a coffee brand from the ground-up. This offers aspiring café-preneurs to build something truly their own—from branding, culture, business model, food menu, and everything else.  Starting your own coffee shop gives you free hand and flexibility on business model, brand, design, language, and more. Because there’s no pre-existing branding to deal with, you’re free to be original, market on a specific concept, and place good focus on delivering great coffee. Of course, it’s worth noting that all these will be time-consuming and difficult to execute, especially for entrepreneurs without much experience in the food and beverage experience.

On this post, we’ll be using the third option as example. How much money is required for you to build a coffee shop in the Philippines?

Cost Breakdown: Starting a Coffee Business in the Philippines

Let’s get one thing straight: creating your own coffee shop will set you back money-wise. Be prepared to shell out a considerable sum. Without any further ado, here’s our rough cost breakdown of how much it costs to start a coffee business in the Philippines.

Small Cafe with No Kitchen

Specifications

Location - central business district

Food - reheating only

Floor Area - 30 sq m

*variable depending on cafe hours

Business Permit - PhP 50,000

Fit Out - PhP 450,000

Equipment - PhP 450,000

Rent* - PhP 45,000

Monthly Staff Cost** - PhP 77,500

Marketing Spend - PhP 10,000

Utilities - PhP 10,500

Supplies - PhP 101,250

*assumed PhP 1,500 per sq m

**remuneration may vary

Monthly Revenue* - PhP 337,500

*assumptions

-90 cups per day

-PhP 150 average spend with food

-PhP 13,500 daily revenue

Net Income Before Taxes - PhP 93,250

ROI - 10 months

Medium-sized Cafe with Small Kitchen

Food - small kitchen

Staff* - 10

Floor Area - 50 sq m

Fit Out - PhP 750,000

Equipment - PhP 750,000

Rent* - PhP 75,000

Monthly Staff Cost** - PhP 182,500

Marketing Spend - PhP 20,000

Utilities - PhP 17,500

Supplies - PhP 198,450

Monthly Revenue* - PhP 661,500

-126 cups per day

-PhP 210 average spend with food

-PhP 26,460 daily revenue

Net Income Before Taxes - PhP 168,050

ROI - 9 months

Large Cafe with Full Kitchen

Food - full kitchen

Staff* - 12

Floor Area - 150 sq m

Fit Out - PhP 2,250,000

Equipment - PhP 2,250,000

Rent* - PhP 225,000

Monthly Staff Cost** - PhP 217,500

Marketing Spend - PhP 30,000

Utilities - PhP 52,500

Supplies - PhP 472,500

Monthly Revenue* - PhP 1,575,000

-210 cups per day

-PhP 300 average spend with food

-PhP 63,000 daily revenue

Net Income Before Taxes - PhP 577,500

ROI - 8 months

The above numbers can feel overwhelming and discouraging, largely because it came from a bigger-scale original coffee brand breakdown. If you wish to build a smaller coffee business, you may do so, and it will cost you far less.

Still, a few million pesosare nothing to scoff at. For many of us, that amount can already make up for one entire lifetime savings.  There are several ways to come up with that initial cost. Your options are not limited to applying for a business loan. You can partner up with another entrepreneur or pitch to an investor to get financial backing. You can obviously finance the whole thing right out of your pocket.

Bottom-line: It’s your dream coffee shop. Surely, you’ll find a way.

Of course, there’s always the option to apply for a business loan in the bank.

Over to You—Ready to Start Your Coffee Shop?

Now that you know how much starting a coffee business in the Philippines costs, are you ready to start your coffee shop?

When you are, we urge you to take a free 30-minute consultation with one of our coffee business experts. In the call, you’ll get access to high-level insights on building a business in the coffee industry.  Book a session with us HERE and let's get to work.

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• Is Coffee Business Profitable in the Philippines?
• Article , What's New
• Cup Community
• No Comments
• 14 May 2023

In the Philippines, where coffee consumption has been gradually rising in recent years, the coffee business can be lucrative.

Furthermore, the increasing number of specialty coffee shops around the country has increased consumer demand for more distinctive and expensive coffee goods, which may translate into better profit margins. A coffee shop in the Philippines has the potential to be a successful enterprise with the right location, marketing strategy, and business plan.

The success of a coffee shop in the Philippines will, however, depend on a number of factors, including the location, competition, overhead costs, and pricing strategy, just like any other type of business. Success can be achieved with careful preparation, thorough research, and a strong commitment to offering high-quality goods and outstanding service to consumers.

More than just a prime location, a skilled barista, and visually appealing interior décor are needed to establish a successful coffee shop. Planning ahead, working hard, and paying attention to detail are required. We’ll provide you some advice on how to open a profitable coffee business in this article.

How much does it cost to start a coffee shop business in the Philippines?

The estimated cost of starting a small to medium-sized coffee shop in the Philippines can range from Php 500,000 to Php 2,000,000 or more. However, it’s essential to note that this is just an estimate, and the actual cost can vary depending on various factors and unforeseen expenses.

It’s critical to conduct thorough research and create a detailed business plan to accurately estimate the cost of starting a coffee shop in the Philippines. Additionally, seeking advice from professionals, such as accountants, lawyers, and business consultants, can help ensure that you have a realistic budget and plan in place.

How much does a coffee shop earns per day in the Philippines?

Giving a precise figure for a coffee shop’s daily revenue in the Philippines is difficult because it depends on a number of variables, including its location, size, menu items, and customer. The daily revenue of a coffee shop can also vary depending on the day of the week and time of the day, as well as the season.

A small to medium-sized coffee business in the Philippines can typically make between Php 10,000 and Php 30,000 each day. This estimate, however, is predicated on the idea that the coffee shop is situated in a desirable area with a consistent stream of patrons, a nice menu, and effective operations. The actual daily revenue of a coffee business may be greater or lower than this estimate.

It is crucial to understand that a coffee shop’s profitability depends on both the amount of revenue it earns and the amount it spends on overhead expenses like rent, utilities, supplies, and personnel. Running a successful coffee shop requires careful financial planning and administration.

Things to remember on how to set up a successful coffee shop

Develop a business plan.

You must have an effective business plan in place before opening your coffee shop. Your vision, target market, budget, and marketing strategy should all be included in this plan. A well-written business plan will assist you in obtaining money, attracting clients, and maintaining focus on your objectives.

Finding the right location

The success of your coffee shop depends on choosing the proper location. Look for a location with a lot of foot traffic, easy access, and parking. The neighborhood’s demographics, rival businesses, and zoning regulations should also be taken into account.

Coffee shop branding is essential for several reasons. First and foremost, branding helps in giving your coffee shop a distinct character and sets it apart from other businesses. It creates a personality for your coffee shop that customers can identify with, and it helps to establish a loyal customer base.

You can get inspiration from the Top Coffee Shops in the Philippines like Starbucks, The Coffee Bean and Tea Leaf, Bo’s Coffee, Seattle’s Best, Tim Hortons, UCC Coffee and many more.

Interior Design

Just as crucial as the caliber of your coffee is the atmosphere of your coffee shop. Make a friendly environment that represents what you offer and appeals to your target audience. Spend money on comfortable seating, proper lighting, and mood-enhancing music.

Equipment and supplies

To make high-quality coffee and offer top-notch customer service, your coffee business needs equipment and supplies of the best possible quality. Purchase espresso makers, grinders, brewers, and dishwashers.

Don’t forget to stock up on essentials like coffee, milk, sugar, and cups.

Hire skilled baristas

Your baristas are the face of your coffee shop. They should be skilled in making different types of coffee, knowledgeable about the coffee industry, and have excellent customer service skills.

Hire seasoned baristas that are enthusiastic about coffee and committed to giving your customers a memorable experience.

Offer a variety of products

Even if coffee is your primary product, expanding your menu to include other foods and beverages can expand your consumer base. Think about providing smoothies, salads, sandwiches, and pastries. Ensure that the quality and freshness of these products meet your customers’ expectations.

Marketing Strategy

Your marketing strategy should include both online and offline methods to promote your coffee shop.To reach your target audience, use email marketing, social media platforms, and search engine optimization. Create events, give deals, and collaborate with nearby companies to raise your profile.

Provide exceptional customer service

Your coffee shop’s patrons are its lifeblood. Offer them a warm environment, high-quality goods, and outstanding customer service. Teach your employees to interact with consumers, respond to their issues, and go above and beyond their expectations.

In conclusion, it should be noted that opening a successful coffee shop involves careful preparation, perseverance, and attention to detail. You can improve your chances of success and cultivate a devoted clientele by paying attention to these suggestions.

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Last Updated on 23 May 2023 by Cup Community

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Coffee Shop Business Plan

• Food Business Ideas

If you are planning to open a coffee shop business then, the basic and foremost thing is to prepare a realistic and detailed business plan. It will be beneficial in number of ways: It helps you to accomplish your desired goals and objectives, to make important decision easily and effectively in no time and to attract potential investors and lenders.

It is necessary that your coffee shop business plan attract investors and lenders. This should tell them about your goals and objectives, how you will be able to achieve to desired goals and objectives, management plan, marketing plan, financial plan, etc in brief.

Below is sample business plan for a coffee shop:

Taste blender

Business Plan for the Period

Starting January 2008

Business Overview

Business history : Taste blender is a new coffee shop, located in Old Town. We provide you best coffee, tea, cappuccino and frozen cappuccino. Currently there is no other coffee shop in this area. Our target audiences are students, friends, artists and families of all ages.

Vision and Mission Statement : Taste blender is the first coffee shop in Old town. Our mission is to serve best product at very reasonable price with pleasant atmosphere, which can be afforded by everyone easily.

Objectives : Our primary objectives over the next year are:

• Introduce homemade cookies, brownies and cakes.

• Renovate our space in Old Town.

• Offer free delivery service in schools, office, home.

• Create cozy and friendly environment.

Ownership : Taste Blender is a general partnership between Tessa and Michaela Mason.

Location : Taste Blender is located in Old Town, New York.

Products and Services : Description of Products and Services:

• Taste Blender will offer high quality coffee, tea, cappuccino and frozen cappuccino at a very reasonable price. All drinks are made with high quality ingredients

• Our next plan is to introduce homemade cookies, brownies and cakes. You can find car title loans with no income verification online if you need cash upfront to start your business.

Industry Overview

Market Research : There is no other coffee shop in Old Town.

Size of the Industry: Coffee shop industry is nationally very big, but in Old Town the nearest one is more than 6 or 7 miles away.

Industry Outlook : We can say that, our coffee has uniqueness, which will lead our business towards success and with the new innovations we will make changes in our ingredients and introduce new recipes.

Marketing Strategy

Target Markets: Our target audiences are students, friends, artists and families of all ages, who want to relax at nice, quiet and cozy place.

Description of Key Competitors : Our biggest competitor is “The perfect cup” with a “Tea room”.

Analysis of Competitive Position : Our friendly environment and low pricing strategy will be the key to our success.

Pricing Strategy :

• We will offer four sizes of drinks, small $2.00, medium $2.50 and large $3.00.

• Our cookies and brownies will sell for $1.50 each.

Promotion Strategy: We intend to advertise on Internet, television and newspaper.

Management and Staffing

Management Team : Tessa and Michaela will share their responsibilities equally.

Staffing : We will hire about three or four waiters.

Labor Market Issues : We will hire high school students who are looking for part time or full time job. In this area there are number of high school students looking for work.

Implementation Plan : Implementation Activities and Dates:

• Begin building renovation 12/08

• Complete renovation 2/15/08

• Begin preliminary advertising 2/15/08

• Purchase and setup equipment 2/15/08

• Open for business 3/1/08

Financial Plan : Your financial plan will begin with balance sheet, then your income statement and in last is your cash flow statement.

Conclusions : After making your coffee shop business plan the last part is conclusion. Conclude your entire coffee shop business plan, read and proofread your business plan in order to get error free draft.

iSource Biz provides custom and professional business plan writing services. For more information, please visit

Business Plan Business Plan Writers

by Ayaz Haider To get further help and information on market & investment research, you can visit: http://www.isourcebiz.com http://blog.isourcebiz.com URL: http://www.isourcebiz.com

Tags: Business business plan coffee coffee shop business

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The Ultimate Guide to Starting a Coffee Stall/Mobile Coffee Shop

Coffee is one of the most popular beverages around, and starting a mobile coffee shop, like a coffee stall, is an extremely simple business idea with plenty of potential. As long as you have the right knowledge, determination, and love for this oh-so-bitter beverage, then you’re surely going to succeed in making this business work.

This article will discuss everything you need to know about the mobile coffee shop business in the Philippines: what it is, what opportunities it may have, and how you can get started.

What are you waiting for? Let’s get brewin’!

What’s a Coffee Stall Business?

A coffee stall or mobile coffee shop is a non-permanent establishment that serves different kinds of coffee beverages. Simply put, it’s a cafe on wheels.

Coffee is an ancient drink and has been around for a very long time and its exact origins were forgotten in history. The very first cultivation of this plant happened in Yemen. From there, it gave rise to a new culture of coffeehouses, which spread across the world.

Today, coffee is the most popular drink in the world , with over 450 million cups being consumed every day.

The Philippines is no exception. Practically everybody drinks coffee, though some might like it more than most. And without exception, everybody knows another person who’s an absolute coffee enthusiast.

As the population grows, so does the demand for coffee. And today, there are many popular and niche coffee places that you can go to around town.

However, not all of them are easy to locate, especially if you live in the province or other rural towns.

From the customer’s perspective, they can especially miss their morning brew when they’re hurrying on the way to work, if they’re not in a downtown area, or if there just isn’t any decent coffee place where they are.

This is where mobile coffee shops come in.

Because you can move around, mobile shops can go where the customers are. This flexibility will surely endear you wherever you plan to set up shop. Plus, there are many other perks that this business model can grant an enterprising brain.

Factors to Consider Before Starting a Mobile Coffee Shop Business

Now that you know what the business is all about, you might be itching to start your mobile coffee shop in the Philippines.

But not so fast! While a mobile coffee shop has a simple business premise, it can be a complicated industry, especially for those who are complete beginners in the trade. Before you can begin, you need to have a good understanding of the business and the factors that can affect it.

One of the most important considerations when you’re running any mobile food or beverage business, is the legalities behind it.

While the Philippines have a rich history of food being sold from street vendors, stalls, and carts, there aren’t very many dedicated food truck businesses in the country.

Although it means that you have less competition and are likely to succeed in your niche if you do your job well – it also means that it can be confusing to navigate the necessary permissions and policies that you need to obtain to start a business as there is no comprehensive guide.

Fortunately, it’s not that different from registering a brick-and-mortar coffee house. Here are the following legal documents that all businesses in the Philippines have to secure:

• DTI registration
• BIR registration
• Mayor’s permit

Here are a few other things specific to a mobile shop:

• Vehicle registration.
• Driver’s license
• Barangay permit (From the barangay you want to operate in)

While there aren’t any comprehensive national guides, this doesn’t stop you from talking to government officials in various agencies about the things that you must do to satisfy the regulations in their area.

Menu and Specialty

One fundamental aspect of your mobile coffee place is your menu. Specifically, what kind of coffee do you serve, and how? To answer this, you need to know the coffee ins and outs of the product that you’re trying to serve.

Types of Coffee Beans in the Philippines

If you’re a die-hard coffee person, then you already know that there are four main types of coffee beans. Since the people you will be serving will most likely also have a distinguished taste, it’s important that you can tell the differences between these four main types of coffee.

• Arabica beans (Coffea arabica). Accounting for about 60% of the world’s coffee supply, these beans are grown at a high altitude in places with consistent rainfall. Arabica beans of higher grade have a lively body and a gratifying level of acidity. They can also have complex multi-layered tastes and smells.
• Robusta beans (Coffea caniphora). Second only to Arabica in being the most common coffee produced, Robusta is a hardy plant that is grown in a wide range of altitudes and environments, incluing lowlands. In the Philippines, it can be found in the Southern Tagalog regions. It contains twice as much caffeine as Arabica, but is just as smooth. For those who enjoy cream and sugar, this coffee is for you.
• Liberica beans (Coffea liberica). Nowadays, Liberica is more difficult to find in the coffee industry, yet this variety has a significant history in the development of coffee as it was once grown as an alternative coffee when coffee rust ravaged the industry around 1860 . Locally referred to in the Philippines as Kapeng Barako , it packs a powerful punch and has a distinctive chocolaty and smoky flavor. Although its strong aroma and consistency may be overbearing to some, many love its spicy undertones.
• Excelsa beans (Coffea excelsa). Only 7% of the coffee consumed worldwide is Excelsa, which is mostly grown in Southeast Asia, including the Philippines. This type is frequently included in blends to give it a boost in complexity and flavor. Excelsa has a tart and fruity body with notes of a mild roast that are also dark and smoky. Coffee aficionados from all over the world are enticed by the unique flavors that Excelsa creates.

Types of Coffee Brews

Aside from the type of coffee beans that you brew, it’s also important that you know the main kinds of brew that you can serve. This is a primary concern as well because you’re going to need the accompanying equipment if you want to serve coffee in a certain way.

• Drip Brew. For this brewing type, ground coffee is added to a brew basket and put in an automated coffee maker. A typical cup of coffee is produced by allowing water to flow through the grinds with the help of gravity.
• Pour Over. This method of brewing involves slowly pouring hot water through coffee grinds that are placed in a filter basket. The coffee is then drip-brewed into a single cup, producing a strong beverage.
• Cold Brew. To make a cold brew, coarsely ground coffee is infused with warm water for a protracted length of time. As a result, the drink becomes more caffeinated and less bitter.
• Espresso. You'll need an espresso or cappuccino machine to make one of these. These devices filter a filter holding finely ground dark roasted coffee beans with pressurized hot water.
• Ristretto. Pressurized water is poured through the coffee grinds to produce a beverage that is brewed similarly to espresso – but you would only need half as much water. An espresso shot that is more concentrated and darker is produced by the shorter brewing period.

Types of Coffee Drinks

Espresso, steamed milk, and froth are the three main components of most coffee drinks, and varying types of it can be available on your mobile shop.

Depending on the specific tastes of your clients, additional toppings may be added to each variety of coffee. Here are a few examples of coffee drinks and potential cup combinations that you might want to add to your mobile coffee shop's menu.

Remember though that drink ratio is often a recipe matter, and will vary from shop to shop.

• Espresso. Arguably one of the most popular types of coffee in the country, the espresso is a must-have in any coffee shop, mobile or not. You’ll need a little over 1 ounce of highly concentrated coffee to make this.
• Double Espresso. The Italian term for "double" is "doppio," which is also used to refer to a double espresso. This beverage is very concentrated and will often only be for coffee enthusiasts.
• Americano. Although they are essentially simply one shot of espresso diluted with three ounces of hot water, Americanos are a common breakfast beverage. The water dilutes the espresso while keeping the caffeine content high.
• Macchiato. Macchiato isItalian for "mark" or "stain." This is a reference to the mark that steamed milk makes when it is dashed into espresso, which is the surface of the beverage.
• Cappuccino. In Italy, this rich coffee beverage is frequently enjoyed for breakfast, and it’s the same here in the Philippines. Due to the various flavorings that can be added and the thick foam layer, it is frequently linked with comfort and indulgence.
• Cafe Latte. Since the amount of milk in a cafe latte reduces the acidity and bitterness of the coffee, it is thought of as an introductory coffee drink. To make the latte sweeter for those who want it, flavoring syrups are frequently added.
• Mocha. The mocha is seen as a cross between coffee and hot chocolate. The addition of cocoa powder or syrup gives the dish a rich, creamy taste while balancing the espresso's acidity.
• Iced Coffee. Iced coffees are particularly popular during hot summer months. There are several variations in the recipes, with some places preferring to replace the water in the dish with milk.

One of the best advantages of starting a mobile coffee business is that it requires far less capital than creating a physical location for a cafe or coffeehouse. This means that you can be a bit more flexible with your financing – some can even start their coffee stalls with just their savings.

Nevertheless, whatever financing options you have, you must take note of the following types of expenses for your coffee shop.

Start-Up Costs

As you can get from its name, startup costs are the expenses that you have to spend while you’re starting your coffee business. These can be things such as the following.

• Vehicle purchase
• Mobile coffee shop construction/customization
• Coffee-making equipment
• Initial supplies
• Licensing and registration costs

Ongoing Costs

Also often termed maintenance costs, these are the expenses that you have to pay as time goes by. Although not big as startup costs, these do stack up over time and should be one of your primary concerns as a business.

Here are some examples of ongoing costs for a mobile coffee house business.

• Truck and equipment maintenance
• Employee salaries
• Insurance, etc.

Coffee Truck Construction

Next, consider how you’re going to have your food truck made.

You might run into some trouble when shopping around for solutions that can help you turn your vehicle into a coffee truck. This is because there are not that many food trucks around, so there aren’t very many customization shops that sprung up to cater to that particular demand.

Nevertheless, you should still be able to talk to your local welding or automotive shops and find a solution. It might take a little bit more planning and cost, but it’s going to be well worth it in the end.

Location and Route

The last factor that you need to consider is your location and route – things that you should plan for even before investing in your vehicle.

Some barangays might have zones dedicated to food trucks, carts, and other businesses like yours, but your selections may be restricted. However, you often get to choose the area. You can't invade a competitor's territory.

You should also investigate nearby tourist attractions, business hubs, job sites, educational institutions, and so on.

You might also consider collaborating with a food truck that offers foods that go well with yours. A coffee truck looks excellent next to a food truck that serves pastries.

You’re going to have a unique situation depending on your location, so you need to be sure of the logistics and legalities first and foremost.

How to Open a Coffee Stall/Mobile Coffee Shop in the Philippines

Once you know the foundations of owning and running a mobile coffee stall, you have everything you need to get started. But exactly how are you going to launch a project as significant as this? Here are the steps.

Phase 1: Plan your business

The very first step to making your mobile coffee house dream come true is not buying a truck and having it renovated. It’s much less exciting, but very very important: planning your project properly.

Failing to plan is planning to fail, as they say, so make sure that your business plan is solid. Here are a few points to consider.

• Conduct market research. This is a specific type of research designed to help you figure out who your customers are, what their wants are, and who your competitors are. Learning those three things will get you a long way towards not just starting your coffee truck, but making it into a success.
• Research your industry. Just because you drink two cups ofcoffee a day doesn’t mean you know everything you should about making and selling coffee. Research what makes your industry tick, talk to cafe owners, research potential suppliers, and figure out where the demand lies before committing.
• Figure out costs. Based on the kind of coffee shop you’re envisioning, figure out an estimate of how much money you need to start. Include also in your cost calculation the first few months of maintenance cost for your operation.
• Scope out potential locations. You should already have two or three potential ideas for the location of your mobile coffee house. Research them, figure out their peak hours, how difficult it is to get there, and the general atmosphere of the place.
• Understand legalities. Know what you need to do to be a legal business owner even before you spend a single peso on your coffee truck. Talk to your city and government agencies about the legalities you need to comply with.
• Make a business plan. With the results of your market research, draft a complete business plan that spells out the details of your operation. You can use this business plan as a guide for the next few months as you start your project, or you can even use it as a compelling document to help you get investors.

Proper planning is the fundamental part of any good business – you should never brush it off. Painstaking planning removes many potential roadblocks that you might face in the future, while hurried planning is going to waste plenty of time and money down the road.

Phase 2: Start your coffee shop project

If you’ve done a good job planning, then it’s time for you to make your dreams a reality. Here are the sequential steps that you should take when you’re finally putting the pieces of your mobile coffee shop together.

Register your business

Before anything else, you should already begin the process of registration. You need to be a registered, tax-paying business to be able to operate legally. Plus, you also have other benefits, such as being able to write off certain purchases and assets as part of your business expenses.

As mentioned before, the documents you will need are the following:

• Mayor’s Permit
• Vehicle registration
• Barangay permit

Go to the appropriate agency and simply ask how you can get those documents for your business.

Purchase and customize your truck

You can also simultaneously start the process of buying your vehicle and then customizing it.

If you already own a vehicle that you just need to customize, you can start this process immediately. However, if you don’t, you can start scoping out potential units and begin negotiation.

The final buying and turnover should be conducted once your business is fully registered, though.

To save on costs, be sure to check out second-hand and repossessed vehicles.

In customizing, be sure to have a design beforehand. Since you’re going to be operating out of the truck, you need to maximize the space as much as possible, so you need exact measurements of the equipment that you plan to buy.

Buy equipment and ingredients

The next step is to buy your equipment.

Once again, ensure that everything has a place in your truck. Nothing’s more off-putting to customers than a disorganized kitchen, and nothing kills productivity more than improperly placed equipment, utensils, and materials. Thus, buy only what you planned for.

As for materials, source high-quality and cost-effective coffee beans.

The Philippines has a booming local coffee culture and tradition, so there are plenty of local startups and companies that you can try out.

Start advertising your truck

Even as you’re customizing and outfitting your truck, you can begin advertising your brand on Facebook and other social media platforms.

Advertising through social media platforms is easy and free, as long as you know what to do. Make sure to put up high-quality content all the time, and let your follower base discover you organically.

You can do this even without spending a lot of money or dedicating specific people to social media management.

Think of ways to post content that improves the lives of your customers. Here are a few tips.

• Post snippets of your trucks’ construction and behind-the-scenes of your coffee business.
• Share helpful articles, YouTube videos, and podcasts about the health benefits of coffee.
• Participate in local events, challenges, and trends.

Start your first day

With your truck ready and your follower base duly notified, launch your mobile coffee truck with a bang! Be sure to make a good impression, don’t forget to give away freebies, and ask them to follow and share your social media pages.

Phase 3: Marketing and daily operations

The last phase is your daily operations from your launch date.

These are the days going forward. The wheels have hit the pavement and the coffee has started pouring – what now? There’s no set guide for this, as your business situation is as unique as yours. From this point forward, you’re going to have to spot opportunities, solve problems, and do your best to turn a profit.

Start small – you’re also learning as well. Don’t be immediately ambitious and start going for more and more customers from the get-go.

Instead, pace yourself. Have a feel for the markets, develop relationships, and test theories.

Just like coffee, the more patient you are when brewing, the better it will turn out to be.

The Benefits of Opening a Coffee Stall/Mobile Coffee Shop in the Philippines

Mobile coffee shops are a creative need for meeting many people’s daily drinks for their energy. And it’s not just a concept – it also has multiple concrete benefits.

Coffee will always be in demand

The main benefit of this kind of business is the product you’re selling itself! Coffee is always in high demand: just look at the success of countless coffee shops as an example. Even the most mediocre ones still shine because people are always looking for a spot to hang out and drink coffee.

Although the Philippines is relatively small, it has a big appetite for coffee. According to Philstar, the country will lead the coffee consumption in South East Asia within the next five years.

While this can be attributed to different factors such as rising incomes, a rise in cafe culture, and more, there’s one overarching reason for this demand – the very reason that you can expect the demand for coffee to continue to grow.

Simply put, the caffeine in coffee makes it addictive .

Before you panic – it’s not that bad. Caffeine, the stimulant present in your coffee cup, is perfectly natural, and within tolerable levels. But the point is: once people discover your good coffee, they’re going to come back for more.

Your products will always be in demand.

Cheaper than a full-blown coffee shop

While there’s plenty of demand for coffee, it’s not so easy to satisfy. It’s easy to say to just open coffee shops, but the reality is that the average person like you and me can’t afford one without serious financial support from banks.

This means that you need to borrow money, and plenty of it, to establish a well-functioning cafe that people will like. That’s not to mention the costs of operating it going forward, which include:

• Electricity

Pop-ups are an affordable option for coffee-loving entrepreneurs like you to avoid making large upfront capital commitments while still getting started on your dream.

Your start-up costs are definitely not going to be as big as brick-and-mortar cafes. For one, you’re going to eliminate rent, which is one of the biggest cost drivers of physical cafes.

Advertising is also much easier with mobile coffee shops.

Aside from methods like social media marketing, you can directly develop a clientele by being in the location where they always are.

Plus, if the event is successful and gets positive feedback, it may even draw in potential investors that you can then use to fund your coffee house, or more coffee trucks/stalls.

With a mobile coffee stall, the only expenses you'll normally have to worry about are temporary leases, permits, mobile brewing equipment, and supplies.

Lets you experiment in a new market

In this era of social media and hyper-fast internet trends, people’s tastes can change in an instant.

Trends can change in a minute, and that makes it difficult for big establishments to adapt and change their menus according to what’s popular. Unless big shops devote a big chunk of money to market research and trend monitoring, they’re not going to be able to react on time to exploit a trend.

Your flexibility in your menu offering is another advantage of your mobile coffee shop.

Since you have a smaller operation and your business is more in touch with the community, you can easily observe trends as they happen.

Plus, since your menu often won’t rely on fragile supply chains stretched across the globe, it’s much easier to change what you offer according to the current tastes. You can even try out new ideas and experiment with your offerings – maybe even set a trend yourself!

Flexible location

While you need to pay a premium to be able to establish your coffee place in an accessible and foot-trafficked area, you’re not going to have this problem with a mobile restaurant because you can set up shop wherever you want.

For your stall, you have more flexible site possibilities, and you can even test out many different locations.

It’s also easier to investigate many prospective sites for your coffee stall before it opens so that you can choose the ideal place to set up shop.

Because the barrier of expensive rent and time-consuming paperwork is removed, you have more freedom to explore and set up shop wherever you need to.

Plus, you have a steady influx of customers – because you know that they’ll always be there! This is especially true if you set up shop near popular destinations such as malls, tourist destinations, museums, etc.

Or, if you have a vehicle, you can even just drive around in a route and change locations as the demand for your delicious coffee would dictate.

Triggers the FOMO effect

You might think that a mobile store can’t help you build a regular clientele that's essential for so many other businesses, but you would be wrong.

For customers, this is actually one of the biggest appeals of mobile shops.

The FOMO, or “Fear of Missing Out,” is a modern term coined for people who are afraid to miss out on important events happening around them.

This makes your shop exclusive and hard to get.

There is only a window for customers to take advantage of an exclusive, limited, or once-in-a-lifetime bargain, which is why most mobile shops are successful and what makes them so alluring to the average consumer.

Customers who wait not only run the chance of the item being lost but also run the risk of the store not being open.

This also helps your advertising efforts. You can post updates on where you are, what time you will be open, how much stock is left, and more information that reinforces the exclusivity of your shop.

Potential Challenges When Starting a Mobile Coffee Shop

While running a coffee shop has its perks, it’s not always a joyride. There are challenges that can make or break your coffee stall business as well.

To help you prepare against these challenges, let’s examine the most significant barriers you are likely to face when establishing a mobile coffee shop in the Philippines.

Competition with established players

The first and biggest factor is always going to be competition with established cafes in the market.

Wherever you are in the country, there’s always one or two local coffee shops enjoying the patronage of people that you would like to be your customer. Plus, they are likely going to have more capital than you do, which they can use to react to competition in the market (including yours.)

This means that it’s critical to understand your specific circumstances and figure out what other aspects of demand you can fulfill.

As a mobile coffee shop, the roads are going to be a major aspect of your operation – especially the main highways, if you need to go far from your base of operations.

And when talking about roads, traffic should be a major part of the discussion.

Traffic in the Philippines is the worst in the ASEAN region , and we’ve even ranked 9th for worst traffic jams internationally.

By now, everybody knows that traffic in the country can be extreme. Wherever you are, if you live in a major metropolitan area, you can expect traffic jams to be present during rush hours.

This means that if you’re not prepared accordingly, your entire business could suffer. If you’re not at your location by the time the rush hour arrives, you could end up with a lost day.

However, you can beat traffic with just a little bit of planning and preparation. Here are some tips.

• Get on the road early.
• Avoid rush hours (typically around 7 AM to 9 AM and 5 PM to 9 PM).
• Take note of coding restrictions during rush hour.
• Use a navigation app to find alternative roads
• Survey the road and your set-up location before opening dates.

Additional factors to consider

If you’re a mobile truck or coffee stall, you will have to consider other factors that common brick-and-mortar cafes often don’t have any problems with. Here are a couple of things to consider.

• Taxes. Coffee stalls and mobile coffee shops are still taxable businesses. However, your registration might not be as straightforward as simply opening a cafe, since it’s a relatively uncommon business format in the country.
• Weather factors. Being a mobile shop means you’re more vulnerable to weather events such as rain and flood. Depending on the scale of the event, you might even have to shut down operations because of the weather.
• Vehicle maintenance. You need to keep your vehicle in top condition since you use it every day, and that means additional time and resources to keep your vehicle updated on its maintenance schedules.
• Finding the right coffee supplier. It can get a bit difficult to find a supplier that accepts the scale of coffee products that you need, especially since you’re somewhat halfway between a regular consumer and a big business such as a cafe.
• Security. Lastly, you’re going to have to think of security wherever you decide to pitch your tents. While it’s relatively uncommon, the possibility of being robbed or vandalized is still there, especially if you choose deserted locations.

What is a mobile coffee stall?

A mobile coffee stall allows you to operate a cafe from a vehicle, such as a refurbished truck. With this, your business can save on startup and operational costs, be flexible on your location, and experiment with menu offerings much easier than a physical shop can.

Is a mobile coffee stall profitable in the Philippines?

Yes, a mobile coffee shop can be very profitable in the Philippines. For one, coffee is always in-demand; it’s just up to you to find the customers. There aren't many coffee trucks around yet, so you don’t have much competition – although you’ll need to find a way to take customers away from local and big-brand cafes.

What should you do to get started?

The very first thing that you should do before starting any business is to carefully plan it out. You should do things such as conduct market research, get to know your industry, estimate the costs, and more. Once you have what you need, only then can you proceed with registering your business and acquiring assets.

Everything You Need to Know About Starting A Mobile Coffee Shop Business

A mobile coffee shop business is a great opportunity to make the most out of your love for this rich beverage. It’s rife with opportunities – competition is not that many, while the demand is steadily growing.

However, it can be quite complicated, especially if you don’t know what to do.

But you’re not going to have that problem because this guide has discussed everything you need to know. From the business profile of a mobile coffee shop to its advantages and disadvantages, up to the things that you do before launch – we’ve tackled it all.

All that’s left is for you to start on your journey! Good luck!

A Boss Level Tech nerd. Her interests range from all things web hosting to swiping food from the pantry. As she says, free food is the best food. You can't out nerd her and your food is definitely not safe when she's around.

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The Philippines’ But First, Coffee seeking to double footprint this year

But First, Coffee has rapidly scaled to reach 148 outlets across the Philippines | Photo credit: But First, Coffee Olongapo

Filipino coffee chain But First, Coffee (BFC) is seeking to double its footprint with 150 new stores this year.   

Founded by entrepreneur Anna Magalona in August 2020 as an online ready-to-drink (RTD) coffee business, BFC opened its first store in November 2020 and began franchising in 2021. The coffee chain has rapidly scaled to reach 148 outlets across the Philippines – primarily across Metro Manila, as well as Olongapo and Pila.

Of the planned new stores, 100 will be franchised with the remaining 50 company owned, Magalona told local reporters. 

World Coffee Portal’s Project Café East Asia 2024 report shows the total Filipino branded coffee shop market exceeds 3,200 outlets. The market, led by Dunkin’ , Mister Donut and Starbucks , is forecast to exceed 5,200 outlets by 2029. 

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Today’s front page, Wednesday, March 26, 2024

But First, Coffee to open 150 stores this year

• Andrea E. San Juan
• March 26, 2024
• 2 minute read

But First, Coffee (BFC), a coffee shop which was launched during the pandemic in the Philippines, said it aims to open 150 more stores this year.

“Around a hundred more for this year—a mix of corporate and franchise branches. For the franchising, we’re targeting 100 for the franchise and hopefully for the corporate around 50,” Anna Magalona, CEO of But First, Coffee, told reporters in a recent interview.

Magalona said the coffee shop now has 148 branches nationwide. With the firm’s goal to double its number of branches this year, she said the company also aims to double the jobs it will provide.

“In our corporate head office, there are around 200 employees. But in terms of But First, Coffee as a brand, 500 to 700 jobs na .”

Magalona added, “I think it [number of employees] will double. Because currently there are around 150 branches.”

She said BFC started in 2020 or during the height of the pandemic by establishing its online presence, which initially propelled the business. She noted that growth was eventually driven by franchising.

“We joined groups online where we promoted our products. We also maximized Facebook communities. That’s what helped us in terms of growing our business,” Magalona said.  “Apart from that, sa franchising talaga since we have franchisees all around the country. We are already in Mindanao, Visayas, we have already tapped those areas.”

Amid the proliferation of coffee shops in the country, Magalona said BFC thrives because of its “competitive advantage,” as its coffee is “affordable yet of good quality.”

Prices of BFC coffee range from P55 to P460, depending on the base (drip-based or espresso-based) and the size (12 oz, 16 oz, 500 ml, 1L), based on the menu published on its Instagram account .

For this year, Magalona said BFC plans to launch more products this year. “Our series for the year I think is 80 percent complete for mga product launches per season.”

She noted, however, that there are challenges in maintaining the affordability of BFC products.

“Sometimes, it’s challenging to balance our costing, our pricing, so we always do supplier tests. We explore options so our products would remain affordable.”

Magalona said BFC is a member of the Philippine Franchise Association.

Related Topics

• affordable quality coffee
• But First Coffee (BFC)
• coffee shop expansion
• franchise expansion
• job creation
• pandemic business growth
• Philippine Franchise Association
• product launches

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