mobile coffee shop business plan philippines

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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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.

• News + Trends

These Friends Invested P6K And Now Earn P200K Monthly From Their Mobile Café Biz

• BY: Steph Esguerra Olarte
• May 29, 2022

When Laoag-based friends Carl Jasper Ardan , Maryvan Abella , and Vincent Calimag thought of starting their own business during the pandemic, they instantly thought of making coffee, being big fans themselves of the beverage.

[instagram url=”https://www.instagram.com/p/CL89UxMBTep/”]

With Maryvan still in college, the three decided they needed to design the café in such a way that even students could start the same business too. Their capital? Just P6,000 . That’s how they set up The City Brew , a mobile café.

[instagram url=”https://www.instagram.com/p/CNMj0huBXLL/”]

“We came up with the name The City Brew kasi yung goal namin as a team hindi lang siya pang- Laoag,” Vincent says. “ Pang -different municipalities, cities, provinces, and of course, makilala dito sa Pilipinas.”

[instagram url=”https://www.instagram.com/p/CQNmHVttkwj/”]

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Carl shares that at first, things were difficult as only he had a background in business. But all three of them had no experience at all in managing a café, and they had to learn the ropes quickly.

Initially, The City Brew only offered a variant of cold brew. After two good weeks in operation, however, their sales plummeted.

[instagram url=”https://www.instagram.com/p/CUFGYzBJWM1/”]

“We came to realize na marami palang tao na may ayaw ng black,” Carl Jasper recalls. This prompted the three business owners to provide additional flavored options, which became key to The City Brew’s success.

Carl Jay, Maryvan, and Vincent are also thankful to Ilocos Norte’s tourism campaign “ I’m In “, which promotes tourism in the province. “After three to five months lang, nakita na namin na worth it yung business,” Vincent concludes. “Kasi grabe lang yung suporta ng mga customers namin, yung mga tao.”

A good cup of joe

[instagram url=”https://www.instagram.com/p/CWaKlatJG-K/”]

The City Brew became so popular that patrons even started inquiring if the business was up for franchising. On weekdays, they sell at least 50 cups a day, on weekends up to 100 cups a day, and during special events, more than 100 cups. Their bestsellers are their Salted Caramel , Vanilla Caramel Cream , and White Mocha variants.

“ Sabi nila ang ganda ng packaging , ang ganda ng mobile café setup natin, and at the same time, yung product na sine- serve natin, competitive siya,” Vincent shares.

[instagram url=”https://www.instagram.com/p/CZTePcwJf5Q/”]

Currently, Carl Jay, Maryvan, and Vincent earn P200,000 a month from The City Brew . While they admit being tempted to take their share already, they decided to re-invest their earnings into the business.

How to brew success

As budding entrepreneurs in their twenties, they’ve each gained important life lessons from The City Brew.

“Starting a business is not as easy,” Maryvan realizes. “It requires a lot of hard work and dedication . Most especially sa ‘kin kasi jinu -juggle ko yung time ko as a student and as a young entrepreneur at the same time.”

[instagram url=”https://www.instagram.com/p/CaMN0bdpLuC/”]

For Carl Jasper, he’s learned to become even more patient . “ Kung nag- give up kami, wala sana ‘to ngayon,” he says. “But because of pagiging patient namin, naging possible siya. It really requires time.”

Vincent, meanwhile, reminds aspiring entrepreneurs to find their passion first, something which Carl echoes. “You should start a business kung saan ka masaya, kung saan ka kumportable,” Vincent notes.

[instagram url=”https://www.instagram.com/p/CbmOI0fJjdF/”]

“ Invest in yourself first,” Carl Jay adds. “Alamin mo kung ano yung passion mo, ‘pag ginawa mo ‘to, happyng -happy ka. Then that’s the start na i -start mo yung gusto mong negosyo.”

“ Mag-isip ka ng product na feasible and in demand to the current situation,” Maryvan advises. “And if you feel like it’s really your time to start up a business, then don’t wait for tomorrow.”

Watch the full video feature here:

OG (Only Good) Channel is Summit Media ‘s first-ever video brand with its own channel on Youtube. OG features content that gives ONLY GOOD vibes with entertaining and informational video series about Amazing Staycation Destinations , Unique Homes , OPM Music , Buhay Abroad , Popular Memes and Trends , and Real Stories about Real People . If you need a dose of good vibes today, visit and subscribe to OG Channel .

Read more articles about:

• audafterhours , coffee , coffee business , coffee shop , food business , food entrepreneur , mobile coffee shop , OGChannel , syn-00260 , The City Brew

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A guide on how to start a small coffee shop in the philippines news.

For most coffee enthusiasts, starting their own coffee shop is a lifelong goal. Dreaming of running a coffee shop is one thing, but turning it into a reality requires much effort—and money. Fortunately, there are thrifty ways to open a cafe with a low budget in the Philippines. All you need is dedication and the willingness to achieve your dreams.

In this article, we'll show you how to start a small coffee shop and make your café dreams a reality!

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

1. prepare a business plan..

Before you start operating a coffee shop or any other business, you must have a well-thought plan. Business plans are essential so that you have a guide to help you stay on track with your goals for sales and other operational milestones.

Your coffee shop business plan should include goals, ideas, sales and marketing plans, and a forecast of how your business will do. Besides these, your plan should also identify your business structure. Are you going to be the sole owner? Or will you have partners in opening your small coffee shop? Such specifics are the bedrock of your company's future success, so you shouldn't ignore them. These can assist in measuring and managing your primary areas of concentration and determining whether or not your company is making a profit.

2. Choose the type of coffee shop you want to launch.

Next, you need to figure out the type of coffee you want to build. For a startup café, consider pop-up or mobile coffee shops.

A pop-up coffee shop is one of the most versatile and inexpensive to launch. This type of low-budget coffee shop doesn’t operate in a fixed location. For the site, anywhere with lots of foot traffic (fairs, festivals, train and bus stations, etc.) is a workable area. Mobile coffee shops are an excellent way for entrepreneurs to test the waters in the coffee industry. This way, you can find out if people are interested in what your coffee shop has to offer and decide if you want to open in a permanent location.

You may also consider a small fixed location for your coffee shop. Renting a place is one thing, but for a more cost-effective choice, start with building a stall in front of your house. Some new small coffee shops are built in the owners' front yards because they typically only require a small amount of space (a brewing station and a place for customers to sit and chat). By doing this, you can cut back on rent and other recurring expenses.

3. Find a suitable location for your small coffee shop.

Location is everything when you’re opening up a business. Carefully decide where you want to open your small coffee shop so that you can choose the best location to attract customers. As we’ve mentioned, you can cut back on some expenses if you build your café within your residential area. If it's not possible, look for rental spaces in areas with lots of foot traffic. You'll gain customers as long as there are people in the vicinity.

4. Decide on a coffee shop theme.

While it’s not necessary, themed coffee shops have grown in popularity in recent years. Using a theme, you can easily create a brand and image for your coffee shop, especially if your theme is unique and eye-catching. Even people who don't typically drink coffee will try to order a brew just to admire the shop's aesthetics.

Opening a small, themed coffee shop can be daunting. But, with the right research and proper resources, you’ll be able to build one even with a tight budget. Here are some coffee shop themes you can work with:

If you like vintage furnishings, greenery, wood, and exposed brick, you'll feel right at home in a rustic coffee shop. Choose timeless pieces and cozy seating if you're going for a small coffee shop with a speakeasy or boutique vibe. To get into the spirit of things, you can even give items on the menu names that have a rustic feel.

If you're looking for something lively and exciting, a chic boho theme is the way to go. You can do this easily with a few well-chosen carpets, crocheted curtains, fairy lights, and wooden furniture. Also, combine earthy tones with neutrals or warm colors with cool colors to make a unique bohemian color scheme for your low-budget café.

Pop Culture

Another excellent way to reach people interested in popular culture would be to open a cafe themed after a popular work of fiction, music, film, or television. An example is a popular BTS-themed cafe in Quezon City called Purple 7 Cafè . The interiors of this coffee shop are beautifully planned. It has numerous photogenic nooks and crannies, perfect for a BTS fan. The café has a quiet elegance that makes it appealing not only to fans but also to people who are interested in design.

5. Prepare the materials needed to open a low-budget coffee shop.

By now, you should start searching for the materials and equipment you need for your future coffee shop. So, here are the essential materials you need for a startup coffee shop:

Coffee Beans

Naturally, coffee is necessary for opening a coffee shop, and you wouldn't want to serve beverages made with instant coffee. Customers who love coffee don't just want a cup of joe; they want an immersive experience, and you can give them that by stocking your shop with high-quality beans.

The best coffee beans aren’t that hard to find, and one innovative idea for starting your small coffee shop is to offer unique blends made from savory beans. The Philippines is home to various premium coffee beans , each producing its unique flavor when brewed. Some of the most popular beans grown in the country include Kapeng Barako, Robusta, and Excelsa. Consider using these coffee beans to brew blends so your customers can experience the exquisite flavors of Philippine coffee.

Brewing Equipment

Once you’re done curating your selection of coffee beans, it’s time to canvass for brewing equipment.

Brewing equipment is necessary to jumpstart your low-cost coffee business. When deciding which equipment to choose, consider your skills. Are you a novice, an experienced person, or somewhere in between? Even though you can learn how to use a coffee maker, the learning curve will be shorter if you first evaluate your abilities. If you're a beginner, you may start with drip coffees, French presses, and AeroPresses. However, if you already have the necessary knowledge, you might start with more advanced machinery, such as espresso machines that can brew multiple cups of coffee.

Check out our collection of coffee shop equipment for sale in the Philippines to help you decide on your very first brewing equipment.

Other Coffee Shop Accessories

If you’ve checked coffee beans and brewing equipment off your checklist, you can now look for other coffee shop accessories like cups, straws, tables, and chairs. These items may seem small, but they significantly impact how to open a cafe with a low budget in the Philippines. It's essential to find a reliable and affordable supplier for things like coffee shop cups and straws, which need restocking. For tables and chairs, you need to ensure they will last a long time and make your customers feel comfortable, so they will return for more.

6. Don’t forget to register your business.

Legally, you can't run a business unless it's been registered. So, as a final advice, we suggest you register your company. Part of being a business owner is seeking legal counsel to know how to set up your small coffee shop. Additionally, you may go through the Bureau of Internal Revenue and Department of Trade and Industry websites to learn more about business registrations.

Benefits of Starting a Coffee Shop

With the pandemic easing and more people venturing outside, many coffee shops are re-opening and opening across the country. In addition to easing pandemic restrictions, there are other good reasons to get your coffee shop business plan in motion as soon as possible. So, here’s why you should start your café shop in the Philippines:

Become your own boss

Gaining financial independence and being your own boss is the pinnacle of success. With a business of your own, you don't have to worry about the 9-to-5 grind that plagues many people's lives. You'll have a complete say over every aspect of the business, from planning to day-to-day operations, allowing you to unleash your full creative potential.

Get more profit

With your own business, you’ll be able to earn more income. Starting a business involves risking your own money and thinking of innovative ideas for a coffee shop. The key to making a good profit from your small coffee shop concept is keeping startup costs low, which you can do by thoroughly investigating all available options. With the right plans and resources, you’ll be able to earn a profit in no time.

Support local coffee farms

As you support your dreams, you’ll also support local businesses, such as farms producing local coffee. Most startup coffee shops obtain their coffee beans from local suppliers because they’re more cost-effective and of superior quality. By doing so, you will assist those who wish to promote their products while gaining popularity yourself.

Start Planning the Coffee Shop of Your Dreams

Planning your dream coffee shop takes time, money, and resources. Before you can begin operating one, you must carefully consider all the aspects of starting a small coffee shop. Just keep in mind that creating a coffee shop doesn't require a lot of money. All it takes is determination, patience, and the will to become your own boss.

What are you waiting for? Start planning the coffee shop of your dreams now!

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Quick Guide On How To Start Coffee Shop Business In The Philippines

Coffee shops are a good business idea in the Philippines because there are so many coffee lovers in the country. Even more, it’s a good opportunity to offer other foods and products. You would be surprised to know that many customers visit a coffee shop, sometimes not because of the coffee but of the food, pastries, and also the ambiance.

In the Philippines, a coffee shop is more than serving coffee. It’s a place to study, hang out with friends, relax, enjoy good food, and many more. It’s a place where people meet over good coffee. Thus, it could be a lucrative business idea. Here, we made a quick guide you could use if you’re considering starting a coffee shop business in the Philippines.

How To Start a Coffee Shop Business In The Philippines:

1. come up with a business plan..

A good business plan lays out your business’s structure and objectives. It becomes a reference tool to keep the business on track with sales targets and operational milestones. It can help measure and manage your priority areas of focus and see if your business is losing or doing well.

2. Decide if you’ll franchise or start from scratch.

Since coffee shops are a hit in the country, it’s no wonder that there are many coffee shops offering franchises. If your want to go big, you can look into how to franchise J.Co Donuts & Coffee . If you want something local, you can consider franchising Figaro Coffee . There are many more options, it’s just a matter of reaching out and researching.

If you decide to start from scratch, then your next step is prepare the costs.

3. Prepare for the expenses.

According to a 2022 article from MoneyMax , starting a small 30-sqm coffee shop without a kitchen in a city can cost roughly P950,000 for the equipment, location, and business permit. It would cost you around P600,000 in monthly operational expenses.

If you plan on something as big as 150 sqm with a full kitchen, that would cost you around P4.5 million. However, these costs shouldn’t discourage you at all. There are many inspiring coffee shop owners who started their business from their homes, condo units, or even just in their parking lot.

4. Decide What Type of Coffee Shop

Next, you decide what type of coffee shop you want to build. This is mostly dependent on your budget and availability, like if you’re only planning to do this part-time or full-time. You should also determine your location.

Aside from opening a typical cafe, other types include coffee carts or kiosks at a mall, pick-up, deliveries, pop-ups at food fairs, etc.

5. Legally register

You shouldn’t miss your responsibilities and legally register your business. It’s important to seek legal advice at this point but here are some of the common legal requirements your business needs:

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

6. Start purchasing your equipment and appliances.

The furniture and other things you need are mostly dependent on the type of coffee shop you like. These will probably take the most of your investment capital, so think wisely before buying. You can also consider second-hand items as long as they’re functioning well.

Here are some of the basic equipment you need:

• Automatic drip coffee maker
• Espresso machine
• Industrial coffee grinder and blender
• Oven toaster
• Refrigerator

7. Start re-calculating and making projections

After you have bought everything you need, look at your budget and re-calculate. Start calculating your monthly operational costs vs your expected profits. Adjust your business plan if necessary.

The last part is, of course, lots of hardwork and determination! Don’t forget to boost your marketing skills and make noise online to gain attention. Like in any business, be hands on and take the time you need to learn more business lessons. Good luck!

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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. 

Please note that all fields followed by an asterisk must be filled in.
	Please enter the word that you see below. 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   How To Start A Cafe Business Philippines 2024 As the Philippines economy is continuously changing… 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. 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? 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  We have recently spoken about a food cart business . This covers the pros and cons of franchising, which may benefit you. If you are looking to franchise a coffee shop… Here is a list of available companies that are currently open to franchising coffee shops in the Philippines. When looking at franchising coffee shops in the Philippines (or cafés)… Will a franchising business be worth your time financially speaking? This can include small coffee bars, kiosks, or larger coffee stores. Business terms and capital required will depend on these two factors. 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. In that case… Franchising is often a more appropriate decision. You may see better results in starting a coffee shop business in the Philippines independently. 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. But additionally… Apart from registering a coffee shop business in the Philippines, is there anything else you need to know? This includes sanitary preparation and the health and safety of food. If you are thinking about starting an 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 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. 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. 4. Select Your Café Design And/Or Coffee Theme The theme is also another part that ties in with the location. But if you are in a non-tourist area. Remember the 80/20 law. But instead, focus on what will bring your ideal customer back again and again. 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. Often coffee stores do very well when there is a balance between the location and the theme. 5. Purchase Your Café Equipment & Supply 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. If you are starting a coffee business in the Philippines on your own… (Which is always a wise decision when starting a new business). 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 . 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. 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….. 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. 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? We have gone through how much it costs to open a coffee shop in the Philippines. 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. 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… Nonetheless, at this stage, it’s all about stop, start and continue. 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. What actions does your business need to start doing to help your business grow and transform? 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. How Much Does It Cost To Open A Coffee Shop In the Philippines 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. 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. 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. To answer this question… 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. If so, Filipino wealth has you covered. You can use the plan to input your cost prices and other important information through the template. 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! Leave a Reply Cancel reply Your email address will not be published. Required fields are marked * Save my name, email, and website in this browser for the next time I comment. Related Posts For brandy and coffee lovers: enjoy the best of both worlds with emperador coffee brandy (+ fun empi coffee recipes you can try). Love brandy AND coffee? Enjoy the best of both worlds with Emperador Coffee Brandy! Charlie’s Cup: A Must-Visit Instagrammable Café in Cebu Discover the answers to your coffee art questions and unlock the mystery of coffee arts. 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Copyright © 2020 Coffee Smiley – Powered by ZYNO TEK Coffee Shop Business Plan Template & PDF Example July 22, 2024 Business Plan Creating a comprehensive business plan is crucial for launching and running a successful coffee shop. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your coffee shop’s identity, navigate the competitive market, and secure funding for growth. This article not only breaks down the critical components of a coffee shop business plan, but also provides an example of a business plan to help you craft your own. Whether you’re an experienced entrepreneur or new to the food and beverage industry, this guide, complete with a business plan example, lays the groundwork for turning your coffee shop concept into reality. Let’s dive in! Our coffee shop business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the shop’s operations, marketing strategy, market environment, competitors, management team, and financial forecasts. Executive Summary : Offers a quick look at your coffee shop idea, market research , your team, and money plans. Coffee Shop & Location: Talks about the design, special features, and why the spot is great for customers. Operations: Describes how your shop runs daily, like hours, staff roles, and your menu items with prices. Key Stats: Gives numbers on how big the coffee shop world is and what’s trending. Key Trends : Points out new things in coffee shops, like eco-friendly practices or tech for ordering. Key Competitors: Looks at other coffee places nearby and how your shop is different. SWOT: Lists strengths, weaknesses, opportunities, and risks for your shop. Marketing Plan : Ideas for getting the word out and keeping customers coming back. Timeline : Major steps and goals from starting up to the first year. Management: Highlights Info on your leading team and their roles. Financial Plan : Predicts financials for 5 years, like how much you’ll make, spend, and keep as profit. {{product_image|large}} Coffee Shop Business Plan Fully editable 30+ slides Powerpoint presentation business plan template. Download an expert-built 30+ slides Powerpoint business plan template {{product_image|medium}} Executive Summary The Executive Summary presents a concise overview of your coffee shop’s business plan, encapsulating the essence of your establishment and its offerings. It should articulate your market positioning, the variety of coffee and related products you offer, its location, size, and a brief on the daily operations. This section should also delve into how your coffee shop will carve its niche within the local community, including an analysis of the number of direct competitors in the vicinity, identifying who they are, as well as highlighting your coffee shop’s unique selling points that set it apart from these competitors. Moreover, information about the management and co-founding team should be included, elaborating on their roles and the value they bring to the coffee shop’s success. Additionally, a synopsis of your financial projections, including anticipated revenue and profits over the next five years, should be provided here to offer a clear view of your coffee shop’s financial strategy. Coffee Shop Business Plan Executive Summary Example Business Overview The  business overview  section should detail the coffee shop’s specific features, including its size, seating capacity, and concept. This is where you explain what makes your coffee shop unique, such as its focus on specialty coffees and local artisanal pastries, and how it operates. Example: “Bean Haven,” located in the bustling Midtown area, spans 2,000 square feet and can seat 40 customers. It stands out with its range of gourmet coffees and fresh pastries, all sourced from local suppliers. The shop’s modern POS system ensures efficient service, enhancing the overall customer experience. Market Overview In this section, analyze the local and national coffee shop market. Discuss the size of the market, growth trends, and consumer preferences. This analysis should position your coffee shop within the broader industry context and highlight its potential to meet current consumer demands. Example: Bean Haven enters a U.S. coffee shop market valued at $45.8 billion. In its neighborhood, known for a dense population of young professionals, Bean Haven’s focus on health-conscious options and its role as a community hub align with shifting consumer preferences, setting it apart from six main competitors in the area. Management Team This section outlines the experience and roles of your management team. Detail how their background and skills contribute to the success of the coffee shop. Example: Bean Haven is led by a CEO with 10 years of experience in café management, overseeing daily operations and supply chain efficiency. The CFO, with a background in hospitality sector marketing, handles the shop’s financial strategies and marketing campaigns, ensuring robust business operations. Financial Plan Here, present your financial goals and projections. Include revenue targets and profit margins, providing a clear picture of your coffee shop’s financial aspirations and health. Example: Bean Haven aims for $830,000 in annual revenue with an 11%  EBITDA  margin by 2028. This goal is supported by a focused approach on high-quality offerings, strategic marketing, and community engagement, positioning Bean Haven for success in the  competitive  market. For a Coffee Shop, the Business Overview section can be neatly divided into 2 main slides: Coffee Shop & Location Talk about your coffee shop’s look and feel, highlighting cozy seats and nice lighting that make it welcoming. Mention its location, noting how easy it is to get there, like being close to shops or having easy parking. Explain why this spot is great for attracting customers. Operations & Offerings List the kinds of coffee and other items you sell, including snacks or light food. Discuss pricing, making sure it matches the quality of what you’re selling and suits your target customers . Share special features of your shop, such as using local products or offering unique coffee flavors. Mention any deals or events you have to keep customers coming back. Industry Size & Growth In the Market Overview of your coffee shop business plan, begin by exploring the size of the coffee industry and its potential for growth. This analysis is key to understanding the breadth of the market and pinpointing opportunities for expansion. Key Market Trends Next, discuss current trends in the coffee market, like the growing demand for specialty coffee, the appeal of ethically sourced and organic beans, and the innovation in coffee brewing techniques. Highlight the interest in offerings that cater to diverse preferences and dietary needs, such as plant-based milk options and artisanal blends, as well as the increasing importance of sustainability in the coffee industry. Competitive Landscape A  competitive analysis  is not just a tool for gauging the position of your coffee shop in the market; it’s also a fundamental component of your business plan. This analysis helps identify your coffee shop’s unique selling points, which are essential for differentiating your business in a  competitive  market. In addition, competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment. Identifying Your Coffee Shop’s Competitors The first step in conducting a competitive analysis for your coffee shop is identifying your direct and indirect competitors. Direct competitors include nearby coffeehouses or chains that offer similar services and products, while indirect competitors might encompass local juice bars, tea houses, or even convenience stores selling coffee. Utilize tools like Google Maps to map out competitor locations and understand their distribution across your area. Online platforms like Yelp, Google Reviews, or social media channels provide invaluable insights into customer reviews and ratings, shedding light on competitor  strengths and weaknesses . For instance, if a rival coffee shop receives praise for its artisanal coffee blends and cozy ambiance, it signifies a notable strength. Coffee Shop Competitors’ Strategies To gain a deeper understanding of the competitive landscape, analyze various facets of your competitors’ strategies: Coffee Menu Offerings:  Assess the range and uniqueness of coffee offerings. For instance, if a local competitor, “Brew Masters,” is gaining traction with exotic single-origin coffees or specialty cold brews, it highlights a potential trend or gap in the market for distinctive coffee blends. Service and Ambiance:  Consider the ambiance and customer service. Perhaps a competitor, “Sip & Chill Café,” is known for its relaxed atmosphere and friendly staff, enhancing the overall customer experience. Pricing Strategy :  Compare your pricing with competitors. Are your coffee prices aligned with those of other local cafes, or do you position yourself as a premium establishment akin to “Gourmet Grinds,” offering artisanal blends at a higher price point? Marketing and Branding:  Analyze how competitors market their brand. Do they rely heavily on social media campaigns, influencer collaborations, or community events? Understanding their marketing tactics can help refine your promotional strategies. Innovative Offerings and Technology:  Look for innovative approaches. Are competitors embracing technology for online ordering or loyalty programs? For example, “TechBeans Café” might leverage an efficient app-based ordering system, catering to tech-savvy customers. What’s Your Coffee Shop’s Value Proposition? Defining your coffee shop’s  unique value proposition  is critical. Perhaps your establishment specializes in single-origin, ethically sourced beans, or you have a signature blend that customers rave about. Emphasize these unique offerings to distinguish your brand in the market. Consider market gaps and evolving customer preferences. If there’s a growing preference for sustainable practices or an increasing demand for specific coffee types (organic, fair trade, etc.), tailoring your offerings to meet these needs can position your coffee shop favorably amidst competitors. Tailoring your offerings to your location is essential. A coffee shop in a bustling business district might emphasize quick service and convenience for professionals on the go. At the same time, a suburban café could focus on creating a warm, family-friendly environment to attract locals seeking a relaxing spot for gatherings or leisurely coffee breaks. Start by doing a SWOT analysis for the coffee shop. Point out Strengths (like skilled baristas and a variety of coffee options), Weaknesses (such as high running costs or lots of competitors), Opportunities (for instance, more people wanting unique coffee experiences), and Threats (like economic changes that might reduce how much people spend on coffee). Marketing Plan Then, make a marketing plan that shows how to draw in and keep customers. This could include ads aimed at the right people, deals to save money, an active and interesting online presence, and getting involved in the local area. Marketing Channels Utilize various marketing channels to reach and engage your audience effectively. Digital Marketing Establish a Strong Online Presence:  Leverage social media platforms like Instagram for visually appealing coffee shots, TikTok for engaging short videos, and Twitter/Facebook for engaging with customers and sharing updates. Email Marketing:  Build an email list and send newsletters featuring new coffee blends, upcoming events, or promotions. Offer incentives for signing up, such as a discount on the first purchase. Website and SEO:  Develop a user-friendly website showcasing your menu, the story behind each coffee blend, and a blog section for brewing tips or coffee-related content. Optimize for local SEO to attract nearby customers. Local Advertising Connect with the local community to increase foot traffic: Flyers and Local Print:  Distribute eye-catching flyers in nearby offices, community centers, and partner businesses. Advertise in local newspapers or magazines to reach a broader audience. Community Engagement:  Host events like cupping sessions, live music nights, or art exhibitions to create a gathering space. Partner with local artists, musicians, or charities to foster community connections. Partnerships: C ollaborate with neighboring businesses, such as bakeries, bookstores, or gyms, for cross-promotions or joint events. Promotional Activities Attract customers with enticing offers and loyalty programs: Special Deals:  Launch seasonal or themed promotions to attract customers. For instance, during colder months, promote warm beverage options with discounts, or offer a summer-themed menu with refreshing iced coffees or specialty drinks. Loyalty Programs:  Implement a rewards system where customers earn points for every purchase. These points can be redeemed for free drinks, merchandise, or even exclusive experiences. This encourages repeat business and fosters a sense of loyalty among customers. Referral Incentives:  Encourage your existing customers to refer friends and family by offering incentives. This could be in the form of discounts or free beverages for successful referrals. Word-of-mouth remains a powerful tool in the coffee industry. Sales Channels Optimize  sales channels  to maximize revenue and customer satisfaction. In-Store Upselling Maximize each customer’s visit: Upsell Specialty Items:  Train baristas to suggest specialty drinks, pastries, or merchandise based on customers’ preferences or current promotions. Merchandising:  Display branded merchandise like travel mugs, brewing equipment, or specialty beans near the checkout counter to encourage additional purchases. Subscription Services Offer subscription-based models for regular income and customer retention: Coffee Delivery Subscription:  Introduce a coffee delivery subscription service where customers receive their preferred coffee blends regularly at a discounted rate. Customize subscription options based on frequency and quantity to cater to diverse preferences. VIP Memberships:  VIP memberships can provide exclusive benefits such as early access to new blends, members-only events, or personalized recommendations. These memberships create a sense of belonging and offer additional value to loyal customers. Mobile Ordering and Pickup Facilitate convenient ordering and pickup options: Mobile App Ordering:  Develop a user-friendly mobile app that allows customers to browse your menu, place orders, and make payments seamlessly. Offer incentives such as loyalty points or app-exclusive deals, to encourage app usage. Curbside Pickup:  Implement a curbside pickup option, allowing customers to order ahead and collect their beverages without leaving their vehicles. This convenience factor can attract busy individuals or those seeking contactless service. Strategy Timeline Lastly, set up a detailed timeline that marks important steps for the coffee shop’s start, marketing actions, growth in the number of customers, and goals for getting bigger. Make sure there’s a clear plan and goal for moving the business forward. The Management section focuses on the coffee shop’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the coffee shop toward its financial and operational goals. For your coffee shop business plan, list the core team members, their specific responsibilities, and how their expertise supports the business. The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your coffee shop’s approach to securing funding, managing cash flow, and achieving breakeven. This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures. For your coffee shop business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.). Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds Related Posts Steakhouse Business Plan Template & PDF Example July 24, 2024 Bubble Tea Business Plan Template & PDF Example Bar Business Plan Template & PDF Example Privacy Overview Cookie Duration Description BIGipServerwww_ou_edu_cms_servers session This cookie is associated with a computer network load balancer by the website host to ensure requests are routed to the correct endpoint and required sessions are managed. cookielawinfo-checkbox-advertisement 1 year Set by the GDPR Cookie Consent plugin, this cookie is used to record the user consent for the cookies in the "Advertisement" category . cookielawinfo-checkbox-analytics 11 months This cookie is set by GDPR Cookie Consent plugin. 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Mar 14, 2019 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. #coffee #cafe #coffeeshop #beanandbarley #blackbridgecoffee #philippines #business #cafepreneur #entrepreneur #start #startup #beans #coffeebeans #consultation #cost #expense #investment #profit #profitable #revenue #income #franchise #purchase Recent Posts Dear Cafepreneur: Unsplash.com is the next marketing channel you should be paying attention to Cafepreneurs: Here’s why investing in cafe management technology is a good strategy Forget the other New Year Promotional Gimmicks. Here's one that counts. Semua Berita Complete Guides to Write Cafe Business Plan Step by Step Great cafes combine exceptional coffee, a welcoming environment, and delectable treats to snack on while relaxing. The cafe is a low-risk business model with lower start-up costs and overhead than larger restaurants, but carving a niche for your cafe in the market and charting a path to success are critical considerations. There’s probably another cafe nearby, so how will you stand out? That’s why you need a cafe business plan.  How to Write a Cafe Business Plan? Your selling stock is messing up you need help. Ginee Omnichannel allow you to automatically sync every stock from all of your online stores. It’s faster way to helps you profit! The steps below will show you how to create a business plan that will help your cafe succeed. Begin with Your Vision A business plan is the first step toward making your cafe-ownership dream a reality, so dream big by sketching out your vision for your future cafe or coffee shop. What will the design of your cafe be? What kind of decorations will be used? What will its location be? Which items are you planning to sell? Who will go there?  Take inspiration from your favorite cafes, images you’ve seen, favorite films or books, and even your travels. Then write it all down or pin it to a wall to make an inspirational mood board. It will be extremely motivating to look up at your initial vision and be reminded of the finish line as you spend hours working on your business proposal about coffee shop. Research on Other Business Plans Before you start writing your masterpiece, look at business plans from your industry, such as cafes, coffee shops, and quick-service restaurants. Examine how they structured their business and ensure that your cafe is on the right track. Real-life cafe business plan examples from small business owners are also extremely valuable. Find current or former coffee shop owners, or even franchise owners, in your area and ask them how they succeeded and what they would do differently.  While you’re at it, ask for recommendations for someone like an accountant to help you write your coffee business plan. Even if your future competitors are local business owners, they may be willing to share their experiences. Creating a Business Plan Template A blank page can be intimidating, but there are numerous cafe business plan samples available online to assist you in getting started. Below already outlined the basic sections you should include in your business plan below, along with additional tips on how to flesh each one out. The Executive Summary When a reader opens your business plan, the executive summary will be the first thing they see. This provides a high-level overview of all of your business plan’s sections. A well-written executive summary coffee shop will get you in the door, so read an example of business plan about coffee shop to get a sense of how the summary is worded and how all of the information is presented. There are a lot of cafe description samples to help you. Consider who will read your business plan and tailor the opening paragraphs to your audience, just as you did for the customers who will visit your soon-to-be-opened cafe. Your executive summary is the most important marketing tool your cafe has as you prepare to open. Read also: 3 Social Media Marketing Tools to Help Your Campaign Succeed How will Your Cafe be Successful? The second section provides answers to questions such as “What problem does your cafe solve?” and “How will your cafe contribute to the solution?” Perhaps there isn’t a coffee shop or cafe in a busy shopping center near you. Perhaps a downtown restaurant has recently closed. This summary gives a quick overview of your industry, where your cafe will be located, and how it will stand out. Will your airport-area shop specialize in breakfast sandwiches? Do you want to sell your famous local pie? You’ve envisioned the success of your future cafe. Make certain that the readers of your business plan understand this as well. Examine Your Competition The following section of your business plan is known as the competitive analysis. It explains how your cafe will compete with other food and beverage businesses. Your competitors include nearby restaurants, coffee shops, and even public gathering places such as movie theaters. So now is the time to conduct competitor analysis coffee shop by visiting potential competitors and noting who their customers are, what’s for sale, and how much it costs. Do You Want to Manage Multiple Marketplace Just by Single Person? Of course you can! You can handle multiple stores from all marketplace just by single dashboard. Cut your Business’s cost, and Boost your Efficiency at the same time. Understanding pricing strategies for similar businesses will help you determine how much you should charge for your coffee, pastries, sandwiches, and whatever else you’re selling in order to remain competitive in your market. Cafes and coffee shops can have high gross margins, but small cafes have notoriously low operating incomes (profits) due to high overhead costs. However, if you take the time to conduct a thorough analysis of your competition, your cafe will have a better chance of success. By describing how your cafe will compete with similar businesses, you will persuade your reader (and, more importantly, yourself) that your goal of opening a restaurant or cozy cafe is both realistic and sustainable. Examine Your Target Market Your future customers are known as your market in your business plan, the number of potential customers is known as your market size, and how you’ll reach them is known as your marketing plan. In your cafe or restaurant business plan , you will then divide your market into market segments. If your coffee shop or cafe is near an elementary school, for example, a market segment could be parents or caregivers who stop by for high-end coffee after dropping their children off at school. Or college students sipping espresso while studying for exams. You can zero in on how to reach each type of customer by segmenting your market. As part of your market analysis coffee shop, your marketing plan (how you will advertise to your target market) will be outlined in your business plan. What You Intend to Sell and How You Intend to Sell It Now that you know what your competitors charge, you can develop a pricing strategy for your cafe. Be clever when developing your menu and pricing. Because you’ll be buying in bulk, try to use the same ingredients in a variety of dishes.  Don’t be afraid to experiment. If you charge less for a croissant and coffee combo than for those items separately, you will encourage customers to buy more and reduce food waste. You’ll almost certainly end up changing your menu once you open for business.  However, for the purposes of a business plan , you’ll need to know how much you intend to charge for the coffee or soup you intend to sell, which you’ll figure out by breaking down the ingredients required to make each item and researching your competition. Make a Marketing Strategy Your marketing plan can be integrated into your sales plan or a separate section. Will you post your specials on social media every morning? In addition to marketing, this is a great section to explain your plans for customer retention. It’s easier than ever to reward and keep the customers who will frequent your cafe with a cafe point of sale system. Read also: 6 Examples Marketing Mix Example Coffee Shop Business Structure of Ownership Your company’s ownership structure will be included in your business plan. Explain how much experience you and your partners have and why you’re the right person (or people) for the job. Your Business Strategy Include information about your facilities, employees, equipment, and supplies in this section. Consider the direct costs of rent, barista wages, coffee beans, and technology. Try to squeeze as many services as you can out of a single tool, such as a POS system that allows your customers to check out, your part-time employees to clock in, and your cafe’s inventory to be managed. Estimate how frequently you’ll need to replenish ingredients like flour and eggs. Consider your operating costs carefully during the business planning stage. Wherever possible, save money and don’t skimp on essentials like your espresso machine. Planning Your Finances You are now ready to create a financial plan coffee shop. This is typically the most time-consuming and crucial section of your business plan, particularly for lenders and investors. It should contain a summary of your startup costs, an income statement, projected cash flow, a balance sheet, and a break-even analysis. Though creating a business plan may appear difficult, keep in mind that it is an important step to take before opening a cafe. A cafe can be successful is proven by a well-thought-out business plan. Join Ginee Philippines! Writing a cafe business plan is easy if you know how to do it, especially Ginee has provided you with tips above! After you have followed the tips, the next step is to manage your online stores and reach sales faster with the help of Ginee Philippines . Ginee has features such as product, stock, order, promotion, chat management, and more. You can manage your store in only a single dashbaord. Join Ginee Philippines now freely ! Upload Products to Shopee and Lazada Automatically ! How? Ginee product management allow you upload products to all of your online stores from all marketplace just once! Save time, save cost, save energy, join Ginee Now! How to Increase Shopify Website Speed, Note 8 Checklists! 1 Want to Customize Theme? Here How to Edit Website in Shopify 2 Here 4 Ways How to Add Privacy Policy to Shopify Store 3 Step by Step How to Add Sub Menu in Shopify Complete!  4 Here Is the Ideal Image Size for Debut Theme Shopify Store 5 How to Rename Shopify Store and 3 Reasons You Must Do It 6 5 Useful Tips How to Drive Traffic to Your Shopify Website? 7 6 Steps How to Make a Product Free Shipping on Shopify 8 How to Design a Shopify Website, Make Buyers Interested! 9 Update! 3 Ways How to Edit Shopify Coming Soon Page 10 Marketplace News Marketplace Research Selling Tips Ginee Portal Capital for Small Coffee Shop in the Philippines Coffee is a high demand beverage nationwide but has become a lifestyle beverage in the Philippines within the last few years.  According to Business Mirror , nine out of ten Filipino households regularly consume the hot coffee beverage.  Opening a coffee shop in the Philippines would be very ideal since the demand for coffee has increased. Table of Contents Two options for opening a coffee shop are purchasing a franchise, or to build from the ground up.  The capital needed to purchase a franchise coffee shop in the Philippines ranges anywhere from 182,000 to 445,000 pesos.  In order to build a coffee shop from the ground up in the Philippines will range between 245,000 and 900,000 pesos. Should you purchase a franchise coffee shop or build a coffee shop from the ground up?  Either way, you will have a few areas of opportunity, which affect the capital needed to open a coffee shop. These include customer base and advertising, recipes, choice of vendors, and coffee shop design. If you’re looking to learn more about starting a coffee shop in the Philippines, be sure to check out this blog post ! Franchise vs Ground up On the other hand building a coffee shop from the ground up will give you more freedom.  Not only will you get the maximum profits the coffee shop makes, but you will the be one calling all the shots. Customer Base and Advertising Like any other business you decide to open, location is always a key factor.  Location is something that is determined by your targeted customer base. When you purchase a franchise, you also get your advertising, marketing, and promotions completed for your coffee shop.  These will include any television and radio commercials, website and billboard ads, seasonal beverages, or sandwiches. Building a coffee shop from the ground up would mean having to develop a marketing plan and staffing a marketing team who is skilled enough to get your coffee shop’s name out there. If you decide to advertise via social media, you can hire just a few people who can help manage your business’s social media pages. This will get the advertising done as well as save you from having to work those long hours at night. Children enjoy coffee shops as well. I can personally say that my son loves to get a honey peach tea and a cookie every time I decide I want to go get a cup of joe. Common items you will find on the menu at a coffee shop for children are smoothies, brownies, and cake pops. There is nothing like trying something new.  When it comes to building a coffee shop from the ground up, you also get to decide what types of beverages and food you will serve in your shop, which gives you the opportunity to expand your customer base.  You are also able to experiment and invent new items for your menu. Choice of Vendors So how do you get the supplies you need for your coffee shop?  Vendors are where you will get the supplies you need to successfully operate your coffee shop. Building a coffee shop from the ground up would mean that you get to pick and choose the vendors you personally want to work alongside you.  The pro is that you can get what you need in your allotted budget.  The con is that you may not have the quality or the availability of the products you are looking for as you try to build your business.  However, as you grow, you can always change things up. Coffee Shop Design Interior design can very exciting and fun.  Personally, I get so much joy when I decorate or redecorate a room.  You will love it when it is time to get those colors, accessories, and tables into your coffee shop. Additional Considerations: Hiring a Staff If you purchase a franchise, you will have to follow their guidelines and regulations when it comes to hiring your staff members.  Guidelines that may be included are possibly a background check or drug screening that depends on the franchise. The Philippines once was a third world country but is now a developing nation.  With this in mind, it will make choosing a location for your coffee shop less stressful. As you will have your choice of prime locations, you will be able to serve many customers. The economy is constantly increasing which creates a strong demand for employment opportunities. This makes opening a coffee shop in the Philippines very beneficial as you will have candidates that will be in need of employment.  Making your candidate list easier to collect. Frequently Asked Questions If you decide, you can purchase an existing coffee shop.  This may be ideal since the location and customer base is already established for you.  Another benefit is having access to the financial history of the coffee shop.  If you negotiate with the seller, you may even be able to keep the current coffee equipment. Also, you may benefit from the stress-relieving factor that all of the major decisions have been made for you. 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. Stick around, browse through my helpful blog and resources and enjoy your stay! With lots of LATTE LOVE! Share This Story, Choose Your Platform! Related posts, tips for designing an effective coffee shop website, tips for choosing the right location for your coffee shop, top coffee shop pos systems, most effective ways to increase foot traffic to your coffee shop, best ways to market your coffee shop online. Academia.edu no longer supports Internet Explorer. To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to  upgrade your browser . Enter the email address you signed up with and we'll email you a reset link. We're Hiring! Help Center 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. Related Papers Loading Preview Sorry, preview is currently unavailable. You can download the paper by clicking the button above. RELATED TOPICS   We're Hiring!   Help Center Find new research papers in: Health Sciences Earth Sciences Cognitive Science Mathematics Computer Science Academia ©2024 Don't bother with copy and paste. Get this complete sample business plan as a free text document. Coffee Shop Business Plan Start your own coffee shop business plan Java Culture Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity. People near the University of Oregon need not just coffee and tea, or pastries and snacks, but also a place to meet comfortably, have a group discussion, or just sit quietly, work, and read. That is available now near the University of Oregon campus, but too crowded too often, and not the right combination of factors for everybody. Java Culture coffee bar is determined to become a daily necessity for local coffee addicts, a place to dream of as you try to escape the daily stresses of life and just a comfortable place to meet your friends or to read a book, all in one. Java Culture will focus its marketing activities on reaching the University students and faculty, people working in offices located close to the coffee bar and on sophisticated teenagers. Our market research shows that these are the customer groups that are most likely to buy gourmet coffee products. Since gourmet coffee consumption is universal across different income categories and mostly depends on the level of higher education, proximity to the University of Oregon campus will provide access to the targeted customer audience. Competition Java Culture’s direct competitors will be other coffee bars located near the University of Oregon campus. These include Starbucks, Cafe Roma, The UO Bookstore, and other Food service establishments that offer coffee. Great coffee, pastries, additional options for tea etc, very welcoming atmosphere, good wireless, desk space, comfortable chairs and tables, good pastries, a location close to the university campus. Expectations We plan to grow as shown in the chart below, taken from our sales forecast. We aim to maintain an industry-standard 60% gross profit margin and reasonable operating expenses, and to produce reasonable profits in the second and third year. Financial Highlights by Year Financing needed. The owners will invest $140,000 and take out a bank loan for $30,000  to cover the start-up expenses and assets needed plus deficient spending in the early months. The start-up expenses of $27,000 include: Legal expenses for obtaining licenses and permits as well as the accounting services totaling $1,300. Marketing promotion expenses for the grand opening of Java Culture in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580. Consultants fees of $3,000 paid to ABC Espresso Services <name changed> for the help with setting up the coffee bar. Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium of $2,400. Pre-paid rent expenses for one month at $1.76 per square feet in the total amount of $4,400. Premises remodeling in the amount of $10,000. Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500). These expenses will be incurred before launch, so they take their place in our financial projections as negative retained earnings of $27,680 at the end of the month before we begin. That number shows up in the balance sheet. The required start-up assets of $143,000 include: Cash in the bank in the total amount of $67,000, which includes enough to cover employees and owner’s salaries of $23,900 for the first two months and cash reserves for the first three months of operation (approximately $14,400 per month). Coffee beans (12 regular brands and five decaffeinated brands) – $6,000 Coffee filters, baked goods, salads, sandwiches, tea, beverages, etc. – $7,900 Retail supplies (napkins, coffee bags, cleaning, etc.) – $1,840 Office supplies – $287 Espresso machine – $6,000 Coffee maker – $900 Coffee grinder – $200 Food service equipment (microwave, toasters, dishwasher, refrigerator, blender, etc.) – $18,000 Storage hardware (bins, utensil rack, shelves, food case) – $3,720 Counter area equipment (counter top, sink, ice machine, etc.) – $9,500 Serving area equipment (plates, glasses, flatware) – $3,000 Store equipment (cash register, security, ventilation, signage) – $13,750 Office equipment (PC, fax/printer, phone, furniture, file cabinets) – $3,600 Other miscellaneous expenses – $500 Funding for the company comes from two major sources–owners’ investments and bank loans. Two major owners, Arthur Garfield and James Polk, have contributed $70,000 and $30,00 respectively. All other investors have contributed $40,000, which brings the total investments to $140,000. The remaining $30,000 needed to cover the start-up expenses and assets came from the two bank loans–a one-year loan in the amount of $10,000 and a long-term (five years) loan of $20,000. Both loans were secured through the Bank of America. Thus, total start-up loss is assumed in the amount of $27,000. The amounts show up in the balance sheet in the month prior to opening. The $140,000 investment shows up as Paid-in Capital. The $27,000 expenses show up as negative retained earnings. Assets and liabilities are there. This is all according to financial standards. Problem & Solution Problem worth solving. People near the University of Oregon need not just coffee and tea, or pastries and snacks, but also a place to meet comfortably, have a group discussion, or just sit quietly, work, and read. That is available now near the University of Oregon campus, but too crowded too often, and not the right combination of factors for everybody.  Our Solution Java Culture will make its best effort to create a unique place where customers can socialize with each other in a comfortable and relaxing environment while enjoying the best brewed coffee or espresso and pastries in town. We will be in the business of helping our customers to relieve their daily stresses by providing piece of mind through great ambience, convenient location, friendly customer service, and products of consistently high quality. Java Culture will invest its profits to increase the employee satisfaction while providing stable return to its shareholders. Target Market Market size & segments. Coffee consumption has shown a steady 2.5% growth rate in the United States over the last decade. The retail coffee industry is flourishing in the U.S. Pacific Northwest. The local climate, with a long rainy season, is very conducive for the consumption of hot non-alcoholic beverages. At the same time, hot dry summers drive people into cafes to order iced drinks. Furthermore, coffee has really become a part of the lifestyle in the Pacific Northwest. Its discerning coffee drinkers are in favor of well-prepared, strong coffee-based beverages, which they can consume in a relaxing environment. More specifically, the University of Oregon as close to 25K students and another 5-10K faculty and staff. And it is embedded in the Eugene, OR community of 200K people. Our main market will be students, faculty, staff, and nearby residents. But the campus area is a hub for the community and will attract other customers.  Current Alternatives Our Advantages Java Culture will cater to people who want to get their daily cup of great-tasting coffee in a relaxing atmosphere. Such customers vary in age, although our location close to the University campus means that most of our clientele will be college students and faculty. Our market research shows that these are discerning customers that gravitate towards better tasting coffee. Furthermore, a lot of college students consider coffee bars to be a convenient studying or meeting location, where they can read or meet with peers without the necessity to pay cover charges. For us, this will provide a unique possibility for building a loyal client base. Keys To Success The keys to success will be: Store design that will be both visually attractive to customers, and designed for fast and efficient operations. Employee training to insure the best coffee preparation techniques. Marketing strategies aimed to build a solid base of loyal customers, as well as maximizing the sales of high margin products, such as espresso drinks. Marketing & Sales Marketing plan. Java Culture will position itself as unique coffee bar where its patrons can not only enjoy a cup of perfectly brewed coffee but also spend their time in an ambient environment. Comfortable sofas and chairs, dimmed light and quiet relaxing music will help the customers to relax from the daily stresses and will differentiate Java Culture from incumbent competitors. In order to build up its client base, Java Culture will use some strategic banners and fliers during the launch period, utilize customer referrals and cross-promotions with other businesses in the community from time to time, and loyalty programs that work with android and IOS and other mobile phones, which is the preference of our market. Our main thrust will be getting people to know, like, and trust us with content and engagement in Facebook, Instagram, Snapchat, and Twitter.  We intend to maintain social media presences that are light on self-serving promotional quasi-advertising content, heavy on community participation, content, and engagement.  Java Culture baristas will handle the sales transactions. To speed up the customer service, at least two employees will be servicing clients–while one employee will be preparing the customer’s order, the other one will be taking care of the sales transaction. All sales data logged on the computerized point-of-sale terminal will be later analyzed for marketing purposes. Locations & Facilities Java Culture coffee bar will be located on the ground floor of the commercial building at the corner of West 13th Avenue and Patterson Street in Eugene, OR. The company has secured a one-year lease of the vacant 2,500 square feet premises previously occupied by a hair salon. The lease contract has an option of renewal for three years at a fixed rate that Java Culture will execute depending on the financial strength of its business. The floor plan will include a 200 square feet back office and a 2,300 square feet coffee bar, which will include a seating area with 15 tables, a kitchen, storage area and two bathrooms. The space in the coffee bar will be approximately distributed the following way–1,260 square feet (i.e., 55% of the total) for the seating area, 600 square feet (26%) for the production area, and the remaining 440 square feet (19%) for the customer service area. This property is located in a commercial area within a walking distance from the University of Oregon campus on the corner of a major thoroughfare connecting affluent South Eugene neighborhood with the busy downtown commercial area. The commercially zoned premises have the necessary water and electricity hookups and will require only minor remodeling to accommodate the espresso bar, kitchen and storage area. The coffee bar’s open and clean interior design with modern wooden decor will convey the quality of the served beverages and snacks, and will be in-line with the establishment’s positioning as an eclectic place where people can relax and enjoy their cup of coffee. The clear window displays, through which passerby will be able to see customers enjoying their beverages, and outside electric signs will be aimed to grab the attention of the customer traffic. Milestones & Metrics Milestones table. Milestone Due Date Who’s Responsible Sept 13, 2018 Sept 14, 2018 Marketing Sept 18, 2018 Team Apr 16, 2019 team Key Metrics We have our forecasts for sales, direct costs, and operating expenses. As we get into the business we’ll develop standards based on experience for Facebook likes, Twitter follows, and other social media engagement. We expect to watch these very carefully.  Ownership & Structure Java Culture is majority-owned by Arthur Garfield and James Polk. Mr. Garfield holds a Bachelor’s Degree in Business Administration from the University of ZYX. He’s worked for several years as an independent business consultant. Previously, he owned the ABC Travel Agency, which he profitably sold four years ago. Mr. Garfield has extensive business contacts in Oregon that he will leverage to help his new venture succeed. Mr. Polk has a Bachelor’s Degree in Psychology from the XYZ State University. For the last five years he has worked as a manager of DEF Ristorante, a successful Italian restaurant in Portland, OR. Under Mr. Polk’s management, the restaurant has consistently increased sales while maintaining a lower than average level of operating expenses. Investors will not be involved into the daily management decisions at Java Culture. They will hire a professional manager who will oversee all the coffee bar operations. Three full-time baristas will be in charge of coffee preparation. They will hire two more part-time employees to fulfill the staffing needs. In the second and third year of operation will add additional employees if and when needed.  Management Team A full-time manager will be hired to oversee the daily operations at Java Culture. The candidate (who’s name is withheld due to his current employment commitment) has had three years of managerial experience in the definitely industry in Oregon. This person’s responsibilities will include managing the staff, ordering inventory, dealing with suppliers, developing a marketing strategy and perform other daily managerial duties. We believe that our candidate has the right experience for this role. A profit-sharing arrangement for the manager may be considered based on the first year operational results. Personnel Table FY2019 FY2020 FY2021 Manager $60,000 $66,000 $72,600 Baristas (3) $90,000 $94,500 $99,225 Other employees (2) $43,200 $45,360 $47,628 Totals $193,200 $205,860 $219,453 Financial Plan investor-ready personnel plan ."> Key assumptions. We assume a steadily growing potential market in line with growth at the university, trends.  We assume industry standard gross margins We assume relative status quo regarding technology and trends in the coffee industry Revenue by Month Expenses by month, net profit (or loss) by year, use of funds. The start-up expenses include an estimated $17,000 consisting of several items: Legal expenses for obtaining licenses and permits as well as the accounting services totaling $1,500. Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium of $1,500. Other start-up expenses including website ($4,000) and phone and utility deposits ($2,500). The required start-up assets of $71,000 include: Plates, glasses, etc. worth approximately $2,000 Espresso machine Coffee maker Coffee grinder  Food service equipment (microwave, toasters, dishwasher, refrigerator, blender, etc.) Storage hardware (bins, utensil rack, shelves, food case)  Counter area equipment (counter top, sink, ice machine, etc.) Serving area equipment (plates, glasses, flatware) Store equipment (cash register, security, ventilation, signage)  Office equipment (PC, fax/printer, phone, furniture, file cabinets)  Other miscellaneous expenses Sources of Funds Projected profit & loss. FY2019 FY2020 FY2021 Revenue $561,010 $654,500 $743,000 Direct Costs $224,404 $261,800 $297,200 Gross Margin $336,606 $392,700 $445,800 Gross Margin % 60% 60% 60% Operating Expenses Salaries & Wages $193,200 $205,860 $219,453 Employee Related Expenses $38,640 $41,172 $43,891 Rent $36,000 $38,000 $42,000 Marketing $28,051 $32,725 $37,150 Utilities, phones, Internet etc. $6,000 $6,000 $6,000 Total Operating Expenses $301,891 $323,757 $348,493 Operating Income $34,716 $68,943 $97,306 Interest Incurred $951 $583 $427 Depreciation and Amortization $12,000 $12,000 $12,000 Gain or Loss from Sale of Assets Income Taxes $3,265 $8,454 $12,732 Total Expenses $542,511 $606,593 $670,853 Net Profit $18,499 $47,907 $72,147 Net Profit/Sales 3% 7% 10% Projected Balance Sheet Starting Balances FY2019 FY2020 FY2021 Cash $67,000 $80,234 $133,240 $214,467 Accounts Receivable $0 $0 $0 $0 Inventory $16,000 $21,815 $24,765 $24,765 Other Current Assets Total Current Assets $83,000 $102,048 $158,005 $239,232 Long-Term Assets $60,000 $60,000 $60,000 $60,000 Accumulated Depreciation ($12,000) ($24,000) ($36,000) Total Long-Term Assets $60,000 $48,000 $36,000 $24,000 Total Assets $143,000 $150,048 $194,005 $263,232 Accounts Payable $0 $0 $0 Income Taxes Payable $2,232 $2,116 $3,184 Sales Taxes Payable $0 $0 $0 Short-Term Debt $13,683 $3,833 $3,989 $4,152 Prepaid Revenue Total Current Liabilities $13,683 $6,065 $6,105 $7,336 Long-Term Debt $16,317 $12,484 $8,495 $4,343 Long-Term Liabilities $16,317 $12,484 $8,495 $4,343 Total Liabilities $30,000 $18,549 $14,600 $11,679 Paid-In Capital $140,000 $140,000 $140,000 $140,000 Retained Earnings ($27,000) ($27,000) ($8,501) $39,406 Earnings $18,499 $47,906 $72,148 Total Owner’s Equity $113,000 $131,499 $179,406 $251,553 Total Liabilities & Equity $143,000 $150,048 $194,005 $263,232 Projected Cash Flow Statement FY2019 FY2020 FY2021 Net Cash Flow from Operations Net Profit $18,499 $47,907 $72,147 Depreciation & Amortization $12,000 $12,000 $12,000 Change in Accounts Receivable $0 $0 $0 Change in Inventory ($5,815) ($2,950) $0 Change in Accounts Payable $0 $0 $0 Change in Income Tax Payable $2,232 ($116) $1,068 Change in Sales Tax Payable $0 $0 $0 Change in Prepaid Revenue Net Cash Flow from Operations $26,917 $56,840 $85,216 Investing & Financing Assets Purchased or Sold Net Cash from Investing Investments Received Dividends & Distributions Change in Short-Term Debt ($9,850) $156 $163 Change in Long-Term Debt ($3,833) ($3,989) ($4,152) Net Cash from Financing ($13,683) ($3,833) ($3,989) Cash at Beginning of Period $67,000 $80,234 $133,240 Net Change in Cash $13,234 $53,007 $81,226 Cash at End of Period $80,234 $133,240 $214,467 The quickest way to turn a business idea into a business plan Fill-in-the-blanks and automatic financials make it easy. 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Coffee shop business plan pdf philippines. The coffee shop business is Moose Mountain Café. If you’re looking to develop a more modern business plan, we recommend you try LivePlan. It contains the same templates and information you see here, but with additional guidance to help you develop the perfect plan. As the average income has risen steadily, there has been an increase in coffee Plan for success with our coffee shop business sample plans. A coffee shop mostly deals with coffee; it does not have the qualities – like the main focus on food – that Established as a real estate investment firm over twenty-five years ago, Next Realty has spent more than two and a half ades acquiring and operating a broad portfolio of assets including retail, parking, office, and multifamily properties. They also are open until am and have live music and dj’s on the weekends Business Model. This article will outline how to start the coffee shop business, and the coffee shop business plan – PDF, Word and Excel. You would find different brewing methods, traditional espresso beverages, and most also have a selection of tea offerings. Coffee and ice cream shop business plan pdf. Seventh Flag has recently started serving craft beer in order to keep the coffee shop full at all hours. Seventh Flag is another local Austin favorite as it is located on Seventh Street where it is known to cater to the university crowd. Generally, in a coffee shop, coffee is the main focus. The total amount of capital needed is $30, The Where Can I Get a Coffee Shop Business Plan PDF? PlanBuildr's coffee shop business plan template will help you to quickly complete your coffee shop business plan and We are here to help you write a coffee shop business plan. Coffee shop business plan pdf freeA coffee shop is a profitable business to start in South Africa. Here’s a business plan sample pdf and a template that will give you some inspiration for what should be Step-by-Step Guide to Creating an Effective Coffee Shop Floor PlanAnalyze Your SpaceDefine ZonesOptimize Customer FlowFurniture and Fixtures Coffee shop business plan uk pdf. Contoh business plan coffee shop pdf. Today, as a premier commercial real estate firm, we continue to acquire properties in strong locations spanning major Seventh Flag Coffee Shop. Keyboard Controls The following keyboard controls are supported across Notebook.ai. All keyboard controls are disabled when editing a document or notebook page. ? Show this dialog By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . Coffee, the Philippines, and Southeast Asia Coffee has been drank in the Philippines since the mid-1700s, when it was brought over by Spain from north and central Africa. Coffee appears to have originated as a species in the Ethiopia area where it was consumed as medicine and part of a holy ritual. Sufi Muslims in the southern parts of Arabia seem to be the first to turn coffee into a drink, consuming it in monasteries. From the 1400s onward, coffee became part of the larger spice trade. In the past hundred years or so, a coffee culture somewhat unique to Southeast Asia has grown out of the violence of colonialism: coffee was brought to the region as a cash crop, grown on large plantations tended by forced labor and the enslavement of Asia’s native populations.The most famous coffee producers in the region are Vietnam, Indonesia, and the Philippines, which all continued the colonial practice of farming cash crops. Arabica has grown in popularity in Vietnam and the Philippines over time, but the species is still a major point of divergence. Arabica is by far the most popular coffee in Western and Middle Eastern culture, but Robusta became particularly popular and primary in Southeast Asia because of its hardiness against natural forces. It has a distinctly different flavor profile as well. Whereas Arabica is known for its sour, fruity, and nutty notes, Robusta is more bitter, woody, and earthy. In Vietnamese strains in particular, there tends to be a distinct chocolate-y flavor that is enhanced by the traditional serving method in the country—adding a tablespoon or so of condensed milk and ice. The Philippines is also famous for its Liberica species, known locally as “kapeng barako.” The species also originated in Africa, but became most famous in the Philippines because it became a naturalized species. Cavite and Batangas are particularly well-known for their barako production. Not coincidentally, these two provinces are also the focal point of the Philippines’ growing café culture. There are many wonderful and independently owned cafés found in these two provinces, particularly in Silang, Tagaytay, Taal, and the southern parts of Cavite and Batangas. This culture has yet to spread seriously to Manila, northern Luzon, or the Visayan region, but I believe that as Filipinos come to appreciate their own native coffee over foreign imports or instant coffee, the culture will expand. Indonesia, in addition to its regular massive production of Robusta beans, also produces for the local market the ethically controversial kopi luwak, which is produced in smaller quantities in the Philippines. Also known as kapeng musang, this coffee is produced from the digested beans excreted by the Asian palm civet. Of particular note in Philippine coffee culture is the Spanish latte. Many probably think that this is indeed a Spanish drink, as one finds that it does not really exist outside the Philippines. I have never found this drink outside the country, except in one café in Vancouver, Canada, which happened to be an Asian-themed café. This leads me to believe that it is actually a native creation given reference to a former colonial master’s influence, since the latte itself as a drink has origins in Spanish, French, and Italian culture. The most developed café culture in the region is, of course, in Vietnam, one of the largest coffee producers in the world. There are countless locally owned cafés all over this country serving the best known drinks, ca phe sua da (iced condensed milk coffee) and ca phe trung (egg [foam] coffee). The Robusta beans grown in Da Lat in particular are well-known for their high quality and deliciously nutty and chocolate-y flavors. If Filipinos would like to try this coffee without going to Vietnam, the iconic and most famous brand of coffee in Vietnam now has several branches in Luzon and is known as Highlands Coffee. In the Philippines, the café culture is centered around going out with friends and having a fun time. The culture in Vietnam is about slowing down, sitting outside in the shade, and letting the ice melt slowly into your coffee while observing your neighborhood. In a rapidly developing country like Vietnam, it seems there is a strong desire to carry over the more slow-paced past into the future. —————– Sterling V. Herrera Shaw received his master’s degree in Philippine Studies from the University of the Philippines Diliman, where he specialized in sociocultural and development studies. Subscribe to our daily newsletter Fearless views on the news Disclaimer: Comments do not represent the views of INQUIRER.net. We reserve the right to exclude comments which are inconsistent with our editorial standards. FULL DISCLAIMER © copyright 1997-2024 inquirer.net | all rights reserved. We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link. 352 COMMENTS The Ultimate Guide to Launching a Mobile Coffee Shop 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. Mobile Coffee Business Plan: The Mobile Barista Blueprint The mobile coffee business plan is a comprehensive guide that has a market analysis, operational strategies, unique selling proposition, pricing, marketing, and financial projections. This plan helps create an effective mobile coffee venture that caters to customers' love for coffee on the go. This article presents a comprehensive mobile ... How to Start a Coffee Shop Business in the Philippines If you want to open a small 30-sqm shop without a kitchen in a bustling district, prepare roughly ₱950,000 for the fit-out, equipment, and business permit; and approximately ₱245,000 for monthly operational expenses (rent, utilities, supplies, marketing, monthly staff cost, etc.). A medium-sized coffee shop with a small kitchen ... How to Start Coffee Shop Business Philippines (Ultimate Guide) 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. The City Brew: How This Mobile Coffee Shop Earns 200k Monthly These Friends Invested P6K And Now Earn P200K Monthly From Their Mobile Café Biz. Armed with patience and passion, these young entrepreneurs are set on delighting coffee lovers all over the country. BY: Steph Esguerra Olarte. May 29, 2022. When Laoag-based friends Carl Jasper Ardan, Maryvan Abella, and Vincent Calimag thought of starting their ... How to Open a Low Budget Café in the Philippines 2. Choose the type of coffee shop you want to launch. Next, you need to figure out the type of coffee you want to build. For a startup café, consider pop-up or mobile coffee shops. A pop-up coffee shop is one of the most versatile and inexpensive to launch. This type of low-budget coffee shop doesn't operate in a fixed location. Quick Guide On How To Start Coffee Shop Business In The Philippines If you decide to start from scratch, then your next step is prepare the costs. 3. Prepare for the expenses. According to a 2022 article from MoneyMax, starting a small 30-sqm coffee shop without a kitchen in a city can cost roughly P950,000 for the equipment, location, and business permit. It would cost you around P600,000 in monthly ... Starting a Coffee Shop in the Philippines: Required Capital and Tips to Step 1: Research the coffee business. Opening a coffee shop takes a big investment - both in time and money. It's important that you spend time understanding what it takes to run a successful café. This means doing some research - you can look for useful articles online, or better yet, talk to coffee business veterans and learn from ... The Ultimate Guide to Building a Coffee Business in the Philippines Your business plan is the document you will reference throughout the journey of building your coffee shop. It is your roadmap. Necessary Paperwork: Permits, certifications, approvals, etc. Hang tight. This process will take anywhere from weeks to months to even years to complete. It will be grueling, for sure. Complete Guide On How to Start a Coffee Shop Business in the Philippines 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 ... How To Start A Cafe Business Philippines 2024 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. How to Start a Coffee Shop in the Philippines: Costs and Considerations 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. Small Cafe with No Kitchen. Location: Central Business District. Floor Area: 30 sq. m. Staff: 4 (depending on café hours) Seats: 9. Food ... How to Write a Coffee Shop Business Plan for the Philippines 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. Coffee Shop Business Plan Template & PDF Example July 22, 2024. Business Plan. Creating a comprehensive business plan is crucial for launching and running a successful coffee shop. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your coffee shop's identity, navigate the competitive market, and secure funding for growth. How Much Does It Cost to Start a Coffee Business in the Philippines? 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. Complete Guides to Write Cafe Business Plan Step by Step Complete Guides to Write Cafe Business Plan Step by Step. Ginee 17-6-2022. Great cafes combine exceptional coffee, a welcoming environment, and delectable treats to snack on while relaxing. The cafe is a low-risk business model with lower start-up costs and overhead than larger restaurants, but carving a niche for your cafe in the market and ... Capital for Small Coffee Shop in the Philippines In order to build a coffee shop from the ground up in the Philippines will range between 245,000 and 900,000 pesos. Two options for opening a coffee shop are purchasing a franchise, or to build from the ground up. The capital needed to purchase a franchise coffee shop in the Philippines ranges anywhere from 182,000 to 445,000 pesos. Mobile Coffee Shops are Popping Up All Over the Country—Here are 8 to Go for any of their local coffees and match it with a large sized red velvet cookie for a satisfying meal. Kapihan sa Jeep. Price Range: PHP 20-PHP 35. Contact Details: Official Facebook Page, 0905 560 2120. 3. The Coffee Mobile. Photo Credit: @thecoffeemobile on Instagram. Photo Credit: @thecoffeemobile on Instagram. A business plan for "Kopinoy" 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 ... Paano Mag Start ng Coffee Shop Business? 10-15k Capital! On today's video we are going to share our humble experiences on how to start a coffee shop business here in the Philippines.Marami pong failures na dumating... Coffee Shop Business Plan Example Explore a real-world coffee shop business plan example and download a free template with this information to start writing your own business plan. ... and loyalty programs that work with android and IOS and other mobile phones, which is the preference of our market. Our main thrust will be getting people to know, like, and trust us with content ... successful coffee shop business plan pdf philippines Coffee shop business plan pdf philippines. The coffee shop business is Moose Mountain Café. If you're looking to develop a more modern business plan, we recommend you try LivePlan. It contains the same templates and information you see here, but with additional guidance to help you develop the perfect plan. As the average income has risen ... Coffee, the Philippines, and Southeast Asia Coffee appears to have originated as a species in the Ethiopia area where it was consumed as medicine and part of a holy ritual. Sufi Muslims in the southern parts of Arabia seem to be the first to turn coffee into a drink, consuming it in monasteries. From the 1400s onward, coffee became part of the larger spice trade. essay homework paper phd project resume review speech thesis