business plan of coffee shop in the philippines

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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: 

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

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How to Start a Coffee Shop Business in the Philippines

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

Key Takeaways:

Why start a coffee shop business.

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

Entrepreneurship and Income

Impact and creativity, dream and coffee culture, flexibility, how to start a coffee shop business in the philippines (7 simple steps).

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

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

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

1. Start with a Solid Business Plan

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

2. Find a Cost-Effective Location

3. source affordable equipment, 4. optimize your menu.

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

5. Emphasize Efficiency and Productivity

6. utilize low-cost marketing strategies.

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

7. Build Customer Loyalty

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

Developing Your Menu for a Coffee Shop Business

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

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

Coffee Menu Suggestions:

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

Food Menu Suggestions:

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

Marketing Strategies for a Coffee Shop Business

Social media, free wi-fi email capture.

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

Facebook Advertising

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

Maintaining Customer Satisfaction in a Coffee Shop Business

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

Deliver High-Quality Coffee Beverages

Host events to engage your community.

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

Train Your Staff for Friendly and Attentive Service

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

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

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

1. Develop a Solid Business Plan

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

2. Find the Perfect Location

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

3. Create an Inviting Ambiance

4. craft an impressive menu.

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

5. Implement Effective Marketing Strategies

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

6. Prioritize Customer Satisfaction

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

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

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

Why should I start a coffee shop business?

How do i start a coffee shop business in the philippines.

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

3. Identify a suitable location.

6. Create a coffee and food menu.

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

1. Find a small and affordable space.

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

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

What marketing strategies can i use to promote my coffee shop business.

1. Establish a strong presence on social media platforms.

4. Collaborate with local businesses for cross-promotion.

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

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

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

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Table of Contents

Dreaming of opening a coffee shop? You’re not alone. The coffee industry is bustling with passionate business owners eager to make their mark. However, becoming successful coffee shop owners requires more than just a love for the brew. It demands a clear vision that differentiates your coffee house in a saturated market. A well-crafted business plan not only gives life to your idea but also sets your business on a path to thrive. Whether you’re a newbie or a seasoned entrepreneur, this guide, complete with a free template, will help you craft a business plan that markets and propels your coffee venture to success.

What is A Coffee Shop Business Plan?  

A coffee shop business plan is a comprehensive document that explains what your business idea is, how you intend to penetrate the coffee market, and the strategies you’ll employ to run your coffee shop successfully. When opening a cafe, many aspiring cafe or coffee shop owners underestimate the value of a structured plan. However, this document does more than just outline the needs to open a coffee shop; it gives a detailed roadmap for your new business, offering clarity on every aspect of its operation.

More than that, presenting a well-structured business plan to potential investors is essential. It not only showcases your commitment but also your understanding of the industry, making it a vital tool for securing funding. While crafting a business plan can seem daunting initially, it’s the foundation that both clarifies your idea and sets your business on the trajectory for growth and success in the competitive world of cafes and coffee shops.

Why A Business Plan Is Important For A Successful Coffee Shop Business?

1. Clear Vision and Objectives

When you set up your coffee shop, having a business plan establishes a clear vision and defines your objectives. It is the backbone that steers every decision you’ll make. Without a clear outline, you may find yourself swaying from one idea to the next. With a detailed business plan, you can present a clear business proposal to stakeholders, ensuring them and yourself of the path you plan to tread.

2. Financial Planning

A comprehensive business plan is imperative for accurate financial planning. It will include information on how much capital is required to start, what your ongoing costs will be, and the revenues you plan to generate. If you’re seeking external funding, investors will want to see how you plan to use their money, and most importantly, how you plan to make a return on that investment. If you plan to sell specialty blends or unique treats, the financial section can also help you plan a strategy for pricing, promotion, and sales forecasts.

3. Operational Efficiency

Operational efficiency is the linchpin that holds all business operations together. A business plan will map out every detail, from supplier agreements to employee schedules. You may want to create special events or loyalty programs for regular customers, and this is where a business plan can help you plan a strategy for success. It becomes the reference point, ensuring that daily tasks align with the broader objectives, guaranteeing that resources, time, and efforts are used optimally.

Step-by-step Guide To Write A  Coffee Shop Business Plan

1. Executive Summary

The Executive Summary is like the introduction of a novel – it provides a snapshot of what is to come. Typically, you write the executive summary last, even though it appears first in your business plan. It encapsulates the essence of your coffee shop’s mission, objectives, and financial overview, succinctly explaining what your business concept is about. This section is crucial because many coffee shops fail to engage potential investors right off the bat. Ideally, it should be concise – a page or two.

What should you cover in an Executive Summary?

• Introduce Your Coffee Shop or Cafe: Provide a company overview, giving readers insight into what makes your coffee shop unique from the myriad of coffee bars in the market.
• State Your Mission and Vision: Describe what drives your coffee business and where you see it in the future.
• Outline Your Objective: Define clear, measurable goals that you aim to achieve.
• Provide a Financial Overview: Highlight projected profit margins, a brief balance sheet, and other pertinent financial data.

2. Coffee Shop Business Description

This section paints a picture of your coffee shop. It’s where you elaborate on how you plan to infuse the local coffee market with your unique brews and pastries.

What should you cover in the Coffee Shop Description section?

• Coffee Shop Concept: Dive into the types of coffee drinks you plan to offer, whether it’s a rich espresso or a classic brewed coffee.
• Unique Selling Proposition: Discuss what makes your coffee shop stand out, be it a special blend of coffee beans, a unique roasting method using a specific coffee roaster, or artisanal pastry offerings.
• Operational Plan: Briefly touch upon how you’ll manage your coffee shop, from sourcing beans to serving cups of coffee.

3. Market Analysis

Before pouring your first espresso, performing market research before starting your coffee business is essential. This section dives deep into understanding your potential customer base and the coffee industry landscape in your area.

What should you cover in this section?

• Target Market: Describe your ideal customer. Are they local residents, office workers, or students?
• Location: Discuss the significance of your chosen location. Are there many coffee shops in the area? How does your location cater to your target market?
• Competition: Analyze existing coffee shops. What coffee and food products do they offer? What pricing strategy do they employ? How will your coffee shop compete or complement them?

4. Organization and Management

Behind every successful coffee shop is a robust organizational structure and a competent management team.

What should you cover in the Organization and Management Plan?

• Coffee Shop Ownership Information: Highlight the business’s legal structure.
• Profiles of Your Coffee Shop Management Team: Include details about your baristas, perhaps a part-time accountant, and someone to manage marketing. It can be helpful to create profiles for each role, detailing responsibilities and expertise.

5. Sample Menu

Your menu is the heart of your coffee shop. It’s more than just a list of coffee and tea; it’s an expression of your brand.

What should you consider when creating a Sample Menu?

• Menu Items: Detail the types of coffee, espresso drinks, and pastries you plan to offer. Maybe consider including non-coffee items like teas or specialty drinks.
• Unique Selling Proposition: Reiterate what makes your coffee or food items different from other coffee shops in the area.
• Menu Pricing : Discuss your pricing strategy, keeping in mind profit margin, competitors’ prices, and your target customer base.

6. Marketing Plan

To brew success, it’s not enough to have a fantastic coffee product; you must effectively market it.

What should you cover in a Marketing Strategy for your Coffee Shop Business?

• Define Your Brand: What voice, theme, or emotion do you want your coffee shop to evoke?
• Lay out your plans for social media campaigns, local partnerships, loyalty programs, SEO for website, and other promotional strategies.
• Considering using an  online food ordering system  in your food truck
• Create a  digital menu with QR code  to make your menu easy for your customers to access online

7. Operations Plan

Efficiency is key to the daily grind of running a cafe. The operations section provides a detailed look at the day-to-day operations of your coffee shop business. 

What Operational Issues should you address in your Business Plan?

• Supply Chain: Where will you buy your coffee beans? Who will be your coffee roaster?
• Operating Hours: Consider the best times to cater to your target market.
• Staffing: Detail roles, such as barista, manager, and part-time support.
• Equipment: List down essential equipment, from espresso machines to ovens.

8. Financial Plan

In this crucial section of your business plan, delving into the financial specifics is paramount to lay out a concrete roadmap for the fiscal aspects of your coffee shop.

How Much Does It Cost to Start a Coffee Shop?

Starting a coffee shop is not just about brewing the perfect espresso; it’s also a substantial financial commitment. The cost for opening a coffee shop can range from $80,000 to $250,000. These costs can vary widely based on factors such as location, size of the establishment, equipment quality, and inventory requirements. Moreover, the process of opening a coffee shop might also involve unexpected expenditures, so it’s essential to account for some buffer in your budget.

How Many Ways to Fund Your Coffee Shop?

There are multiple avenues for funding your coffee venture. Traditional bank loans, personal savings, angel investors, crowdfunding campaigns, and partnerships are just a few options. It’s crucial to assess which option aligns best with your business vision and financial situation.

Important Questions to Consider When You Create Your Funding Request If you’re seeking funding, there are several questions you’ll need to answer in your business plan:

• How much money do you need to start and maintain your coffee shop until it becomes profitable?
• What will the funds be used for specifically?
• How do you plan to handle financial challenges that might arise?
• How do you plan to repay any loans or provide a return on investment?

9. Financial Projections

The financial projections section of your business plan forces you to translate your coffee shop vision into numbers, ensuring you’ve accounted for all key metrics that can make or break your venture.

Break-even analysis:

This is the point where your coffee shop’s total revenues equal its total costs. Simply put, it’s when you neither make a profit nor a loss from selling coffee. 

Use this formula:  Fixed Costs / (Price – Variable Costs) = Break Even Point

Projected profit and loss statement:

This will provide a forecast of your expected income and expenses, giving a clear view of your venture’s profitability.

Cash flow analysis:

Essential for understanding the liquidity of your business, this tool is especially crucial for coffee shops, considering the fluctuating expenses and incomes coffee shops offer. When drafting this, consider who will read it, as stakeholders like investors or lenders might have specific expectations.

Coffee Shop Business Plan Template 

• Mission: To offer the community high-quality coffee in a comfortable and vibrant environment.
• Vision: To become the go-to local coffee spot that fosters community connections and coffee appreciation.
• Coffee Shop Description: “Java Junction” will be a modern coffee hub that emphasizes direct-trade coffee beans and a relaxed, inclusive atmosphere.
• Costs: Estimated initial costs are $125,000.
• Profits: Projected annual profit by year two is $75,000.

2. Description of the Coffee Shop

• Coffee Shop Concept: A community-focused café emphasizing artisanal methods.
• Coffee Shop Name: Java Junction
• Coffee Shop Type: Sit-down café with an adjacent mini-library.
• Location: Main Street, Downtown Area – chosen for its high foot traffic.
• Order Fulfillment: Orders taken at the counter with table service for food.
• Working Hours: Mon-Fri (7 am – 9 pm), Sat-Sun (8 am – 10 pm).

3. Menu Offer

• Type of Food and Drink: Coffee, teas, pastries, and sandwiches.
• Offer: From classic espresso shots to unique blends like “Lavender Latte”.
• Unique Selling Point: Every coffee product uses direct-trade beans, ensuring farmer fairness.

4. Market and Competition Analysis

• Market Analysis: The local population includes a mix of professionals, students, and tourists. Many search for quiet spots to work or relax.
• Target Customer: Professionals aged 25-40 and students.
• Size of the Target Customer: Approximately 15,000 individuals.
• Competition Analysis: Three established coffee shops within a mile.
• Size of the Competition: Ranging from small boutique coffee shops to a larger chain.
• Competitors’ Offer: Basic coffee drinks, with limited specialty items.
• Competitors’ Prices: Average of $4 for a coffee drink.

5. Investment Plan (Detailed Cost Analysis)

Investment Cost (One-off): $75,000

• Equipment: $30,000
• Renovations: $20,000
• Initial Stock: $10,000
• Licenses: $5,000
• Miscellaneous: $10,000

Operating Costs (Monthly): $17,000

• Rent: $3,000
• Salaries: $10,000
• Utilities: $1,000
• Stock: $2,000
• Marketing: $1,000

6. Financial Forecast

Year one is projected to break even, with a profit of $50,000 expected in year two, and $75,000 in year three, considering growth and expanding customer base.

• Owner: Jamie Smith, a coffee enthusiast with a business degree.
• Manager: Alex Brown, previously managed a successful coffee chain for five years.
• Baristas: A team of 4 skilled individuals passionate about coffee.

8. Marketing Plan

Java Junction will use a mix of social media marketing, local print advertising, and loyalty programs to attract and retain customers. Regular events, such as “Buy Our Coffee Day” and collaboration with local businesses, will drive foot traffic and community engagement, integral components for starting your coffee shop and making it successful.

This coffee shop business plan sample is hypothetical and serves as a template. Tailoring specifics to your local market, vision, and unique aspects will be necessary. Every coffee shop has nuances that can make them successful, whether it be the coffee products they sell, the environment they cultivate, or the events they host. Focus on what will make your coffee shop stand out and be sure to engage your community.

Tips For Writing a Business Plan For a Coffee Shop

Your business plan becomes the blueprint of your vision. Here are essential tips to consider:

Comprehensiveness is Key: Ensure your plan encompasses all sections you should include, such as marketing, financial projections, and operations. A well-rounded plan provides a holistic view of your business.

Tailor to Your Audience: If you’re presenting to potential investors, focus on profitability and growth projections. For a landlord, emphasize the benefits your coffee shop will bring to their property.

Specialize in Marketing: Given the competitiveness in the coffee industry, it’s crucial to have a solid marketing plan. If marketing isn’t your strength, consider hiring someone to do marketing for your venture. A strong online presence, loyalty programs, and community engagement can set you apart.

Research Your Market: Understand what nearby coffee shops include in their offerings. Identify gaps in the market and strategize on how your shop can fill them.

Stay Flexible: While a business plan provides direction, remain adaptable. The coffee industry is dynamic, and your ability to pivot can prove invaluable.

Separate Sections for Clarity: If your plan becomes too dense, you might want to create a separate document for specific sections like a detailed marketing strategy or an in-depth market analysis. This makes your primary business plan concise and more readable.

Frequently Asked Questions

1. how profitable is owning a coffee shop.

Owning a coffee shop can be profitable, depending on factors like location, quality of products, and management. On average, after expenses, many coffee shops report a profit margin of around 3% to 5%, with some successful ones achieving even higher. However, it’s essential to factor in initial setup costs, ongoing expenses, and market competition.

2. How do I start a coffee shop business plan?

Starting a coffee shop business plan involves multiple steps. Begin by defining your coffee shop’s mission and vision. Conduct market research to understand your target audience and competitors. Then, detail out sections like your product offerings, pricing strategy, marketing plan, financial projections, and operational procedures. If you’re thinking of opening a coffee shop, a well-thought-out business plan is indispensable.

3. What is a business plan for a coffee shop?

A coffee shop business plan is a detailed document that outlines your coffee shop’s objectives, strategies, and operational procedures. It acts as a roadmap, guiding you from the startup phase to establishing a thriving business. Moreover, if you need a coffee shop business loan or investment, this plan becomes crucial in convincing stakeholders of your venture’s viability.

4. What are the 4Ps in a coffee shop business plan?

The 4Ps stand for Product, Price, Place, and Promotion. In the context of a coffee shop:

• Product: What type of coffee and related products will you offer?
• Price: How will you price your coffee? Will it be premium or competitive?
• Place: Where will your coffee shop be located? Is it accessible to your target audience?
• Promotion: How will you market your coffee shop? Will you offer promotions or loyalty programs?

These elements help in creating a marketing strategy tailored to your coffee shop’s unique needs and market position.

Launching a coffee shop is not just about brewing the perfect cup but weaving a narrative that resonates with your community, fostering an ambiance that people gravitate towards, and maintaining a seamless operation that drives profitability. The meticulous creation of a business plan is a pivotal step in this endeavor. It’s the beacon that guides budding entrepreneurs through the complexities of the coffee industry. In such a competitive marketplace, a well-structured, comprehensive business plan can make the difference between a fleeting venture and a thriving institution. To potential coffee shop owners, embrace the process, let your passion shine through in your plan, and remember that every great coffee shop started with a simple idea, much like a single coffee bean ready to brew greatness.

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

Last Updated: January 21, 2023

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

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

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

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

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

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

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

Factors That Affect Coffee Shop Costs

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

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

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

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

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

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

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

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

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

Things to Budget for When Opening a Coffee Shop 

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

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

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

The Bottom Line

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

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

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

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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?

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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.

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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.

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Why Coffee Shop is a Good Business in the Philippines

Starting a coffee shop business is not a walk in the park. It requires grit, creativity, and resourcefulness to succeed in the food and beverage industry.

The Philippines is a country of coffee enthusiasts, with nine out of 10 Filipino households consuming coffee regularly. The latest Philippine coffee statistics reveal that in 2020 alone, about 3.3 million 60-kilogram bags were used. It has grown up to date. For further reading, you can check out this guide on Philippine coffee consumption trends . 

If you’re not convinced yet, here are the primary reasons why a coffee shop is a good business and some major challenges you’ll face when you venture into this type of business.

Growing Specialty Coffee Market

The demand for specialty coffee is on the rise in the Philippines. Consumers are becoming more discerning about the quality and origin of their coffee beans when they’re at the cafe counter. 

Today’s trend is offering unique and high-quality specialty coffees from startup brands or coffee franchise in the Philippines . A coffee shop that can tap into this new desire and behavior of consumers has the highest potential to attract coffee connoisseurs.

With the specialty coffee market, cafe owners and baristas in the Philippines have begun to create new beverages and mix and match ingredients to cater to the increasing taste changes of their target audience. 

For young people, flavored frappes have been a go-to beverage, while for health-conscious consumers, matcha lattes and fruit juices – non-coffee drinks are added to the cafe menu.

Strong Coffee Culture

The Philippines has a rich coffee culture with a growing popularity among coffee enthusiasts. Many Filipinos gather in coffee shops to socialize, work, have fun, and enjoy coffee.

The number of coffee shops built in every town and city in the Philippines has grown since the 2020 Global Pandemic. Many cafes have recovered their businesses, as many companies brought their employees back to work in physical offices. 

Filipinos’ deep desire for better and longer socialization is seen in long lines waiting for their cups at the counter. A lengthier stay in cafes is also encouraged by cafe owners and baristas, as they’ve seen many people seeking longer intimate moments with friends and families. 

Rising Disposable Income

The country’s economy has been steadily growing, leading to an increase in disposable income among Filipinos. With many freelancing jobs and outsourcing opportunities in the country, professionals acquire additional income streams, translating to more spending power to indulge in coffee shop experiences.

They are making the coffee industry a lucrative business opportunity to pursue. In earlier years, you’ll only see corporate professionals conduct meetings and intimate gatherings in coffee shops. Students and young people gather inside cafes, taking Instagrammable pictures for their social media profiles. 

This behavior change is a positive signal to invest in the coffee shop business in the Philippines. Foreign brands have recently brought their international taste to the Philippine coffee scene. 

Affordable Equipment

The rise of specialty coffee in the Philippines led many coffee suppliers to complement the country’s overarching coffee ecosystem. Suppliers for coffee syrups, sauces, cups, and espresso machines in the Philippines , make it easy for budding entrepreneurs to put their cafe brand from scratch. 

Affordability, reliability, superior quality, and convenience are key factors cafe owners look for in every coffee shop supplier. While many fly-by-night cafe suppliers exist, you can find a few reliable options locally in the Philippines, including Blend N Sips.

Diverse Menu Options

The coffee shop business in the Philippines has expanded its offerings beyond traditional coffee beverages. Most cafes you’ll visit provide food items, including pastries, sandwiches, and snacks, catering to diverse customer preferences and needs. 

This expanded menu allows coffee shops to attract a broader customer, improve customer retention, and ultimately, increase revenue streams.

There are Philippine cafes that offer non-coffee beverages to add up to the increasing demand for tea-based products and frappes, which Starbucks Coffee initially introduced. 

By having diverse menu options, you’ll attract more tourists to every go-to city and location in the Philippines – making cafes an additional tourist spot for foreign nationals. 

Rising Demand for Co-Working Spaces

The rise of freelancers, entrepreneurs, and remote workers has filled the demand for co-working spaces. This led to starting entrepreneurs to put up their cafes, making them a popular choice for individuals seeking a productive and inspiring environment outside their traditional office settings.

Their buying capability and need to offer a great opportunity for anyone to put a coffee cart, store type, or even a fit-out brand beside co-working spaces or inside corporate buildings. Capitalizing on this trend can lead to a steady stream of customers throughout the day. 

Social Media Influence

Filipinos are one of the most tech-savvy people in the world. Their activeness on social media platforms, like Tiktok, often serves as attractive backdrops for Instagram-worthy photos. 

Creating visually-appealing designs and Instagrammable spaces for cafes can generate free online marketing through user-generated content, increasing brand exposure and potential new customers.

Social media marketing campaigns can help build a solid brand for startup cafes and, ultimately, any cafe supplier looking to generate more awareness for their brand.

On top of it, you can see other digital marketing channels, like search engine optimization and pay-per-click advertising, to be go-to marketing strategies for starting cafe owners. They can penetrate the local coffee industry with an affordable budget, maintaining their overhead costs at a minimum. 

Tourist Hotspots

The Philippines is a popular tourist destination, attracting millions of yearly visitors. This alone can help coffee shops cater to many customers, including domestic and international tourists. 

Offering them a place to relax, recharge, and experience a local coffee culture is a unique experience most tourists would love to return to. 

If you’re an aspiring coffee business owner, placing your cafe in tourist hotspots is a great way to guarantee foot traffic from regular tourists to hotels, beaches, and other popular destinations in your target city or location. 

Community Engagement

Coffee shops can become community hubs, fostering a sense of belonging and community engagement. By hosting events, seminars, workshops, gatherings, and even intimate occasions such as weddings, coffee shop owners can create a sense of loyalty among their customers.

Community engagement can establish the coffee business as an integral part of the local community, which builds a strong coffee culture for the nation. 

Invest In A Thriving Business

When investing in a business, one big factor is the profitability and industry you’ll be venturing into. It must be thriving where customer demand is going in the right direction. 

Fortunately, the coffee business is one of those thriving industries you can consider as an aspiring entrepreneur. By having a good set of coffee suppliers, a proper location, a targeted marketing campaign, and a strategic business plan, you can create a coffee business that can grow for years.

Why Coffee Shop is a Good Business in the Philippines FAQs

Why is it good to have a coffee shop business.

Having a coffee shop business in your community is beneficial for various reasons. It creates local jobs, stimulates the local economy by supporting other businesses, and promotes a diverse economic landscape. Additionally, sourcing products and services locally can have a positive environmental impact. Overall, small coffee shops contribute significantly to the growth and sustainability of the community.

Is coffee a good business?

Coffee can be a profitable business venture, with most coffee shops becoming profitable within a few years. Success depends on food production costs and key performance indicators (KPIs). By year five, coffee shops can expect their sales to double. Carefully considering budget contingency funds, startup costs, and initial operational expenses is crucial for success in the coffee business.

Why is coffee shop a good business in the Philippines?

Coffee shop business in the Philippines is a lucrative venture due to its high demand and booming industry. With over 2,752 café and coffee shops in the country (2020 data from PSA), it’s evident that we are a nation of coffee enthusiasts. Coffee consumption is a common habit among nine out of 10 Filipino households, making it a great market for aspiring entrepreneurs.

Why do people love coffee shops?

People love coffee shops because they provide the perfect cup of coffee that energizes them for the day. Additionally, coffee is considered a part of a balanced diet, which makes it even more appealing. So, coffee at a coffee shop helps individuals feel refreshed and satisfied.

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.

• 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.

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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.

Franchise vs Ground up

There are a few different brands of franchise coffee shops.  In the Philippines, there are no Starbucks locations. However, Starbucks sister chain Seattle’s Best Coffee, as well as a few others are available in the Philippines.

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.

Due to budgeting, you may not be able to staff a marketing team right away.  A cost-effective solution to help you get your business advertised is to use social media.  Social media advertising has become the number one way to get the word out in the open about a new business or new product.

Customers want something that is going to taste good, but also something that is going to make them want to return and purchase again.  Popular items at a coffee shop you will find are obviously coffee, but also tea, frozen or iced coffee, bagels, breakfast croissants, pie, cookies, etc.

When you open a franchise, you have access to their branded menu items.  The upside to this is that customers will immediately flock to your location because you are serving a product that is familiar to them. The downside to a franchise is that you are not allowed to invent or experiment with recipe ideas.  You must stick to their menu they have provided for you.

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

Building a coffee shop from the ground up means you have complete control of what you will want the atmosphere to feel like. This means everything from the color of paint to the type of floor you will have in your coffee shop. You will also be able to keep construction costs at or under budget by shopping around for building materials.

If you purchase a franchise, you have no control over the way the coffee shop’s interior design.  You are not able to change anything about the design without the franchise’s permission.

Additional Considerations:

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.

Frequently Asked Questions

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

Hi! I’m Shawn Chun

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

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• Is Coffee Business Profitable in the Philippines?
• Article , What's New
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• 14 May 2023

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

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

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

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

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

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

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

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

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

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

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

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

Develop a business plan.

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

Finding the right location

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

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

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

Interior Design

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

Equipment and supplies

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

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

Hire skilled baristas

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

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

Offer a variety of products

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

Marketing Strategy

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

Provide exceptional customer service

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

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

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Last Updated on 23 May 2023 by Cup Community

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Coffee Shop Business Plan

• Food Business Ideas

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

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

Below is sample business plan for a coffee shop:

Taste blender

Business Plan for the Period

Starting January 2008

Business Overview

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

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

Objectives : Our primary objectives over the next year are:

• Introduce homemade cookies, brownies and cakes.

• Renovate our space in Old Town.

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

• Create cozy and friendly environment.

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

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

Products and Services : Description of Products and Services:

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

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

Industry Overview

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

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

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

Marketing Strategy

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

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

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

Pricing Strategy :

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

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

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

Management and Staffing

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

Staffing : We will hire about three or four waiters.

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

Implementation Plan : Implementation Activities and Dates:

• Begin building renovation 12/08

• Complete renovation 2/15/08

• Begin preliminary advertising 2/15/08

• Purchase and setup equipment 2/15/08

• Open for business 3/1/08

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

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

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

Business Plan Business Plan Writers

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

Tags: Business business plan coffee coffee shop business

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

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

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

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

What’s a Coffee Stall Business?

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

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

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

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

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

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

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

This is where mobile coffee shops come in.

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

Factors to Consider Before Starting a Mobile Coffee Shop Business

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

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

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

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

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

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

• DTI registration
• BIR registration
• Mayor’s permit

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

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

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

Menu and Specialty

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

Types of Coffee Beans in the Philippines

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

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

Types of Coffee Brews

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

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

Types of Coffee Drinks

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

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

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

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

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

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

Start-Up Costs

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

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

Ongoing Costs

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

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

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

Coffee Truck Construction

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

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

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

Location and Route

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

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

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

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

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

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

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

Phase 1: Plan your business

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

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

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

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

Phase 2: Start your coffee shop project

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

Register your business

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

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

• Mayor’s Permit
• Vehicle registration
• Barangay permit

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

Purchase and customize your truck

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

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

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

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

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

Buy equipment and ingredients

The next step is to buy your equipment.

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

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

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

Start advertising your truck

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

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

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

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

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

Start your first day

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

Phase 3: Marketing and daily operations

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

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

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

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

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

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

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

Coffee will always be in demand

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

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

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

Simply put, the caffeine in coffee makes it addictive .

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

Your products will always be in demand.

Cheaper than a full-blown coffee shop

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

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

• Electricity

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

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

Advertising is also much easier with mobile coffee shops.

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

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

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

Lets you experiment in a new market

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

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

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

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

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

Flexible location

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

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

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

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

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

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

Triggers the FOMO effect

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

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

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

This makes your shop exclusive and hard to get.

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

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

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

Potential Challenges When Starting a Mobile Coffee Shop

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

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

Competition with established players

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

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

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

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

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

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

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

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

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

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

Additional factors to consider

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

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

What is a mobile coffee stall?

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

Is a mobile coffee stall profitable in the Philippines?

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

What should you do to get started?

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

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

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

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

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

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

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How Much Is The Capital For Coffee Shop In The Philippines?

How much do you need to start a coffee shop in the philippines.

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.

How much capital is needed to put up a coffee shop?

So how much does it cost to open a coffee shop? The simple answer, according to the successful coffee shop chain Crimson Cup, is between $80,000 and $300,000 , depending on size, services, equipment and other specific considerations that vary from business to business.

How do I start a coffee supplier in the Philippines?

• Study and research the market.
• Find the most suitable location .
• Establish your budget.
• Hire the right workers.
• Get the best suppliers.
• Consider promotions and loyalty programs.

How much profit does a coffee shop make?

The key to increasing your profit margin is to increase both sales and gross receipts, as some of your expenses will remain fixed. On average, within the industry, a small to medium-sized coffee shop can earn anywhere from $60,000 to $160,000 in personal income for the shop owner.

How much does it cost to build a coffee shop?

A sit-down coffee shop typically costs between $80,000 and $275,000 to set up. 1. A large drive-through shop can cost between $80,000 and $200,000. A small kiosk may cost between $60,000 and $100,000.

How do I start a coffee shop budget?

• coffee cart : $20,000 to $25,000.
• Coffee kiosk: $25,000 to $75,000.
• Drive-thru location: small: under $35,000; large: $80,000 to $200,000.
• Sit-down location: average cost of a 1,200 sq. ft. Coffee bar: $200,000 to $375,000.

How do I start a low budget café?

• Sell coffee in independent boutiques.
• Retail coffee at farmer’s markets.
• Start a coffee truck or coffee trailer business.
• Start an online coffee business.
• Open a coffee stand or espresso stand business .
• Piggyback on an existing business.
• Setup up a coffee cart.

How much do coffee shop owners make?

Coffee Shop Owner’s Salary Owners of small to medium-sized coffee shops can make anywhere from $60,000-$160,000 annually Usually, the owner’s salary is between 2% and 6% of the restaurant’s sales. In a small operation, your salary may be a higher percentage of the profits, relative to how much labor you put in.

What is the best business to start in Philippines?

• Baking Business
• Online Tutoring
• Graphic Design Business
• Bills Payment Business
• Tailoring Services
• Digital Marketing Agency
• homemade products business . Starting Capital: PHP 3,000 to PHP 5,000
• Rice Retailing or Bigasan. Starting Capital: PHP 75,000 to PHP 120,000.

How much does it cost to start your own coffee brand?

The average brick-and-mortar coffee shop can cost between $25,000 and $300,000 to start. However, small coffee businesses like mobile coffee carts and espresso stands typically cost between $16,000 and $25,000 to start.

Why coffee shop is a good business?

By owning a coffee shop, you can create a safe space and a pleasant environment for people who seek it, and also give people space to socialize ! You can make it your brand if you want, bringing people together and offering amazing service seems pretty simple, but it’s such an impactful thing!.

How can I make my coffee shop successful?

• Quality Is the Most Important Factor.
• Implement a Good Training Program.
• Maximize the Workspace and Floor Efficiency.
• Start a Loyalty Program.
• Offer a Wide Variety of Products.
• Know Your Community and Neighborhood.
• Prep and Clean As Much As Possible.
• Create an Atmosphere.

How much is coffee in the Philippines?

A new study revealed that coffee in the Philippines is the 46 th most expensive in the world, with an average price of $3.02 (P150) per cup Conducted by SavingSpot, the World Coffee Index 2021 looked into the average cost and consumption of coffee in different parts of the globe.

How Much Does Philippines cost?

A 7-day trip to the Philippines costs an average of $1,949 for a solo traveler, $3,588 for a couple, and $1,037 per person for a family of four Hotels in the Philippines cost between $32 and $175 per night on average, while most vacation rentals cost between $60 and $390 per night for the entire house.

How do I start my own café business?

• Define your vision.
• Create a detailed business plan .
• Choose a location.
• Find the best suppliers.
• Source commercial equipment.
• Design your café
• Create a menu.
• Hire the right people.

How much does it cost to open a Starbucks coffee shop?

In order to open a licensed store, you have to pay approximately around $315,000 Starbucks has over 10,000 outlets worldwide. Of which around 4,400 are licensed stores. Visit their website for further details on how to obtain their licensed stores.

How do I start my own coffee business plan?

• Choose the right location.
• Lay out your shop for optimal success.
• Create a menu that customers will love.
• Hire and train staff.
• Attract customers with low-cost grassroots and social media marketing techniques.

How can I start online coffee in the Philippines?

• Decide if you want to dropship or roast.
• Find your supplier.
• Find your niche.
• Decide what products you’re going to sell.
• Develop your brand.
• Set up your online store.

Why do cafes fail?

Coffee shops fail for reasons that vary from poor management, lack of sales to cover costs, bad employees and service, and having too much debt.

What is the most profitable business?

• food trucks
• Car wash services
• Auto repair
• Personal trainers
• Newborn and post-pregnancy services.

How many cups of coffee does a coffee shop sell per day?

According to the National Coffee Association an independent coffee shop can sell roughly 200-300 cups per day, whereas a large chain coffee shop can sell an astounding 700 cups of coffee per day!.

How much money do you need to start a restaurant?

Opening a restaurant in India can cost you anywhere between 5 lakh to 1 crore (could be more or less depending upon the location, type of food, customers and costs that you want to undertake).

What is the average cost of starting a business?

How much does it cost to run a business? According to our research, small business owners spend an average of $40,000 in their first full year of business.

How much does a cup of coffee cost?

An average cup of coffee costs $2.70 , but a drink of cafe americano – which is espresso and water – is even less expensive with an average price of $2.62.

How much is an industrial espresso machine?

Commercial espresso machines range in price from $5,000 to $30,000.

How do you write up a business plan?

• Draft an executive summary.
• Describe your company.
• Perform a market analysis.
• Outline the management and organization.
• List your products and services.
• Perform customer segmentation.
• Define a marketing plan.
• Provide a logistics and operations plan.

What do you need to build a coffee shop?

• Automatic drip coffee makers.
• A high-quality espresso machine.
• An industrial coffee grinder.
• POS system and website.
• Curbside pickup supplies.
• Milk and water.
• Industrial blenders.
• Ovens and toasters.

How long does it take for a new restaurant to be profitable?

Profitability depends on many factors including the size and type of restaurant, as well as economic ones. It takes an average of two years for a new restaurant to turn a profit. Unfortunately, there is a very high restaurant failure rate. This is due to a lack of funding or planning for the slower first few years.

How much does a coffee franchise cost?

Traditional full-service locations that feature street-level entrances and an optional drive-thru require an initial fee of $30,000 Non-traditional locations which are generally smaller PJ’s that are located within another business such as a college or health care facility require an initial franchise fee of $20,000.

How much do cafe owners make a month?

According to Small Business Chron, coffee shops make an average annual revenue of about $215,000 per year by selling about 250 cups of coffee daily. That works out to be about $18,000 in revenue per month Hence (considering the average month is 30 days long), coffee shops make about $600 per day.

What business can start with 50k?

• Tiffin or food delivery services. Tiffin and food delivery is a profitable business under ₹50,000
• Food Stalls or Food Trucks
• Jam and Pickle Making
• Wedding Planners or Event Managers
• Photography
• Hand-Made Clothes and Accessories

What business can I start with 20k in Philippines?

If you’re looking for small capital business ideas in the Philippines, try selling fruits and vegetables Aside from the fact that there are many fruits and vegetable suppliers in the country, it’s easy and quick to set up. You can also start one under PHP 20,000.

What business can I start with 100k?

• POS business; .
• Selling animals feeds
• Barbing salon business
• Computer business centre
• Restaurant business
• Selling of cooking gas
• Pure water business
• Cement business.

Is coffee bean business profitable?

When you look at all the numbers, on average, roasting coffee is profitable and a good avenue for business growth for coffee shops. The major hangup is the starting cost, which tends to be $100,000 or more according to the SCA research.

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• How Much Caffeine Does Starbucks Coffee Have?
• What Is A Cold Cappuccino Called?
• Is A Venti Coffee Too Much Caffeine?
• How Do You Make Cold Foam Cappuccino?
• How Much Caffeine Is In A Starbucks Iced Coffee?
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From Kiosks to Full-Sized Cafés: 5 Coffee Businesses You Can Franchise

After water and tea, coffee is the most-consumed beverage in the world. According to global data and business intelligence platform Statista, the coffee market has generated revenues of $88.3 billion worldwide this year and is projected to grow at an annual rate of 4.61 percent. 

In the Philippines, according to Statista, total coffee consumed in 2020 to 2021 was about 3.3 million 60-kilogram bags, which reflects a long-term increase in coffee consumption over the years. This projection is evident in the increasing number of coffee shops and cafes, driven by surging demand and the rising coffee culture and the desire for cozy meeting places. 

If you’re a coffee lover, these five coffee shop and cafe franchise concepts might give you a golden opportunity to turn your passion for all things coffee into a successful business venture.

This Filipino Entrepreneur Started a Cafe Franchise With a Capital of Only P6,000

Looking for a Business? Here Are 5 Franchises You Can Own Starting at P199,000

Top coffee shop and cafe franchises today:

1| take o coffee.

Franchise Fee: P150,000

Investment: P880,000 to P990,000

Take O Coffee is the market's newest option for budget-friendly coffee, refreshing fruit teas, and creamy milk-based drinks. Take O Coffee offerings are priced starting at P60 and use premium beans and one of the most trusted espresso machines, the Nuova Simonelli. Their budget-friendly line up of coffee drinks make them a great franchise targeting high foot traffic C-B markets such as residential areas, terminals, schools, and even the outskirts of central business districts.

2| Figaro Coffee Company

Franchise Fee: P600,000 to P1.5 million

Investment: P3.2 million to P7 million 

Figaro Coffee Company has been serving great coffee to Filipinos since 1993. Figaro prides itself in serving coffee made from freshly roasted beans sourced from all over the country. With its unique European-style ambiance and restaurant-style service, Figaro promises to exceed customers' expectations each and every time.

As a franchise business, Figaro offers aspiring franchisees the strong advantage of using an established brand and world-class products. As the demand for homegrown coffee and cafes continues to grow, Figaro franchisees are set up for long-term success.

3| Farron Cafe

Franchise Fee: Included in the total investment

Investment: P499,000 to P879,000

Known for its delicious yet affordable coffee, Farron Cafe is considered the best coffee franchise serving the most affordable frappuccinos in the metro.

Farron Cafe is a business idea borne out of love. Young couple Farwa and Hombre shared a common passion for coffee beverages in their younger years while studying at a local university and even until they started a family. Both believed in the idea that good coffee and popular frap drinks should be enjoyed by every Filipino regardless of their social status. Today, Farron Cafe has more than 80 outlets nationwide.

4| Caffe La Tea

Franchise Fee: P250,000 to P650,000

Investment: P599,000 to P4 million 

Customers can instantly gain a sense of comfort and positive energy when they go to Caffe La Tea. The love for scrumptious food, creative drinks, and a good chat with friends are what all the founders of Caffe La Tea have in common. 

Inspired by their travels around and outside of the country, the founders decided that it was time to offer the city something fresh, vibrant, and original. Caffe La Tea aims to provide a cozy, comfortable place for friends to gather and have a good time while filling their cravings with a great cup of coffee, tea, or with a delicious dessert. 

5| Beanleaf

Franchise Fee: P390,000

Investment: P1.4 million to P3.9 million 

From coffee to tea and frappes, Beanleaf offers a diverse menu and great atmosphere. With its unique concept and highly enticing menu selection, Beanleaf connects customers by offering them a venue where they can easily satisfy their cafe cravings and enjoy quality time with friends, colleagues, and loved ones in a relaxing setting.

Developed to give customers a more satisfying cafe experience, Beanleaf’s menu is meant to effectively bring together coffee- and tea-based drinks along with a inventive takes on comfort food favorites. With Beanleaf’s strength and ability to adapt to customers’ needs by offering a new take on the usual favorites, Beanleaf wide-range of exclusive beverages aims to satisfy every coffee and tea craving. 

5| Ceylon Coffee Club

Franchise Fee: P175,000

Investment: P327,000 to P499,500  

Ceylon Coffee Club exclusively uses fine Sri Lankan coffee beans that are rich in flavor, with a dazzling aroma and a taste of smooth chocolate. Their coffee is made from both Arabica and Robusta beans which are specially handpicked, washed, and naturally processed, for an earthy and mesmerizing aromatic essence and a unique blended taste. 

What truly differentiates Ceylon Coffee Club's mesmerizing range of coffee is the distinctive notes of chocolate, which is unlike any other coffee brand or blend.

Are you interested in becoming a franchisee of a cozy coffee shop/cafe concept? For inquiries, you may call/text  (+632) 8634.05.86, (+632) 8634.37.17, (+63920) 983.02.47, or (+63917) 881.69.99 or email [email protected] or visit https://www.ufranchiseasia.com/ .

Velle Cacha-Manuel is a Certified Franchise Executive and the AVP for Marketing of the IFCP Group of Companies – U-Franchise Sales & Management, Francorp Philippines, and ActionCOACH Philippines.

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