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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 

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

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Bring Your Coffee Shop Ideas to Life: How to Start a Coffee Shop Business in the Philippines

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The coffee scene in the Philippines is buzzing with activity, as coffee shops become increasingly popular in both urban and rural areas. This surge is fueled by the country’s rich coffee heritage and a growing demand for high-quality coffee experiences.

In cities like Makati and Cebu, coffee shops are thriving, with one shop for every 4,000 to 5,000 residents. ( 1 ) Manila’s dynamic work environment and round-the-clock have further amplified the demand for coffee. As coffee culture continues to expand, so does the opportunity to bring the coffee shop experience to new communities, fostering local economies and growing the coffee industry.

If you’ve always dreamed of owning a coffee shop, now is really an ideal time to dive in. With soaring demand and a ripe market, your dream of starting a coffee shop in the Philippines can become a fulfilling and profitable reality. In this article, we offer some coffee shop ideas and a step-by-step guide to help you launch your coffee shop business in the Philippines.

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Why Start Your Own Coffee Shop in the Philippines?

Starting a coffee shop in the Philippines is an exciting opportunity with many advantages. Whether you’re drawn to the idea of crafting a space that reflects your vision or tapping into the increasing demand for quality coffee, here’s why this venture could be the perfect fit for you.

1. Growing Demand

Coffee and tea shops now make up 5% of all restaurants in the Philippines ( 2 ), and this sector is on the rise as people return to dining out post-COVID. The growth is also driven by a lively, young population and an expanding middle class. According to GlobalData’s Q1 2024 Consumer Hot Topics Survey, 31% of Gen Z and 39% of Millennials spend generously on coffee, while only 25% of Boomers and 18% of the Silent Generation do the same. ( 3 )

2. High Earnings Potential-Low Initial Costs

Starting a coffee shop in the Philippines can be surprisingly affordable. A small kiosk might cost between ₱50,000 to ₱300,000, covering basic equipment and supplies. Even with this modest investment, a well-placed kiosk could earn ₱50,000 to ₱100,000 per month. As you grow your business and expand your coffee shop’s offerings, your income potential increases.

3. Flexibility in Business Models

You can choose to start small and set up a kiosk outside your home, open a full-sized café in a good location, or even start a mobile coffee cart to rent out for events like birthdays, weddings, and company functions. This flexibility lets you choose a model that fits your budget and goals.

4. Timeless Appeal of Coffee and Joining a Thriving Coffee Culture

Coffee isn’t just a drink; it’s something that people all over the world love and enjoy (and need!) every day. When you open your own coffee shop in the Philippines, you’re not just starting a business—you’re joining a community that shares a passion for coffee. Whether it’s someone’s morning routine or a place for friends to connect, coffee has a special place in people’s lives.

Coffee Shop Business Ideas: Go Franchise or Go Start-up?

When you’re thinking about opening a coffee shop in the Philippines, you can choose between buying into an established franchise or venturing out to create your own brand from scratch. This choice can shape the future of your business, so it’s worth exploring what each option brings to the table. Here’s a breakdown of both options:

Coffee Franchises

The Advantages: With a franchise, you’re not starting from scratch—you’re benefiting from a tried-and-true marketing strategy and operational support. This includes comprehensive product training, supply chain help, and in some cases, access to the brand’s ongoing research and development. It’s like having a recipe for success handed to you, complete with guidance on maintaining high standards and creating a consistent customer experience.

The Disadvantages: Franchise fees can be pretty steep. Depending on the brand, you might need to shell out anywhere between ₱1 million to ₱5 million to cover franchise fees, setup costs, and equipment. Franchises come with a lot of guidelines you have to adhere to–which means you won’t have much freedom to incorporate your coffee shop ideas or change the menu and decor. On top of that, franchises usually require you to pay ongoing royalties, which can be around 5% to 8% of your gross sales, plus extra fees for marketing and other services.

Here are some popular coffee franchises in the Philippines:

• Starbucks: Probably the most popular coffee chain in the Philippines (and the world) Starbucks offers a consistent and premium coffee experience with a wide range of beverages, from classic lattes and cappuccinos to seasonal specials. Its strong brand identity and commitment to customer service make it a popular choice for coffee enthusiasts.
• Bo’s Coffee: A Filipino coffee chain established in Cebu, Bo’s Coffee emphasizes a unique local identity by offering products that showcase Filipino coffee culture, such as blends made from Philippine-grown beans and traditional treats.
• The Coffee Bean & Tea Leaf: A brand known globally for its premium blends, a diverse selection of coffee, tea and pastry products and relaxed café environment that’s popular for both work and social gatherings.
• Pickup Coffee: An emerging brand in the Philippine coffee scene, offering a range of coffee products and a fresh, modern approach to coffee service. Known for its innovative menu and convenient service options, Pickup Coffee appeals to a younger, dynamic demographic.

Learn more:  Best Small Business Franchises in the Philippines

Starting Your Own Coffee Shop Brand

The Advantages: Creating your own brand means you get to make everything just the way you want it. You can come up with your own menu, decorate the place to reflect your style, and create a vibe that’s uniquely yours. You can incorporate all the coffee shop ideas you have, including how you run the shop and how you market it. Plus, since you won’t have to pay franchise fees or royalties, all the profits go straight to you.

The Disadvantages: Starting your coffee shop ideas from scratch means diving into the deep end of entrepreneurship. Building your brand and customer base will require time, effort, and lots of grit. You’ll handle everything from creating a business plan to sourcing suppliers and training your team. It’s a lot of responsibility, and mistakes along the way can be costly. But if you’re passionate and prepared to put in the work, the journey can be incredibly rewarding as you watch your vision come to life.

Choosing between a coffee franchise and starting your own brand depends on your goals, budget, and preferences. Evaluate both options carefully to decide which path aligns best with your vision for your coffee shop.

Coffee Shop Ideas: Different Business Models and Themes

Exploring creative coffee shop ideas can help you carve out a unique space in the market. From classic setups to something more unconventional, choosing the right concept is key to attracting the right crowd. Here’s a closer look at some coffee shop models and themes to reference for your coffee shop in the Philippines:

Types of Coffee Shops

• Chain Coffee Shops

Chain coffee shops, like Starbucks, offer a standardized experience. Every branch delivers the same menu, quality, and service, which customers appreciate for its consistency. These places often have diverse menus and loyalty programs to keep customers coming back.

• Traditional Coffee Shop/Sit-Down Coffee Shop

Traditional coffee shops are your go-to spots for a wide selection of coffee drinks and comfort food. They have a casual atmosphere where people can sit down comfortably and enjoy their coffee break alone or with company, doing work or reading books.

• Grab-and-Go Coffee Shop

As the name suggests, grab-and-go coffee shops are all about convenience. Perfect for busy individuals needing a quick coffee fix, these shops often pair their drinks with pre-packaged food like sandwiches, wraps, and pastries—making it easy to grab everything you need in one go.

• Pop-up Coffee Shop/Coffee Cart

Pop-up coffee shops or coffee carts are mobile and perfect for events like weddings, birthdays, and company functions. This setup is the most flexible among trendy coffee shop ideas, allowing you to customize the experience to fit the theme and size of any event. Plus, they’re a great way to test out different markets and locations without committing to a permanent space.

• Hybrid Coffee Shop

Hybrid coffee shops blend coffee culture with other business concepts. Think of a place where you can get a haircut or a car wash while sipping your coffee. These shops create an environment of efficiency by combining coffee with other services, offering more than just a place to sip your drink.

• Themed Coffee Shop

Themed coffee shops revolve around a specific concept, like a cat café where you can relax with a cup of coffee while playing with cats. Other popular themes include bookshop cafes, Parisian cafes, or board game cafes. These coffee shop ideas offer unique experiences based on their theme.

Coffee Shop Theme Ideas

Speaking of themes, creative coffee shop ideas can turn your café into a place where customers love to hang out and share their experiences.

One important question to ask yourself: How can I make my coffee shop Instagram-worthy?

Instagrammability is a buzzword in the coffee world. The drinks you serve might taste great, but if it looks plain, it might not make it onto social media. Similarly, your coffee shop might be cozy and inviting, but if the design feels too generic or lacks a special touch, it might not attract many posts.

To make your coffee shop IG-worthy, think about adding eye-catching elements—like a unique menu item, thoughtful food presentation, a commissioned mural, and unique lighting fixtures. It’s about creating something that looks great and resonates with your customers, making them excited to showcase on their social feeds.

Here are some coffee shop ideas to get your creative juices flowing:

• Nostalgic Filipino

Imagine a coffee shop that celebrates Filipino heritage. You could decorate with old-school Filipino posters, classic Filipino antiques and traditional decor, and serve up traditional treats like bibingka and puto. Offer drinks that showcase Filipino flavors like Pastillas Latte or Mais con Yelo Frappe. This theme not only connects with local tastes but also creates a warm, nostalgic atmosphere for your patrons.

How about turning your coffee shop into an art gallery? You can exhibit works from local artists (and support them at the same time), or simply decorate with rotating art displays. You can even host art workshops for kids or adults. This will turn your coffee shop into a creative hub in your community and a space for art lovers to go back to.

• Garden Retreat

Create a relaxing garden vibe right inside your café. Surround your space with lush plants and with big windows to brighten the space. Serve organic coffee and fresh, healthy snacks and even vegan treats. This coffee shop idea is a way to offer an escape from the grind–and the greenery and natural light will look fantastic in photos!

If you’re into a more modern, edgy look, an industrial theme might be perfect. Think concrete floors, metal furniture, and minimalist decor. This theme pairs perfectly with a selection of specialty coffees that showcase your brewing expertise, and the clean, contemporary look makes it a great backdrop for customers who appreciate a sleek, modern aesthetic.

• Pop Culture Café

For a fun twist, why not dive into pop culture? Deck out your shop with memorabilia from iconic TV shows (think Central Perk from F.R.I.E.N.D.S.), beloved movies, and popular music artists. Take inspiration from a coffee shop in Pasig City that serves as a tribute to a K-pop group, NCT. While it’s a cozy café on regular days, it transforms into a gathering spot for fans during special events like a K-pop idol’s birthday or a group anniversary.( 4 ) A pop culture-themed coffee shop brings together people who share the same passions and creates a welcoming community space, all while offering a great coffee experience.

• Literary Lounge

Coffee and books are a perfect match. A literary-themed coffee shop could be just what book lovers are looking for. Fill your space with bookshelves, comfy chairs, and quiet corners. Serve coffee and snacks that make people want to stay and relax. To build a loyal community, you can host book clubs or even invite authors for reading or signing events. This makes your café a special place where like-minded individuals can gather and enjoy both well-curated books and great coffee.

Cater to tech enthusiasts and professionals seeking a productive work environment by offering high-speed Wi-Fi, plenty of charging stations, and digital displays. Design a modern, tech-friendly space that feels like the ideal office away from home, where busy customers can focus on their work while enjoying specialty coffees and energizing meals to keep them fueled throughout the day.

Learn more:  What to Sell Online in the Philippines: Online Selling Ideas and Market Insights

How Much Do You Need to Start a Coffee Shop Business in the Philippines?

Like any other business, starting a coffee shop in the Philippines involves several financial considerations, from your initial setup to the ongoing expenses that keep your business running. Maybe now you have an idea of what type of coffee shop you want to start, but how much will it cost you?

Here’s a look at what it typically takes to operate a coffee shop in the Philippines and what you can expect in terms of earnings:

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A Step-by-Step Guide to Kickstart Your Coffee Shop Business Ideas

Having your coffee business ideas realized involves several detailed steps. Here’s a guide to help you navigate the path from concept to opening day with clarity.

✅ Conduct Market Analysis

It’s important to understand your local coffee market. This means looking into demand, competition, and what customers are craving. Identify any gaps that your coffee shop business ideas could fill. The coffee shop industry is competitive, but with a solid strategy, you can establish your place in the market. Study your competitors closely—see what they’re doing right and where they’re falling short, so you can learn and improve on their mistakes.

Getting some hands-on experience could be a game-changer. Consider working in a coffee shop or taking some industry courses to sharpen your skills and boost your confidence. A little extra knowledge can go a long way in setting your shop apart.

✅ Develop a Business Plan

A well-crafted business plan is your roadmap to success. It helps you outline your concept, identify your target market, and set financial and marketing goals. Think of it as your coffee shop’s blueprint—it’ll guide your decisions and keep you on track if you ever feel lost along the way. When planning, factor in startup costs like equipment, décor, and initial inventory, as well as ongoing expenses such as staff salaries and utilities.

✅ Secure Financing

As you prepare to launch your coffee business ideas, you’ll need to consider how to fund your dream. Whether you’re dipping into your savings, exploring loan options, or pitching to potential investors, having a clear financial plan is important. This plan should detail how you’ll allocate funds and project your expected earnings.

Make sure to factor in all initial expenses and have a financial cushion to cover costs until your shop starts generating steady income.

Learn more:  Business Loans in the Philippines: A Comprehensive Guide to Startup Loans

✅ Find a Suitable Location

Choosing a prime location with high foot traffic is crucial to turn your coffee business ideas into a success. Evaluate potential sites based on visibility, accessibility, and rental costs. Imagine your ideal customers passing by—will they notice your shop and be tempted to pop in?

A great location can really boost your shop’s performance. A coffee shop near office buildings or universities can tap into a steady flow of daily customers, while a spot close to residential areas might attract locals looking for a cozy hangout.

When negotiating the lease, pay attention to things like how long the lease is for, if there are any planned rent increases, and who’s responsible for maintenance.

✅ Obtain Permits and Licenses

To get your business on the right track, you need to register with the proper government agencies and obtain the necessary permits.

Here’s what you need to do:

• Register your business with the Securities and Exchange Commission or the Department of Trade and Industry (DTI).
• Secure a certificate of registration from your Barangay and obtain permits from your Local Government Unit (LGU) for a Mayor’s Permit –this will cover a sanitary permit and a fire safety inspection permit.
• Register with the Bureau of Internal Revenue (BIR) to handle your tax obligations.

Since you’re handling food, make sure your coffee shop meets health and safety standards—regular inspections will help you stay compliant and reassure your customers.

✅ Purchase Equipment and Supplies

When you’re setting up a coffee shop, it goes without saying that investing in good quality equipment is important. This is where most of your budget will go, and the cost will depend on the size of your shop and what you need.

Sourcing your coffee beans, milk, and other ingredients from trusted suppliers is equally important. You want to make sure everything you serve is fresh and of high quality. Building good relationships with local suppliers can really pay off here. They will be your trusted partners in keeping your coffee shop running smoothly with the best ingredients.

✅ Design Your Coffee Shop

Now here’s the fun part: designing your coffee shop! This is where your coffee shop ideas and vision truly start to take shape. Once you’ve chosen a concept that embodies your brand and speaks to your target market, invest in décor and furnishings that not only look great but also enhance the overall customer experience and make your coffee shop stand out and draw in customers.

When it comes to layout and design, think about how to make the best use of your space. Plan a layout that allows for smooth workflow and comfortable seating. Aim to create an inviting atmosphere where customers feel relaxed and welcome. This is your chance to make your coffee shop a place people want to return to again and again.

✅ Develop Your Menu and Set Prices

Crafting a menu that excites your customers is key to bringing your coffee shop business ideas to life. Start by offering a mix of beloved coffee classics—favorites like espresso and cappuccino, alongside unique specialty brews. You may include a range of teas for those who prefer a lighter option, and offer a selection of pastries and snacks to complement the drinks you offer.

When it comes to pricing, it’s important to strike a balance between affordability and profitability. Evaluate the cost of your ingredients and overheads to determine a pricing structure. Consider what your customers are willing to pay and compare your prices with those of local competitors. Setting prices too high might drive away customers, while pricing too low could compromise your profit margins.

✅ Hire and Train Staff

Investing in the right staff and their development is essential for running a successful coffee shop. Hiring baristas who are not only passionate about coffee but also excel in customer service can really make a difference. A well-trained and enthusiastic team ensures that every cup of coffee is made to perfection and that customers feel welcome and appreciated.

Effective training should include everything from the basics of coffee preparation to the finer details of customer service and health and safety. In the Philippines, the Department of Trade and Industry (DTI) supports local coffee festivals and offers workshops in-event ( 5 ) ( 6 ) and the Technical Education and Skills Development Authority (TESDA) offers hands-on training for aspiring baristas with their Barista NC II Program ( 7 ). These resources can help you build a skilled and knowledgeable team without stretching your budget.

✅ Marketing and Promotions

To turn your coffee business ideas into a hit, you’ll need a solid marketing strategy that gets people talking and walking through your doors. Think of this as your coffee shop’s chance to shine and show off what makes it special.

Start by creating a plan that leverages social media, community engagement, and creative promotions. Platforms like Facebook, Instagram, and TikTok are perfect for showcasing your coffee menu, the “aesthetic”, and any special events.

Here are some fun and budget-friendly ideas to build excitement for your coffee shop business:

• Grand Opening Event: Kick things off with a launch party! Offer enticing deals like “Buy One, Get One Free” and free samples. It’s a great way to draw in the curious crowd and turn first-timers into regulars.
• Local Partnerships: Team up with nearby businesses or local influencers. Invite food bloggers, lifestyle influencers, or local celebrities to your coffee shop for a complimentary visit in exchange for a review or social media post. Collaborative events with other local businesses can help you tap into their followers and create buzz around your shop.
• Community Engagement: Get involved in local events or offer your space for community gatherings. Building relationships with your neighbors can generate an effective word-of-mouth promotion.
• Food Delivery Platforms: Make your menu available on popular delivery apps like Grab and Foodpanda. Special discounts for delivery orders can help attract busy customers who might not have the time to visit in person.
• Host Events: Organize fun and engaging events such as trivia nights or open mic sessions. These activities can attract different crowds and keep your coffee shop lively and interesting.

Success Factors in Running a Coffee Shop in the Philippines

☕  Serve Fantastic Coffee

Great coffee is the lifeblood of any thriving coffee shop. Customers seek that perfect cup, so focus on sourcing high-quality beans and investing in reliable brewing equipment. Make sure every cup of coffee you serve meets a high standard of taste and consistency. The coffee itself should be as exceptional as your coffee shop ideas.

☕ Manage Operations

Solid management is the backbone of a successful coffee shop. Effective operation means keeping a sharp eye on your shop’s performance: monitor sales, control expenses, and listen to customer feedback. Use this information to make informed decisions to ensure that your shop remains profitable and sustainable.

☕ Excellent Customer Service

While serving excellent coffee is crucial, the success of your coffee shop business ideas depends on creating a memorable customer experience. Focus on creating a friendly and inviting atmosphere, training your staff to be attentive and offering little touches that make customers feel valued. Whether it’s a warm greeting or a personalized service, these can contribute to a great experience that encourages repeat visits and word-of-mouth recommendations.

☕ Evaluation and Innovation

Regularly assess how your shop is performing against your goals. Review sales data, gather customer insights, and compare yourself to the competition. This helps you spot strengths and areas needing improvement. Embrace innovation by staying on top of coffee trends and experimenting with new offerings. Fresh ideas and seasonal specials will keep your coffee shop exciting. Remember, in the coffee business, staying relevant means staying ahead!

Common Challenges in Running a Coffee Shop Business in the Philippines

📌 Standing Out in a Busy Market: With countless coffee shops vying for attention, carving out a unique niche can be challenging. Discover what sets your shop apart—whether it’s a signature drink, a distinctive atmosphere, or exceptional service. Make sure your unique angle resonates with customers and makes your shop a must-visit destination.

📌 Managing Costs and Adapting to Economic Fluctuations: Running a coffee shop involves managing fluctuating costs for ingredients, rent, and utilities, all while maintaining high quality. Economic shifts can also impact how much customers are willing to spend. To address these challenges, keep a close eye on your expenses and adjust your menu and pricing in response to economic conditions. For example, consider offering seasonal promotions or adjusting portion sizes to balance quality with cost. This approach helps you stay financially healthy while meeting customer expectations.

📌 High Staff Turnover: Keeping a stable, skilled team can be tough with high staff turnover. Investing in training, creating a positive work environment, and offering incentives can help retain your best employees. A consistent, motivated team enhances service quality and contributes to a smoother operation.

By diving into these factors, you can set realistic goals, implement effective strategies, and navigate the ups and downs of the coffee shop business. It’s not just about knowing what to do but also being ready to adapt and overcome the hurdles that come your way.

Final Thoughts

Turning your coffee shop dreams into reality in the Philippines is truly an exciting opportunity. Despite the competitive market, the country’s enthusiasm for unique coffee experiences means there’s so much room for innovative coffee shop ideas to succeed.

Whether you’re starting with a small setup or aiming for something larger, your success will depend on thorough planning and how well your concept resonates with your target market. Focus on understanding what your potential customers want and ensure your coffee shop aligns with those preferences.

As you bring your coffee shop ideas to life, embrace the process and learn from each step. Stay committed to your vision and adapt as needed. With your dedication and a smart, strategic approach, your coffee shop can become a cherished local hangout and a fulfilling business venture.

Learn more:  The 20 Most Profitable Small Businesses you can Start in the Philippines

Disclaimer: This article was written based on information available to the writer at the time of publication and the article was published for instructional, research, reference, and educational purposes only. The information and data used and disclosed in this article are publicly available and the writer or the Company does not claim any exclusive ownership or proprietary right over the information, data, literature or article sourced or obtained from publicly available sources. Some of the information, data, and/or materials cited in this article which were obtained from publicly available sources belong to the owner of the information or data, and the use thereof in this article are covered by fair use under applicable intellectual property laws.

Nothing in the articles published in the website is intended to constitute legal or financial advice and users are advised to seek counsel from legal and financial professionals. Likewise, rates or offers published in the website are promotional marketing offers only and do not constitute any binding contract between the Company and the users. While the writers and publishers of the articles in the website wrote the articles using credible information available to them at the time of publication, any changes or updates to the information presented in this article may not be reflected here. Users are enjoined to exercise appropriate diligence in using the data and information published in the website, and they are urged to study and compare it with other credible sources. Users understand that the writers, publisher, website owner and the Company are not liable for any damage or injury they sustained for their wrongful or erroneous use of the data or information written in the article and published in the website.

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Note: The information presented in the tables is subject to change and users are advised to contact their chosen bank/ financial entity directly for the updated information.

Articles sources

• 1. Urban caffeine fix | inquirer.net
• 2. Coffee & tea shop menu analysis: market share and price trends in the Philippines in 2023 | Verdict Food Service
• 3. Millennials and Gen Zs drive surge in demand for RTD iced coffee | Retail Asia
• 4. K-pop fans are right at home in this newly opened cafe in Pasig City | gmanetwork.com
• 5. DTI 12 secures Php 13M sales for coffee MSMEs in Manila Coffee Festival | dti.gov.ph
• 6. DTI to conduct coffee fest July 19-25 | metropost-online.com
• 7. TESDA Barista NC II Program | tesda.gov.ph

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

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

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

How To Start a Coffee Shop Business In The Philippines:

1. come up with a business plan..

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

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

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

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

3. Prepare for the expenses.

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

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

4. Decide What Type of Coffee Shop

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

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

5. Legally register

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

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

6. Start purchasing your equipment and appliances.

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

Here are some of the basic equipment you need:

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

7. Start re-calculating and making projections

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

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

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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?

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

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

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

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

1. prepare a business plan..

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

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

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

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

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

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

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

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

4. Decide on a coffee shop theme.

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

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

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

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

Pop Culture

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

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

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

Coffee Beans

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

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

Brewing Equipment

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

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

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

Other Coffee Shop Accessories

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

6. Don’t forget to register your business.

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

Benefits of Starting a Coffee Shop

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

Become your own boss

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

Get more profit

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

Support local coffee farms

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

Start Planning the Coffee Shop of Your Dreams

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

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

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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

On the other hand building a coffee shop from the ground up will give you more freedom.  Not only will you get the maximum profits the coffee shop makes, but you will the be one calling all the shots.

Customer Base and Advertising

When you purchase a franchise, you also get your advertising, marketing, and promotions completed for your coffee shop.  These will include any television and radio commercials, website and billboard ads, seasonal beverages, or sandwiches.

If you decide to advertise via social media, you can hire just a few people who can help manage your business’s social media pages. This will get the advertising done as well as save you from having to work those long hours at night.

There is nothing like trying something new.  When it comes to building a coffee shop from the ground up, you also get to decide what types of beverages and food you will serve in your shop, which gives you the opportunity to expand your customer base.  You are also able to experiment and invent new items for your menu.

Choice of Vendors

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

Additional considerations:.

Hiring a Staff

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

If you decide, you can purchase an existing coffee shop.  This may be ideal since the location and customer base is already established for you.  Another benefit is having access to the financial history of the coffee shop.  If you negotiate with the seller, you may even be able to keep the current coffee equipment. Also, you may benefit from the stress-relieving factor that all of the major decisions have been made for you.

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

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

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Related posts, tips for designing an effective coffee shop website, tips for choosing the right location for your coffee shop, top coffee shop pos systems, most effective ways to increase foot traffic to your coffee shop, best ways to market your coffee shop online.

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Tips for Starting a Coffee Shop Business in the Philippines

Updated: January 7, 2024

Starting a small coffee shop business in the Philippines can be a rewarding and exciting venture. However, it requires careful planning and execution to ensure success.

Below are five essential tips on starting a small cafe or coffee shop business in the Philippines, along with some interesting facts about coffee shops in the country.

Study and Research the Market

Before starting a coffee shop business, it is essential to study and research the market. This includes identifying your target customers, understanding their preferences, and analyzing the competition.

According to a recent study, the coffee shop industry in the Philippines is growing rapidly, with a projected annual growth rate of 7.9% from 2021 to 2026. This indicates that there is a significant demand for coffee shops in the country, which can be leveraged to your advantage.

Find the Most Suitable Location

The location of your coffee shop can make or break your business. It is crucial to find a location that is easily accessible, visible, and has high foot traffic.

According to a survey, the most popular locations for coffee shops in the Philippines are malls, commercial areas, and business districts. However, depending on your target customers, you can also consider setting up your coffee shop in residential areas, universities, or tourist spots.

Establish Your Budget

Starting a coffee shop business requires a significant investment. You need to budget for various expenses, including rent, equipment, supplies, staff salaries, and marketing.

According to a report, the average startup cost for a coffee shop in the Philippines is around PHP 500,000 to PHP 1 million. However, the actual cost may vary depending on the location, size, and type of coffee shop you want to open.

Hire the Right Workers

Your coffee shop’s success depends on the quality of your staff. It is essential to hire skilled and experienced workers who can provide excellent customer service and prepare high-quality coffee.

According to a survey, the most common positions in a coffee shop are barista, cashier, and waiter. You can also consider hiring a manager to oversee the operations and manage the finances.

Get the Best Suppliers

The quality of your coffee and other supplies can significantly impact your coffee shop’s success. It is crucial to find the best suppliers who can provide high-quality coffee beans, milk, syrups, and other ingredients.

According to a report, the Philippines is one of the few countries that produce all four varieties of coffee: Arabica, Robusta, Excelsa, and Liberica. You can leverage this advantage by sourcing your coffee beans locally and promoting them as a unique selling point.

Interesting Facts About Coffee Shops in the Philippines

• The Philippines is one of the few countries that produce all four varieties of coffee: Arabica, Robusta, Excelsa, and Liberica.
• The average Filipino consumed 3.05kg of coffee in 2020.
• Starbucks was the most popular coffee shop chain in the Philippines in 2020, followed by Coffee Bean and Tea Leaf.
• Filipinos are willing to spend P100 on a cup of coffee.
• The coffee market in the Philippines is expected to have a value of $1.33bn USD by 2025

Starting a small coffee shop business in the Philippines can be a challenging but rewarding experience.

Hopefully, by following these tips and leveraging the unique advantages of the country’s coffee industry, you can create a successful and profitable coffee shop. Remember to stay focused, work hard, and provide excellent customer service to stand out from the competition.

Good luck with your coffee shop business!

Works Cited:

• How to Start a Coffee Shop in the Philippines: Costs and Considerations | coffeesmiley.com
• Why Coffee Shop is a Good Business in the Philippines | hillsandvalleys.ph
• Coffee Shops in the Philippines: 12 Statistics to Know in 2023 | coffeeaffection.com

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What is the Cost of Starting a Coffee Business in the Philippines?

When starting a coffee shop as a small business in the Philippines, it’s important to consider the start-up costs involved. The expenses can vary depending on factors such as the location, size of the establishment, and equipment needed.

• Franchise Fee (if applicable): If you plan to open a franchise coffee shop, the cost can range from around PHP 1 million to PHP 5 million or more, depending on the brand and its popularity.
• Rental or Lease: The cost of renting or leasing a commercial space will depend on the location and size of the establishment. In popular areas, monthly rental costs can range from PHP 30,000 to PHP 150,000 or more.
• Renovation and Interior Design: The cost of renovating and designing the coffee shop can vary widely depending on the condition of the space and your design preferences. A rough estimate for renovation and interior design can range from PHP 500,000 to PHP 2 million or more.
• Equipment and Furnishings: This includes coffee machines, grinders, blenders, espresso makers, refrigerators, furniture, signage, and POS systems. Depending on the scale of your operation, the equipment costs can range from PHP 500,000 to PHP 1.5 million or more.
• Initial Inventory: You’ll need to stock up on coffee beans, syrups, milk, cups, lids, stirrers, napkins, and other consumables. The cost of initial inventory can vary based on the size of your operation, but it’s advisable to have at least PHP 100,000 to PHP 300,000 available.
• Licenses and Permits: You’ll need to obtain various licenses and permits to operate a coffee business legally. The costs associated with licenses and permits can range from PHP 50,000 to PHP 200,000 or more, depending on the location and the specific requirements.
• Staffing and Training: You’ll need to consider the cost of hiring and training employees. This will depend on the number of staff members and their salaries. It’s essential to comply with minimum wage regulations and provide benefits to your employees.

Overall, the total start-up cost for a coffee shop small business in the Philippines can range from PHP 1.5 million to PHP 8 million or more, depending on factors like location and scale. Remember to conduct thorough research and create a detailed business plan to get a more accurate estimate based on your unique circumstances.

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• Mar 14, 2019

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

Updated: Dec 21, 2021

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

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

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

3 Ways to Start a Coffee Business in the Philippines

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

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

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

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

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

Cost Breakdown: Starting a Coffee Business in the Philippines

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

Small Cafe with No Kitchen

Specifications

Location - central business district

Food - reheating only

Floor Area - 30 sq m

*variable depending on cafe hours

Business Permit - PhP 50,000

Fit Out - PhP 450,000

Equipment - PhP 450,000

Rent* - PhP 45,000

Monthly Staff Cost** - PhP 77,500

Marketing Spend - PhP 10,000

Utilities - PhP 10,500

Supplies - PhP 101,250

*assumed PhP 1,500 per sq m

**remuneration may vary

Monthly Revenue* - PhP 337,500

*assumptions

-90 cups per day

-PhP 150 average spend with food

-PhP 13,500 daily revenue

Net Income Before Taxes - PhP 93,250

ROI - 10 months

Medium-sized Cafe with Small Kitchen

Food - small kitchen

Staff* - 10

Floor Area - 50 sq m

Fit Out - PhP 750,000

Equipment - PhP 750,000

Rent* - PhP 75,000

Monthly Staff Cost** - PhP 182,500

Marketing Spend - PhP 20,000

Utilities - PhP 17,500

Supplies - PhP 198,450

Monthly Revenue* - PhP 661,500

-126 cups per day

-PhP 210 average spend with food

-PhP 26,460 daily revenue

Net Income Before Taxes - PhP 168,050

ROI - 9 months

Large Cafe with Full Kitchen

Food - full kitchen

Staff* - 12

Floor Area - 150 sq m

Fit Out - PhP 2,250,000

Equipment - PhP 2,250,000

Rent* - PhP 225,000

Monthly Staff Cost** - PhP 217,500

Marketing Spend - PhP 30,000

Utilities - PhP 52,500

Supplies - PhP 472,500

Monthly Revenue* - PhP 1,575,000

-210 cups per day

-PhP 300 average spend with food

-PhP 63,000 daily revenue

Net Income Before Taxes - PhP 577,500

ROI - 8 months

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

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

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

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

Over to You—Ready to Start Your Coffee Shop?

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

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

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• Is Coffee Business Profitable in the Philippines?
• Article , What's New
• Cup Community
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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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A business plan for "Kopinoy"

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

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