cafe business plan philippines

• Franchising Inquiries Email: [email protected]
• Viber (Adrianne – Co-Founder/Sales): 09062320168

• Best Coffee Shop in Lower Bicutan Taguig
• Best Coffee Shop in San Jose Del Monte Bulacan
• Hills & Valleys Franchise
• Best Coffee Shop Franchises Philippines
• Mobile Coffee Cart
• Best Coffee Shops in the Philippines
• Top 5 Coffee Shops in Taguig
• Coffee Shops With Free Wifi
• Coffee Statistics
• Instagrammable Coffee Shops
• Coffee Shop Philippines
• Best Franchise Business in the Philippines 
• Instagrammable Cafe in Bulacan
• How to Start a Coffee Shop Business
• Where to Go in Bulacan
• Food Franchise in the Philippines
• How to Promote Coffee Shop
• Cafe Mission and Vision
• Write For Us

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

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

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

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

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

Why Start a Coffee Shop Business?

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

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

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

Be An Entrepreneur

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

Increase More Income 

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

Positively Impacts The Lives of Others

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

Unleashing Your Creativity 

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

Turning Your Dream into Achievement 

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

You Get To Be A Part of Coffee Culture 

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

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

Flexibility For Your Family 

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

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

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

The best part is learning the steps to starting one. 

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

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

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

1. Decide on a Budget

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

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

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

How much capital is needed for a coffee shop?

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

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

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

2. Choose Between Coffee Franchise Or Starting Your Own Brand

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

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

Coffee Shop Franchising  

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

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

Benefits of Coffee Shop Franchising

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

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

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

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

Drawbacks of Coffee Shop Franchising

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

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

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

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

Hills & Valleys: Best Coffee Shop Franchise in the Philippines

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

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

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

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

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

Startup Coffee Shop 

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

Benefits Of Startup Coffee Shop 

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

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

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

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

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

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

Drawbacks of Startup Coffee Shop

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

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

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

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

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

Types of Coffee Shop Businesses

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

Coffee Bar, Cart, or Kiosk

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

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

Coffee Store

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

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

Drive-thru Coffee Shops

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

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

Pop-up and mobile coffee shops

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

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

3. Comply with Legal and Regulatory Requirements

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

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

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

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

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

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

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

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

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

4. Learn About Cafe Management

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

Let’s first start with hiring and managing employees.

Hiring and Managing Employees

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

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

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

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

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

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

Social Role:

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

Self-Image:

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

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

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

Inventory Management 

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

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

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

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

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

Bookkeeping and Accounting

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

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

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

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

Maintaining a clean and safe environment

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

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

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

5. Find a Suitable Location and Select the Right Equipment 

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

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

Best Nearby Locations 

Near hospitals/schools/parks

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

Inside malls 

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

Purchasing Equipment and Supplies

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

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

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

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

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

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

Some good recommendations for brewing machines are: 

• La Marzocco
• Nuova Simonelli
• Rocket Espresso

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

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

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

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

The Philippines produces several types of coffee beans, including:

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

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

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

6. Select Your Ideal Coffee Shop Aesthetics and Concept

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

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

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

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

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

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

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

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

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

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

7. Understand How Sales and Marketing Work 

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

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

Sales Forecasting  

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

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

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

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

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

Factors That Affect Sales of Coffee Shops in the Philippines

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

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

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

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

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

Effective Marketing Strategies

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

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

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

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

Social Media Marketing Strategies 

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

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

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

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

Customer Loyalty Programs 

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

Live Events 

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

Ask For Google Business Reviews

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

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

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

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

8. Familiarize Yourself With Cafe Operations and Customer Service 

Cafe operations.

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

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

Menu Planning and Pricing 

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

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

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

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

Food Safety and Sanitation

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

Workflow Optimization 

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

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

Quality Control

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

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

Customer Service and Experience  

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

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

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

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

Coffee Shop Success Factors and Challenges

What makes a cafe successful.

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

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

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

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

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

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

Challenges Faced by Coffee Shop Businesses

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

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

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

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

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

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

Coffee Shop Philippines Frequently Asked Questions

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

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

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

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

Is a coffee shop a profitable business?

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

What qualifications do you need to run a cafe?

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

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

Is owning a coffee shop stressful?

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

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

Is coffee a good investment?

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

What percentage of cafes fail?

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

Can I run a cafe with no experience?

You can run a cafe with no experience. 

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

What does a small cafe need?

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

What are the problems in a coffee shop business?

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

Do coffee shop owners make money?

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

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

Venchito Tampon

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

How To Start A Cafe Business Philippines 2024

As the Philippines economy is continuously changing…

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

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

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

2. The expected income of a coffee shop.

Table of Contents

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

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

Each section can be slightly adjusted.

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

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

We have recently spoken about a food cart business .

If you are looking to franchise a coffee shop…

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

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

Will a franchising business be worth your time financially speaking?

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

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

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

And you don’t feel 100% confident.

Franchising is often a more appropriate decision.

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

2. Legal Register Your Coffee Shop Business In The Philippines

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

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

But additionally…

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

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

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

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

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

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

3. Choose Your Café / Coffee Store Location

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

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

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

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

4. Select Your Café Design And/Or Coffee Theme

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

But if you are in a non-tourist area.

Remember the 80/20 law.

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

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

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

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

5. Purchase Your Café Equipment & Supply

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

This may be covered in your overall financial investment.

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

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

In that case…

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

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

6. Recalculate Financial Figures And Projection

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

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

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

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

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

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

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

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

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

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

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

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

7. Stop, Start And Continue.

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

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

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

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

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

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

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

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

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

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

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

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

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

To answer this question…

Download Coffee Shop Business Plan Philippines PDF

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

If so, Filipino wealth has you covered.

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

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!

• Recent Posts

• IT Engineer Quits Job To Sell Siomai, Now Earns P5,000 A Day - June 30, 2023
• From Chocolate Cakes To Noodles: Maricar Reyes’ Food Businesses - June 25, 2023
• How To Be A Cebuana Lhuillier Authorized Agent - June 17, 2023

Recommended Reading...

5 Practical Tips for Staying on Top of Your Credit Card Payments

Top 5 Tips to Protect Your Money From Inflation

7 Ways to Contact the Converge Customer Service

8 Ways to Contact the Smart Communications Customer Service in the Philippines

6 Best Unlimited Samgyupsal Restaurants in the Philippines

Benefits of Using a Storage Unit for Your Business

Leave a Comment Cancel reply

Save my name, email, and website in this browser for the next time I comment.

For security, use of Google's reCAPTCHA service is required which is subject to the Google Privacy Policy and Terms of Use .

I agree to these terms (required).

Privacy Overview

• HOW TO APPLY
• NEWS & PROMOS

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

Table of Contents

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.

• Apply with only one valid ID
• First loan with 0% interest rate
• Get up to PHP 25,000 in just 4 minutes!

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:

Need funding for your business ideas or personal project? Apply for a Digido loan today! Calculate your pre-approved loan amount with Digido calculator:

* Interest payments are approximate. The final loan amount and interest rate must be confirmed in your loan agreement after loan approval.

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.

Furthermore, the use of trademarks, marks, brands, business names, and/or trade names in this article is for instructional, research, and reference purposes, which are governed by the fair use principle under applicable intellectual property laws. The writer, publisher, website owner and the Company disclaims ownership, use for commercial purposes, and/or appropriation of the trademarks, marks, brands, business names, and/or trade names belonging to another.

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

Digido Reviews

Download our app.

• Borrowing 24/7
• Approval rate over 90%

Post navigation

Starting a Café Business: Essential Steps Guide

• Post author: Mervin Manalo
• Reading time: 17 mins read

Did you know that the coffee shop industry is booming in the Philippines? With coffee culture on the rise, starting your own café business can be profitable and rewarding. But where do you begin? How do you ensure your café stands out in a crowded market?

This comprehensive guide will walk you through the essential steps of starting a café business, from researching the industry to designing your café and launching it successfully. Whether you are a coffee enthusiast or an entrepreneur looking for a new venture, this guide is your go-to resource for turning your café dreams into reality.

Key Takeaways:

• Research the coffee business and learn from successful café owners
• Define your café’s vision and atmosphere
• Create a comprehensive business plan and choose a suitable location
• Find reliable suppliers and source commercial equipment
• Design your café and create a menu that reflects your vision

Doing Your Research and Defining Your Vision

Starting a café business requires thorough research to understand the industry and learn from successful coffee business owners. By immersing yourself in the world of cafés, you can gain valuable insights and discover what sets the best establishments apart.

Visiting cafés and analyzing customer needs and preferences can help you define your café’s vision and how it will stand out from competitors. Take note of the ambiance, menu offerings, and customer service in different cafés to identify what works well and what could be improved.

Collecting photos, menus, and design ideas can inspire the atmosphere and style of your café. Saving these visual references will help you communicate your vision to designers and architects when creating your café’s unique identity.

Understanding your target customer base and their needs is crucial for planning your menu, pricing, and overall business strategy. By listening to your potential customers and conducting surveys or focus groups, you can tailor your offerings to their preferences, ensuring higher customer satisfaction.

Learning from Coffee Business Owners

One of the best ways to gain valuable insights into the coffee business is by learning directly from successful café owners. Contact local café owners and ask if they would be open to sharing their experiences and advice. Many café owners are happy to help aspiring entrepreneurs and share their knowledge.

To maximize your learning experience, prepare thoughtful questions and be open to different perspectives. Ask about their journey, challenges they faced, marketing strategies they implemented, and any critical lessons learned.

Engaging with coffee business owners can gain invaluable industry knowledge and avoid common pitfalls. Learning from their experiences can provide a solid foundation for starting and running your own café business.

Defining Your Vision

Defining your vision is a critical step in starting a café business. It sets the direction for your café and influences every aspect of its operations. Your vision encompasses the atmosphere, theme, target audience, and unique selling points that will differentiate your café from the competition.

Take the time to reflect on what you want your café to represent and the type of experience you want to create for your customers. Write down your goals, mission statement, and values guiding your café’s operations and interactions.

A well-defined vision will help you make informed decisions and attract the right customers who resonate with your café’s identity. It will serve as a compass, guiding your actions and ensuring consistency throughout your café’s journey.

Creating a Business Plan and Choosing a Location

Starting a café business requires careful planning and strategic decision-making. A well-crafted business plan is a foundation for guiding each stage of your café’s development and managing its operations.

Your business plan should include:

• A compelling summary that highlights your unique selling proposition and vision for the café.
• A thorough local market analysis that identifies your target market, competitors, and potential challenges.
• A well-defined team structure outlining the roles and responsibilities of each team member.
• A comprehensive marketing plan that outlines how you will promote your café and attract customers.
• Realistic financial projections that cover expenses, revenue streams, and profitability.
• A carefully thought-out location strategy that considers factors such as foot traffic, visibility, demographics, and local community preferences.

Choosing the right café location is crucial for the success of your business. A prime location can attract more customers and generate higher sales. Consider the following factors when selecting a café location:

• Foot traffic: Choose a location with high pedestrian traffic to increase the visibility and accessibility of your café.
• Visibility: A café with good visibility from the street can attract passersby and create curiosity.
• Demographics: Analyze the area’s demographics to ensure your café aligns with the preferences and needs of the local population.
• Local community preferences: Research the community’s preferences for coffee and café experiences to tailor your offerings accordingly.

Before signing a lease for your café location, it’s essential to understand the terms and conditions thoroughly. Consulting a lawyer specializing in retail leases can help you navigate the legalities and ensure you make informed decisions.

Creating a solid business plan and choosing the right location are vital steps to set the stage for your café’s success. By carefully considering your target market, competition, and location factors, you can create a strong foundation for your café and attract loyal customers.

Finding Suppliers and Sourcing Equipment

Finding reliable suppliers for your café is essential for ensuring a smooth operation. From high-quality coffee beans to fresh produce and essential items like milk and bread, sourcing suitable suppliers is crucial to serving your customers the best products.

Creating a Detailed List

Start by creating a detailed list of all the supplies you will need for your café. This should include everything from coffee beans, tea leaves, and milk to utensils, plates, and cleaning supplies. A comprehensive list will help you stay organized and ensure you don’t miss any essentials.

Pro Tip: To avoid missing any items, think through your entire menu and the various components needed to bring each dish or beverage to life.

Researching Suppliers

Once you have your list, it’s time to start researching suppliers. Look for suppliers that align with your business philosophy, such as those focused on fair trade, sustainable sourcing, or organic products. Don’t forget to consider the reputation and reliability of each supplier.

You can start by contacting local farmers, roasters, and distributors. Attend trade shows or industry events to connect with potential suppliers and evaluate the quality of their products. Get recommendations from other café owners or hospitality professionals who have experience working with reliable suppliers.

Sourcing Commercial Equipment

Sourcing the proper commercial equipment is another crucial aspect of starting a café business. From coffee machines and blenders to refrigerators and cash registers, equipping your café with the necessary tools is essential for daily operations.

When sourcing commercial equipment , consider your specific needs and budget—research different brands and models, comparing their features, durability, and pricing. If you’re on a tight budget, explore options for leasing or financing the equipment.

Tip: Collaborate with suppliers who can recommend the right equipment for your café’s needs, ensuring that your kitchen is equipped with reliable, energy-efficient, and easy-to-maintain tools.

Comparison of Supplier Options

By carefully researching and selecting suppliers that align with your café’s vision, you can ensure a steady supply of high-quality ingredients and essential items. Additionally, investing in reliable commercial equipment will contribute to the smooth functioning of your café’s operations, allowing you to serve your customers efficiently.

Designing Your Café and Creating a Menu

The design of your café is a vital aspect that can attract customers and create a unique and memorable atmosphere. By understanding the preferences and tastes of your target customer base, you can design your café in a way that resonates with them. Whether you opt for a modern, retro, sophisticated, family-friendly, or health-focused ambiance, the key is to create an environment that appeals to your customers.

An efficient workflow and a customer-friendly ordering process should also be considered when planning your café’s layout. By optimizing the space and ensuring smooth operations, you can provide a seamless and enjoyable experience for your patrons.

When it comes to menu creation, it is essential to develop a menu that not only aligns with your café’s vision but also offers a variety of appealing options. Consider incorporating gluten-free, vegan, and vegetarian choices to cater to a broader range of preferences and dietary needs. Striking a balance between customer satisfaction and profitability is critical. By providing an enticing menu that reflects your café’s unique identity, you can create a truly memorable dining experience.

Here is an example of a well-designed café menu:

By carefully considering the design of your café and creating a menu that reflects your vision, you can create an inviting space that leaves a lasting impression on your customers. Remember, the design and menu are essential elements that contribute to the overall experience and success of your café business.

Starting a café business requires careful planning, extensive research, and attention to detail. Following the essential steps outlined in this guide can build a solid foundation for a successful café business.

Defining your vision and creating a comprehensive business plan will help you focus on your goals and navigate potential challenges. Choosing the right location, sourcing reliable suppliers, and obtaining top-quality equipment is crucial to running a successful café.

Designing your café with a specific theme and creating a menu that reflects your vision will attract customers and leave a lasting impression. By delivering exceptional customer service and providing a memorable experience, you can develop a loyal customer base and thrive in the competitive café industry.

Launching a café business is an exciting endeavor requiring passion, dedication, and perseverance. With the proper preparation and a commitment to excellence, you can bring your dream café to life, stand out from the competition, and establish a thriving business that brings joy to coffee lovers in your community.

How can I start a café business?

To start a café business, you need to conduct thorough research on the coffee business, define your vision, create a comprehensive business plan, choose a suitable location, find reliable suppliers, source commercial equipment, design your café, create a menu, hire the right staff, develop a marketing plan, and plan a successful grand opening.

How can I research the coffee business?

Research the coffee business by contacting owners and visiting cafés to understand what works and doesn’t. Analyzing customer needs and preferences can provide valuable insights for your café.

What should be included in a business plan?

A comprehensive business plan should include a summary, local market analysis, team structure, marketing plan, financial projections, and location strategy.

How do I choose the right café location?

Consider factors such as foot traffic, visibility, demographics, and community preferences when choosing a café location . Thoroughly understand the retail lease terms and consult with a lawyer before signing.

How can I find reliable suppliers for my café?

Create a detailed list of supplies and research suppliers that align with your business philosophy. This will ensure you are well-prepared and find reliable suppliers for coffee beans, milk, bread, fresh produce, and other necessary items.

What should I consider when sourcing commercial equipment?

Consider your specific needs and budget when sourcing commercial equipment , such as coffee machines, blenders, refrigerators, and cash registers. Think about whether leasing options or loans would be beneficial for your business.

How important is the design of my café?

The design of your café plays a crucial role in attracting customers and creating a unique atmosphere. Understand the tastes and preferences of your target customer base to design your café accordingly.

How should I create a menu for my café?

Create a menu that reflects your café’s vision and offers a variety of appealing options, including gluten-free, vegan, and vegetarian choices. This will ensure customer satisfaction and profitability.

How do I plan a successful grand opening?

Plan a successful grand opening to showcase your hard work and start building relationships with your customers. Utilize social media, Google Maps, and other platforms to promote your grand opening and attract customers.

What are the essential steps for starting a café business?

Starting a café business requires thorough research, defining your vision , creating a comprehensive business plan, choosing the right location, finding reliable suppliers, sourcing commercial equipment , designing your café, creating a menu, hiring the right staff, developing a marketing plan, and planning a successful grand opening.

How can I ensure my café business is successful?

Following the essential steps outlined in this guide can build a solid foundation for a successful café business. With the proper preparation and dedication, you can bring your dream café to life and create a memorable experience for your customers.

Source Links

• https://www.sevenmiles.com.au/blogs/editorial/how-to-open-a-cafe
• https://coffeeshopstartups.com/how-to-start-a-coffee-shop-in-30-steps/
• https://www.forbes.com/advisor/business/how-start-coffee-shop/

About HICAPS

Over the years, HICAPS has helped bakers and businesses make delicious products by offering ingredients like  ChiffonAide Cake Oil ,  Magic Whizk Whipping Cream ,  Red Velvet Flavor Emulco , and  Instabake Brownie Mix .

HICAPS also provides tools and resources to valued partners, such as the free  “How to Increase Your Sales Amidst the Pandemic”  E-book and free dealer locator that helps look for  baking ingredients near me .

Want more free tips and tutorials? Follow us on Facebook at  Hicaps Mktg Corp.  and on YouTube at  HicapsTV . Want to be one of our valued partners?  Fill this form out.

We are looking forward to talking to you soon!

• About the Author
• Latest Posts

Mervin Manalo is a Chemical Engineer who graduated from De La Salle University in Manila, Philippines. He has over 20 years of experience in the food industry and currently serves as President and CEO of HICAPS Mktg. Corp., a provider of prime baking ingredients.

He also attended a mini MBA program at Guthrie-Jensen, which helped him broaden his business knowledge and skills. Under his helm, HICAPS expanded its business and helped more clients grow thru the years. He loves technology and new trends and is always looking for ways to improve his products and services.

• Boost Your Baking Business with AI
• How to Start a Home Baking Business in the Philippines: A Step-by-Step Guide
• Thriving as a Small Business Owner: Secrets Unveiled

Please Share This Share this content

• Opens in a new window X
• Opens in a new window Facebook
• Opens in a new window Pinterest
• Opens in a new window LinkedIn

You Might Also Like

Packaging Materials for your Bakery Products

How to Change Facebook Page Name: The Ultimate Guide

How to Prepare Your Business for Holidays the Right Way

Leave a reply cancel reply.

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

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

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

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

Learn more about this Selling Food Online workshop . 

Type of Coffee Shop: 

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

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

Business Plan: 

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

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

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

Location: 

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

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

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

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

Access this platform (Free)

Interior Design: 

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

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

Case Study: Starbucks vs Mcdonalds

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

Read more: Starbucks vs Mcdonalds’ case study. 

Coffee Shop Equipment: 

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

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

Learn more about the rental of coffee machines . 

Coffee Menu: 

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

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

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

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

Cost-Effective Operations: 

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

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

Read more about how to improve your restaurant operations . 

Marketing Strategies: 

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

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

Read Digital Marketing strategy for a coffee shop .  

Franchising Coffee Shops: 

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

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

Existing Coffee Shops: 

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

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

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

Please note that all fields followed by an asterisk must be filled in.
	Please enter the word that you see below. About US | OCM Profile OCM (OnCoffeeMakers.com) was started in 2007 with the first webpage about coffee machines. And for a number of years, we focused on helping people find their desired coffee machine (we still are helping folks with that! So, if you are looking for coffee machines for office or restaurants - check out the link).  In 2010, we started getting enquiries on restaurant marketing and we start to help food and beverage brands with their marketing. Below are campaigns and events that we have done over the years:  OCM's campaigns: F&B Marketing Ideas by OCM  OCM's Events: F&B Industry events by or with OCM Check out this restaurant marketing guide to learn more about the many campaigns and companies we have worked with.  Since then, we have also created many marketing workshops and classes for the F&B industry . Many of these modules are still running in tertiary institutions such as Temasek Polytechnic Skillsfuture Academy and also ITE College East COC classes, below are some snippets of our lectures and workshops:  OCM’s F&B workshops: Food and Beverage Marketing Lectures | Workshops - click to watch classes on customer journey map, JTBD and more.  So, if you are looking for industry practitioners to help you scale your coffee or F&B businesses, do drop us a message or book an appointment . Do also check out our various social media platforms on regular F&B and coffee market updates:  For regular coffee (F&B) related videos: OCM Youtube For Daily Coffee Inspiration (fun coffee content): OCM IG For insights into the coffee (F&B) industry: OCM LinkedIN  PS: For the coffee lovers, we continue to share coffee articles (and videos) and have also started a free coffee class section (with free online coffee training supported by coffee partners). Contact Us   How to Start a 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 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: 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 Key Factors for Building a Successful Coffee Shop Business Developing a solid business plan ✔ Finding the perfect location ✔ Creating an inviting ambiance ✔ Crafting an impressive menu ✔ Implementing effective marketing strategies ✔ Prioritizing 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? No products in the cart.   Shop by Category Brewing Guides   Shop By Category 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! Recently Viewed Products Search Trending Semua Berita Complete Guides to Write Cafe Business Plan Step by Step Great cafes combine exceptional coffee, a welcoming environment, and delectable treats to snack on while relaxing. The cafe is a low-risk business model with lower start-up costs and overhead than larger restaurants, but carving a niche for your cafe in the market and charting a path to success are critical considerations. There’s probably another cafe nearby, so how will you stand out? That’s why you need a cafe business plan.  How to Write a Cafe Business Plan? Your selling stock is messing up you need help. Ginee Omnichannel allow you to automatically sync every stock from all of your online stores. It’s faster way to helps you profit! The steps below will show you how to create a business plan that will help your cafe succeed. Begin with Your Vision A business plan is the first step toward making your cafe-ownership dream a reality, so dream big by sketching out your vision for your future cafe or coffee shop. What will the design of your cafe be? What kind of decorations will be used? What will its location be? Which items are you planning to sell? Who will go there?  Take inspiration from your favorite cafes, images you’ve seen, favorite films or books, and even your travels. Then write it all down or pin it to a wall to make an inspirational mood board. It will be extremely motivating to look up at your initial vision and be reminded of the finish line as you spend hours working on your business proposal about coffee shop. Research on Other Business Plans Before you start writing your masterpiece, look at business plans from your industry, such as cafes, coffee shops, and quick-service restaurants. Examine how they structured their business and ensure that your cafe is on the right track. Real-life cafe business plan examples from small business owners are also extremely valuable. Find current or former coffee shop owners, or even franchise owners, in your area and ask them how they succeeded and what they would do differently.  While you’re at it, ask for recommendations for someone like an accountant to help you write your coffee business plan. Even if your future competitors are local business owners, they may be willing to share their experiences. Creating a Business Plan Template A blank page can be intimidating, but there are numerous cafe business plan samples available online to assist you in getting started. Below already outlined the basic sections you should include in your business plan below, along with additional tips on how to flesh each one out. The Executive Summary When a reader opens your business plan, the executive summary will be the first thing they see. This provides a high-level overview of all of your business plan’s sections. A well-written executive summary coffee shop will get you in the door, so read an example of business plan about coffee shop to get a sense of how the summary is worded and how all of the information is presented. There are a lot of cafe description samples to help you. Consider who will read your business plan and tailor the opening paragraphs to your audience, just as you did for the customers who will visit your soon-to-be-opened cafe. Your executive summary is the most important marketing tool your cafe has as you prepare to open. Read also: 3 Social Media Marketing Tools to Help Your Campaign Succeed How will Your Cafe be Successful? The second section provides answers to questions such as “What problem does your cafe solve?” and “How will your cafe contribute to the solution?” Perhaps there isn’t a coffee shop or cafe in a busy shopping center near you. Perhaps a downtown restaurant has recently closed. This summary gives a quick overview of your industry, where your cafe will be located, and how it will stand out. Will your airport-area shop specialize in breakfast sandwiches? Do you want to sell your famous local pie? You’ve envisioned the success of your future cafe. Make certain that the readers of your business plan understand this as well. Examine Your Competition The following section of your business plan is known as the competitive analysis. It explains how your cafe will compete with other food and beverage businesses. Your competitors include nearby restaurants, coffee shops, and even public gathering places such as movie theaters. So now is the time to conduct competitor analysis coffee shop by visiting potential competitors and noting who their customers are, what’s for sale, and how much it costs. Do You Want to Manage Multiple Marketplace Just by Single Person? Of course you can! You can handle multiple stores from all marketplace just by single dashboard. Cut your Business’s cost, and Boost your Efficiency at the same time. Understanding pricing strategies for similar businesses will help you determine how much you should charge for your coffee, pastries, sandwiches, and whatever else you’re selling in order to remain competitive in your market. Cafes and coffee shops can have high gross margins, but small cafes have notoriously low operating incomes (profits) due to high overhead costs. However, if you take the time to conduct a thorough analysis of your competition, your cafe will have a better chance of success. By describing how your cafe will compete with similar businesses, you will persuade your reader (and, more importantly, yourself) that your goal of opening a restaurant or cozy cafe is both realistic and sustainable. Examine Your Target Market Your future customers are known as your market in your business plan, the number of potential customers is known as your market size, and how you’ll reach them is known as your marketing plan. In your cafe or restaurant business plan , you will then divide your market into market segments. If your coffee shop or cafe is near an elementary school, for example, a market segment could be parents or caregivers who stop by for high-end coffee after dropping their children off at school. Or college students sipping espresso while studying for exams. You can zero in on how to reach each type of customer by segmenting your market. As part of your market analysis coffee shop, your marketing plan (how you will advertise to your target market) will be outlined in your business plan. What You Intend to Sell and How You Intend to Sell It Now that you know what your competitors charge, you can develop a pricing strategy for your cafe. Be clever when developing your menu and pricing. Because you’ll be buying in bulk, try to use the same ingredients in a variety of dishes.  Don’t be afraid to experiment. If you charge less for a croissant and coffee combo than for those items separately, you will encourage customers to buy more and reduce food waste. You’ll almost certainly end up changing your menu once you open for business.  However, for the purposes of a business plan , you’ll need to know how much you intend to charge for the coffee or soup you intend to sell, which you’ll figure out by breaking down the ingredients required to make each item and researching your competition. Make a Marketing Strategy Your marketing plan can be integrated into your sales plan or a separate section. Will you post your specials on social media every morning? In addition to marketing, this is a great section to explain your plans for customer retention. It’s easier than ever to reward and keep the customers who will frequent your cafe with a cafe point of sale system. Read also: 6 Examples Marketing Mix Example Coffee Shop Business Structure of Ownership Your company’s ownership structure will be included in your business plan. Explain how much experience you and your partners have and why you’re the right person (or people) for the job. Your Business Strategy Include information about your facilities, employees, equipment, and supplies in this section. Consider the direct costs of rent, barista wages, coffee beans, and technology. Try to squeeze as many services as you can out of a single tool, such as a POS system that allows your customers to check out, your part-time employees to clock in, and your cafe’s inventory to be managed. Estimate how frequently you’ll need to replenish ingredients like flour and eggs. Consider your operating costs carefully during the business planning stage. Wherever possible, save money and don’t skimp on essentials like your espresso machine. Planning Your Finances You are now ready to create a financial plan coffee shop. This is typically the most time-consuming and crucial section of your business plan, particularly for lenders and investors. It should contain a summary of your startup costs, an income statement, projected cash flow, a balance sheet, and a break-even analysis. Though creating a business plan may appear difficult, keep in mind that it is an important step to take before opening a cafe. A cafe can be successful is proven by a well-thought-out business plan. Join Ginee Philippines! Writing a cafe business plan is easy if you know how to do it, especially Ginee has provided you with tips above! After you have followed the tips, the next step is to manage your online stores and reach sales faster with the help of Ginee Philippines . Ginee has features such as product, stock, order, promotion, chat management, and more. You can manage your store in only a single dashbaord. Join Ginee Philippines now freely ! Upload Products to Shopee and Lazada Automatically ! How? Ginee product management allow you upload products to all of your online stores from all marketplace just once! Save time, save cost, save energy, join Ginee Now! How to Increase Shopify Website Speed, Note 8 Checklists! 1 Want to Customize Theme? Here How to Edit Website in Shopify 2 Here 4 Ways How to Add Privacy Policy to Shopify Store 3 Step by Step How to Add Sub Menu in Shopify Complete!  4 Here Is the Ideal Image Size for Debut Theme Shopify Store 5 How to Rename Shopify Store and 3 Reasons You Must Do It 6 5 Useful Tips How to Drive Traffic to Your Shopify Website? 7 6 Steps How to Make a Product Free Shipping on Shopify 8 How to Design a Shopify Website, Make Buyers Interested! 9 Update! 3 Ways How to Edit Shopify Coming Soon Page 10 Marketplace News Marketplace Research Selling Tips Ginee Portal Don't bother with copy and paste. Get this complete sample business plan as a free text document. Coffee Shop Business Plan Start your own coffee shop business plan Java Culture Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity. People near the University of Oregon need not just coffee and tea, or pastries and snacks, but also a place to meet comfortably, have a group discussion, or just sit quietly, work, and read. That is available now near the University of Oregon campus, but too crowded too often, and not the right combination of factors for everybody. Java Culture coffee bar is determined to become a daily necessity for local coffee addicts, a place to dream of as you try to escape the daily stresses of life and just a comfortable place to meet your friends or to read a book, all in one. Java Culture will focus its marketing activities on reaching the University students and faculty, people working in offices located close to the coffee bar and on sophisticated teenagers. Our market research shows that these are the customer groups that are most likely to buy gourmet coffee products. Since gourmet coffee consumption is universal across different income categories and mostly depends on the level of higher education, proximity to the University of Oregon campus will provide access to the targeted customer audience. Competition Java Culture’s direct competitors will be other coffee bars located near the University of Oregon campus. These include Starbucks, Cafe Roma, The UO Bookstore, and other Food service establishments that offer coffee. Great coffee, pastries, additional options for tea etc, very welcoming atmosphere, good wireless, desk space, comfortable chairs and tables, good pastries, a location close to the university campus. Expectations We plan to grow as shown in the chart below, taken from our sales forecast. We aim to maintain an industry-standard 60% gross profit margin and reasonable operating expenses, and to produce reasonable profits in the second and third year. Financial Highlights by Year Financing needed. The owners will invest $140,000 and take out a bank loan for $30,000  to cover the start-up expenses and assets needed plus deficient spending in the early months. The start-up expenses of $27,000 include: Legal expenses for obtaining licenses and permits as well as the accounting services totaling $1,300. Marketing promotion expenses for the grand opening of Java Culture in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580. Consultants fees of $3,000 paid to ABC Espresso Services <name changed> for the help with setting up the coffee bar. Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium of $2,400. Pre-paid rent expenses for one month at $1.76 per square feet in the total amount of $4,400. Premises remodeling in the amount of $10,000. Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500). These expenses will be incurred before launch, so they take their place in our financial projections as negative retained earnings of $27,680 at the end of the month before we begin. That number shows up in the balance sheet. The required start-up assets of $143,000 include: Cash in the bank in the total amount of $67,000, which includes enough to cover employees and owner’s salaries of $23,900 for the first two months and cash reserves for the first three months of operation (approximately $14,400 per month). Coffee beans (12 regular brands and five decaffeinated brands) – $6,000 Coffee filters, baked goods, salads, sandwiches, tea, beverages, etc. – $7,900 Retail supplies (napkins, coffee bags, cleaning, etc.) – $1,840 Office supplies – $287 Espresso machine – $6,000 Coffee maker – $900 Coffee grinder – $200 Food service equipment (microwave, toasters, dishwasher, refrigerator, blender, etc.) – $18,000 Storage hardware (bins, utensil rack, shelves, food case) – $3,720 Counter area equipment (counter top, sink, ice machine, etc.) – $9,500 Serving area equipment (plates, glasses, flatware) – $3,000 Store equipment (cash register, security, ventilation, signage) – $13,750 Office equipment (PC, fax/printer, phone, furniture, file cabinets) – $3,600 Other miscellaneous expenses – $500 Funding for the company comes from two major sources–owners’ investments and bank loans. Two major owners, Arthur Garfield and James Polk, have contributed $70,000 and $30,00 respectively. All other investors have contributed $40,000, which brings the total investments to $140,000. The remaining $30,000 needed to cover the start-up expenses and assets came from the two bank loans–a one-year loan in the amount of $10,000 and a long-term (five years) loan of $20,000. Both loans were secured through the Bank of America. Thus, total start-up loss is assumed in the amount of $27,000. The amounts show up in the balance sheet in the month prior to opening. The $140,000 investment shows up as Paid-in Capital. The $27,000 expenses show up as negative retained earnings. Assets and liabilities are there. This is all according to financial standards. Problem & Solution Problem worth solving. People near the University of Oregon need not just coffee and tea, or pastries and snacks, but also a place to meet comfortably, have a group discussion, or just sit quietly, work, and read. That is available now near the University of Oregon campus, but too crowded too often, and not the right combination of factors for everybody.  Our Solution Java Culture will make its best effort to create a unique place where customers can socialize with each other in a comfortable and relaxing environment while enjoying the best brewed coffee or espresso and pastries in town. We will be in the business of helping our customers to relieve their daily stresses by providing piece of mind through great ambience, convenient location, friendly customer service, and products of consistently high quality. Java Culture will invest its profits to increase the employee satisfaction while providing stable return to its shareholders. Target Market Market size & segments. Coffee consumption has shown a steady 2.5% growth rate in the United States over the last decade. The retail coffee industry is flourishing in the U.S. Pacific Northwest. The local climate, with a long rainy season, is very conducive for the consumption of hot non-alcoholic beverages. At the same time, hot dry summers drive people into cafes to order iced drinks. Furthermore, coffee has really become a part of the lifestyle in the Pacific Northwest. Its discerning coffee drinkers are in favor of well-prepared, strong coffee-based beverages, which they can consume in a relaxing environment. More specifically, the University of Oregon as close to 25K students and another 5-10K faculty and staff. And it is embedded in the Eugene, OR community of 200K people. Our main market will be students, faculty, staff, and nearby residents. But the campus area is a hub for the community and will attract other customers.  Current Alternatives Our Advantages Java Culture will cater to people who want to get their daily cup of great-tasting coffee in a relaxing atmosphere. Such customers vary in age, although our location close to the University campus means that most of our clientele will be college students and faculty. Our market research shows that these are discerning customers that gravitate towards better tasting coffee. Furthermore, a lot of college students consider coffee bars to be a convenient studying or meeting location, where they can read or meet with peers without the necessity to pay cover charges. For us, this will provide a unique possibility for building a loyal client base. Keys To Success The keys to success will be: Store design that will be both visually attractive to customers, and designed for fast and efficient operations. Employee training to insure the best coffee preparation techniques. Marketing strategies aimed to build a solid base of loyal customers, as well as maximizing the sales of high margin products, such as espresso drinks. Marketing & Sales Marketing plan. Java Culture will position itself as unique coffee bar where its patrons can not only enjoy a cup of perfectly brewed coffee but also spend their time in an ambient environment. Comfortable sofas and chairs, dimmed light and quiet relaxing music will help the customers to relax from the daily stresses and will differentiate Java Culture from incumbent competitors. In order to build up its client base, Java Culture will use some strategic banners and fliers during the launch period, utilize customer referrals and cross-promotions with other businesses in the community from time to time, and loyalty programs that work with android and IOS and other mobile phones, which is the preference of our market. Our main thrust will be getting people to know, like, and trust us with content and engagement in Facebook, Instagram, Snapchat, and Twitter.  We intend to maintain social media presences that are light on self-serving promotional quasi-advertising content, heavy on community participation, content, and engagement.  Java Culture baristas will handle the sales transactions. To speed up the customer service, at least two employees will be servicing clients–while one employee will be preparing the customer’s order, the other one will be taking care of the sales transaction. All sales data logged on the computerized point-of-sale terminal will be later analyzed for marketing purposes. Locations & Facilities Java Culture coffee bar will be located on the ground floor of the commercial building at the corner of West 13th Avenue and Patterson Street in Eugene, OR. The company has secured a one-year lease of the vacant 2,500 square feet premises previously occupied by a hair salon. The lease contract has an option of renewal for three years at a fixed rate that Java Culture will execute depending on the financial strength of its business. The floor plan will include a 200 square feet back office and a 2,300 square feet coffee bar, which will include a seating area with 15 tables, a kitchen, storage area and two bathrooms. The space in the coffee bar will be approximately distributed the following way–1,260 square feet (i.e., 55% of the total) for the seating area, 600 square feet (26%) for the production area, and the remaining 440 square feet (19%) for the customer service area. This property is located in a commercial area within a walking distance from the University of Oregon campus on the corner of a major thoroughfare connecting affluent South Eugene neighborhood with the busy downtown commercial area. The commercially zoned premises have the necessary water and electricity hookups and will require only minor remodeling to accommodate the espresso bar, kitchen and storage area. The coffee bar’s open and clean interior design with modern wooden decor will convey the quality of the served beverages and snacks, and will be in-line with the establishment’s positioning as an eclectic place where people can relax and enjoy their cup of coffee. The clear window displays, through which passerby will be able to see customers enjoying their beverages, and outside electric signs will be aimed to grab the attention of the customer traffic. Milestones & Metrics Milestones table. Milestone Due Date Who’s Responsible Sept 13, 2018 Sept 14, 2018 Marketing Sept 18, 2018 Team Apr 16, 2019 team Key Metrics We have our forecasts for sales, direct costs, and operating expenses. As we get into the business we’ll develop standards based on experience for Facebook likes, Twitter follows, and other social media engagement. We expect to watch these very carefully.  Ownership & Structure Java Culture is majority-owned by Arthur Garfield and James Polk. Mr. Garfield holds a Bachelor’s Degree in Business Administration from the University of ZYX. He’s worked for several years as an independent business consultant. Previously, he owned the ABC Travel Agency, which he profitably sold four years ago. Mr. Garfield has extensive business contacts in Oregon that he will leverage to help his new venture succeed. Mr. Polk has a Bachelor’s Degree in Psychology from the XYZ State University. For the last five years he has worked as a manager of DEF Ristorante, a successful Italian restaurant in Portland, OR. Under Mr. Polk’s management, the restaurant has consistently increased sales while maintaining a lower than average level of operating expenses. Investors will not be involved into the daily management decisions at Java Culture. They will hire a professional manager who will oversee all the coffee bar operations. Three full-time baristas will be in charge of coffee preparation. They will hire two more part-time employees to fulfill the staffing needs. In the second and third year of operation will add additional employees if and when needed.  Management Team A full-time manager will be hired to oversee the daily operations at Java Culture. The candidate (who’s name is withheld due to his current employment commitment) has had three years of managerial experience in the definitely industry in Oregon. This person’s responsibilities will include managing the staff, ordering inventory, dealing with suppliers, developing a marketing strategy and perform other daily managerial duties. We believe that our candidate has the right experience for this role. A profit-sharing arrangement for the manager may be considered based on the first year operational results. Personnel Table FY2019 FY2020 FY2021 Manager $60,000 $66,000 $72,600 Baristas (3) $90,000 $94,500 $99,225 Other employees (2) $43,200 $45,360 $47,628 Totals $193,200 $205,860 $219,453 Financial Plan investor-ready personnel plan ."> Key assumptions. We assume a steadily growing potential market in line with growth at the university, trends.  We assume industry standard gross margins We assume relative status quo regarding technology and trends in the coffee industry Revenue by Month Expenses by month, net profit (or loss) by year, use of funds. The start-up expenses include an estimated $17,000 consisting of several items: Legal expenses for obtaining licenses and permits as well as the accounting services totaling $1,500. Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium of $1,500. Other start-up expenses including website ($4,000) and phone and utility deposits ($2,500). The required start-up assets of $71,000 include: Plates, glasses, etc. worth approximately $2,000 Espresso machine Coffee maker Coffee grinder  Food service equipment (microwave, toasters, dishwasher, refrigerator, blender, etc.) Storage hardware (bins, utensil rack, shelves, food case)  Counter area equipment (counter top, sink, ice machine, etc.) Serving area equipment (plates, glasses, flatware) Store equipment (cash register, security, ventilation, signage)  Office equipment (PC, fax/printer, phone, furniture, file cabinets)  Other miscellaneous expenses Sources of Funds Projected profit & loss. FY2019 FY2020 FY2021 Revenue $561,010 $654,500 $743,000 Direct Costs $224,404 $261,800 $297,200 Gross Margin $336,606 $392,700 $445,800 Gross Margin % 60% 60% 60% Operating Expenses Salaries & Wages $193,200 $205,860 $219,453 Employee Related Expenses $38,640 $41,172 $43,891 Rent $36,000 $38,000 $42,000 Marketing $28,051 $32,725 $37,150 Utilities, phones, Internet etc. $6,000 $6,000 $6,000 Total Operating Expenses $301,891 $323,757 $348,493 Operating Income $34,716 $68,943 $97,306 Interest Incurred $951 $583 $427 Depreciation and Amortization $12,000 $12,000 $12,000 Gain or Loss from Sale of Assets Income Taxes $3,265 $8,454 $12,732 Total Expenses $542,511 $606,593 $670,853 Net Profit $18,499 $47,907 $72,147 Net Profit/Sales 3% 7% 10% Projected Balance Sheet Starting Balances FY2019 FY2020 FY2021 Cash $67,000 $80,234 $133,240 $214,467 Accounts Receivable $0 $0 $0 $0 Inventory $16,000 $21,815 $24,765 $24,765 Other Current Assets Total Current Assets $83,000 $102,048 $158,005 $239,232 Long-Term Assets $60,000 $60,000 $60,000 $60,000 Accumulated Depreciation ($12,000) ($24,000) ($36,000) Total Long-Term Assets $60,000 $48,000 $36,000 $24,000 Total Assets $143,000 $150,048 $194,005 $263,232 Accounts Payable $0 $0 $0 Income Taxes Payable $2,232 $2,116 $3,184 Sales Taxes Payable $0 $0 $0 Short-Term Debt $13,683 $3,833 $3,989 $4,152 Prepaid Revenue Total Current Liabilities $13,683 $6,065 $6,105 $7,336 Long-Term Debt $16,317 $12,484 $8,495 $4,343 Long-Term Liabilities $16,317 $12,484 $8,495 $4,343 Total Liabilities $30,000 $18,549 $14,600 $11,679 Paid-In Capital $140,000 $140,000 $140,000 $140,000 Retained Earnings ($27,000) ($27,000) ($8,501) $39,406 Earnings $18,499 $47,906 $72,148 Total Owner’s Equity $113,000 $131,499 $179,406 $251,553 Total Liabilities & Equity $143,000 $150,048 $194,005 $263,232 Projected Cash Flow Statement FY2019 FY2020 FY2021 Net Cash Flow from Operations Net Profit $18,499 $47,907 $72,147 Depreciation & Amortization $12,000 $12,000 $12,000 Change in Accounts Receivable $0 $0 $0 Change in Inventory ($5,815) ($2,950) $0 Change in Accounts Payable $0 $0 $0 Change in Income Tax Payable $2,232 ($116) $1,068 Change in Sales Tax Payable $0 $0 $0 Change in Prepaid Revenue Net Cash Flow from Operations $26,917 $56,840 $85,216 Investing & Financing Assets Purchased or Sold Net Cash from Investing Investments Received Dividends & Distributions Change in Short-Term Debt ($9,850) $156 $163 Change in Long-Term Debt ($3,833) ($3,989) ($4,152) Net Cash from Financing ($13,683) ($3,833) ($3,989) Cash at Beginning of Period $67,000 $80,234 $133,240 Net Change in Cash $13,234 $53,007 $81,226 Cash at End of Period $80,234 $133,240 $214,467 The quickest way to turn a business idea into a business plan Fill-in-the-blanks and automatic financials make it easy. No thanks, I prefer writing 40-page documents. Discover the world’s #1 plan building software 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. 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. Table of Contents Franchise vs Ground up On the other hand building a coffee shop from the ground up will give you more freedom.  Not only will you get the maximum profits the coffee shop makes, but you will the be one calling all the shots. Customer Base and Advertising Like any other business you decide to open, location is always a key factor.  Location is something that is determined by your targeted customer base. Unlike building a coffee shop from the ground up, a franchise coffee shop already has a customer base created.  Customers enjoy the options and convenience that this brand of coffee offers. 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. An important key factor to remember is that customers enjoy being part of a loyalty program.  Franchises will already have a loyalty program in place such as a free beverage on the customer’s birthday; or after so many visits to the coffee shop result in a free coffee or bagel.  If you build from the ground up, you may want to consider incorporating some sort of loyalty program to help build up that client base. 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. There is nothing like trying something new.  When it comes to building a coffee shop from the ground up, you also get to decide what types of beverages and food you will serve in your shop, which gives you the opportunity to expand your customer base.  You are also able to experiment and invent new items for your menu. Choice of Vendors So how do you get the supplies you need for your coffee shop?  Vendors are where you will get the supplies you need to successfully operate your coffee shop. Purchasing a franchise also means that you have access to great vendors. This can be a pro and a con.  The pro would be that you would not have to worry about trying to find vendors to make sure that you have all the supplies that you need for your coffee shop.   However, the con would be that branded vendors may not be very cost-effective. Coffee Shop Design Interior design can very exciting and fun.  Personally, I get so much joy when I decorate or redecorate a room.  You will love it when it is time to get those colors, accessories, and tables into your coffee shop. 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. Additional Considerations: If you purchase a franchise, you will have to follow their guidelines and regulations when it comes to hiring your staff members.  Guidelines that may be included are possibly a background check or drug screening that depends on the franchise. The economy is constantly increasing which creates a strong demand for employment opportunities. This makes opening a coffee shop in the Philippines very beneficial as you will have candidates that will be in need of employment.  Making your candidate list easier to collect. Frequently Asked Questions If you decide, you can purchase an existing coffee shop.  This may be ideal since the location and customer base is already established for you.  Another benefit is having access to the financial history of the coffee shop.  If you negotiate with the seller, you may even be able to keep the current coffee equipment. Also, you may benefit from the stress-relieving factor that all of the major decisions have been made for you. Please note: This blog post is for educational purposes only and does not constitute legal advice. Please consult a legal expert to address your specific needs. Eventually, through lots of trial and error as well as perseverance and creativity I did find a way to not only survive but also thrive in the coffee/espresso industry even while those corporate coffee chains stayed put. During those years I learned to adapt and always faced new challenges. It was not always easy, however, in the end, I was the sole survivor independent coffee shop within a 10-mile radius of my location. Just two corporate coffee chains and I were left after that year. All told the corporate coffee chains took down over 15 small independent coffee shops and kiosks and I was the last one standing and thriving. Share This Story, Choose Your Platform! Related posts, tips for designing an effective coffee shop website, tips for choosing the right location for your coffee shop, top coffee shop pos systems, most effective ways to increase foot traffic to your coffee shop, best ways to market your coffee shop online. Mar 14, 2019 How Much Does It Cost to Start a Coffee Business in the Philippines? Updated: Dec 21, 2021 What is it like to break free from the 9-5 grind? Well, here’s the thing: you can’t really know for sure if you don’t try. But here’s the other thing: it’s one thing to say it, and another thing to do it. In short, it’s hard. Especially when we’re talking business, when there’s a lot of money involved. Sadly, not everyone can just whip out a wad of cash and get into business. For many of us, money is most definitely an object.You know that you want to do it, but you don’t know how, or if you even can do it. On this post, we’re looking at a real-life cost breakdown of starting a coffee business in the Philippines to help you get started with your own. 3 Ways to Start a Coffee Business in the Philippines If you want to start your coffee shop in the Philippines, you have at least three ways to go about it. First, you can franchise. There’s a whole breadth of established coffee brands should your heart desire to franchise. Popular brands such as Starbucks, The Coffee Bean & Tea Leaf, Tim Hortons’, UCC, and the like are all open for franchising. Many first-time entrepreneurs are encouraged to franchise because deployment is typically easy and low-stress. Plus, the business model is already established. However, the cost is anywhere from 6 to 12 million pesos, a sizable investment that has no guarantees ROI-wise. More importantly, there’s little flexibility on the concept and innovation. Second, and perhaps the least popular in our list, is buying an existing coffee shop. You’d be surprised that there are entrepreneurs who actually buy established and well-performing coffee shops. Who can blame them? It’s the safer, much easier route. There are a handful of great reasons why you’d want to do this, chief among them is the opportunity to deliver specialty and good-quality coffee. However, it’s hard to find a very profitable business that is out for sale. What’s more, you’ll be bound to the existing branding, vision, and design and remodeling it will likely come out to be even more expensive than simply starting your own. Finally, there’s the option of building a coffee brand from the ground-up. This offers aspiring café-preneurs to build something truly their own—from branding, culture, business model, food menu, and everything else.  Starting your own coffee shop gives you free hand and flexibility on business model, brand, design, language, and more. Because there’s no pre-existing branding to deal with, you’re free to be original, market on a specific concept, and place good focus on delivering great coffee. Of course, it’s worth noting that all these will be time-consuming and difficult to execute, especially for entrepreneurs without much experience in the food and beverage experience. On this post, we’ll be using the third option as example. How much money is required for you to build a coffee shop in the Philippines? Cost Breakdown: Starting a Coffee Business in the Philippines Let’s get one thing straight: creating your own coffee shop will set you back money-wise. Be prepared to shell out a considerable sum. Without any further ado, here’s our rough cost breakdown of how much it costs to start a coffee business in the Philippines. Small Cafe with No Kitchen Specifications Location - central business district Food - reheating only Floor Area - 30 sq m *variable depending on cafe hours Business Permit - PhP 50,000 Fit Out - PhP 450,000 Equipment - PhP 450,000 Rent* - PhP 45,000 Monthly Staff Cost** - PhP 77,500 Marketing Spend - PhP 10,000 Utilities - PhP 10,500 Supplies - PhP 101,250 *assumed PhP 1,500 per sq m **remuneration may vary Monthly Revenue* - PhP 337,500 *assumptions -90 cups per day -PhP 150 average spend with food -PhP 13,500 daily revenue Net Income Before Taxes - PhP 93,250 ROI - 10 months Medium-sized Cafe with Small Kitchen Food - small kitchen Staff* - 10 Floor Area - 50 sq m Fit Out - PhP 750,000 Equipment - PhP 750,000 Rent* - PhP 75,000 Monthly Staff Cost** - PhP 182,500 Marketing Spend - PhP 20,000 Utilities - PhP 17,500 Supplies - PhP 198,450 Monthly Revenue* - PhP 661,500 -126 cups per day -PhP 210 average spend with food -PhP 26,460 daily revenue Net Income Before Taxes - PhP 168,050 ROI - 9 months Large Cafe with Full Kitchen Food - full kitchen Staff* - 12 Floor Area - 150 sq m Fit Out - PhP 2,250,000 Equipment - PhP 2,250,000 Rent* - PhP 225,000 Monthly Staff Cost** - PhP 217,500 Marketing Spend - PhP 30,000 Utilities - PhP 52,500 Supplies - PhP 472,500 Monthly Revenue* - PhP 1,575,000 -210 cups per day -PhP 300 average spend with food -PhP 63,000 daily revenue Net Income Before Taxes - PhP 577,500 ROI - 8 months The above numbers can feel overwhelming and discouraging, largely because it came from a bigger-scale original coffee brand breakdown. If you wish to build a smaller coffee business, you may do so, and it will cost you far less. Still, a few million pesosare nothing to scoff at. For many of us, that amount can already make up for one entire lifetime savings.  There are several ways to come up with that initial cost. Your options are not limited to applying for a business loan. You can partner up with another entrepreneur or pitch to an investor to get financial backing. You can obviously finance the whole thing right out of your pocket. Bottom-line: It’s your dream coffee shop. Surely, you’ll find a way. Of course, there’s always the option to apply for a business loan in the bank. Over to You—Ready to Start Your Coffee Shop? Now that you know how much starting a coffee business in the Philippines costs, are you ready to start your coffee shop? When you are, we urge you to take a free 30-minute consultation with one of our coffee business experts. In the call, you’ll get access to high-level insights on building a business in the coffee industry.  Book a session with us HERE and let's get to work. #coffee #cafe #coffeeshop #beanandbarley #blackbridgecoffee #philippines #business #cafepreneur #entrepreneur #start #startup #beans #coffeebeans #consultation #cost #expense #investment #profit #profitable #revenue #income #franchise #purchase Recent Posts Dear Cafepreneur: Unsplash.com is the next marketing channel you should be paying attention to Cafepreneurs: Here’s why investing in cafe management technology is a good strategy Forget the other New Year Promotional Gimmicks. Here's one that counts. All Business Business Ideas Franchising Small Business All Entrepreneurship Freelancing Human Resource Productivity All Marketing Blogging / Content Inbound Marketing Social Media Money Management Saving Money How to Start a Pisonet or an Internet Cafe Business in the Philippines The Internet Cafe was a godsend for those who needed work done online while on transit. It had only been around two years since the broadband technology was made available to the world. The Philippines was still catching up with digital technology. Not many had smartphones yet because the early prototypes were expensive and faulty. The Blackberry was the status symbol for those who could afford. Today I could get things done from my smart phone. All I need is a place with Wi-Fi service. By 2014, mobile technology officially displaced the desktop as the primary source of online traffic. Laptops, tablets and smart phones are evolving at a high rate. They are designed to manage more work and perform a wider variety of tasks than ever before. Then you have the growing number of apps flooding the market. From gaming to fitness to hailing a cab, you can find an app for anything you want to be done. With all the advances in digital technology and the Internet, one would be inclined to think that an Internet Cafe business in the Philippines would go the way of the dinosaurs. Well, think again. In the same way that technology evolves to find ways to make life and work easier and more convenient, the Filipino entrepreneur will always find the means to make a lucrative business model even better and offer more value. Introducing the Pisonet. Have you heard of the Pisonet? You’re probably reading this article because: You’ve heard of the Pisonet and wanted to start one out. You haven’t heard of the Pisonet and would like to learn more from your friends at tycoon.ph. You haven’t heard of the Pisonet, but the term itself is quite intriguing. If you haven’t heard of the Pisonet, you’re not alone. Most people I’ve talked to have no clue what it is all about. But having the word “Piso” as the first syllable already connotes a value-based enterprise. And you are indeed correct! Table of Contents What is the Pisonet? For some reason, my first encounter with new business ideas is always in Makati. This time I was in Makati Avenue when I received a call from an associate that I needed to scan and send a document to a potential client. I went inside the first Internet Cafe I came across. It looked like the typical Internet shop yet strangely different. The computers resembled more like an arcade game or the slot machines in a casino. Maybe the best way to describe how the computers looked would be an ATM with a provision for a keyboard. You can’t see the PC because it is housed in a wooden enclosure with a built-in slot. According to the store manager, to activate the machine, you have to drop coins. How much do these casino-like, Internet shops charge? One peso for every four minutes! The Pisonet is the newest godsend to those who need access to a PC while on transit. You can see more Pisonet-type Internet Cafe business in the Philippines. I’ve seen a number of them set up inside a subdivision or neighborhood. Many entrepreneurs convert the front part of their homes into a Pisonet. But what is the difference between a Pisonet and an Internet Cafe? Difference Between a Pisonet and an Internet Cafe Other than their appearance, the biggest difference between a Pisonet and the traditional Internet Cafe is their price. The Pisonet is a more customer and budget-friendly version of the Internet Cafe. It is a welcome change for office workers who only need a few minutes to accomplish tasks and students who have little means of paying for a full hour’s use of the Internet. Before the Pisonet became popular, you would have to pay the Internet Cafe the minimum charge per hour even if you only used their facilities for 10 minutes. An Internet Cafe would charge around 30 to 60 Pesos per hour. The Pisonet started gaining traction in 2010. You may have noticed that a few years later, some Internet Cafe outlets began lowering their minimum charge to 30 Pesos per half hour. Still, you get more value by patronizing a Pisonet. An hour’s use of a Pisonet’s computer will only cost you 15 Pesos! So do you want to start a Pisonet or an Internet Cafe business in the Philippines? If you do, read on! We have some valuable information that you need to know! Preparing a Pisonet or Internet Cafe Business Plan The first step in your pursuit of an idea is to prepare a Business Plan. Everything sounds good in theory until you subject the idea to different conditions and scenarios. A Business Plan is not a crystal ball; it will not tell you if your venture will succeed 100%. But if becomes an important reference for making crucial business decisions. It will give you clues on whether you should pursue the idea or not. Related:  Top 10 Home-Based Business Ideas and Opportunities for 2017 If you don’t know how to make a Business Plan, outsource it to someone who does. But generally, the information you need to know are as follows: Does the Pisonet venture have a ready market for its services? How much capital do I need to put up a Pisonet? What is my break-even point? How many sales should I target every day? What are my risks? A Business Plan consists of 3 types of studies: Market Study Financial Study Marketing Study In this article, we will only focus on the Market and Financial study. Only when you find the Pisonet venture feasible or viable should you perform a marketing study. You should find out first if there are end users for your service and if so if you could afford to put one up. Is There a Market for a Pisonet or Internet Cafe Business in the Philippines? Critics of the Pisonet or Internet Cafe business will point out to the increasing use of mobile devices as the main reason why this venture will not make money. Tell that to the average Filipino gamer. You’ll be hard-pressed to find a Filipino without a smart phone or a tablet. Mobile devices are mass-produced, and you can buy them anywhere. Flooding the market with different types and brands of mobile devices brings their prices down. 100% sure, the gamers you see in these Pisonet shops own mobile devices. But they still prefer the Pisonet because you can’t beat the experience of playing from a PC that is built for gaming. It is also an activity they can share with their friends. You also have to consider the statistical fact that 95% of Internet users in the Philippines prefer pre-paid services to post-paid subscriptions. 80% avail of the lowest-tier Internet service plans or from 1 to 3 Mbps. If you want to get work done faster or assure a drop free Skype call with a client, it would be a good idea to head off to the nearby Pisonet. Internet service providers or ISP’s offer attractive packages to entrepreneurs that will assure their customers of high-speed surfing and stable video streaming experience. This is the reason why you will often see home-based workers or telecommuters conduct their business at Pisonets. The Philippines has one of the most expensive yet worse Internet services in the world . The Pisonet is an affordable way to run your business by taking advantage of their higher bandwidth, faster speeds and back up services. How Much Will It Cost to Start a Pisonet Business? Despite losing its lead to mobile devices and seeing its global sales take a plunge since 2011, the price of the personal desktop or PC continues to range on the high side. An entry-level PC for gaming would cost 15,000 Pesos. It should have the following features: AMD A4 6300 up to 3.9GHz Turbo 500GB/ 6GB Hard Drive 4GB DDR3 1600MHz Memory Built-in onboard HD 8370D 760MHz Graphics Front case mounted 12cm LED lighted fan Rear case mounted 8cm Black fan 650W power supply Multimedia headset with built-in microphone Creative SBS A60 multimedia 2.0 speakers A4 Tech keyboard A4 Tech optical mouse Free software installed This type of PC can also be used to conduct office work, but you have to buy original programs for MS Windows. Some stores will include a licensed copy for 6,000 Pesos. Of course, you will also need to install original anti-virus software All told, be prepared to spend approximately 25,000 Pesos per PC. Of course, each PC should have its own cabinet with slot and chair. Thus your total cost per PC would be: Desktop 25,000 Cabinet with slot 3,500 Chair 1,500 Other pieces of hardware you would need are: Inkjet Printer/Copier/Scanner – 7,000 Pesos Fax Machine – 6,000 If your Business Plan presents the Pisonet as a viable venture, you should still start out small. This way it will be easier to manage and uncover problems in your business model. A Pisonet with 5 computers will cost you: Desktop x 5 units 125,000 Cabinet with Slot x 5 units 17,500 Chair x 5 pieces 7,500 Inkjet Printer/Copier/Scanner 7,000 Fax Machine 6,000 If you plan to set up your Pisonet in your home, you will have to spend for leasehold improvements. For minor improvements, a good benchmark would be 10,000 Pesos for a square meter. You should always maximize the available area for revenue-generating activities. Assuming 1.6 square meters per workstation, for five desktops, you would need approximately 10 square meters of space. Overall, based on a 70% allocation for revenue-generating activities, your total floor area for the Pisonet should be 15 to 20 square meters. At 10,000 Pesos per square meter, you should budget 150,000 to 200,000 for leasehold improvements. Leasehold improvement should also factor in expansion plans. The setup should allow you to increase the number of PC stations if the business is booming. Remember, you have to make sure your Pisonet is air-conditioned. A 20 square meter area should not require more than a 1.5 HP air condition. If your budget allows, go for an inverter type unit because it will save you in power bills. Remember, with a Pisonet; the air-conditioner will be running full-time during its period of operation. A 1.5 split type air-conditioner will cost you around 20,000 to 25,000 excluding the cost of installation. Related:  The Real Cost of Starting a Small Business in the Philippines If the cost of capitalizing a Pisonet is higher than you expected, do not be discouraged! In the first place, these figures are only estimates. If you have experience in construction or know someone who does, you can drastically lower leasehold improvements. What are the Monthly Costs of Running a Pisonet? Setting up your Pisonet from home will entail improvement costs, but in the long run, it will save you from paying rent. Of course, if you want an accurate determination of your profitability, you should incorporate an estimated figure for rent in your income statement. Like any other business, you will incur monthly expenses when running a Pisonet. Here is an estimate summary of expenses for a Pisonet business with five computers: Internet 5,000 Power 6,000 Supplies 1,000 The cost of Internet bandwidth in the Philippines has dropped considerably in the last five years. The figure indicated here covers 10Mbps plus the cost of a landline subscription. How Can I Fund My Pisonet? Funding a business can be a make or break situation. Even if your financial study shows it is a feasible idea, if there’s no capital, there is no business. When it comes to raising capital, you have to be creative and explore a variety of options: Bootstrapping – This is probably the riskiest approach because you are funding your business idea with your life savings. If this were your decision, it would be best to have a full-time job to have a source of income. You will need an influx of money to support your business and your day-to-day expenses. Get Partners – If you have people you believe you can trust to have onboard as partners, offer them 49% equity at the most so you will still have majority control. Contributions can be in the form of equipment (PCs, workstations) or straight cash. Make sure these are people you can work with. Oftentimes, relationships get compromised because of business. Get Investors – Unlike partners; investors do not have to be involved in the day-to-day operations of the Pisonet unless specified in the agreement. Business Loan –  Some banks offer small business loans to entrepreneurs. Just keep in mind, banks offer high lending rates, have strict qualifying guidelines and issue tight contracts. Negotiate Terms – Computers are a depreciating asset and subject to brisk wear and tear. In fact, that is one of your biggest problems as a Pisonet operator. Kids can be unforgiving when using the PC for gaming. Instead of buying, negotiate for lease terms with PC suppliers. There are also suppliers of PC’s that have already been built for use in a Pisonet. Some suppliers are open to lease terms. This will allow you to pay out from sales and lower your initial cash outlay. What’s more, you can sell the units back to the supplier and get new ones at the end of the term. Before making a decision on leasing or buying Pisonet-ready PCs from a vendor, review the specs of each unit and see if these are capable of supporting operations. If you are not sure, ask a friend who is knowledgeable about computer hardware to review the specs, inspect and test the units being offered. What Should Be Your Target Sales? Given the following assumptions: Charge – 1 Peso per 4 minutes Internet time Number of PCs – 5 Operating Hours – 8 Work Days – 30 The maximum sale a PC can generate is 120 Pesos per day. If all five computers are working full capacity, you can make 600 Pesos per day or 18,000 per month gross sales. At 18,000 Pesos per month, you will be able to cover your monthly costs. But it is not realistic to expect your Pisonet to be working full capacity every day. You will have peak hours and slack hours just like any other business. How Can You Increase Sales? 10Mbps can still accommodate five more PCs. So by increasing the number of PCs, you improve your chances of earning more money without significantly adding to your monthly expenses. But you have to keep track of your financials to make sure adding more PCs is warranted. Otherwise, you’ll be stuck with non-performing assets. You can also sell other items in your Pisonet: Pre-paid cards Cell Phone load School Supplies Trading Cards Comic Books Or offer services: Graphic Design for marketing collaterals and calling cards Computer instruction Photo Imaging or Retouching The idea is to find ways to maximize the revenue-generating potential of your Pisonet. Give people more reasons to visit your Pisonet than just Internet surfing and gaming. Related:  10 Biggest Digital Marketing Mistakes Made by Entrepreneurs A Pisonet remains an innovative business idea that brings more value to the traditional Internet Cafe model. But given its low-cost approach, the challenge facing the entrepreneur is to maximize sales volume. You should start out small until your learning curve begins to slope and you’ve identified the pain points of the business. It may take awhile to generate traction, but expansion should be your ultimate goal. When your business starts to improve its profit position, give more to your customers by upgrading the computers and enhancing their experience. If you are in good standing with your supplier, you can easily get generous concessions for better computers. In a tightly-competitive industry, customer retention strategies should be held in the same regard as new customer creation. Roel Manarang is a seasoned entrepreneur who helps businesses succeed through design and digital marketing. With over 10 years of experience, he has assisted 170+ global companies. Roel is the founder of Workroom , a digital marketing company, and Tycoon Philippines , an acclaimed business and finance blog. Find him on LinkedIn . You may also like How to Implement Predictive Analytics in Your Business Predictive analytics is a powerful tool that leverages data, statistical… 9 Budgeting Lessons for Someone Who’s Not Naturally Good with Numbers For the most part, most of us can grasp the importance of budgeting.… Improving Customer Service in a Hardware and Construction Supply Business In the increasingly competitive business-to-customer (B2C) and… The Evolution of Social Media Platforms: A Comprehensive Analysis Social media has become a significant aspect of modern life, connecting… 8 Mistakes in Web Design That Your Business Should Avoid While it’s essential for businesses to build a website, it shouldn’t be done… Short Selling Stocks: Should You Do It? Short selling is kind of like placing bets on sports. Bettors are similar to… 7-Step Guide to Start an Internet Cafe Business in the Philippines Last Updated: January 21, 2023 Do you want to start an internet cafe in the Philippines? If yes, here is a 7-step guide on how to start a profitable internet café business.  What Is An Internet Cafe? Essentially, an internet cafe is a place that provides customers with high-speed internet access, PC games, and other computer services. This business deals with internet time that can be sold per minute or hour, and sometimes longer to customers. The size of an internet cafe varies, ranging from a small room with 5 computers to a hall with hundreds of computers. 7-Step Guide to Start an Internet Cafe Business When planned well, an internet cafe can be a lucrative business venture. If you’re planning to start your own internet cafe business, here’s a 7-step guide that may be able to help you.  Create a comprehensive internet cafe business plan. Writing a business plan for your internet cafe business has several advantages. An internet cafe business plan will help you figure out if starting your business is feasible in the first place. It will help you analyze the market and the competition. Your business plan will serve as a guide through the process of starting and running your business. When writing your business plan, make sure that you include every detail regarding your internet cafe – from your target market, the services your internet cafe will provide to customers, the equipment you will need to purchase, to long-term operational costs. It should also include your business concept, marketing plan, operations plan, and financial plan. Make sure that your business plan is clear and understandable – someone without knowledge of technical jargon must be able to understand it. Choose a suitable location for your internet cafe. Finding the right location is crucial for any business, and this is true for internet cafes too. Ideally, you’ll want a location that’s likely to attract stable, as well as casual customers. Opening up your internet cafe near a school or university may attract younger customers, or if you open up near other food cafes or small shops, you might be able to attract pedestrians in the area. Opening your internet cafe near large hotels may be an advantage too – many business travelers stay in hotels and most of them will need computer and internet access to get work done. You will want a place that is likely to attract stable as well as casual customers. Locating near a school or college may attract younger customers, or if you locate near other food cafés or small shops you might be able to catch pedestrians in the area. It could also be advantageous to locate near large hotels where many business travelers stay. You will want a place that is likely to attract stable as well as casual customers. Locating near a school or college may attract younger customers, or if you locate near other food cafés or small shops you might be able to catch pedestrians in the area. It could also be advantageous to locate near large hotels where many business travelers stay. Choose a name for your internet cafe. Establish a unique, catchy name that resonates with customers and sets you apart from your competitors. Also, search databases such as the Web and the Better Business Bureau to find information about other business names. That way, you don’t choose one that’s already taken. Choose an Internet Service Provider (ISP). Your cafe’s Internet connection will likely need to have a higher grade, more robust connection than your normal home set up. Talk with your preferred ISP as they may offer special deals for businesses, particularly for Internet cafes. Purchase the necessary equipment. Following your business plan, purchase all the necessary equipment for your internet cafe. This includes computers, routers, printers, and network cables – just to name a few. If you are including amenities, you should also purchase any food and beverage preparation items, such as microwave ovens, plates, and cups. Set up your internet cafe design and layout. Your internet cafe must be comfortable – a space where people can stay and work or game as they like. It should also offer a semblance of privacy for each user. If possible, work with a professional designer. Ideally, you should hire a designer with experience in setting up and internet cafe as they understand the special requirements necessary for the space (i.e. how to keep food and beverages from damaging computer equipment). Also, hire an electrician to ensure that the infrastructure will be able to handle the load of all the electronic devices in your internet cafe. Setting up your internet cafe include all the construction and renovations, electrical work, computer and software installation, network setup, and a security system. You can also add any other specialty services, such as an area for food and beverage preparation. Manage your software. To start, the computers provided in an Internet cafe should definitely have a desktop security suite installed. The suite should have, at a minimum, antivirus, firewall, and antispyware programs. Having security software installed is in the internet cafe’s best interest to ensure that its computers run safely and efficiently. Other software include any application systems for operation, such as Word Processing, Spreadsheets, and Gaming Software. You should also install internet cafe timer software to effectively keep track of usage.  Obtain the necessary licenses and permits. You’ve secured your capital, you’ve found a great location, and your internet cafe setup is good to go. Launching your internet cafe may seem like the next step, but opening a business in the Philippines requires obtaining several licenses and permits. Here are some of the essential business licenses and permits you need to obtain before launching your internet cafe. Bureau of Internet Revenue TIN Department of Trade and Industry Business Name (DTI) Registration Certificate Securities and Exchange Commission (SEC) Registration Certificate Business Permit/Mayor’s Permit Barangay Clearance Further, businesses with employees must secure government-manded permits: Department of Labor and Employment (DOLE) SSS Employer’s Registration Pag-Ibig Employer’s Registration PhilHealth Employer’s Registration Get a legal adviser if you don’t know how to obtain the necessary licenses and permits. Remember, it’s better to pay small costs upfront and have peace of mind, rather than have expensive legal complications later on. Internet Cafe Regulation Act Philippines House Bill No. 4740, also known as the Internet Cafe Regulation Act, is “an act regulating the operation and maintenance of internet cafes or computer rental shops, and other establishments offering computer services to minors, providing penalties for violation thereof, and for other purposes.” The goal of the Internet Cafe Regulation Act is to: Prevent minor from loitering, playing offline or online video games, and browsing the Internet in computer rental shops during school hours and school days;  Prevent minors from excessively playing online and offline video games and access the internet in computer rental shops on non-school days;  Protect the safety of minor by limiting the time period within which they may be allowed access to computer rental shops. Prohibited Acts The owner, proprietor, manager, or attendant of internet cafes, computer rental shops, and other similar establishments providing computer services shall be strictly prohibited from admitting or allowing minors within school hours and during school days as determined by the Department of Education, the Commission on Higher Education, or the Local Government Unit concerned to enter and use the computer facilities in their establishments;  The owner, proprietor, manager, or attendant of internet cafes, computer rental shops, and other similar establishments providing computer services shall be strictly prohibited from admitting or allowing minors to be present or to use the computer facilities inside their establishments during weekends, holidays, cancelled schooldays, and during vacation between the period of 7:00 PM to 7:00 AM.  Exceptions to this Act Authorized purposes or activities for minors: Any internet cafe, computer rental shop, and other similar establishments that allow a minor to enter and use its computer facilities during schooldays but after the designated school hours, shall not be covered by this Act: Provided, That the minor presents an identification card and a written permit or clearance signed by the parent of the minor or either the school principal or teach in charge of a minor student permitting him or her to utilize the computer facilities in their establishment: Provided, further , That in no case however, shall the minor be allowed to stay inside the establishment beyond 7:00 PM unless accompanied at all times by his/her parent or legal guardian;  Any internet cafe, computer rental shop, and other similar establishments that allow a minor to enter and use its computer facilities during schooldays or within school hours, shall not be covered by this Act, Provided, That the minor is accompanied at all times by his/her parent or legal guardian;  Any internet cafe, computer rental shop, and other similar establishments that allow a minor to enter and use its computer facilities during weekends, holidays, cancelled schooldays, and during vacation between the times of 7:00 PM to 7:00 AM shall not be covered by this Act, Provided , That the minor be accompanied at all times by his/her parent or legal guardian. To learn more about the Internet Cafe Regulation Act, visit https://www.senate.gov.ph/lisdata/2446421049!.pdf .  The Bottom Line As the popularity of using computers for everything continues to rise, people without their own computers, those on vacation, and business travelers need to use computers more and more. An internet cafe may be a great opportunity for you to turn your skills and passion into a lucrative venture. Good luck! Leave a Reply Cancel reply Your email address will not be published. Required fields are marked * Save my name, email, and website in this browser for the next time I comment. Related Posts For brandy and coffee lovers: enjoy the best of both worlds with emperador coffee brandy (+ fun empi coffee recipes you can try). Love brandy AND coffee? Enjoy the best of both worlds with Emperador Coffee Brandy! Charlie’s Cup: A Must-Visit Instagrammable Café in Cebu Discover the answers to your coffee art questions and unlock the mystery of coffee arts. Coffee art is not just about creating designs on the surface of a cup of Unlock the Power of Maca with these Four (4) Tasty Maca Coffee Recipes Master the Art of Latte: A Step-by-Step Guide to Creating a Beautiful Rosetta Latte Design #1 Addicted to Coffee Quotes and Morning Inspirational Coffee Quotes? Popular posts. 69 Hugot Lines Tagalog Kilig | Hugot Para Kay Crush 2022 Best Kape Hugot Lines | Coffee Hugot Lines Videos in 2023 Best Funny Bisaya Quotes and Bisaya Hugot Lines for You Black Scoop Cafe: Everything You Need to Know MX3 Coffee Critical Reviews on Health Benefits and Side Effects Butil ng Kape: The Story and Lessons Learned Quick links, legal pages, connect with us. Coffee Smiley Mactan, Lapu-Lapu City Cebu, Philippines Contact #: +63 (032) 262-6403 Email: [email protected] Website: coffeesmiley.com SUBSCRIBE TO OUR NEWSLETTER Subscribe to get the latest promos directly in your inbox! Copyright © 2020 Coffee Smiley – Powered by ZYNO TEK 170 COMMENTS How to Start Coffee Shop Business Philippines (Ultimate Guide) First, you have to set up your Google Business. You can read this guide to start your own. You can create an A4 poster with a QR code and/or link to your Google Business review section. Your customers can scan the QR code, go to the link, and write a review about their experience in your coffee shop. How To Start A Cafe Business Philippines 2024 The cost to open a coffee shop in the Philippines depends on several factors, including size, location, and type of coffee business. A large coffee shop will cost upwards of 4,000,000 pesos. A small kiosk or coffee bar will cost as low as 100,000 - 150,000 pesos. How to Start a Coffee Shop Business in the Philippines Step 5: Register Your Coffee Shop Business. If you don't have a business registration, you can't legally operate. Make sure to secure the proper coffee shop licenses and permits in the Philippines, such as the following: Barangay registration. Business permit (also known as Mayor's Permit) DTI registration. How to Start a Coffee Shop in the Philippines: Costs and Considerations How much your coffee shop costs largely depends on the kind of setup you're going to build. However, here's a rough cost breakdown of how much it costs to start a coffee shop in the Philippines. Small Cafe with No Kitchen. Location: Central Business District. Floor Area: 30 sq. m. Staff: 4 (depending on café hours) Seats: 9. Food ... How to Open a Coffee Shop in the Philippines: A Quick Guide There are six factors to consider when opening up a coffee shop 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. Starting a coffee shop not only takes a ton of research, but within that research ... The Ultimate Guide to Building a Coffee Business in the Philippines Your business plan is the document you will reference throughout the journey of building your coffee shop. It is your roadmap. Necessary Paperwork: Permits, certifications, approvals, etc. Hang tight. This process will take anywhere from weeks to months to even years to complete. It will be grueling, for sure. Starting a Coffee Shop in the Philippines: Required Capital and Tips to Step 1: Research the coffee business. Opening a coffee shop takes a big investment - both in time and money. It's important that you spend time understanding what it takes to run a successful café. This means doing some research - you can look for useful articles online, or better yet, talk to coffee business veterans and learn from ... Quick Guide On How To Start Coffee Shop Business In The Philippines If you decide to start from scratch, then your next step is prepare the costs. 3. Prepare for the expenses. According to a 2022 article from MoneyMax, starting a small 30-sqm coffee shop without a kitchen in a city can cost roughly P950,000 for the equipment, location, and business permit. It would cost you around P600,000 in monthly ... Coffee Shop Business in the Philippines: Ideas and How to Start 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. Starting a Café Business: Essential Steps Guide Key Takeaways: Research the coffee business and learn from successful café owners. Define your café's vision and atmosphere. Create a comprehensive business plan and choose a suitable location. Find reliable suppliers and source commercial equipment. Design your café and create a menu that reflects your vision. Complete Guide On How to Start a Coffee Shop Business in the Philippines In conclusion, starting a coffee shop business in the Philippines requires careful planning and execution. You can increase your chances of success by considering factors such as the type of coffee shop, business plan, location, interior design, equipment, coffee menu, cost-effective operations, marketing strategies, franchising, and existing ... 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 ... How to Open a Low Budget Café in the Philippines 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. Complete Guides to Write Cafe Business Plan Step by Step Complete Guides to Write Cafe Business Plan Step by Step. Ginee 17-6-2022. Great cafes combine exceptional coffee, a welcoming environment, and delectable treats to snack on while relaxing. The cafe is a low-risk business model with lower start-up costs and overhead than larger restaurants, but carving a niche for your cafe in the market and ... How to Write a Coffee Shop Business Plan for the Philippines To open a coffee shop in the Philippines, you need to consider these six factors: Raise Capital with a Business Plan. Here are some examples of what products you may provide to your customers: Brewed Coffee (hot, iced, or frozen) Managerial Guidance Business Plan. Your Business Plan. Three Levels of Business Plans. Coffee Shop Business Plan Example Explore a real-world coffee shop business plan example and download a free template with this information to start writing your own business plan. ... These include Starbucks, Cafe Roma, The UO Bookstore, and other Food service establishments that offer coffee. Starbucks will definitely be one of the major competitors because of its strong ... Capital for Small Coffee Shop in the Philippines In order to build a coffee shop from the ground up in the Philippines will range between 245,000 and 900,000 pesos. Two options for opening a coffee shop are purchasing a franchise, or to build from the ground up. The capital needed to purchase a franchise coffee shop in the Philippines ranges anywhere from 182,000 to 445,000 pesos. How Much Does It Cost to Start a Coffee Business in the Philippines? Plus, the business model is already established. However, the cost is anywhere from 6 to 12 million pesos, a sizable investment that has no guarantees ROI-wise. More importantly, there's little flexibility on the concept and innovation. Second, and perhaps the least popular in our list, is buying an existing coffee shop. How to Start a Pisonet or an Internet Cafe Business in the Philippines At 10,000 Pesos per square meter, you should budget 150,000 to 200,000 for leasehold improvements. Leasehold improvement should also factor in expansion plans. The setup should allow you to increase the number of PC stations if the business is booming. Remember, you have to make sure your Pisonet is air-conditioned. How Much It Costs To Own A New Cafe? (6 Countries?) Coffee kiosk: $60,000 to $100,000. Mobile coffee food truck: $50,000 to $100,000. Coffee shop with seating: $80,000 to $250,000. Coffee shop with seating and drive-thru: $80,000 to $275,000. If you already own a suitable building or have a complementary business such as a bakery, your costs might be much lower. Business Plan Proposal on coffe house Cafe-Business-Plan - a sample Business Plan used to develop your own. Entrepreneurship 100% (3) 31. Assignment 1. Entrepreneurship 100% (1) Discover more from: Entrepreneurship 0000. Addis Ababa University. 141 Documents. Go to course. 28. Business Plan for Furniture design platform. 100% (12) 14. 1. Feasibility Study FOR THE Establishment OF ... 7-Step Guide to Start an Internet Cafe Business in the Philippines Purchase the necessary equipment. Following your business plan, purchase all the necessary equipment for your internet cafe. This includes computers, routers, printers, and network cables - just to name a few. If you are including amenities, you should also purchase any food and beverage preparation items, such as microwave ovens, plates, and ... essay homework paper phd project resume review speech thesis