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

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

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

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

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

Why Start a Coffee Shop Business?

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

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

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

Be An Entrepreneur

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

Increase More Income 

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

Positively Impacts The Lives of Others

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

Unleashing Your Creativity 

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

Turning Your Dream into Achievement 

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

You Get To Be A Part of Coffee Culture 

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

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

Flexibility For Your Family 

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

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

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

The best part is learning the steps to starting one. 

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

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

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

1. Decide on a Budget

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

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

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

How much capital is needed for a coffee shop?

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

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

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

2. Choose Between Coffee Franchise Or Starting Your Own Brand

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

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

Coffee Shop Franchising  

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

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

Benefits of Coffee Shop Franchising

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

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

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

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

Drawbacks of Coffee Shop Franchising

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

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

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

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

Hills & Valleys: Best Coffee Shop Franchise in the Philippines

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

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

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

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

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

Startup Coffee Shop 

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

Benefits Of Startup Coffee Shop 

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

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

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

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

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

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

Drawbacks of Startup Coffee Shop

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

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

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

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

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

Types of Coffee Shop Businesses

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

Coffee Bar, Cart, or Kiosk

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

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

Coffee Store

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

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

Drive-thru Coffee Shops

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

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

Pop-up and mobile coffee shops

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

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

3. Comply with Legal and Regulatory Requirements

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

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

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

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

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

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

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

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

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

4. Learn About Cafe Management

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

Let’s first start with hiring and managing employees.

Hiring and Managing Employees

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

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

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

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

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

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

Social Role:

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

Self-Image:

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

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

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

Inventory Management 

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

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

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

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

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

Bookkeeping and Accounting

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

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

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

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

Maintaining a clean and safe environment

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

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

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

5. Find a Suitable Location and Select the Right Equipment 

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

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

Best Nearby Locations 

Near hospitals/schools/parks

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

Inside malls 

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

Purchasing Equipment and Supplies

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

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

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

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

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

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

Some good recommendations for brewing machines are: 

• La Marzocco
• Nuova Simonelli
• Rocket Espresso

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

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

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

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

The Philippines produces several types of coffee beans, including:

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

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

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

6. Select Your Ideal Coffee Shop Aesthetics and Concept

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

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

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

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

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

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

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

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

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

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

7. Understand How Sales and Marketing Work 

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

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

Sales Forecasting  

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

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

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

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

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

Factors That Affect Sales of Coffee Shops in the Philippines

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

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

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

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

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

Effective Marketing Strategies

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

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

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

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

Social Media Marketing Strategies 

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

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

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

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

Customer Loyalty Programs 

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

Live Events 

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

Ask For Google Business Reviews

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

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

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

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

8. Familiarize Yourself With Cafe Operations and Customer Service 

Cafe operations.

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

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

Menu Planning and Pricing 

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

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

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

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

Food Safety and Sanitation

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

Workflow Optimization 

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

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

Quality Control

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

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

Customer Service and Experience  

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

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

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

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

Coffee Shop Success Factors and Challenges

What makes a cafe successful.

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

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

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

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

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

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

Challenges Faced by Coffee Shop Businesses

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

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

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

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

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

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

Coffee Shop Philippines Frequently Asked Questions

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

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

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

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

Is a coffee shop a profitable business?

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

What qualifications do you need to run a cafe?

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

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

Is owning a coffee shop stressful?

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

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

Is coffee a good investment?

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

What percentage of cafes fail?

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

Can I run a cafe with no experience?

You can run a cafe with no experience. 

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

What does a small cafe need?

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

What are the problems in a coffee shop business?

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

Do coffee shop owners make money?

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

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

Venchito Tampon

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

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How To Start A Cafe Business Philippines 2024

How to start a cafe business in the Philippines?

As the Philippines economy is continuously changing…

You may be thinking about starting a cafe business.

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

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

Throughout this article, we will be looking at…

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

2. The expected income of a coffee shop.

3. Other frequently asked questions.

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

Table of Contents

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

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

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

Each section can be slightly adjusted.

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

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

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

We have recently spoken about a food cart business .

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

I have attached this full article above for your reference.

If you are looking to franchise a coffee shop…

There are a few different options.

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

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

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

The most important thing is the overall costs.

Will a franchising business be worth your time financially speaking?

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

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

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

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

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

And you don’t feel 100% confident.

Then, you may benefit from the business support.

In that case…

Franchising is often a more appropriate decision.

On the other hand.

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

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

In other words – Going solo.

2. Legal Register Your Coffee Shop Business In The Philippines

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

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

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

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

We always recommend seeking legal advice at this stage.

(As we always do in every business).

But additionally…

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

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

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

I’ve attached information on the reference above.

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

It would be wise to study SBN 908 .

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

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

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

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

3. Choose Your Café / Coffee Store Location

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

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

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

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

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

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

The location is one of the most critical factors.

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

4. Select Your Café Design And/Or Coffee Theme

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

If you are in a tourist area.

A unique idea may work very well.

But if you are in a non-tourist area.

You will most likely target locals.

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

Remember the 80/20 law.

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

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

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

A great example of this is in Manila.

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

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

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

So it’s essential to have a balance.

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

5. Purchase Your Café Equipment & Supply

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

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

This may be covered in your overall financial investment.

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

Alternatively…

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

You will need to find your equipment and supplies yourself.

Suppose you are trying to save capital.

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

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

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

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

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

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

6. Recalculate Financial Figures And Projection

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

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

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

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

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

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

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

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

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

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

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

Towards the end of this article…

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

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

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

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

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

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

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

7. Stop, Start And Continue.

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

Many different opportunities and challenges await.

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

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

The first stages stop.

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

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

The second stage is starting.

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

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

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

The third stage is continued.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

To answer this question…

Join 17,829 Others & Get Secret Tips

We have made some assumptions.

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

Download Coffee Shop Business Plan Philippines PDF

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

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

If so, Filipino wealth has you covered.

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

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

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

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

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

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

Unique Coffee Shop Ideas

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

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

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

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

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

Step 2: Write a Business Plan

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

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

Step 3: Choose the Perfect Location

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

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

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

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

Step 5: Design and Set Up Your Coffee Shop

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

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

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

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

Step 6: Source Quality Coffee Beans and Ingredients

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

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

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

Step 7: Develop a Delicious Menu

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

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

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

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

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

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

Step 9: Market Your Coffee Shop

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

H3: Online Marketing Strategies

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

Step 10: Monitor and Adjust Your Business Strategy

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

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

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

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

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

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How to Start a Coffee Shop Business in the Philippines

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

Key Takeaways:

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

Why Start a Coffee Shop Business?

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

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

Entrepreneurship and Income

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

Impact and Creativity

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

Dream and Coffee Culture

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

Flexibility

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

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

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

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

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

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

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

1. Start with a Solid Business Plan

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

2. Find a Cost-Effective Location

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

3. Source Affordable Equipment

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

4. Optimize Your Menu

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

5. Emphasize Efficiency and Productivity

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

6. Utilize Low-Cost Marketing Strategies

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

7. Build Customer Loyalty

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

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

Developing Your Menu for a Coffee Shop Business

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

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

Coffee Menu Suggestions:

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

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

Food Menu Suggestions:

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

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

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

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

Marketing Strategies for a Coffee Shop Business

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

Social Media

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

Free Wi-Fi Email Capture

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

Facebook Advertising

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

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

Maintaining Customer Satisfaction in a Coffee Shop Business

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

Deliver High-Quality Coffee Beverages

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

Host Events to Engage Your Community

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

Train Your Staff for Friendly and Attentive Service

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

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

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

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

1. Develop a Solid Business Plan

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

2. Find the Perfect Location

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

3. Create an Inviting Ambiance

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

4. Craft an Impressive Menu

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

5. Implement Effective Marketing Strategies

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

6. Prioritize Customer Satisfaction

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

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

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

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

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

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

Why should I start a coffee shop business?

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

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

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

1. Develop a solid business plan.

2. Conduct thorough market research.

3. Identify a suitable location.

4. Pay attention to interior design and ambiance.

5. Hire an adequate number of staff members.

6. Create a coffee and food menu.

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

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

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

1. Find a small and affordable space.

2. Focus on serving affordable menu items.

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

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

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

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

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

Utilize various marketing strategies to promote your coffee shop business:

1. Establish a strong presence on social media platforms.

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

3. Utilize Facebook advertising to reach a broader audience.

4. Collaborate with local businesses for cross-promotion.

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

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

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

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

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

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

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

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

Learn more about this Selling Food Online workshop . 

Type of Coffee Shop: 

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

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

Business Plan: 

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

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

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

Location: 

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

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

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

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

Access this platform (Free)

Interior Design: 

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

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

Case Study: Starbucks vs Mcdonalds

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

Read more: Starbucks vs Mcdonalds’ case study. 

Coffee Shop Equipment: 

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

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

Learn more about the rental of coffee machines . 

Coffee Menu: 

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

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

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

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

Cost-Effective Operations: 

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

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

Read more about how to improve your restaurant operations . 

Marketing Strategies: 

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

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

Read Digital Marketing strategy for a coffee shop .  

Franchising Coffee Shops: 

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

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

Existing Coffee Shops: 

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

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

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

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About US | OCM Profile

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

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

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

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

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

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

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

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

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

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

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

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

Contact Us  

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

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

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

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

1. prepare a business plan..

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

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

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

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

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

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

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

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

4. Decide on a coffee shop theme.

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

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

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

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

Pop Culture

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

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

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

Coffee Beans

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

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

Brewing Equipment

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

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

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

Other Coffee Shop Accessories

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

6. Don’t forget to register your business.

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

Benefits of Starting a Coffee Shop

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

Become your own boss

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

Get more profit

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

Support local coffee farms

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

Start Planning the Coffee Shop of Your Dreams

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

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

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• Mar 14, 2019

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

Updated: Dec 21, 2021

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

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

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

3 Ways to Start a Coffee Business in the Philippines

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

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

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

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

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

Cost Breakdown: Starting a Coffee Business in the Philippines

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

Small Cafe with No Kitchen

Specifications

Location - central business district

Food - reheating only

Floor Area - 30 sq m

*variable depending on cafe hours

Business Permit - PhP 50,000

Fit Out - PhP 450,000

Equipment - PhP 450,000

Rent* - PhP 45,000

Monthly Staff Cost** - PhP 77,500

Marketing Spend - PhP 10,000

Utilities - PhP 10,500

Supplies - PhP 101,250

*assumed PhP 1,500 per sq m

**remuneration may vary

Monthly Revenue* - PhP 337,500

*assumptions

-90 cups per day

-PhP 150 average spend with food

-PhP 13,500 daily revenue

Net Income Before Taxes - PhP 93,250

ROI - 10 months

Medium-sized Cafe with Small Kitchen

Food - small kitchen

Staff* - 10

Floor Area - 50 sq m

Fit Out - PhP 750,000

Equipment - PhP 750,000

Rent* - PhP 75,000

Monthly Staff Cost** - PhP 182,500

Marketing Spend - PhP 20,000

Utilities - PhP 17,500

Supplies - PhP 198,450

Monthly Revenue* - PhP 661,500

-126 cups per day

-PhP 210 average spend with food

-PhP 26,460 daily revenue

Net Income Before Taxes - PhP 168,050

ROI - 9 months

Large Cafe with Full Kitchen

Food - full kitchen

Staff* - 12

Floor Area - 150 sq m

Fit Out - PhP 2,250,000

Equipment - PhP 2,250,000

Rent* - PhP 225,000

Monthly Staff Cost** - PhP 217,500

Marketing Spend - PhP 30,000

Utilities - PhP 52,500

Supplies - PhP 472,500

Monthly Revenue* - PhP 1,575,000

-210 cups per day

-PhP 300 average spend with food

-PhP 63,000 daily revenue

Net Income Before Taxes - PhP 577,500

ROI - 8 months

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

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

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

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

Over to You—Ready to Start Your Coffee Shop?

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

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

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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
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Complete Guides to Write Cafe Business Plan Step by Step

Great cafes combine exceptional coffee, a welcoming environment, and delectable treats to snack on while relaxing. The cafe is a low-risk business model with lower start-up costs and overhead than larger restaurants, but carving a niche for your cafe in the market and charting a path to success are critical considerations. There’s probably another cafe nearby, so how will you stand out? That’s why you need a cafe business plan. 

How to Write a Cafe Business Plan?

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The steps below will show you how to create a business plan that will help your cafe succeed.

Begin with Your Vision

A business plan is the first step toward making your cafe-ownership dream a reality, so dream big by sketching out your vision for your future cafe or coffee shop. What will the design of your cafe be? What kind of decorations will be used? What will its location be? Which items are you planning to sell? Who will go there? 

Take inspiration from your favorite cafes, images you’ve seen, favorite films or books, and even your travels. Then write it all down or pin it to a wall to make an inspirational mood board. It will be extremely motivating to look up at your initial vision and be reminded of the finish line as you spend hours working on your business proposal about coffee shop.

Research on Other Business Plans

Before you start writing your masterpiece, look at business plans from your industry, such as cafes, coffee shops, and quick-service restaurants. Examine how they structured their business and ensure that your cafe is on the right track.

Real-life cafe business plan examples from small business owners are also extremely valuable. Find current or former coffee shop owners, or even franchise owners, in your area and ask them how they succeeded and what they would do differently. 

While you’re at it, ask for recommendations for someone like an accountant to help you write your coffee business plan. Even if your future competitors are local business owners, they may be willing to share their experiences.

Creating a Business Plan Template

A blank page can be intimidating, but there are numerous cafe business plan samples available online to assist you in getting started. Below already outlined the basic sections you should include in your business plan below, along with additional tips on how to flesh each one out.

The Executive Summary

When a reader opens your business plan, the executive summary will be the first thing they see. This provides a high-level overview of all of your business plan’s sections. A well-written executive summary coffee shop will get you in the door, so read an example of business plan about coffee shop to get a sense of how the summary is worded and how all of the information is presented. There are a lot of cafe description samples to help you.

Consider who will read your business plan and tailor the opening paragraphs to your audience, just as you did for the customers who will visit your soon-to-be-opened cafe. Your executive summary is the most important marketing tool your cafe has as you prepare to open.

Read also: 3 Social Media Marketing Tools to Help Your Campaign Succeed

How will Your Cafe be Successful?

The second section provides answers to questions such as “What problem does your cafe solve?” and “How will your cafe contribute to the solution?” Perhaps there isn’t a coffee shop or cafe in a busy shopping center near you. Perhaps a downtown restaurant has recently closed.

This summary gives a quick overview of your industry, where your cafe will be located, and how it will stand out. Will your airport-area shop specialize in breakfast sandwiches? Do you want to sell your famous local pie? You’ve envisioned the success of your future cafe. Make certain that the readers of your business plan understand this as well.

Examine Your Competition

The following section of your business plan is known as the competitive analysis. It explains how your cafe will compete with other food and beverage businesses. Your competitors include nearby restaurants, coffee shops, and even public gathering places such as movie theaters. So now is the time to conduct competitor analysis coffee shop by visiting potential competitors and noting who their customers are, what’s for sale, and how much it costs.

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Understanding pricing strategies for similar businesses will help you determine how much you should charge for your coffee, pastries, sandwiches, and whatever else you’re selling in order to remain competitive in your market. Cafes and coffee shops can have high gross margins, but small cafes have notoriously low operating incomes (profits) due to high overhead costs.

However, if you take the time to conduct a thorough analysis of your competition, your cafe will have a better chance of success. By describing how your cafe will compete with similar businesses, you will persuade your reader (and, more importantly, yourself) that your goal of opening a restaurant or cozy cafe is both realistic and sustainable.

Examine Your Target Market

Your future customers are known as your market in your business plan, the number of potential customers is known as your market size, and how you’ll reach them is known as your marketing plan.

In your cafe or restaurant business plan , you will then divide your market into market segments. If your coffee shop or cafe is near an elementary school, for example, a market segment could be parents or caregivers who stop by for high-end coffee after dropping their children off at school. Or college students sipping espresso while studying for exams.

You can zero in on how to reach each type of customer by segmenting your market. As part of your market analysis coffee shop, your marketing plan (how you will advertise to your target market) will be outlined in your business plan.

What You Intend to Sell and How You Intend to Sell It

Now that you know what your competitors charge, you can develop a pricing strategy for your cafe. Be clever when developing your menu and pricing. Because you’ll be buying in bulk, try to use the same ingredients in a variety of dishes. 

Don’t be afraid to experiment. If you charge less for a croissant and coffee combo than for those items separately, you will encourage customers to buy more and reduce food waste. You’ll almost certainly end up changing your menu once you open for business. 

However, for the purposes of a business plan , you’ll need to know how much you intend to charge for the coffee or soup you intend to sell, which you’ll figure out by breaking down the ingredients required to make each item and researching your competition.

Make a Marketing Strategy

Your marketing plan can be integrated into your sales plan or a separate section. Will you post your specials on social media every morning? In addition to marketing, this is a great section to explain your plans for customer retention. It’s easier than ever to reward and keep the customers who will frequent your cafe with a cafe point of sale system.

Read also: 6 Examples Marketing Mix Example Coffee Shop Business

Structure of Ownership

Your company’s ownership structure will be included in your business plan. Explain how much experience you and your partners have and why you’re the right person (or people) for the job.

Your Business Strategy

Include information about your facilities, employees, equipment, and supplies in this section. Consider the direct costs of rent, barista wages, coffee beans, and technology. Try to squeeze as many services as you can out of a single tool, such as a POS system that allows your customers to check out, your part-time employees to clock in, and your cafe’s inventory to be managed.

Estimate how frequently you’ll need to replenish ingredients like flour and eggs. Consider your operating costs carefully during the business planning stage. Wherever possible, save money and don’t skimp on essentials like your espresso machine.

Planning Your Finances

You are now ready to create a financial plan coffee shop. This is typically the most time-consuming and crucial section of your business plan, particularly for lenders and investors. It should contain a summary of your startup costs, an income statement, projected cash flow, a balance sheet, and a break-even analysis.

Though creating a business plan may appear difficult, keep in mind that it is an important step to take before opening a cafe. A cafe can be successful is proven by a well-thought-out business plan.

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How to Start a Coffee Shop in the Philippines

So you want to start your coffee shop in the Philippines? Whether this has been something you’ve wanted to do for 10 years or 10 minutes, it’s something that needs hours upon hours of research and if you’re reading this article, pat yourself on the back: you’re researching.

Table of Contents

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, you will be educating yourself about everything from budgeting, potential locations, and every piece of equipment needed to run a successful coffee shop. There are a countless number of coffee lovers out there; just pass by any busy coffee shop and you’ll be shocked by the number of coffee lovers streaming in and out of the venue.

To franchise, or to open your own?

Before you even think of where you are going to set up your shop, decide whether you want to buy an already existing business or if you want to start from scratch. These two options have their unique pros and cons.

Here are some perks and drawbacks of opening a franchise coffee shop.

• Buying an already existing business is a great way of acquiring a turn-key operation.
• A franchise will do all the promoting for you.
• You will already have a customer base that’s committed to that specific shop.
• You follow the recipes from the franchise. You cannot make your own and sell them.
• You cannot change the design of the restaurant or the menu without the franchise’s permission.

Open Your Own Shop

Here are some perks and drawbacks of opening your own coffee shop.

• Starting everything from scratch offers great flexibility and provides maximum profit.
• With your own, independent shop, you’re the one calling the shots in every aspect of the term.
• You have the ability to change and keep anything about your own shop.
• You have to be sure your coffee shop is in line with all business laws. A franchise will not be there to help you through this process.
• You can hire the specific staff you want and work with your desired vendors.
• You call the shots in the interior design of the place.
• Long hours may be required to get some extra components ready for a new menu item or a new promotion.

It’s Your Decision

Decide on which type of business you want. There is a wide range of options to pick from like inexpensive coffee carts or sit-in coffee shops. Explore your options by visiting each of the options you have available in your area and making pros and cons lists of what you enjoy or what wasn’t really up your alley. You’d be surprised by how much a coffee kiosk can differ from a coffee truck and how much a coffee truck can differ from a brick and mortar location. After making up your mind, you can follow these steps to turn your goal into reality.

Factors to Consider Before Starting a Coffee Shop

1. study and research the market.

Your business plan should stipulate your clients. Knowing who your potential clients are before starting the business is essential. Know who they are, where they are located, and exactly what they are looking for in the way of their coffee shop experience.

If you find an area you’re keen on putting your shop, observe when the high foot traffic is during the day and who are the ones in that area. Different people require different needs at a coffee shop. For example, if you have more teenagers in your area, you might look into offer sweeter drink options than you would if you had mostly adult customers.

Understanding the market will give you a clue on how and where to set your coffee shop. Understanding your customers will help you price your items and craft the perfect menu.

2. Find the most suitable location.

Your market research will tell you where your potential customers are located and this will make it very easy for you to determine where you should set up your coffee shop.   Most of your customers will be students and professionals. This means the right location can be around schools and business centers.

There are a number of factors that you need to consider when selecting a suitable location, including visibility, traffic, and parking. Check on the number of already existing coffee shops around the place and their mode of operation. If there aren’t any, you’re in luck. However, if there are already many, make a good plan on how to beat the competition. If there are too many shops similar to the one you want to open, it may not a good place for you.

The location should be easy to access and have enough parking. Most of the time, customers don’t want to waste time looking for parking or making a turn to your shop. A highly visible busy street that has plenty of parking spaces would be the best site.

3.   Establish your budget.

Every business requires capital to run. Planning helps you to calculate your budget. Some people might not have a lot or enough money to start with , making a well-thought budget plan essential. Space renting and renovation can eat up a larger portion of your money so you need to budget because there are other essential things to consider.

Think of the cost of the equipment, marketing collateral, supplies, and the salaries of your employees. If you’re operating on a low budget, you can slash off expensive machines and look for better alternatives. In the beginning, buy only the equipment that you really need and can’t do without.

Social media is very cost-effective yet very helpful in marketing yourself. You can take advantage of this to make people aware of your shop while saving some money on marketing.   There is also the possibility of seeking some financial help from your bank to make everything work out perfectly.

4. Hire the right workers.

Your employees are the ones who will be serving your customers meaning they have the power to retain them or chase them away. Cashiers and expeditors are the first people your customers see when they walk into your coffee shop. Train your employees on all of the elements necessary for providing customers an exemplary experience at your coffee shop. This creates repeat customers and increased profit over time.

5. Get the best suppliers.

There are a number of ingredients that will determine the taste of your coffee. You should gather all the necessary information about all these ingredients and look for the best and most reliable supplier around.

6. Consider promotions and loyalty programs.

You need to promote your coffee shop. If you pursued a coffee shop franchise, the main company will take care of the promotion. To gain the loyalty of most customers and retain them, you need to promote yourself and make sure they know about you.

You need to understand what a coffee shop is in order to be able to run it perfectly. A coffee shop is a great place to socialize and to have informal business meetings. Be organized and plan yourself very well and don’t forget that quality service and customer satisfaction is the key to your success.

Frequently Asked Questions

Seattle’s Best Coffee is a subsidiary of Starbucks. While an entrepreneur cannot open a Starbucks location in the Philippines, Seattle’s Best Coffee is available for franchising.

It possible to start a cafe with no money , but you have to be patient as you gather it. Glean startup funds by doing the following: ● Consider crowdfunding. ● Apply for business loans and/or grants. ● Think of creative fundraisers that will help you have more money for startup costs. ● Ask family and friends for help!

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

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

Hi! I’m Shawn Chun

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

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

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

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

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

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

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

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How to Start a Coffee Shop Business in the Philippines

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

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

1. Know your target market

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

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

2. Research on your business location

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

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

3. Invest in quality equipment

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

4. Introduce innovation

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

5. Provide convenience

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

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

6. Establish good supplier and customer relations

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

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

7. Employ staff with eager attitudes

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

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

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

i am interest in coffee shop business

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

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

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

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

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

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

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

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

How much is the cost for coffe shop business

I love hearing comments…

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

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

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

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

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

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Coffee Shop Business Plan

• Food Business Ideas

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

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

Below is sample business plan for a coffee shop:

Taste blender

Business Plan for the Period

Starting January 2008

Business Overview

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

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

Objectives : Our primary objectives over the next year are:

• Introduce homemade cookies, brownies and cakes.

• Renovate our space in Old Town.

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

• Create cozy and friendly environment.

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

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

Products and Services : Description of Products and Services:

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

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

Industry Overview

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

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

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

Marketing Strategy

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

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

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

Pricing Strategy :

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

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

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

Management and Staffing

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

Staffing : We will hire about three or four waiters.

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

Implementation Plan : Implementation Activities and Dates:

• Begin building renovation 12/08

• Complete renovation 2/15/08

• Begin preliminary advertising 2/15/08

• Purchase and setup equipment 2/15/08

• Open for business 3/1/08

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

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

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

Business Plan Business Plan Writers

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

Tags: Business business plan coffee coffee shop business

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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.

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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:

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:

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.

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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:

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.

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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 .

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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!

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