Tips for Starting a Coffee Shop Business in the Philippines

Updated: January 7, 2024

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

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

Study and Research the Market

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

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

Find the Most Suitable Location

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

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

Establish Your Budget

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

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

Hire the Right Workers

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

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

Get the Best Suppliers

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

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

Interesting Facts About Coffee Shops in the Philippines

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

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

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

Good luck with your coffee shop business!

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