sample coffee shop business plan in the philippines

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A business plan for "Kopinoy"

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

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How to Write a Coffee Shop Business Plan for the Philippines

A business plan is essential in any business that you plan to operate. A business plan can be described as a road map of objectives and strategies on how to reach the goals for the business.

In the Philippines, there are two types of business plans that are written. The first is to raise capital with a business plan and the second is a managerial guidance business plan.

• Table of Contents

To open a coffee shop in the Philippines, you need to consider these six factors:

• Promotions and Loyalty Programs

It is important to make sure that you incorporate these factors into your business plan.

Raise Capital with a Business Plan:

This business plan is designed to raise money for your business in the Philippines. In this particular business plan, you will provide information on your products and services that you will provide to your customers.

Here are some examples of what products you may provide to your customers: Brewed Coffee (hot, iced, or frozen)

• Fruit Smoothies
• Biscuits/Sandwiches

You may even decide to have bags of your signature coffee that your coffee shop provides to your customers. This allows them to pick up a bag in travel so they can enjoy your signature coffee in the comfort of their home.

Most raised capital business plans focus on selling equity or debt to investors. If you are selling equity, you will sell an ownership stake. This is common in Corporations and is commonly known as stocks or shares that are being sold. If you are selling debt, you will need to issue some type of bond or note to investors.

If you decide to sell stock in your company, you are enticing more potential investors to invest in your company by offering the security that they will eventually recoup their investment. However, you are also giving investors partial ownership in your company’s everyday operation.

Check out our additional article HERE on writing a business plan!

Managerial Guidance Business Plan:

In the Philippines, a managerial guidance business plan has two different angles that are focused on. The first is no capital raising and the second is recommendations.

A no capital raising plan is not focused on raising money. This particular plan is focused on a strategy or strategies that the company should employ for growth opportunities. Basically, the more people you reach, the more opportunity for growth.

A recommendations plan is again not focused on raising capital. A recommendations plan is to strategically plan the next move of the business.

Your Business Plan:

Your business plan should look almost like a book. Here is a basic outline:

• Executive Summary
• Business/Industry Overview
• Market Analysis and the Competition
• Sales and Marketing Plan
• Ownership and Management Plan
• Operating Plan
• Financial Plan
• Appendices and Exhibits

Your title page will have information on your coffee shop. This will include the name, address, phone number, and website (if available) for your coffee shop. The table of contents will help your investors and/or lenders to jump straight to the section that they are most interested in reviewing.

The executive summary is an overview of the coffee shop. It should not be more than two pages long and should give a brief description of each section of the plan. The business industry overview will explain the coffee shop industry, your position in the industry, and your competition.

In the market analysis and competition section, you will explain who your target market is and what products you will provide. You will also explain your seating options as well as your parking strategy. The sales and marketing plan is where you will explain the prices of your coffee shop. What will charge and why? You will explain what promotions and/or loyalty programs your coffee shop will offer. How, when, where, and what will you advertise your coffee shop.

The financial plan is going to be the most important part of your business plan. You will want this to be as detailed as possible. This section is to demonstrate that the coffee shop will grow and be profitable. Some things to provide in this section will be projected income statements, cash flow statements, and balance sheets. Lastly, you will have an appendix and/or exhibit. In this section, you will provide any additional information that is important to your coffee shop. Some things you may include are:

credit histories for business owners

Detailed market research and analysis of competitors, resumes of owners and key employees, industry information, products/services information, site/building/office plans, marketing brochures, three levels of business plans:.

Did you know that in the Philippines, there are three levels of business plans? Level one is the start-up business plan. Next, level two is the expansion or Series B. business plan. Finally, level three is the enterprise business plan.

The start-up business plan includes complete financials, potential cash-flow, market analysis, market strategies, the break-even analysis, and a separate executive summary.

The expansion business plan helps to define concepts, target markets, and market potential, as well as financial clarity necessary to define business concepts, identify the business market potential, and identify the capital requirements.

The enterprise business plan serves established companies seeking to raise additional capital to expand their business.

In simpler terms, each business plan level serves each level of your coffee shop. If you are wanting to open a new coffee shop, a start-up business plan is what you will need. Looking to expand your current coffee shop, you will need an expansion or series B. business plan. Or looking to raise additional money for your coffee shop, you will then need an enterprise business plan.

Importance of the Six Factors:

As stated above, there are six factors that you need to consider as you put your business plan together. Those six factors are market, location, budget, employees, suppliers, and promotions or loyalty programs.

Your market and location will work together in your business plan. The market target is very important because it will help you to find the perfect location for your coffee shop. For example, if you are looking to focus more on tourists, you will have your location set up in a tourist part of the Philippines. If you are wanting to focus on a small community, you may consider setting up shop in a Filipino neighborhood.

Your budget will play the biggest role of all as you are creating your business plan. You must be aware of how much money it will take to operate your coffee shop. Your budget will consist of how many employees you can comfortably hire, which suppliers you will use (based on quality, quantity, and price), and your advertising expenses.

Promotions and loyalty programs are very important. Advertising your coffee shop is well needed and there are many ways you can advertise. A few examples can be to cross-market with neighboring businesses, having brochures at the airport for tourists to review. Loyalty programs will make your clients feel appreciated. This will create customer retention as well as referrals. Promotions for a coffee shop may be seasonal such as pumpkin flavor for the fall season or peppermint for the winter season.

Frequently Asked Questions

You should prepare a business plan to define and focus on your objectives. Your business plan can be used as a selling tool with your lenders, investors, and banks. A good business plan can also uncover commissions and/or weaknesses in the planning process.

You can write your own business plan if you choose to. The prospectus is a business in the Philippines that specializes in business plan writing. If you are about to open your coffee shop, and you are a good writer, writing your own business plan will help reduce your start-up cost.

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!

Share This Story, Choose Your Platform!

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How to Start a Coffee Shop in the Philippines 

Disclosure: Small Business Philippines strives to provide relevant and accurate information in all its articles. However, some information in our articles may differ or might be outdated from what you can see or read directly from the establishments’ or businesses’ websites. Please get in touch with us directly for any discrepancies.

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

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

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

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

Learn more about this Selling Food Online workshop . 

Type of Coffee Shop: 

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

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

Business Plan: 

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

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

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

Location: 

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

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

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

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

Access this platform (Free)

Interior Design: 

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

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

Case Study: Starbucks vs Mcdonalds

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

Read more: Starbucks vs Mcdonalds’ case study. 

Coffee Shop Equipment: 

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

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

Learn more about the rental of coffee machines . 

Coffee Menu: 

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

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

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

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

Cost-Effective Operations: 

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

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

Read more about how to improve your restaurant operations . 

Marketing Strategies: 

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

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

Read Digital Marketing strategy for a coffee shop .  

Franchising Coffee Shops: 

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

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

Existing Coffee Shops: 

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

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

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

Please enter the word that you see below.

About US | OCM Profile

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

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

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

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

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

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

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

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

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

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

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

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

Contact Us  

• Jan 14, 2019

The Ultimate Guide to Building a Coffee Business in the Philippines

Updated: Dec 21, 2021

If you’re looking to start a coffee business in the Philippines, it’s not enough to count on the trend of a thriving industry. It pays to seek business consultants for your cafe or at the very least read up on guides that will detail what is needed to succesfully build your own.

Which brings us to Bean & Barley’s ultimate guide to building a successful coffee business in the Philippines. This article will break down everything you need to know about starting a coffee business that’s built to succeed, from planning to execution.

Planning your coffee business

As with any other business, planning is crucial if you want your coffee business to succeed. One of the most lethal mistakes entrepreneurs make is underestimating the coffee industry. The consensus is that coffee isn’t all that hard to sell. Surely, anyone can do it. Wrong. The coffee industry is hyper-competitive. Just ask the 3 out of 10 coffee shops that fail in just two years after launch.

Though a positive mindset is a good start, a well informed business plan will help get things started on the right foot. As a start, you’ll need the following:

Concept: Are you building your coffee shop from scratch? Are you purchasing a franchise? What does your coffee brand believe in and what is it trying to say? Do you have a concept that will separate your brand from the rest?

Market Research: Working with your concept, how do the odds stack up? Who are your direct and indirect competitors? What is your edge over them? Does your business idea bring anything new to the table?

Location: Location is crucial for coffee shops. If you’re planning to build a shop anytime soon, you must have a short list of viable locations already on-hand. These locations must have good foot traffic and access.

Financing: How are you going to finance your coffee business? Are you taking it out of your pocket? Are you working with investors? Craft a finance plan or hire an accountant, or better yet, financial planner to help you out.

Business Plan: With everything else sorted out, it’s time to build a solid business plan. A business plan is essential wheather you’re pitching to investors or financing the business yourself. Your business plan is the document you will reference throughout the journey of building your coffee shop. It is your roadmap.

Necessary Paperwork: Permits, certifications, approvals, etc. Hang tight. This process will take anywhere from weeks to months to even years to complete. It will be grueling, for sure. But in doing this, you’re setting up your business for success, and the rest of the journey will become easier and faster.

Building your coffee shop

Successful coffee shops have a few things in common. One of those is a clear understanding that coffee is an experience. Sure, there are big-ticket coffee brands like Starbucks Coffee that effectively commoditize the beverage. But many businesses know that people shuffle into coffee shops to do something: chat with a friend, meet with a client, or catch up with work. Your actual coffee shop delivers half of that experience alongside the coffee itself.

With this in mind, you have a few factors to consider:

Location: Is your coffee shop accessible? A good rule of thumb is to build it on main roads or in malls where foot traffic is guaranteed.

Interior Design: The interior design will set the mood in your coffee shop. Following your concept, target market, and branding, this will help differentiate your brand in your customers’ minds. Regardless of if you’re going for a minimalist, rustic, or festive approach, it’s important to nail the interior design.

Ambiance: Coupled with a solid interior design, a good coffee shop ambiance will help your customers feel a connection with your cafe and make it their go-to place for work and social life.

Cafe Flow and Layout: The “flow” of your coffee shop will determine your barista’s productivity and efficiency behind the counter. It will also reinforce the overall feel of your shop to your customers.

Hiring Staff: A good coffee shop is staffed with enough servers, baristas, and other staff members to accommodate guests.

The coffee shop is a crucial half of the experience you’re trying to sell your customers. Spend ample time and effort in thinking about how you want your coffee shop to look, feel, and ultimately mean to your customers.

Developing your menu

Keeping a coherent food and coffee menu is essential for coffee shops. There are a few questions you can go through to figure out which items to include. To start, use the following:

Do I want to serve specialty coffee? Which beans are required to make specific coffee items? Which coffee-making equipment should I invest in?

These questions should give you some idea regarding the makeup of your menu. It’s also worth noting that you should always compute your capital per cup against equipment and other overhead costs. Finally, pair your coffee drinks with food items. It’s a great opportunity to upsell and a chance to make your customer’s time at your shop more delightful.

Marketing your coffee brand

The advent of digital marketing offers coffee businesses an opportunity to play in a leveled playing field with big-name coffee brands. Regardless of the size of your marketing spend, you can use the internet to drive hungry customers right through your door.

Here are some ideas to start:

Social media marketing: This is one of the most popular approaches among coffee brands mainly because it’s free. For coffee shops, Instagram is the obvious choice regarding which social media platform to use. It allows you to visually showcase your shop and your coffee drinks beautifully.

Free Wi-Fi email capture: A good way of collecting emails and getting real-life analytics is setting up an email capture with free wi-fi as your offer. There are available programs out there that allow you to ask for emails in exchange for free wi-fi access.

Facebook advertising: Facebook’s ad platform is an easy and effective way to advertise your coffee shop online. With granular targeting tools, you’re able to pinpoint exactly the kind of customers you’re looking to tap—including their interests, age bracket, gender, location, and more

Keeping customers happy

The bedrock of coffee shops, like any other business, is repeat business. When patrons return to your coffee shop frequently, you’re guaranteed to have a steady stream of customers. To do this, you’ll have to exert extra time and effort in building relationships with your customers.

Some ideas to get you started include:

Maintain beverage quality: This one should go without saying. The absolute best way to make (and keep) your customers happy is by making your coffee good great, and keeping it that way.

Host events: Hosting events relevant to your community can help keep your cafe at the top of customer’s mind. Invite independent talents, start workshops, or do viewing parties.

Good ol’ Human Interaction: Train your baristas to be friendly. Good conversations go a long way. When customers feel at home in your coffee shop, they will likely want to go back more often.

Start your coffee business today!

As we have covered in this article, building your own coffee business in the Philippines isn’t easy. But with the right tools, mindset, and guidance, there’s no doubt your dream coffee shop will come true and thrive.

If you want to build your coffee shop, we’re here to help. Book a free consultation with us HERE .

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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 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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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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Starting a Coffee Shop in the Philippines: Required Capital and Tips to Success

Last Updated: January 21, 2023

With millions of coffee drinkers in the Philippines saying they need coffee to kick-start their day, it’s no wonder that you’re considering starting a coffee shop.

People love their coffee! In theory, starting a coffee shop sounds like a great idea, but it’s no small investment. According to statistics, the cost of opening a coffee shop ranges from Php 6 to 12 million.

Also, aside from the financial load, there are many other considerations to be made before pursuing this business venture. 

• Is there a suitable location available?
• What equipment do I need? 
• What about licensing and permits? 

Consider this article to be a comprehensive resource compilation and checklist to better inform your coffee shop planning should you decide to pursue this business venture. 

Starting a Coffee Business in the Philippines: 3 Ways to Do It

Want to start your coffee shop in the Philippines? You have at least 3 ways to go about it. 

• Franchise. If you don’t want to build your coffee shop from scratch, you can choose to franchise – there are numerous established brands out there you can consider. Popular brands like Bo’s Coffee, Seattle’s Best Coffee, Coffee Bean & Tea Leaf, and the like are all open for franchising. Many first-time entrepreneurs choose to franchise because the business model is already established, and deployment is typically easy and low-stress. However, the cost can range anywhere from 6 to 12 million pesos, which is a sizable investment. For instance, a Bo’s Coffee Franchise costs around Php 1 million! 
• Buy an existing coffee shop. You’d be surprised, but there are entrepreneurs who actually buy established, well-performing coffee shops. And who can blame them? It’s a much easier, safer route. There are numerous reasons why you’d want to do this, one of them is the opportunity to deliver good-quality, specialty coffee. However, it’s difficult to find a profitable business that’s for sale. What’s more, you’ll be bound to the existing branding, design, and vision and remodeling it will likely be even more expensive than simply starting your own shop. 
• Build your own from the ground-up. This option allows you to build something that’s truly your own – from the business model, branding, culture, menu, and everything else. Starting your own coffee shop gives you the freedom and flexibility to do whatever you want. Of course, it’s worth noting that building your own coffee shop from the ground-up can be time consuming and difficult to execute, particularly for entrepreneurs without much experience in the food and beverage industry. Also, depending on the size and scope of your business operations, starting your own coffee shop can be quite costly. 

How to Start a Coffee Shop Business: 6 Key Tips for Success 

No matter which method you choose – whether you’re looking to franchise, buy an existing business, or if you’re building your own coffee shop from the ground – here are 7 tips to help you.

Step 1: Research the coffee business.

Opening a coffee shop takes a big investment – both in time and money. It’s important that you spend time understanding what it takes to run a successful café.

This means doing some research – you can look for useful articles online, or better yet, talk to coffee business veterans and learn from their experience.

You should also visit other coffee shops to get an insight into what you want your business to be like. 

Step 2: Create a business plan.

The process of writing a business plan helps you to really understand your business vision, your local market, and it allows you to get a grip on the numbers you need to make your business successful.

A business plan will guide you through each stage of developing and managing your coffee shop, and will serve as a road map for how to run, structure, and grow your business. 

Your business plan should include:

• A summary: What your business stands for, your mission and vision, and your business goals. 
• A local market analysis: Who are your competitors? Who are your target customers? 
• Financial projections: Cash flow, projected profit and loss, etc. 
• Your team: What is your role in the business? Who do you need to hire? 
• A marketing plan: How will you define your brand? How will you market your business? There’s a lot to consider, but taking time to carefully plan for each aspect of your business will help set you up for success.

Step 3: Choose a location.

Location is crucial to the overall success of your business. Before making a decision, make sure to spend some time in the areas that you’re considering. Is there enough foot traffic in the area to sustain your coffee shop? How much parking space is available?

Is the location visible enough? Are you near lots of other coffee shops?

Also, if you’re going to be hands-on in running your coffee shop, pick an area you enjoy spending time in – after all, you’re going to be spending lots of time there. 

Step 4: Find good, reliable suppliers.

Finding good, reliable suppliers is essential for your business success. Depending on the type of coffee shop you’re building, the major suppliers are usually coffee, milk, bread, and groceries.

You’ll also need cups (porcelain and paper), syrups, coffee stirrers, napkins, teapots… the list goes on. Start by listing all of the supplies you need – be as detailed as you can.

From there, you can start looking for suppliers until you find ones that match your business requirements and needs. 

Step 5: Create a menu to complement your coffee shop.

Your menu is the core ‘ingredient’ of your business. So, make sure that your menu expresses your vision and the ‘theme’ of your coffee shop. Everything needs to be considered – from coffee and food options, to design, to product descriptions and images, and pricing.

Think about a signature drink or dish and how that might shape the style of your menu. As much as possible, keep it simple – one of the most common mistakes coffee shop owners make is trying to please everyone.

If you’ve got too many items on your menu, there may be items that are hardly ever ordered, so just focus on no more than 10-12 options that your customers will surely enjoy.

Also, your menu has to be profitable – calculate the ingredient costs and margin of each item. 

Step 6: Hire the right people.

You can’t run your coffee shop alone – you’ll need to hire a few people, such as baristas, bakers, and cashiers (to start with).

Also, remember that hiring the right people doesn’t always mean choosing experienced staff. While hiring someone with experience is important, remember that skills can be learned but attitude… not so much.

If you want to develop a great team culture, make sure to hire people who are the best fit for your business.

The Bottom Line

Starting a coffee shop sounds like a great idea, but it’s no small investment – it can cost anywhere from Php 6 to 12 million! Also, the cost varies depending on whether you want to franchise, buy an existing business, or if you’re building your own coffee shop from the ground-up.

Aside from the financial aspect, there are also other things you need to consider to build a successful coffee shop.

You need to choose the best location, find the right suppliers, build a delicious menu, and hire the right people – just to name a few. If you dream of starting your own coffee shop, consider these tips to better inform your coffee shop planning. Good luck!

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Coffee Shop Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Coffee Shop Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Coffee Shop Business Plan

Whether you are planning to start a new business or grow your existing coffee shop, you’ve come to the right place to create your coffee shop business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their coffee shops.

A coffee shop business plan is used to start and/or grow your business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

Coffee Shop Business Plan Sample

Below are links to each section of our coffee shop business plan example:

Next Section: Executive Summary >

Coffee Shop Business Plan FAQs

What is a coffee shop business plan.

A business plan for a coffee shop is a plan to start and/or grow your business. Among other things, it includes your company overview, allows you to conduct a market analysis to identify your target market, includes a sample menu, presents your marketing plan and pricing strategy to attract your local customer base, details your sales forecasts, and provides the income statement, balance sheet and cash flow statement for your coffee shop.

You can  easily complete your coffee shop business plan using our Business Plan Template for a Coffee Shop here .

What Are the Main Types of Coffee Shops?

The different types of coffee shops include cafes, coffee bars and coffeehouses that sell coffee drinks and other snacks. Some coffee shops offer lunch and dinner menus and are close to being full-service restaurants. There are also coffee shops that are more accessible for people on the go or those who want to make their own coffee. These are retail coffee shops, drive thru coffee shops, coffee carts and trucks, and roasters or retailers.

What Are the Main Sources of Revenue and Operating Expenses for a Coffee Shop?

The primary source of revenue for many coffee shops come from its food and drink sales, which includes brewed coffee, coffee beans, seasonal drinks and refreshments, and baked goods. Gift card and merchandise sales like tumblers, mugs, and coffee makers also contribute to a coffee shop’s revenue stream.

The expected expenses for a coffee shop are the cost of coffee and food products, salaries and wages, rent, and advertising costs. 

How Much Does it Cost to Start a Coffee Shop?

Opening a coffee shop business can cost anywhere from $40,000 to $100,000 depending on the size and location of the business. Additional costs such as inventory, employee salaries, and marketing expenses can range from $5,000 to $15,000 per month.

How Do You Get Funding for Your Coffee Shop Business?

The best way to get funding for a coffee shop business is through a bank loan or utilizing your personal savings, business credit cards or borrowing from friends and family. You can also look into government grants or loans, or try to find a partner who is willing to invest in your business. Whatever route you choose, be sure to have a solid coffee shop business plan for potential investors including a sales and marketing plan as well as a realistic idea of how much money you need to get started.

How to Start a Coffee Shop?

• Determine the type of coffee shop business you want to open . There are many different types of coffee shops, from small mom-and-pop shops to large chains.
• Create a coffee shop business plan. This will outline your plans for starting and running your coffee shop. 
• Secure funding . You will need money to start and run a coffee shop, so you'll need to find investors or borrow money from a bank or other lending institution.
• Find a location for your coffee shop. This can be tricky, as you'll need to find a space that is affordable and has good foot traffic.
• Equip your coffee shop . You'll need to buy or lease equipment such as espresso machines, coffee brewers, and furniture in addition to the coffee beans and other food products you plan to sell.
• Hire staff . You'll need employees to run your coffee shop, so post job ads and interview potential candidates.

Learn more about how to start a successful coffee shop business:

• How to Start a Coffee Shop Business

Where Can I Get a Coffee Shop Business Plan PDF?

You can download our free coffee shop business plan template PDF here . This is a sample coffee shop business plan template you can use in PDF format.

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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Coffee Shop Business Plan

Start your own coffee shop business plan

Java Culture

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

People near the University of Oregon need not just coffee and tea, or pastries and snacks, but also a place to meet comfortably, have a group discussion, or just sit quietly, work, and read. That is available now near the University of Oregon campus, but too crowded too often, and not the right combination of factors for everybody.

Java Culture coffee bar is determined to become a daily necessity for local coffee addicts, a place to dream of as you try to escape the daily stresses of life and just a comfortable place to meet your friends or to read a book, all in one.

Java Culture will focus its marketing activities on reaching the University students and faculty, people working in offices located close to the coffee bar and on sophisticated teenagers. Our market research shows that these are the customer groups that are most likely to buy gourmet coffee products. Since gourmet coffee consumption is universal across different income categories and mostly depends on the level of higher education, proximity to the University of Oregon campus will provide access to the targeted customer audience.

Competition

Java Culture’s direct competitors will be other coffee bars located near the University of Oregon campus. These include Starbucks, Cafe Roma, The UO Bookstore, and other Food service establishments that offer coffee.

Great coffee, pastries, additional options for tea etc, very welcoming atmosphere, good wireless, desk space, comfortable chairs and tables, good pastries, a location close to the university campus.

Expectations

We plan to grow as shown in the chart below, taken from our sales forecast. We aim to maintain an industry-standard 60% gross profit margin and reasonable operating expenses, and to produce reasonable profits in the second and third year.

Financial Highlights by Year

Financing needed.

The owners will invest $140,000 and take out a bank loan for $30,000  to cover the start-up expenses and assets needed plus deficient spending in the early months.

The start-up expenses of $27,000 include:

• Legal expenses for obtaining licenses and permits as well as the accounting services totaling $1,300.
• Marketing promotion expenses for the grand opening of Java Culture in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• Consultants fees of $3,000 paid to ABC Espresso Services <name changed> for the help with setting up the coffee bar.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium of $2,400.
• Pre-paid rent expenses for one month at $1.76 per square feet in the total amount of $4,400.
• Premises remodeling in the amount of $10,000.
• Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).

These expenses will be incurred before launch, so they take their place in our financial projections as negative retained earnings of $27,680 at the end of the month before we begin. That number shows up in the balance sheet.

The required start-up assets of $143,000 include:

• Cash in the bank in the total amount of $67,000, which includes enough to cover employees and owner’s salaries of $23,900 for the first two months and cash reserves for the first three months of operation (approximately $14,400 per month).
• Coffee beans (12 regular brands and five decaffeinated brands) – $6,000
• Coffee filters, baked goods, salads, sandwiches, tea, beverages, etc. – $7,900
• Retail supplies (napkins, coffee bags, cleaning, etc.) – $1,840
• Office supplies – $287
• Espresso machine – $6,000
• Coffee maker – $900
• Coffee grinder – $200
• Food service equipment (microwave, toasters, dishwasher, refrigerator, blender, etc.) – $18,000
• Storage hardware (bins, utensil rack, shelves, food case) – $3,720
• Counter area equipment (counter top, sink, ice machine, etc.) – $9,500
• Serving area equipment (plates, glasses, flatware) – $3,000
• Store equipment (cash register, security, ventilation, signage) – $13,750
• Office equipment (PC, fax/printer, phone, furniture, file cabinets) – $3,600
• Other miscellaneous expenses – $500

Funding for the company comes from two major sources–owners’ investments and bank loans. Two major owners, Arthur Garfield and James Polk, have contributed $70,000 and $30,00 respectively. All other investors have contributed $40,000, which brings the total investments to $140,000. The remaining $30,000 needed to cover the start-up expenses and assets came from the two bank loans–a one-year loan in the amount of $10,000 and a long-term (five years) loan of $20,000. Both loans were secured through the Bank of America. Thus, total start-up loss is assumed in the amount of $27,000.

The amounts show up in the balance sheet in the month prior to opening. The $140,000 investment shows up as Paid-in Capital. The $27,000 expenses show up as negative retained earnings. Assets and liabilities are there. This is all according to financial standards.

Problem & Solution

Problem worth solving.

People near the University of Oregon need not just coffee and tea, or pastries and snacks, but also a place to meet comfortably, have a group discussion, or just sit quietly, work, and read. That is available now near the University of Oregon campus, but too crowded too often, and not the right combination of factors for everybody. 

Our Solution

Java Culture will make its best effort to create a unique place where customers can socialize with each other in a comfortable and relaxing environment while enjoying the best brewed coffee or espresso and pastries in town. We will be in the business of helping our customers to relieve their daily stresses by providing piece of mind through great ambience, convenient location, friendly customer service, and products of consistently high quality. Java Culture will invest its profits to increase the employee satisfaction while providing stable return to its shareholders.

Target Market

Market size & segments.

Coffee consumption has shown a steady 2.5% growth rate in the United States over the last decade. The retail coffee industry is flourishing in the U.S. Pacific Northwest. The local climate, with a long rainy season, is very conducive for the consumption of hot non-alcoholic beverages. At the same time, hot dry summers drive people into cafes to order iced drinks. Furthermore, coffee has really become a part of the lifestyle in the Pacific Northwest. Its discerning coffee drinkers are in favor of well-prepared, strong coffee-based beverages, which they can consume in a relaxing environment.

More specifically, the University of Oregon as close to 25K students and another 5-10K faculty and staff. And it is embedded in the Eugene, OR community of 200K people. Our main market will be students, faculty, staff, and nearby residents. But the campus area is a hub for the community and will attract other customers. 

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Our Advantages

Java Culture will cater to people who want to get their daily cup of great-tasting coffee in a relaxing atmosphere. Such customers vary in age, although our location close to the University campus means that most of our clientele will be college students and faculty. Our market research shows that these are discerning customers that gravitate towards better tasting coffee. Furthermore, a lot of college students consider coffee bars to be a convenient studying or meeting location, where they can read or meet with peers without the necessity to pay cover charges. For us, this will provide a unique possibility for building a loyal client base.

Keys To Success

The keys to success will be:

• Store design that will be both visually attractive to customers, and designed for fast and efficient operations.
• Employee training to insure the best coffee preparation techniques.
• Marketing strategies aimed to build a solid base of loyal customers, as well as maximizing the sales of high margin products, such as espresso drinks.

Marketing & Sales

Marketing plan.

Java Culture will position itself as unique coffee bar where its patrons can not only enjoy a cup of perfectly brewed coffee but also spend their time in an ambient environment. Comfortable sofas and chairs, dimmed light and quiet relaxing music will help the customers to relax from the daily stresses and will differentiate Java Culture from incumbent competitors.

In order to build up its client base, Java Culture will use some strategic banners and fliers during the launch period, utilize customer referrals and cross-promotions with other businesses in the community from time to time, and loyalty programs that work with android and IOS and other mobile phones, which is the preference of our market.

Our main thrust will be getting people to know, like, and trust us with content and engagement in Facebook, Instagram, Snapchat, and Twitter.  We intend to maintain social media presences that are light on self-serving promotional quasi-advertising content, heavy on community participation, content, and engagement. 

Java Culture baristas will handle the sales transactions. To speed up the customer service, at least two employees will be servicing clients–while one employee will be preparing the customer’s order, the other one will be taking care of the sales transaction. All sales data logged on the computerized point-of-sale terminal will be later analyzed for marketing purposes.

Locations & Facilities

Java Culture coffee bar will be located on the ground floor of the commercial building at the corner of West 13th Avenue and Patterson Street in Eugene, OR. The company has secured a one-year lease of the vacant 2,500 square feet premises previously occupied by a hair salon. The lease contract has an option of renewal for three years at a fixed rate that Java Culture will execute depending on the financial strength of its business.

The floor plan will include a 200 square feet back office and a 2,300 square feet coffee bar, which will include a seating area with 15 tables, a kitchen, storage area and two bathrooms. The space in the coffee bar will be approximately distributed the following way–1,260 square feet (i.e., 55% of the total) for the seating area, 600 square feet (26%) for the production area, and the remaining 440 square feet (19%) for the customer service area.

This property is located in a commercial area within a walking distance from the University of Oregon campus on the corner of a major thoroughfare connecting affluent South Eugene neighborhood with the busy downtown commercial area. The commercially zoned premises have the necessary water and electricity hookups and will require only minor remodeling to accommodate the espresso bar, kitchen and storage area. The coffee bar’s open and clean interior design with modern wooden decor will convey the quality of the served beverages and snacks, and will be in-line with the establishment’s positioning as an eclectic place where people can relax and enjoy their cup of coffee. The clear window displays, through which passerby will be able to see customers enjoying their beverages, and outside electric signs will be aimed to grab the attention of the customer traffic.

Milestones & Metrics

Milestones table, key metrics.

We have our forecasts for sales, direct costs, and operating expenses. As we get into the business we’ll develop standards based on experience for Facebook likes, Twitter follows, and other social media engagement. We expect to watch these very carefully. 

Ownership & Structure

Java Culture is majority-owned by Arthur Garfield and James Polk. Mr. Garfield holds a Bachelor’s Degree in Business Administration from the University of ZYX. He’s worked for several years as an independent business consultant. Previously, he owned the ABC Travel Agency, which he profitably sold four years ago. Mr. Garfield has extensive business contacts in Oregon that he will leverage to help his new venture succeed. Mr. Polk has a Bachelor’s Degree in Psychology from the XYZ State University. For the last five years he has worked as a manager of DEF Ristorante, a successful Italian restaurant in Portland, OR. Under Mr. Polk’s management, the restaurant has consistently increased sales while maintaining a lower than average level of operating expenses.

Investors will not be involved into the daily management decisions at Java Culture. They will hire a professional manager who will oversee all the coffee bar operations. Three full-time baristas will be in charge of coffee preparation. They will hire two more part-time employees to fulfill the staffing needs. In the second and third year of operation will add additional employees if and when needed. 

Management Team

A full-time manager will be hired to oversee the daily operations at Java Culture. The candidate (who’s name is withheld due to his current employment commitment) has had three years of managerial experience in the definitely industry in Oregon. This person’s responsibilities will include managing the staff, ordering inventory, dealing with suppliers, developing a marketing strategy and perform other daily managerial duties. We believe that our candidate has the right experience for this role. A profit-sharing arrangement for the manager may be considered based on the first year operational results.

Personnel Table

Financial plan investor-ready personnel plan .">, key assumptions.

• We assume a steadily growing potential market in line with growth at the university, trends. 
• We assume industry standard gross margins
• We assume relative status quo regarding technology and trends in the coffee industry

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

The start-up expenses include an estimated $17,000 consisting of several items:

• Legal expenses for obtaining licenses and permits as well as the accounting services totaling $1,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium of $1,500.
• Other start-up expenses including website ($4,000) and phone and utility deposits ($2,500).

The required start-up assets of $71,000 include:

• Plates, glasses, etc. worth approximately $2,000
• Espresso machine
• Coffee maker
• Coffee grinder 
• Food service equipment (microwave, toasters, dishwasher, refrigerator, blender, etc.)
• Storage hardware (bins, utensil rack, shelves, food case) 
• Counter area equipment (counter top, sink, ice machine, etc.)
• Serving area equipment (plates, glasses, flatware)
• Store equipment (cash register, security, ventilation, signage) 
• Office equipment (PC, fax/printer, phone, furniture, file cabinets) 
• Other miscellaneous expenses

Sources of Funds

Projected profit & loss, projected balance sheet, projected cash flow statement.

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The Ultimate Coffee Shop Business Plan and Template

If you are looking to write a coffee shop business plan, you have come to the right place.

A coffee shop business plan is an essential tool for coffee shop owners or people who want to open a coffee shop. A business plan will help you plan your strategy for success and act as a guide as you look to build your coffee shop.

In this article, we’ll look at why you should write a business plan for your coffee shop or cafe, as well as provide you with a sample and a template that contains inspiration for the things you should include in your coffee shop business plan.

Table of Contents

• 1 Why Write a Coffee Shop Business Plan?
• 2.1 Executive Summary
• 2.2 Company Overview
• 2.3 Market and Customer Analysis
• 2.4 Sales and Marketing Plan
• 2.5 Management Team
• 2.6 Financial Plan
• 3 Wrapping Up

Why Write a Coffee Shop Business Plan?

The basic idea behind a coffee shop is simple. The business needs to sell enough coffee products to cover costs and make a profit. However, many variables will define whether your business is successful.

A coffee shop business plan will help you plan a strategy for success. It will consider factors such as opportunities, risks, and how you will market yourself . By having a good idea of this before you start a coffee shop, you will be better placed to overcome or avoid any difficulties.

Here are some examples of how a business plan could help iron out any difficulties:

• While creating the market analysis section, you may decide that competition is too intense. If this is the case, you could look for a new area with fewer competitors or find a way to make your coffee shop business stand out.
• By creating a marketing plan before you open, you can put yourself in an excellent position to make sales from the moment you start a coffee shop.
• By creating cash flow projections, you will be able to spot any potential financial issues well before they come to light, preventing cash flow problems.

Without a business plan, you would either not know about the potential difficulties listed above, or you would be aware of them but lacking any defined strategy for overcoming them. By creating a coffee shop business plan, you can tackle issues with a clearer head.

Business plans are also essential documents if you plan to apply for funding for your coffee shop.

You’ll likely need to submit the business plan to the bank when applying for a loan, or to investors when applying for equity funding. Having a well-thought-out business plan shows you have done your market research and analyzed your idea which helps give investors an overview of the risks and potential rewards of investing.

If you are going to use your business plan to apply for funding, you’ll need to go into a little more detail about the financials of your business. This will include your income and expenses and you’ll also need to include a section that discusses how you will use the money you’re raising.

Coffee Shop Business Plan Template

A Google search will reveal differences when it comes to the exact sections you should include in your coffee shop business plan.

Nonetheless, a coffee shop business plan template will include the sections listed below. In this part of the article, we’ll go through a coffee shop business plan template and discuss what you should include in each section.

Executive Summary

The executive summary is a short overview of your coffee shop business plan. It should include all the important details about your business. When deciding what to include, think about what you would want someone to see if they told you they would only read this one section of your plan.

Open your executive summary with a statement about what your coffee shop business is all about. Talk about what it will offer that is unique and mention why you think it will be successful. Is it the only coffee house in town, for example?

Coffee shop name: AI Coffee Shop

Executive Summary:

AI Coffee will serve high-quality coffee to office workers and business people who work nearby. We will sell espresso-based drinks with a focus on providing quality at speed. We will sell coffee to take away as well as to eat in, with an indoor seating area with space for 25 customers in our coffee shop.

While there are other coffee shops in the area, we believe that there is demand for more — especially ones that focus on a high-quality product. We will also provide a light lunch menu and pastries that we believe will differentiate us from other coffee shops in the area. 

Company Overview

In the company overview section, you should include practical details about your coffee shop business. This will include:

• The structure and ownership of your coffee shop
• The staff you plan to hire and what you will pay them
• Your company’s mission statement, and startup expenses

While this may seem like a lot of work, the good news is this also serves as a way to kill two birds with one stone. As you flesh out your company’s goals & vision statements, it’s important to track this information in an internal wiki . Not only will this help your business stay true to its course, but it can also serve as a great resource for your staff.

AI Coffee will be a privately held company owned entirely by Mr Smith, who will also manage the coffee shop. We will hire two full-time employees with at least two years of barista experience, as well as four part-time employees to help during busy periods.

Startup costs for the coffee shop will be $70,000, which will be spent on rent, renovations, and purchasing equipment. The owner has put up half the money and has borrowed half from a bank. Based on annual sales of $160,000 and after costs and wages, we expect to be profitable within the second year. 

Market and Customer Analysis

In the market analysis section, you should include details about the local market. This can include information on competitors, such as other coffee shops or any fast-food joints, restaurants, or bars that you think will be competing for your coffee shop’s money.

You should also outline what makes your coffee shop business unique and why you think it can be successful despite the competition. You can also include wider information about the coffee industry.

In the customer analysis section, you need to include information about your target market. Include details on who they are and why you think they will like your coffee shop, with metrics where possible. If you performed market research before starting your coffee shop business plan, include that here.

Market Analysis

The coffee industry is expected to keep growing between 2020 and 2024 in the U.S. Research suggests that coffee is one of the most consumed beverages in the country, with the average person drinking two cups per day. We believe that this growth, plus the high volume of coffee people drink each day, makes opening a coffee shop a good business opportunity . 

Competitor Analysis

AI Coffee will be located in a vibrant district that is seeing offices open up and new companies move in. There are currently two other coffee shop competitors in the immediate area, but we believe there is room for more.

Our shop’s main advantages are that it is closer to a new office building than the other shops. We also plan to differentiate ourselves by offering a small lunch menu, unlike any of the existing coffee shops, as well as various customer loyalty schemes . 

Customer Analysis

The location of the coffee shop has high footfall, especially before and after work and during lunchtimes. The area has a high proportion of local professionals who can afford to spend money on coffee and other drinks. 

The office blocks in the immediate vicinity are home to around 2,500 people. There are also other buildings being developed nearby. The location is also close to shopping and entertainment districts. We expect to receive significant revenue from passersby, who will keep us busy during the day. 

Sales and Marketing Plan

Before you start a coffee shop, you should have a clear idea of what your business’s sales strategy will be.

Your sales strategy contains practical details on how you will handle sales. You should also include sales forecasts and how you have come up with these forecasts. In this section, you should include information about the products you will sell and your pricing strategy.

Your marketing plan will discuss the strategies you will use to get customers through the door. Discuss your budget and expected returns on investment. If you have a particularly complex marketing plan, you may want to create a separate document for this and only include the highlights in your business plan.

AI Coffee will open from 7.30 a.m. until 7.30 p.m. seven days a week. We expect the hours immediately before and after office hours, as well as between 12 p.m. and 1 p.m., to be the busiest of the day, with much of our sales being to take out. 

We will use a commercial espresso machine and we expect to be able to produce up to a maximum of 70 cups of coffee per hour, which should be sufficient during busy times. 

We will sell our espresso-based drinks and tea at between $3 and $6, depending on the drink and the size. We will sell pastries at between $2 and $5, as well as light meals at between $7 and $12. These meals will be packaged so customers can either eat them on-site or take them away. 

We expect to generate around $730 per day from food and drink sales. 

Marketing Plan

We will market our coffee shop to customers in the nearby area through display marketing in relevant locations. We will also use social media marketing to target people nearby, and we will connect with people through our social media accounts. We will use these accounts to keep customers updated with new menu items as well as offers and discounts. 

We will also create a website and an app, which we will use to run a customer loyalty scheme . We will provide the option to order coffee through the app and pick it up at the shop. We think this will appeal to busy professionals. 

Our marketing will focus on the quality of the coffee we sell, as well as the benefits of our shop to office workers ( in-app ordering ). During the week after we open, we will offer substantial discounts on coffee to attract people to our business. This offer will be central to our marketing during this period. 

We will encourage repeat customers using a loyalty scheme that will give them a free cup of coffee when they buy eight drinks.

Our marketing budget will be $500 in the first two months, but we will cut this down to around $350 a month after that. 

Operating Plan

The operating plan will include details of how you will run your coffee shop. This will include costs, as well as specifics about things like opening times, food and drink production, prices, and more.

It will also allow you to spot any potential conflicts. For example, if you plan to serve 150 office workers between 7:30 a.m. and 9 a.m., can you do it with only two members of staff or would you be better off hiring another employee?

You can also use this section to explain any licenses or certifications you need to get before you open your shop, as well as how you will train employees.

We will open from 7:30 a.m. to 7.30 p.m. We will always have at least three staff members in place to take care of making coffee, process sales, and keep the coffee shop tidy.

We will buy our coffee wholesale from a supplier that specializes in high-quality coffee. This coffee will cost $40 per five-pound bag. We will keep enough coffee in stock to last for at least one week. 

In terms of equipment, we will use a commercial grinder to grind beans before making each cup. 

We will buy pastries and light meals from a local supplier who will also take care of the packaging. We will receive a daily delivery at 7 a.m., thirty minutes before the shop opens. 

We will thoroughly clean up the shop after closing to ensure it is ready for the following day. We will build HACCP processes to stay compliant with food safety regulations. All members of staff will receive training so they know about these processes.

Management Team

In the management team section, you should include who the business owners are and who will manage your coffee shop. You should write about any experience or qualifications they have that will help make them successful.

If the owners won’t be managing the coffee shop, you should include details about who will take care of the day-to-day running of the business. In this section, include how much you will be paying each of the management team as well as how any profits will be shared amongst the owners.

The owner will also manage the coffee shop. The owner has over ten years’ experience working in coffee shops, including six years in various management positions. AI Coffee will also hire two full-time employees. These employees will have at least two years’ experience working in a coffee shop. We will pay each full-time employee $22,000 a year.

We will also hire four part-time employees with or without experience to work at weekends and provide cover during the week. We will pay these employees $10 an hour. 

Financial Plan

The final section of the coffee shop business plan is the financial plan. Here you need to go into detail about how your business will be financially successful.

Include operating costs (this includes the cost of equipment), loan repayments, cash flow and expected revenue (in the first year, especially). Also, include a balance sheet analysis that shows how much revenue you need to take in to become a profitable coffee business.

In this section, we will explain our financial plan, including costs, expected sales, and profit. We will also include a balance sheet. We believe this plan accurately illustrates why AI Coffee will be financially successful. 

ADD FINANCIALS 

Wrapping Up

That’s all for our coffee shop business plan guide. We hope that this has equipped you with enough knowledge on how to start a coffee shop and will help you with your business planning.

To find out more about getting a business up and running, check out our guides to writing a business proposal in 2019 and writing a small business marketing plan.

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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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