Coffee shops are a good business idea in the Philippines because there are so many coffee lovers in the country. Even more, it’s a good opportunity to offer other foods and products. You would be surprised to know that many customers visit a coffee shop, sometimes not because of the coffee but of the food, pastries, and also the ambiance.
In the Philippines, a coffee shop is more than serving coffee. It’s a place to study, hang out with friends, relax, enjoy good food, and many more. It’s a place where people meet over good coffee. Thus, it could be a lucrative business idea. Here, we made a quick guide you could use if you’re considering starting a coffee shop business in the Philippines.
How To Start a Coffee Shop Business In The Philippines:
1. Come up with a business plan.
A good business plan lays out your business’s structure and objectives. It becomes a reference tool to keep the business on track with sales targets and operational milestones. It can help measure and manage your priority areas of focus and see if your business is losing or doing well.
2. Decide if you’ll franchise or start from scratch.
Since coffee shops are a hit in the country, it’s no wonder that there are many coffee shops offering franchises. If your want to go big, you can look into how to franchise J.Co Donuts & Coffee. If you want something local, you can consider franchising Figaro Coffee. There are many more options, it’s just a matter of reaching out and researching.
If you decide to start from scratch, then your next step is prepare the costs.
3. Prepare for the expenses.
According to a 2022 article from MoneyMax, starting a small 30-sqm coffee shop without a kitchen in a city can cost roughly P950,000 for the equipment, location, and business permit. It would cost you around P600,000 in monthly operational expenses.
If you plan on something as big as 150 sqm with a full kitchen, that would cost you around P4.5 million. However, these costs shouldn’t discourage you at all. There are many inspiring coffee shop owners who started their business from their homes, condo units, or even just in their parking lot.
4. Decide What Type of Coffee Shop
Next, you decide what type of coffee shop you want to build. This is mostly dependent on your budget and availability, like if you’re only planning to do this part-time or full-time. You should also determine your location.
Aside from opening a typical cafe, other types include coffee carts or kiosks at a mall, pick-up, deliveries, pop-ups at food fairs, etc.
5. Legally register
You shouldn’t miss your responsibilities and legally register your business. It’s important to seek legal advice at this point but here are some of the common legal requirements your business needs:
- Barangay Registration
- Business permit & Mayor’s permit
- Department of Trade and Industry registration
- Register your business in the Bureau of Internal Revenue (BIR)
6. Start purchasing your equipment and appliances.
The furniture and other things you need are mostly dependent on the type of coffee shop you like. These will probably take the most of your investment capital, so think wisely before buying. You can also consider second-hand items as long as they’re functioning well.
Here are some of the basic equipment you need:
- Automatic drip coffee maker
- Espresso machine
- Industrial coffee grinder and blender
- Oven toaster
7. Start re-calculating and making projections
After you have bought everything you need, look at your budget and re-calculate. Start calculating your monthly operational costs vs your expected profits. Adjust your business plan if necessary.
The last part is, of course, lots of hardwork and determination! Don’t forget to boost your marketing skills and make noise online to gain attention. Like in any business, be hands on and take the time you need to learn more business lessons. Good luck!
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