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How to Start a Coffee Shop Business in the Philippines: A Step-by-Step Guide for Filipino Entrepreneurs

By Yesh Quijano    July 7, 2025       min read

Starting your negosyo is never easy — lalo na kung food or beverage ang pinag-uusapan. Yet, in today’s caffeine-loving culture, one thing is sure: many Filipinos can't begin the day without a good cup of coffee.

That’s why a coffee shop is a good business idea — not just for profit, but also for passion.

how to start a coffee shop business philippines

Whether you’re an aspiring coffee shop owner who dreams of brewing quality coffee for your neighborhood, or a business owner eyeing the growing coffee market in the Philippines, this guide will walk you through diskarte tips on how to start a coffee shop business in the Philippines — step by step and in a way that's practical, affordable, and pasok sa panlasa ng Pinoy.

Let’s brew your dream into reality!

Note: This guide is based on actual experiences of Filipino coffee business owners and expert input from the local food and beverage industry. Startup costs and procedures may vary depending on location and regulatory updates.


For the latest information, always consult local government units (LGUs) or visit official websites like DTI.gov.ph and BIR.gov.ph.

Why a Coffee Shop is a Good Business in the Philippines

The Philippines is a country with a deep connection to coffee. From traditional coffee served in sari-sari stores to specialty coffees in air-conditioned cafés, the demand for coffee is alive and growing.

Why exactly is a coffee shop in the Philippines a smart business endeavor?

  • The coffee culture is stronger than ever, especially among millennials and the middle class.
  • The rise of remote work has led to an increased demand for cozy spots where people can work and enjoy coffee.
  • Coffee shops cater to varied audiences: students, professionals, barkadas, and couples on dates

Recommended reading: Check DTI’s coffee industry roadmap and MSME programs here.

The Coffee Market in the Philippines: Quick Glance

  • There’s a growing number of coffee shops in the country.
  • The popular coffee shop brands include Starbucks, The Coffee Bean & Tea Leaf, Zus Coffee, and trending pop culture-themed coffee houses.
  • Local coffee beans like Liberica (Barako) and Arabica Benguet (Kintanglad) are gaining recognition for their quality and taste.
  • According to the Department of Trade and Industry (DTI), demand for local coffee increased 40% in 2022 due to the rise of independent cafés and interest in specialty brews.
  • Many coffee enthusiasts are looking for affordable yet high-quality coffee beverages.

Steps to Start a Coffee Shop Business in the Philippines

1. Develop a Solid Business Plan

Your coffee shop business starts with careful planning. A business plan will serve as your blueprint — helping you align your concept, finances, and strategy.

Your business plan should include:

  • Your coffee shop’s concept (e.g., minimalist, family-friendly, premium, mobile coffee cart)
  • Type of coffee you’ll serve (traditional coffee, specialty coffee, iced coffee, espresso-based drinks like cappuccino and latte)
  • Menu plan (coffee drinks, tea, milk-based drinks, light meals like breakfast sandwiches or pasta for lunch and dinner)
  • Target market and pricing
  • Investment cost and expected income
  • Location scouting and setup
  • Marketing strategy (offline + online, especially on Instagram and TikTok)

2. Choose the Right Business Model

Depending on your capital and diskarte, you can choose from:

Independent Coffee Shop: Build your own brand from scratch. You have more creative freedom — but also higher responsibility for marketing, branding, and operations.

Franchising a Coffee Shop: If you want a proven system, go for a coffee franchise. You’ll have to pay a franchise fee and royalty payment, but you’ll get training, branding support, and existing market trust.

Popular franchises in the Philippines include:

Coffee Franchise

Estimated Franchise Fee

Notes

The Coffee Bean & Tea Leaf

PHP 2M - PHP 6M

Premium, well-known

Bo's Coffee

~PHP800K+

Proudly Pinoy brand

Macao Imperial and other pop culture-themed coffee houses

PHP1M+

Trendy among Gen Z

Reminder: Always check with the Philippine Franchise Association  for accredited and legitimate opportunities.

3. Find the Perfect Location

In the Philippines, a good location can make or break your shop business.

Factors to consider:

  • Foot traffic: malapit ba sa schools, offices, or transport hubs?
  • Visibility: madaling mapansin?
  • Accessibility: may parking? Madali bang puntahan?
  • Competition: are there too many coffee shops near your planned space?

Budgeting and Startup Costs

Startup costs will vary depending on the size, branding, and type of coffee shop.

Here’s a rough breakdown for a small coffee shop business in the Philippines:

Expense Item

Estimated Cost (PHP)

Business Registration

10,000-20,000

Rent (1 month advance + bond)

30,000-100,000+

Renovations/Interior

50,000-300,000

Coffee beans and equipments

50,000-300,000

Furniture & Kitchen tools

30,000-100,000

Initial Inventory (food & drinks)

20,000-50,000

Marketing & branding

10,000-30,000

Staff salaries (1-2 months)

30,000-100,000

Legal Requirements to Register Your Business

Before running a coffee shop business, you need to comply with local and national regulations.

Basic steps:

  1. Register your Business – DTI for sole proprietorship (https://bnrs.dti.gov.ph), or SEC if corporation (https://www.sec.gov.ph).
  2. Barangay Clearance – Talk to your barangay hall.
  3. Mayor’s Permit – From your city hall. Usually includes sanitation, zoning, and fire inspection.
  4. BIR Registration – To issue official receipts and pay taxes (https://www.bir.gov.ph). Check out our guide here.
  5. FDA Licenses (if selling certain food/drinks) – Refer to the Food and Drug Administration (https://www.fda.gov.ph).

Getting these papers in order protects you from penalties and gives your shop business credibility.

Crafting Your Menu and Coffee Offerings

A good menu blends Filipino flavor with international favorites. Many coffee shop customers in the country are looking for variation. Include:

  • Espresso-based drinks: Americano, Latte, Cappuccino Iced coffee drinks
  • Teas (milk tea or brewed)
  • Local coffee options: Kape Barako, Sagada beans
  • Non-coffee drinks for those with different preference (e.g., hot chocolate, fruit juices)
  • Affordable pastries, simple meals for lunch or dinner

Pro Tip from Baristas: Create a "Signature Drink" exclusive to your shop. It becomes your trademark and helps people remember your brand. How about creating the Kapeng Ube Latte — combining Filipino ube jam and espresso!

Marketing Your Coffee Shop Business

The success of your coffee shop depends on how well people know about you.

Marketing Strategy Tips:

  • Social Media Presence: Put your shop on Instagram, Facebook, and TikTok. Share your aesthetics, customer experiences, and promos.
  • Launch Promos: Offer a buy-one-get-one deal or free upsize during opening week.
  • Loyalty Cards: Encourage repeat visits with stamp-based promos.
  • Collaborations: Team up with neighboring shops, local artists, or food trucks.
  • Push for Reviews: Ask happy customers to leave you a rating online — it builds your reputation!

Industry data shows that Filipino coffee shops with high Facebook and Google Ratings tend to attract 2x more foot traffic than competitors without online reviews.

Ang sikreto sa pag-grow ng coffee business? Consistency in customer service, taste, and quality coffee preparation.

Common Challenges in Running a Coffee Shop Business

No business is 100% smooth-sailing, so expect some hurdles:

  • Supply chain problems (e.g., delay in coffee bean shipments)
  • Hiring trained baristas and kitchen crew
  • Competition from a popular coffee shop nearby
  • Managing food and coffee preparation during peak hours
    Juggling dine-in, takeout, and delivery orders without affecting service

“We underestimated weekday demand from online workers. Now we prepare grab-and-go bundles every morning.” 

Stay hands-on, track your performance data, and be ready to pivot. That’s the diskarte of successful coffee shop entrepreneurs.

Coffee Shop Business Ideas to Get You Inspired

Need help developing your concept? Here are some coffee shop business ideas that are doing well in the Philippine coffee scene:

  • Mobile Coffee Cart – Good for festivals, parks, or co-working spaces.
  • Pop Culture-Themed Coffeehouse – Inspired by K-dramas, anime, or local celebrities.
  • Local Coffeehouse – A tribute to Philippine-grown beans and traditions of the country of coffee.
  • Sustainable Coffee Shop – Uses reusable cups, local ingredients, and eco-friendly packaging.
  • Home-Based Coffee-to-Go – Just a small coffee setup with delivery or pick-up options.

Launch Your Coffee Shop Business with Purpose

Starting your coffee shop business in the Philippines doesn’t have to be overwhelming. With the right preparation, diskarte, and love for the bean — you can build something not just profitable, but deeply fulfilling.

Remember:

  • A shop is a good business if you’re committed to quality.
  • You can choose to franchise or build your coffee shop from scratch.
  • Local flavor, great coffee experience, good customer service, and smart branding are your best assets.
  • Start small, refine your craft, and grow your business sustainably.

Now that you've learned the basics, the next step is up to you. Are you ready to brew your success in the local coffee scene?

Dream big. Brew fresh. Serve happy.

Follow Trailblazer.com.ph for more tips, insights, and real talk on Filipino negosyo life. Save this guide and share it with a fellow ka-negosyo — because success in the coffee business tastes better when shared.

Kaya mo ‘yan, future coffee shop owner!

About the author 

Yesh Quijano

Yesh Quijano is an entrepreneur and digital marketer who's been in the game for over 11 years. He started several businesses and helped countless others reach new heights. His goal is to make digital marketing for SMEs simple, accessible, and effective. When he's not working, you can find him cuddling with his two cats.

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