Cafe Entrepreneurship

Is the coffee business worth the investment in 2021-2022? How?

Is the coffee business worth the investment in 2021-2022? How?


Why it’s still good to invest in coffee business during the pandemic

Coffee shops – where students study their readings and cram their papers, where business deals are discussed and contracts are signed, where first dates happen and friendships deepen. People come here to enjoy conversations over a good cup of coffee, but the pandemic has kept them apart. The social aspect of coffee is now limited, and is more possible at home.

Restrictions left and right have challenged even the biggest and the busiest cafes in the metro. And so a cafe owner wannabe would most likely ask, is it still worth it to invest? Is it still worth it to try?

Pandemic effect

It has been no secret that the food and beverage industry is badly hit by the pandemic. There are many restaurants, cafes, and bars which are forced to close under lockdown, since it’s no longer feasible to continue big operations due to the loss of social visits in 2020.

However, local businesses have stayed afloat through e-commerce, social media marketing, and courier deliveries! 

Hopeful future

There is still a good market for coffee in the Philippines. With the gradual reopening of businesses, establishment of new ventures can still succeed when you strategize and plan accordingly. As a matter of fact, it is even reported that more people still invest their hard earned money on new ventures. An article by Philstar Global has stated that more Filipino families turn their cash remittances from relatives overseas into investments (it is currently at 11% while the preceding year was at 6.1%). 

You can still turn your vision into a reality. Your dream cafe business is still achievable! In fact, in another article published by Philstar Global, a study forecasted that Filipinos really have a love for coffee and this even translated into numbers. With the Philippines ranking top in Southeast Asia in coffee consumption studies, the market for coffee is projected to still rise and thrive. 

Coffee is a well-loved habit!

The good thing is that coffee is an embedded habit in our daily lives. Filipinos are a coffee-drinking nation. People will always look for good quality coffee, no matter what. The point is, only the behavior changed, not the love for coffee. And when consumer behavior changes, coffee owners can respond and adjust.

Position your coffee where it is seen and needed

When there’s limited movement, there can be opportunities for MSMEs to shine. People who are stuck indoors will always look for ways to enjoy the food and drinks they love, even if they’re at home. MSMEs can also offer this, but they have to know how to position their coffee products. What coffee needs and wants do you want to address? Strategically place your brand where it will resonate with its target consumers. 

Explore joining cloud kitchens, which house several different F&B businesses under one roof, one kitchen. This helps your team to focus on deliveries without the need of owning physical stores. Nowadays, there is no need for businesses to have a physical setup of tables, chairs and good interiors. The “cloud kitchen” model enables the business to operate through social media or food delivery apps alone. In effect, they have less expenditures on rent and furniture, therefore will enjoy an increase in their bottom line income.

Invest in effective promotions

Shift your focus to digital marketing, as this can help you target the people you want to sell to. Compared to just targeting a specific location, you can target specific demographics and interests as well. 

Filipinos love having food trips pre-pandemic. That behavior has carried on nowadays through online browsing of food choices. According to GrabFood, 62% of consumers discover new food favorites via food delivery apps. 

Meet your customers where they are. If you want to put up an online cafe, you may also explore being a merchant in food delivery apps!

Creativity churns out new concoctions

Filipinos are adventurous when it comes to taste, that’s why we are easily enticed by new cuisines, new fusions, new kinds of flavors arriving on our shores. 

There may be a lot of challenges for more than a year now, but did you notice that there are also many food and beverage businesses – including coffee – that bloomed during the time of adversity? Some went viral, others have earned more than what they were earning pre-pandemic. Among their effective strategies is to stay creative and stay unique. 

Filipinos will never stop drinking coffee, and they will always welcome new ways to enjoy it, especially now.

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