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Business As Usual

Making good coffee

- Rose G. De La Cruz -
EDSA Agro Industrial Trading Corp. president and general manager Florante de la Cruz got close to Agriculture Secretary Luis Lorenzo, Jr. about a year ago. At that time, Lorenzo was Presidential adviser for the creation of one million jobs.

"I put up a training program for baristas who would be working in my Mocha Blends chain. It is the job of the barista to distinguish the different coffee beans, to roast and brew the beans according to the customer’s order, and to serve these fresh to customers. Cito was, however, more interested in the training program as a job opportunity for Filipinos going abroad, " said de la Cruz.

Because of the popularity of coffee and the proliferation of coffee shops all over the world, the going rate for a barista is $600 a week.

Training is conducted at the EDSA-Balintawak showroom of Elektra espresso machines, which are distributed locally by another de la Cruz company, LAC Enterprises. "Each machine has its own peculiarities. Our program is specifically geared towards the making of coffee with the Elektra," said de la Cruz.

To date, the program has graduated 20 baristas. Although most have gone on to work for the five outlets of Mocha Blends, there are no work contracts that tie down the new baristas to the company for any period of time.

"They can work for us or put up their own coffee shops or work abroad. What’s important is that they know how to make good coffee," de la Cruz said.
Franchise
Certainly, the ongoing training program will be helpful to the future franchisees of Mocha Blends, a local coffee shop chain which buys its roasted beans, including the Philippine-grown Café Maharlika, from Australia-based Mocha Coffee Pty Ltd.

"The idea is to have a critical mass of outlets to justify the hiring of a Philippine-based roaster from Mocha Coffee," said de la Cruz. "With a roaster in the country, we will be able to experiment with more Philippine-grown beans. We will be able to bring down the cost of a cup of beans without sacrificing quality," he said.

As a management strategy, all of the five Mocha Blends outlets are owned by different companies (even if four are entirely owned by de la Cruz and the fifth is owned in partnership with actor, Piolo Pascual).

This year, Mocha Blends’ expansion will be through franchising in Metro Manila and neighboring provinces. Three franchising packages have been developed by RK Franchising Consultancy and would be launched by the first half of 2003.

The first package is the cart or coffee-to —go, which is ideal for lobbies of hotels, schools, office buildings, and bus and train terminals. Because of lower costs (the use of disposable cups and a small espresso machine) and minimal manpower, the capital investment for a franchisee is around P1.5 investment, depending on the location.

Opening a 20-seat kiosk requires more people and a bigger espresso machine. These are ideal in cinemas, terminals, ports and airports, malls. The required investment needed is from P2.5 million to P3 million.

The café–similar to the Morato branch, which has 200 seats–serves not just different kinds of espresso coffee but also a fusion of cuisines for breakfast, lunch, dinners and in-between snacks.

In the works are the opening of a kiosk in the expansion mall of Robinson’s Galleria; and a stand-alone garden kiosk inside St. Luke’s Medical Center.

"The importance of a holistic café package cannot be underestimated. To stay in business, we cannot just serve good-tasting coffee prepared the European way. Although there seems to be a big following for cappuccino and espresso, we must also provide an inviting place for coffee lovers to drink their coffee and to meet with their friends," he said.

AGRICULTURE SECRETARY LUIS LORENZO

AGRO INDUSTRIAL TRADING CORP

COFFEE

CRUZ

FRANCHISING CONSULTANCY

MEDICAL CENTER

METRO MANILA

MOCHA

MOCHA BLENDS

MOCHA COFFEE

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