Coffee chain brand plans major expansion in Cebu

Despite the projected unfavorable market outlook next year, an international coffee chain brand remains bullish of the Cebu market and focuses its regional expansion move here by 2009.

"Cebu market is very dynamic. We have outlets here and the feedback is positive," said The Coffee Bean & Tea Leaf Philippines, Inc. marketing director Paolo Del Rosario during the opening of its 3rd outlet in Cebu at The Terraces in Ayala Center Cebu.

The company has found a perfect partner with a group of young Cebuano entrepreneurs known as the Red Cherry & Silver Tips, Inc., headed by Allen Arvin A. Tan, as the exclusive franchisee for Cebu. Coffee Bean & Tea Leaf plans to open three more outlets in Cebu to take advantage of the growing coffee lovers’ market here.

Despite the handful of international and locally developed coffee brands in the market, Del Rosario said there is still a huge room for growth for the coffee business, especially in major cities like Metro Cebu and Metro Manila.

However, the company is extra cautious in determining the appropriate locations for expansion, taking into consideration a number of factors such as market acceptability, among others.

He said coffee drinking is now becoming an element of the Filipino lifestyle especially for the urban settlers and eventually will be adopted by the mainstream market in the next few years.

The Coffee Bean & Tea Leaf is the oldest and largest privately held specialty coffee and tea retailer in the United States.

Regardless of its products' cost as compared to other locally developed brands, Del Rosario said Cebu market has well embraced its product quality of gourmet coffee and tea mixes, complemented with each shop's relaxing and home-like ambiance.

Instead of looking at other provincial areas for expansion, he said there is still room for growth in Cebu.

He further dismissed impressions that the Philippines is already a "crowded market" for coffee shops, saying there are still growth areas in the Philippines and Cebu is one.—Ehda M. Dagooc