CEBU, Philippines - The promising outlook for social “coffee drinking” lifestyle in the Philippines, has prompted Cebuano owned coffee shop chain Coffee Dream Company Inc., to allocate P100 million capital expenditure (capex) for its three-year expansion plan.
This after the homegrown coffee chain was able to brave the competitive environment in coffee business in the Philippines, amid the strong entry of international brands.
Coffee Dream president Glenn O. Soco announced that the company will add more stores in the next three years, with enhanced ambiance, utilizing the furniture and fixture of world-known furniture designer Kenneth Cobonpue.
Last week, Coffee Dream opened its 36th outlet at the Paseo Arcenas leisure and shopping arcade, jumpstarting the brand’s move to offer more to its clientele, bringing in not just the relaxing ambiance, but also other beverage products such as wines, and food items.
Next year, the company plans to open up at least seven branches more nationwide, four of which will be in Metro Manila, and the three new outlets will be opened in Visayas and Mindanao.
Soco said the compay’s agressive expansion plan next year, will entail at least an investment of P35 million. Part of the three year plan is to improve the capacity of its commissary facilities both in Cebu and in Manila.
Despite the fragile world economic state, Soco said this year is considered as the “banner year” for Coffee Dream, since its establishment 15 years ago.
Unlike Western culture, coffee drinking lifestyle in the Philippines has evolved into something that is become a “third-place” for people who wants to relax, socialized, transact business, among others.
While at the early years of coffee drinking evolution in the Philippines only attracted the discrimating middle to high-end market segment. Today, all market-spectrum has already adopted in the lifestyle. This had made, the coffee shop businesses thrive in the country.
“Local brands continue to survive over the years,” Soco said adding that what fuels the impressive growth for coffee shop business in the Philippines, is the growing volume of money circulating supported by external and internal contributors such as Business Process Outsourcing (BPOs), and the Overseas Filipino Workers (OFWs).
In the last three years, the company invested P10 million re-branding strategy, changing the look and positioning of all its outlets nationwide.
“The market for coffee is expanding, the consumption per person has increased, and there are also more people drinking [gourmet]coffee now,” Soco said.
Instead of being intimated by the giants, Soco said home grown brands should be well positioned to be as "threat" to them.
Annually, Coffee Dream posts an average revenue growth of 20 percent, and indication that the business continue to grow, despite challenges in the economic health, as well as tougher competition.
Coffee Dream, established in 1996, has now presence in Cagayan de Oro, Metro Manila, Bacolod, Iloilo, Davao, and General Santos.
Out of its total 36 branches around the country, 13 of which are managed by franchisees. (FREEMAN)