Local coffeeshop chain sets P15M for expansion

CEBU, Philippines - Cebuano-owned coffeeshop chain Coffee Dream is spending at least P15 million for its expansion move next year, taking advantage of the lucrative gourmet coffee business in the Philippines.

Coffee Dream president Glenn O. Soco said that while international coffee chains are slowly eating up on the local market, local brands have to keep up with the competition and guard their own turf.

At least five more Coffee Dream shops will be opening next year, including the expansion of his commissary to strengthen the company's foothold in the specialty coffee shop industry.

Soco also recognized the tightening of the competition in the coffee business when the ASEAN will be fully integrated.

Of the planned five outlets, two of which will be stand-alone types to be located in Mandaue and Cebu cities, while the rest will be kiosk types to be possibly located in malls. The planned expansion will increase the chain's coffee requirement by 20 percent.

Coffee Dream has a total of 38 branches nationwide, of which 12 branches are located in Cebu.

Coffee Dream started as a small kiosk in Ayala Center Cebu in 1996. Since then, Soco said his coffeeshop have been using locally produced coffee beans.

Amid the entry of specialty shops that offer both coffee and other specialty drinks, Soco is confident his own coffee brand will still remain competitive.

"When foreign coffee brands came into the market, it didn't really affect local players because there is still room for more coffee players. In fact, their presence has helped cultivate and educate the market on gourmet or specialty coffees," he added.

Aside from Filipino adaption to gourmet coffee, the market now has also become more sophisticated and that experience is part of the whole package.

"Specialty shops now are not only selling coffee, they are also selling experience," Soco said.

He suggested that local players should concentrate not only in retail but also in the farming aspect. (FREEMAN)