Coffee shop business plan template for the Philippines

1. Executive summary

Example: [Shop name] will be a small coffee shop of about [number] seats on [street], [city], serving espresso drinks, brewed coffee, iced drinks and a short pastry menu bought from [bakery]. The owner, [name], will register it as a sole proprietorship. It will open from [time] to [time], built around the morning rush of [offices, school, terminal] within walking distance.

Start-up cost is ₱____ (your figure), covering the espresso machine, grinder, chiller, furniture, permits and opening stock. The owner will put in ₱____ and is asking [lender] for ₱____. The plan expects to cover monthly costs by month [number] on the middle sales case shown in the financial plan.

Write this part last. A reader should finish it knowing what you sell, where, to whom, how much you need and when you expect to repay it. The executive summary guide shows how to keep it to one page.

2. The shop and its location

A coffee shop lives or dies by the street outside. Describe the unit: [size] square metres, [ground floor or mall kiosk], a counter facing [entrance], seating for [number], and whether the lease allows a grease trap, a sink line and extra electrical load for the espresso machine. Ask the landlord in writing before you sign.

Water matters more here than in most shops, because water goes into every cup and every piece of ice. The health rules for food establishments require a water supply that is adequate and potable, whether it comes from a public system or a private one. Say in the plan where your water comes from: [water utility, deep well, delivered water] and what filter you will use.^[3]

List what is already near the unit: [number] offices, a [school or university], a [terminal or church], and the hours each is busy. Note the nearest coffee seller and what they charge by visiting, not by guessing.

3. Who will buy, and who else sells coffee here

Do not fill this part with national coffee statistics. A lender wants to see that you counted your own street. Use the prompts below and replace each blank with something you observed or asked.

Fill-in example. Our main customers are [office workers, students, commuters] who pass the shop between [time] and [time]. On [three weekdays] we counted [number] people walking past during the morning hour. We asked [number] of them where they buy coffee now; [number] said [answer]. Our second group is [weekend families, online delivery customers].

Competition. Within [distance] there are [number] coffee sellers: [name or type], open [hours], selling a basic brewed coffee at ₱____ by our own visit on [date]; [convenience store] with self-serve coffee; and [kiosk]. We will compete on [longer hours, seats and wifi, faster service at the rush, a cheaper brewed option]. See competitive analysis for a table layout.

• Count foot traffic yourself on at least three days, including a weekend
• Visit each competitor and write down hours, menu and prices with the date
• Ask nearby offices whether they order coffee for meetings
• Note any seat limit or wifi rule in your lease

4. Running the shop day to day

Menu and supply. [Number] drinks at launch, beans from [roaster] delivered every [period], milk from [supplier], cups and lids from [supplier]. Pastries bought daily from [bakery] rather than baked on site, which keeps the kitchen small.

People. The owner plus [number] baristas on two shifts. Every person who handles food or drinks needs a health certificate from the local health authority before starting work, and it is renewed at least once a year or more often if the local ordinance says so. Put the renewal month in your calendar the day you hire.^[4,3]

Routine. Open at [time], dial in the grinder, prepare cold brew for the day, clean the machine and drain lines at close. Record sales and cups used each night so you can check waste against the cup count. If you hire, register with SSS, PhilHealth and Pag-IBIG first; the first employee guide lists the steps.

5. Permits and what they cost

The shop registers like any small business: DTI business name, barangay clearance and mayor's permit, plus BIR, which you can do once you have the DTI certificate and must finish by your first sale or 30 calendar days after that certificate, whichever comes first. DTI charges ₱200 for a barangay-scope business name, ₱500 for city or municipality scope, ₱1,000 for regional and ₱2,000 for national, plus a ₱30 documentary stamp tax on any of them.^[1,7]

On top of that, you cannot open a food establishment to the public without a sanitary permit, and the fee is set by your city or municipality, not by a national rate. Some LGUs also ask food establishments for a monthly bacteriological water test from a DOH-accredited laboratory as part of the sanitary permit. Morong, Rizal is one published example. Ask your health office if yours does, because a coffee shop serving iced drinks will be asked about its water.^[3,5]

You do not need an FDA License to Operate for the café itself. FDA licensing of food establishments under AO 2014-0029 leaves restaurants and similar outlets to the LGU. That changes if you start selling packed beans or bottled cold brew to other stores; check the FDA rules before you do.^[6]

6. Financial plan

Use the permit table on this page for the fees that are published. Everything else is a quotation or a count you collect yourself.

Start-up costs. Espresso machine ₱____; grinder ₱____; chiller and freezer ₱____; water filter ₱____; counter, tables and chairs ₱____; signage ₱____; lease deposit and advance ₱____; opening stock of beans, milk and cups ₱____; DTI name ₱500 plus ₱30 stamp tax at city scope; barangay clearance ₱____; mayor's permit ₱____; sanitary permit ₱____; health certificates ₱____ × [number] staff; cash reserve ₱____.^[1]

Monthly costs. Rent ₱____; electricity ₱____ (espresso machines and chillers draw a lot, so ask for a sub-meter reading); water ₱____; water test ₱____ if required; wages ₱____; beans, milk, syrups and cups at ₱____ per cup × [cups]; internet ₱____; bookkeeping ₱____.

Sales and break-even. Cups per day [number] × average ticket ₱____ × [days] = ₱____ per month in the middle case. Break-even sales = fixed monthly costs ₱____ ÷ gross margin ____%. Show a low and a high case. The financial plan guide has a 12-month layout.

7. Risks and how to handle them

Equipment breakdown. One espresso machine means one point of failure. Plan: a service contract with [technician], a manual brew menu for downtime, and ₱____ set aside for parts.

Health permit problems. A failed water test or an expired health certificate can stop service. Plan: book the lab test on the same date each month, keep certificates in a folder at the counter, and renew them before the anniversary of issue.

Slow afternoons. Morning-heavy shops sit empty after lunch. Plan: test an afternoon offer for [students or meetings] in month [number], and cut a shift if sales stay below ₱____ for [number] weeks. Rent increases: ask for a [number]-year lease with the escalation written in.

Permit and registration costs: coffee shop

Questions people ask

Does a coffee shop need an FDA license?

Not for serving drinks over its own counter. FDA licensing under AO 2014-0029 leaves restaurants and similar outlets to the city or municipality, which issues the sanitary permit. Selling packed products to other stores is a different question.

Do baristas need health certificates?

Yes. Every employee of a food establishment needs a health certificate from the local health authority, renewed at least yearly or as often as the local ordinance requires.

Why are the sales figures blank?

Coffee sales depend on your street, your hours and your prices. A borrowed figure would mislead you and your lender. Count your own foot traffic and build the numbers from it.

How much is the DTI fee for a coffee shop name?

₱500 for city or municipality scope, plus ₱30 documentary stamp tax. Barangay scope is ₱200 and national scope is ₱2,000.