Local coffee shop mulls opening up for franchise

Homegrown coffee brand Mr. Coffee is striving to mark 2008 as its kick-off year to pursue expansion plans by opening a second branch at One Mango Avenue.

Mr. Coffee general manager Romeo T. Go said the company plans to open three more outlets in the city after the recent opening of its second branch at General Maxilom Avenue.

Go said based on their sales growth, it is evident that there is demand for the product, hence they intend to go into franchising after opening five company operated outlets this year. Of what started as a coffee drinking hobby, Mr. Coffee has become another business venture of the family which also operates other enterprises like importing and exporting under Tri-Gold Ventures International, Corporation.

When the so-called “coffee craze” hit Cebu, the company decided to open up a local coffee brand last April of 2007 in the Paseo mall in Panagdait, Mandaue City.

Eyeing the increasing coffee industry market in Cebu as more and more international and local coffee brands are starting and strengthening existing business operations in the area, Mr. Coffee is determined to capture more coffee drinking people in its customer-base.

By catering to a wide-segment of the market including little kids, Mr. Coffee aims to become a coffee shop wherein colleagues, families and friends can get together. 

“We created non-coffee based drinks that can cater to little children so that they will also enjoy it when their moms and dads are having coffee,” said Go.

Their second branch located at the first level of One Mango Avenue measures 48 square meters and has a seating capacity of about 50 customers. It has adopted a contemporary interior design inspired with nature’s colors.

Aside from coffee and other beverages, Mr. Coffee also serves breakfast meals available all day long.

With captured market that ranges from students in St. Theresa’s, USC Boys High, and other schools around the area plus workers from establishments and offices nearby and also medical rep-representatives from different surrounding medical institutions, Go is optimistic that their second branch have a huge potential to succeed.

With its prime location, convenience and ample parking space, Go is eyeing to earn back their investment in just a matter of six months.

“The coffee shop industry here in Cebu is booming as shown by the expansion of international brands but the issue on congestion is not a problem to us because success of any operation would definitely depend upon the location and we certainly have that,” stressed Go.

Go revealed that for their expansion plan this year, they are eyeing business spaces at the IT Park and the soon-to-be-started boardwalk at the Mandaue Reclamation area and they are considering to tie-up with hotel outlets to put up Mr. Coffee shops in their lobby.

“Location is very important. Even if you are a known brand, you will not get the exact sales required without getting the right location. So for our other locations, we will try to wait and see where we can operate as further developments progresses in Cebu,” Go explained. – Rhia de Pablo