A new market for coffee farmers

The operation of Coffee nook kiosks has effectively expanded the local farmers’ market within the country that is still basically dominated by foreign coffee shop operators. Now, farmers can sell their beans both to the foreign and local coffee shop chains and to Coffee Nook outlets that price espresso coffee relatively lower than stand-alone shops in malls and commercial buildings.

Aside from expanding the market of local coffee farmer for their beans, Coffee Nook has also provide an investment option for mostly overseas Filipino workers to consider putting their hard-earned foreign income in, said Virgilio Quijano, Coffee Nook general manager.

The kiosks also provide additional employment to their specific locations since Coffee Nook employs not just a master brewer but also servers, a supervisor and even more, depending on the foot traffic of the place.

Quijano said that while his company has not yet formally launched the Coffee Nook in the local market – it has been testing the market since late March this year – the response among would-be investors has been very encouraging with already 25 kiosks now in operation in Metro Manila and nearby provinces.

The 25 Coffee Nook Italian Espresso outlets are located in high traffic sites in Metro Manila, Laoag, Pangasinan, Tarlac and Bulacan.

"We are vigorously exploring putting up Coffee Nooks in schools, university campuses, mall and even in heavy traffic areas in residential villages," Quijano said.

The stand alone stores of Coffee Nook are those being put up in Shopwise Cubao and Araneta Square in Caloocan City, near the De La Salle University campus, the Avalon Zoological and Botanical Garde, the Farinas Bus Terminal in Laoag, in the central area of Dagupan City and near the municipality of Malolos.

The franchise fee of a Coffee Nook is P250,000. It is actually a three year lease and renewable after that period. It carries with it the inventory of beans, coffee machines, setting (of eight chairs and two tables), the kiosk, the signages and lighting, personnel training and cakes, pastries and cookies either for dine in or take out. Later this year, the Coffee Nooks will also be serving sandwiches which are very popular among students.

Quijano and his company are targeting 100 Coffee Nooks by the end of 2004 which is very attainable considering the warm response to Coffee Nook.

Most of the current investors are young entrepreneurs while others are retirees and OFWs, he said.

The Coffee Nook serves espresso coffee, using 100 percent locally grown beans, with 10 flavorings and cold drinks such as five variations of cold coffee and five cold gourmet teas, he said.

A hot cup of espresso at Coffee Nook costs P35 while cold coffee with whipped cream is P60 per cup. This price is definitely cheaper than espresso sold in coffee shops at P60 or more per cup.