Bo's allocates P4M for local expansion

Local coffee chain brand Bo's Coffee Club is postponing its international expansion plan amid the global economic uncertainty and will instead divert its investments to the local economy by opening more branches nationwide.

Bo's Coffee Club president and chief executive officer (CEO) Steve Benitez said although there are few interested parties who want to avail of a Bo’s franchise in other countries like Middle East, and United States, he said the company will be adopting a very conservative stance these days, as the economy is still very volatile.

Benitez said the company has allocated P4 million investments for the opening of two more outlets in Ayala Center Cebu's new wing called "The Terraces" and four more will open next year in the cities of Dumaguete, Tacloban, Bacolod, and Iloilo.

Instead of pursuing international expansion, Benitez said Bo's will have to further strengthen its name in its home country, after all, the Philippines is a tourism destination and building a good brand name here is as good as starting a name in the global scene.

Coffee drinking spending, which is for some considered as "first to go" when financial difficulty hits a consumer's pocket, Benitez believes that it is a good time for local brands to position right now, to prepare for the "boom time."

"Yes, we are investing despite the economy’s unhealthy figure. I believe this is just a cycle. While the market is weak, we are working to get ready for the 'good times', otherwise we will be left behind by the giants," he said.

Benitez is confident that through strengthening and perfecting Bo's coffee brand in the Philippine market, it can well compete with the established names in the Coffee chain world, such as Starbucks, Seattle's Best, Gloria Jeans, among others.

He said international expansion is a tempting idea to start up a good international Philippine-developed Coffee chain brand. However, this time, may not be the right time for Bo's, he said.

The 12-year-old Coffee chain now has a total of 35 outlets all over the country. Aside from penetrating the key cities in the provinces, he said Bo's is also bullish in its expansion plan in wider Luzon area.

Like other Cebuano pro-active entrepreneurs, Benitez said that these times of depressed economic situation. Today is the right time for start-up to invest and expand, while bigger companies "are holding back".

From a P100 investment of establishing a Coffee shop stall in 1996, Bo's Coffee Club operated by the Benitez SD Ventures Holdings, now owns several subsidiaries aside from the Coffee Centrale Inc.-The Bean Company, these are the Triangle Fort Distribution Inc.- the warehouse and delivery provider for all Bo's Coffee outlets nationwide; Triangle Food Central Corporation-the commissary unit for Bo's servicing its pastries and other food product requirements; Coffee System Franchise Corporation, and Omni Triangle Resources Corporation. —Ehda M. Dagooc