The Philippines has a thriving coffee culture, making a coffee shop franchise a promising business opportunity. Whether you’re looking for a well-established brand or an emerging player with high-growth potential, choosing the right franchise can determine your success.
In this guide, we break down the best coffee shop franchises in the Philippines, covering franchise costs, brand strengths, and profitability factors to help you make an informed decision.
How We Chose the Best Coffee Franchises?
Selecting the best coffee shop franchises in the Philippines requires balancing investment costs, brand strength, and long-term profitability. You may prefer one main factor, but it is better to consider those three key factors to help you make the best decision for your coffee franchise.
To rank the top franchises, we created a list of 37 coffee shops that offer franchise opportunities and evaluated each brand based on the following key factors:
Franchise Investment – Initial Franchise Fee, Setup Costs, and Ongoing Fees
Franchising a coffee shop requires an upfront investment, but the value you get for your capital varies significantly. In our coffee franchise review, we considered:
- Initial Franchise Fee – The cost of securing the brand’s franchise rights
- Setup Costs – Equipment, store build-out, furniture, and branding materials
- Ongoing Fees – Royalties, marketing contributions, and operational expenses
Brand Recognition – Market Presence and Customer Loyalty
A coffee franchise’s success depends mainly on attracting and retaining loyal customers. We analyzed:
- Market Presence – How well-known the brand is and how fast it’s expanding (“number of locations”)
- Customer Loyalty – Whether customers actively seek out the brand
- Market Positioning – Is the brand catering to mass-market coffee drinkers or premium café customers?
For example, while long-established brands like Figaro Coffee are well-known, Hills & Valleys Coffee has quickly become a customer favorite due to its focus on premium-quality beans, handcrafted drinks, and modern café aesthetics. It has built a strong following among millennials and Gen Z customers who seek an experience beyond coffee.
Another factor we consider is the coffee shop franchise’s popularity on different platforms and market opportunities. So, for instance, we removed less well-known brands that haven’t had their own websites, are not part of Franchise Associations in the Philippines, or don’t have a significant following on their social media profiles.
Franchisee Support – Training, Marketing, and Operational Assistance
A successful coffee franchise is more than just a brand—it should equip its franchisees with the tools to succeed. You would need to consider elements of franchisee support, such as:
- Barista Training – Ensuring consistent quality across all franchise locations
- Marketing & Branding Support – Digital advertising, social media promotions, and grand opening assistance
- Supply Chain & Inventory Management – Consistency in sourcing quality beans and ingredients
- Operational Support – Guidance on daily business management and troubleshooting
Profitability Potential – Projected Return on Investment (ROI)
Investing in a coffee shop should be financially rewarding, so we assessed each franchise’s profitability and ROI timeline based on:
- Breakeven Period – How long before a franchisee recovers their investment
- Profit Margins – Revenue potential vs. operational costs
- Sustainability – Long-term customer demand and brand growth
For example, while lower-cost franchises like Farron Café may have a faster breakeven period, their low price points result in lower profit margins per sale. In contrast, Hills & Valleys Coffee maintains a strong balance between premium pricing and high demand, allowing franchisees to generate higher earnings per customer transaction.
With an average ROI timeline of 1.5 to 3 years, Hills & Valleys offers a profitable and sustainable model for franchisees willing to invest in quality over volume. Hills & Valleys Coffee emphasizes brand experience and customer retention, leading to repeat customers and steady revenue growth, unlike mass-market brands that rely on high sales volume.
Another factor we consider is the price of beverages each coffee shop franchise offers. We remove in priority the lower-ranked franchises that sell absurdly cheap coffee (e.g., Php 25 to 50).
The reason is that you need to have a larger volume of sales to be profitable in that kind of coffee franchise. Though you may have a lower startup cost (as most offer it within Php80,000 to Php 250,000), you would find it difficult to get more returns from your investment in the long run.
Unique Selling Points – What Makes the Brand Stand Out?
With so many coffee franchises in the market, differentiation is key. We looked at what sets each brand apart, including:
- Signature Offerings – Specialty drinks, premium beans, or unique blends
- Additional Flavors to the Menu – is the franchisor shelling out new flavors each month?
- Store Concept & Ambiance – Is it an aesthetic café, a minimalist grab-and-go stall, or a hybrid?
- Menu Innovations – Does the brand introduce seasonal drinks, specialty teas, or locally inspired flavors?
All the above points factor into play when we review the best coffee franchises in the Philippines.
And for the final verdict.
Which Coffee Franchise is Best for You?
Here’s a quick summary to help you decide:
☕ Best for premium specialty coffee → Hills & Valleys Coffee
☕ Best for full-service café model → Figaro Coffee
☕ Best for budget-friendly, minimalist branding → But First Coffee
☕ Best for strong, high-caffeine coffee niche → Palpitate Coffee
☕ Best for low-cost startup → Farron Café
Before investing, reach out to each franchisee to discuss requirements, profitability projections, and available store locations.
Best Coffee Shop Franchises in the Philippines in 2025
1. Hills & Valleys Coffee Franchise
The Hills & Valleys Coffee Franchise offers a unique opportunity to turn your love for coffee into a thriving business. Every cup represents passion, dedication, and a commitment to excellence. As a franchisee, you become part of this story, bringing an exceptional coffee experience to your local community.
Choose from three flexible franchise packages: Deluxe Cart, Fit Out, and Store. Each option caters to different investment levels and business goals, making it easier for aspiring entrepreneurs to start their journey.
Hills & Valleys Coffee Franchise: Exciting Packages to Kickstart Your Coffee Business
Deluxe Cart Package
Investment: P495,000
Inclusions:
- 5 Years Franchise Fee
- Full Construction Cost
- Franchisee Training
- Operations Manual
- Use of Business name and Logo
- 1 Month Worth of Coffee Supplies
- Espresso Machine
- Grinder
- JTC Blender
- Social Media Advertising (worth P3,000)
- Food delivery app application assistance
- POS (1st 6 months Subscription)
For Inquiries:
Mobile/Viber: 0906 232 0168
Email: hillsandvalleyscoffee@gmail.com
The Deluxe Cart package is the ideal choice for entrepreneurs looking for a versatile and portable coffee business. Designed for high-traffic locations like malls and supermarkets, this fully furnished coffee cart allows you to bring premium coffee to busy customers with ease.
With the iconic Hills & Valleys Coffee logo displayed prominently, your cart will attract attention and create a welcoming coffee experience wherever you set up. Enjoy the freedom and flexibility to serve great coffee in dynamic locations while maintaining a professional and inviting ambiance.
Cafe Fit Out Package
Investment: P495,000 + Construction Cost
Inclusions:
- 5 Years Franchise Fee
- Franchisee Training
- Operations Manual
- Use of Business name and Logo
- Social Media Advertising (worth P10,000)
- Food delivery app application assistance
- POS (1st 6 months Subscription)
- Espresso Machine
- Grinder
- JTC Blender
- Supplies and Accessories
- 1 Month Worth of Coffee Supplies
For Inquiries:
Mobile/Viber: 0906 232 0168
Email: hillsandvalleyscoffee@gmail.com
The Fit Out franchise package is ideal for those who want a compact coffee shop in outdoor locations like parks and tourist spots. This turnkey solution transforms a suitable space into a Hills & Valleys Coffee outlet.
Our team works closely with you from design to setup, ensuring a smooth process. Together, we’ll create an inviting space that reflects the brand’s style while maximizing efficiency and functionality. Bring your coffee shop vision to life with the Fit Out franchise package.
Store Package
Investment: P495,000 + Construction Cost
Inclusions:
- 5 Years Franchise Fee
- Franchisee Training
- Operations Manual
- Use of Business name and Logo
- Social Media Advertising (worth P10,000)
- Food delivery app application assistance
- POS (1st 6 months Subscription)
- Espresso Machine
- Grinder
- JTC Blender
- 1 Month Worth of Coffee Supplies
For Inquiries:
Mobile/Viber: 0906 232 0168
Email: hillsandvalleyscoffee@gmail.com
The Store package is a great opportunity for entrepreneurs to build a thriving coffee shop in prime indoor locations like malls, supermarkets, business centers, and commercial buildings.
This package provides a spacious setup with a comfortable seating area, a dedicated coffee bar, and a selection of pastries and sandwiches to complement the coffee experience.
We offer full support, from site selection and interior design to sourcing high-quality equipment and staff training. The Store package is perfect for those who want to create a bustling coffee destination where customers can enjoy premium blends in a cozy and welcoming atmosphere.
For more information and inquiries, please contact us through the following channels:
Mobile/Viber: 0906 232 0168
Email: hillsandvalleyscoffee@gmail.com
2. Figaro Coffee
Figaro Coffee is a well-known brand in the Philippines, offering a variety of high-quality coffee, pastries, pasta, panini sandwiches, and salads. The brand provides multiple franchise models, allowing entrepreneurs to serve premium coffee in different settings.
Franchise Models
- Full Store (60-80 sqm) – Serves the full menu. Contract term: 8 years (renewable every 4 years).
- Kiosk Store (30-40 sqm) – Offers a full line of beverages, pastries, and light meals. Contract term: 5 years (renewable every 5 years).
- Cart/Kiosk (10-20 sqm) – Focuses on beverages and pastries. Contract term: 5 years (renewable every 5 years).
Franchise Inclusions
The total investment covers the franchise fee, site assessment, store design, construction, equipment, initial stocks, uniforms, and marketing materials.
For inquiries:
📞 (632) 706-0564 | (632) 671-4232 loc 19 | 63932-8468228
📧 franchise@figarocoffee.com
Image Source: Figaro Website
3. Farron Cafe
Farron Cafe started as a small business and has grown into one of the fastest-expanding coffee franchises in the Philippines, with over 600 outlets nationwide. The brand offers affordable gourmet coffee and competitive pricing compared to top brands.
Franchise Options
- Cart – ₱168,000 to ₱699,000
- Kiosk – ₱224,000 to ₱879,000
- Full Cafe – ₱280,000 to ₱1,200,000
Franchise Inclusions
Franchisees receive mentoring, supplies, equipment, licensing, marketing assistance, and training in coffee preparation and business operations.
How to Franchise
- Submit an application form with business details.
- Attend a meeting with the franchising team.
- Pay the franchise fee and sign the agreement.
- Get location approval and settle the remaining balance.
- Complete barista training and prepare for opening.
For inquiries:
📞 0922 803 3322 / 8 294 0295
📧 franchisefarrongroup@gmail.com
4. But First Coffee
But First Coffee has expanded rapidly, growing to 90 branches nationwide in just two years. The brand became popular during the pandemic by offering affordable, high-quality coffee while supporting local farmers.
Franchise Packages
- Indoor Cart – ₱1,000,000
- Outdoor Cart – ₱1,500,000
- Customized Store – Pricing based on design and space requirements
Franchise Inclusions
Franchisees receive training, business name rights, marketing support, a POS system, supplies, equipment, and orientation on business permits.
BFC continues to expand, focusing on business districts, residential areas, and commercial hubs across Metro Manila and other key cities.
5. Palpitate Coffee
Located inside an indoor go-kart track in Taytay, Rizal, Palpitate Coffee offers a unique experience where customers can enjoy premium coffee alongside high-speed kart racing.
The shop features a minimalist ambiance, serving an extensive range of coffee options. Their signature Palpitate Blend is known for its rich cedar notes and balanced sweetness.
For franchise details and applications: 📧 palpitatecoffee.ph@gmail.com
Key Factors to Consider Before Franchising a Coffee Shop
Franchising a coffee shop requires careful evaluation and decision to ensure you’re giving yourself a chance to succeed in this line of business.
While an established coffee shop brand provides built-in recognition, factors like location, costs, and operational requirements can significantly impact your return on investment.
Based on global standards in choosing the right coffee shop franchise, here are our top-of-the-list considerations before franchising a coffee shop.
Location and Market Demand
Fifty percent of success when starting a coffee shop lies in its location. Knowing the location spots where there is high foot traffic could help you increase the odds of new daily customers to your store.
High-traffic areas such as malls, business districts, and transport hubs can help attract consistent customers, while standalone locations may require aggressive marketing for both ends of franchisor and franchisee.
So, before choosing a location, analyze customer behavior, competitor density within the area (which means knowing who your competitors are), and purchasing power within the target location.
If you’re targeting office workers, focus on convenience and speed. If catering to a leisure crowd, prioritize ambiance and seating.
Generally, franchise agreements may restrict store placement, so it is best to consult your preferred franchisor (or ask questions during your franchise orientation).
Franchise Costs and Fees
Franchise investments vary widely, from small kiosks to full-scale cafés, requiring capital ranging from Php 300,000 to over Php 10 million.
Costs typically include the franchise fee, store setup, equipment, and initial inventory. On top of that, you’ll have to look at ongoing expenses such as royalties, marketing fees, and operational costs that must be factored into profitability calculations.
Some franchises require revenue-sharing agreements (as with co-franchise contracts), which can impact net income.
Always request a breakdown of costs and projected earnings before signing a contract to assess financial viability.
Brand Strength and Competitive Advantage
A well-known franchise benefits from an established brand presence, but market saturation (like what is currently happening in the Philippines) can impact growth potential.
Research how the brand differentiates itself through premium coffee, unique menu offerings, or strong marketing support. Factor in all these, as they significantly impact you as a franchisee.
The competition may limit profitability if multiple franchise locations already exist in your target area. The best thing about some coffee shop franchises, like the case of Hills and Valleys Cafe, is that they only allow one franchise location within a radius of 5 km. This allows the franchisee to dominate the area without competing with other franchises of the same brand.
Also, compare how each franchisee supports franchisees in advertising, menu innovation, and customer engagement. A brand with strong local (or international recognition) has leverage and more significant advantages in stabilizing the franchise location, even if it’s new in the area.
Training and Franchisee Support
Franchisors offer varying levels of training and operational assistance, which can help determine your store’s efficiency (primarily with your barista staff).
Generally and must be part of any franchise requirement, coffee shop franchises offer barista training, inventory management guidance, and direct marketing strategies.
Some offer ongoing support, a key factor in the franchising model, while others provide only initial training. So, evaluate the franchise’s involvement in daily operations and whether it assists with troubleshooting issues.
Strong franchise support reduces operational risks and ensures consistent quality across all locations.
Operational Requirements and Staffing
Running a coffee shop requires hiring and training baristas, managing inventory, and maintaining consistent service quality. Some franchises have strict operational guidelines, including their supply chain system, which only requires specific suppliers and service procedures.
Labor costs, shift scheduling, and employee retention are critical factors in operational excellence. If the business model relies on high-volume sales, efficient workflow and quick service times are essential to achieve that.
Evaluate whether the franchise model aligns with your franchisor’s management style and ability to oversee daily operations.
Long-Term Profitability and ROI
A franchise with a high initial investment must generate strong sales to ensure a reasonable return on investment. A good timeline must be half the franchise agreement. So, if the franchise contract lasts only 5 years, the franchisee must get his investment back within 2.5 to 3 years.
Check franchise case studies and profitability timelines. Some coffee shop franchises break even within 2 to 3 years, while others take longer due to high overhead costs.
When estimating long-term earnings, consider market trends, potential menu expansions, and seasonal demand fluctuations.
FAQs
How much does it cost to start a coffee shop franchise in the Philippines?
Franchise investments typically range from ₱300,000 for small kiosks to ₱5 million or more for full-scale cafés. Hills & Valleys Coffee franchise investment starts at approximately ₱1.5 million to ₱3.5 million, covering franchise fees, store setup, equipment, and initial supplies. This investment ensures a high-quality café setup with premium branding and specialty coffee offerings, making it a stronger long-term business compared to lower-cost kiosk franchises.
Which coffee shop franchise is most profitable?
Higher profit margins come from premium pricing, strong brand appeal, and high customer retention. Hills & Valleys Coffee offers a profitability range of ₱40,000 to ₱100,000 per month, depending on location and store size. Unlike budget-friendly coffee brands that rely on low-cost drinks and high sales volume, Hills & Valleys focuses on premium specialty coffee, where customers willingly pay more for quality and experience, leading to higher profits per transaction.
Is a coffee shop a good business in the Philippines?
Yes, the Philippine coffee industry is growing, with the specialty coffee segment seeing strong demand. Hills & Valleys Coffee is positioned in the high-growth market of premium handcrafted coffee, appealing to millennials, professionals, and social media-savvy consumers. With an increasing number of Filipinos willing to spend ₱150 to ₱250 per cup for high-quality coffee, a well-located Hills & Valleys Coffee franchise can generate consistent foot traffic and strong revenue streams.
How long does it take to get a return on investment (ROI)?
ROI in coffee shop franchises typically ranges from 1.5 to 3.5 years, depending on store format and location. Hills & Valleys Coffee franchisees can expect an ROI within 2 to 3 years, with high-traffic locations reaching profitability faster. With a focus on premium pricing, strong brand loyalty, and social media-driven customer engagement, Hills & Valleys Coffee provides a sustainable path to long-term profitability.
