If you’re thinking of starting a coffee business in the Philippines—or any business for that matter—you should know it isn’t all rainbows and unicorns. There are just as many bad days as there are good ones. Many entrepreneurs find themselves in a challenging position to adapt to changes and setbacks.
In today’s post, we sit down with Miguel Escueta, owner of Frank x Dean, to talk about his past coffee business mistakes and what he did to overcome them.
3 Coffee Business Mistakes with Frank x Dean
Our conversation happened in Frank x Dean’s first branch in Forbestown Center in Taguig. Like the many pretty Instagram photos promise, the interiors are vibrant, homey, and rustic. You can feel the spirits of the two legends—Frank Sinatra and Dean Martin—the coffee shop-cum-diner was named after.
Miguel brought us a Long Black, a strong concoction made out of its hearty Sultan Kudarat brew. We took a good sip, set up our microphones, and went for it.
Lesson #1: Don’t try to be too many things.
Though Frank x Dean’s branding today is clear as the sun, it didn’t start that way. "A lot of [people] didn't come back because it wasn't clear who we were,” Miguel recalled. "After research, FGDs, and talking to our consumers, we learned that they came back for the coffee and the experience in our store. So that was what we tried to build."
Building on the shop’s experience proved fruitful for FxD. Their efforts to truly reach out to their customers extend far beyond the cup of joe they take to-go. Visit the coffee shop, snap a nice little photo, and expect to get a shoutout on their Instagram as one of the shop’s “friends.” Or if you’re lucky, get your polaroid tacked in their famous photo wall of loyal patrons. They also host community events like gigs.
That all adds up to what it feels like walking into Frank x Dean’s shop: a friendly and cozy place to work at or unwind in.
Lesson #2: Rent costs a lot. Choose spaces wisely.
Frank x Dean’s first branch is a beautiful two-story space with wide areas that invites you to roam around and check out the interiors and adornments. That’s all well and good, but Miguel has something to say. "I think we rented out a space that's too big,” he explains. “Rent is too expensive. To be honest, it's hard to be profitable if your space is too big. We did the shift to doing smaller coffee shops.
In the Unilever lobby, we rented out a small space of 10 square meters. So if we're averaging
40 cups a day in our Forbestown Center branch, the Unilever branch is doing 150 cups a day in a space that's a tenth of [this branch]."
That’s a good bit of knowledge to take away for people who want to start building their own coffee business in the Philippines.
Lesson #3: Know your priorities (you don’t have to give up other passions).
Before building successful F&D brands, Miguel made a name for himself as a talented musician. His single “Now It Starts” was even picked up for some spots in a Hollywood television series.
However, Miguel was determined and flipped the switch to becoming an entrepreneur. He still plays music as part of a band called The Morning Episodes, but business takes priority.
He says: "I think it's a matter of knowing your priorities and time management. If most of my time should go to my business on a certain day, then I don't have time for music. However, if there's extra time after that, then I have time for music.
"I suppose there are certain times of the year, where I can release a single or book some gigs,” he continues. “Then after doing that stretch of shows, I'll focus on the business again."
Frank x Dean’s future, and where you can go from here
Frank x Dean is growing. Miguel and his team are planning to expand to other locations, and that’s thanks to the setbacks he encountered early on. "I'm glad we made those mistakes because we learned from them,” he notes.
“Those mistakes gave us clear direction, where we should focus and what direction to take."
As for you, as someone who aspires to own their coffee business in the Philippines, you can start by embracing Miguel’s team’s mindset to be unafraid of mistakes and failures. And when you’re ready, you can get some of our FREE resource to help you start building your dream cafe.
Send us a message HERE for any inquiries or for a FREE consultation.
Big thanks to Miguel and Frank x Dean for having us over in their lovely space. Click here to find them on Instagram and give them some love.