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Real tales: Managing a local brand in a highly competitive coffee shop market

Bo’s Coffee keeps a fighting form despite the many challenges that come its way.
By Peter Imbong |

 

Talking to Steve Benitez, one can’t understand how the antiquated notion that people from the province do not have what it takes to succeed in the big city began. 

“It was all run by me,” says the president and CEO of Coffee Centrale Inc., the holding company for Bo’s Coffee and Bo’s Coffee Franchising Corp., now one of the country’s most popular locally grown chain of coffee shops. “It” was the six-table kiosk that was the first Bo’s Coffee shop. “That was the first store, and at one time, I did everything: I trained the servers, I bussed, I cashiered, I delivered, and I was the barista.”

Now, 19 years since the first kiosk opened in Ayala Center in Cebu in 1996, the 49-year-old Cebuano enjoys a more active role in the creative side of the business. “Being the CEO, I now set the direction of the company, where we want to go, what kind of position we want to take it in the landscape, what we want to be five or ten years from now.” 

That’s from the management side. “From the creative side, the visuals go through me, the ideas that go through research and development still go through me. I am also very much involved in marketing and anything that involves the creative side of the business.” Hands-on? Perhaps.


Running and growing the business
With 60 coffee shops to date, half of which are franchised, the growth of the Bo’s brand is obvious. But what’s behind all that growth the Cebu native is most proud of? “For several years now, we have been operating our own commissary that supplies our food such as cakes, pastries, and bread. We also have our distribution arm that supplies all of our proprietary products.” 

In terms of organization, “we now have a dynamic group of professionals running the show with me.” He cites an executive committee that runs the day-to-day operations of the business. “Decisions are made there, not just by me, but by a group of professionals. The organization is now more professionally set up.”

For the once Cebu-based business, moving into the Manila café scene, he admits, “was a challenge for us. But what we did was just build our brand one store at a time, training our people, and moving our products.” That, however, was the least of their problems. 

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Entry of giant brands
A year after they opened, Seattle-based global coffee giant Starbucks entered the café scene in 1997, shaking up the competition. Benitez’s response, however, was a glass-half-full one. “What’s important is that we focused on ourselves. Whatever happens in the landscape, we observe, but we don’t just react to it, because we’re not a reactive company. We are a dynamic company.” 

So instead of creating something in response to the competition, Bo’s did the exact opposite: improving what they already had. “[The entrance of] Starbucks was the best thing that ever happened to us. It drove us to be better, to be global.”

While that last part is something Benitez and his team are looking into in the next five years, the focus is still on strengthening the brand in the local market. He remains confident that Bo’s Coffee would be able to keep the support of its customers. “We are the Philippines’ own specialty coffee brand.” 




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Extra: Taking advantage of the competition

“Starbucks was the best thing that ever happened to us,” says Steve Benitez, president and CEO of Coffee Centrale Inc., the company behind Bo’s Coffee. Instead of bending over when the global giant entered the Philippine market in 1997, Bo’s Coffee improved its products, professionalized its management team, trained its people and has since remained focused on its own specialty coffee brand. From a single kiosk in 1996, it has expanded to a 60-store network of coffee shops, opened by Benitez one store at a time.

 

Main photo by Dix Perez

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