Lyceum- Northwestern University

Dagupan City

College of Teacher Education

Market Research

Coffee Consumption of Consumers and New Innovation in Café Shop

ROMACAFE

Submitted to:

Ma’am Briggette Jhay Lee

Submitted by:

Rodeliza Mae C. Federico

 TABLE OF CONTENTS

PAGE

Introduction 03

Objectives 04

Statistics and Evaluation 04-05

Gathering for Data 05- 06

Planning and Analyzing the Research 07-08

Research Innovation 09-10

Conclusion 11

Implications and limitations of the study 12

Reference 13
 Introduction

In this 21st century, many trends appear and one of this trends are coffee shops,
it can be seen from the number of coffee shops in centers, malls, or along the main
road. Based on BPlans webpage coffee rank as second largest product that consumed
every year and continue to grow in the future. In the Philippines, nine out of ten
households have coffee in their pantries and eight out of ten adults in the country
drink an average of 2.5 cups of coffee every day. According to Philstar each Filipino
is bound to drink 3.78 kilograms of coffee every year by 2025, up from an estimated
3.05 kg per capita last year. This widening growth give us an idea and offer us the
opportunity to start a business which is coffee shop here in Bugallon, Pangasinan.
The growth of coffee shop reaches 16% every year, which causes the level of
competition to be very tight, so it takes a strategy to retain consumers and get new
customers. Some plans, such as providing convenient facilities, new innovation, free
Wi-Fi, and skilled human resources is a must to provide consumers satisfaction. Aside
from customer service, shop owners must also maintain and create new idea that will
capture their customers interest. Customer repurchase or revisit intention is of
paramount importance to business practitioners. The coffee shop manager must know
the extent of product, price, place, promotion, people, process, and physical evidence
strategy. This research aims to identify the determinants to start the coffee shop
business, its competitors, new innovation, its consumers and solutions to past
problems faced by coffee shops. Coffee will always be part of the lives of the Filipino
people both of the poor and the wealthy. In addition to this, Filipinos have shifted
from being moderate to heavy coffee drinkers, according to a study by Kantar
Worldpanel Philippines. Historically, coffee houses have been places of innovation,
offering forward thinkers a safe space to explore new concepts and cultural changes.
The modern coffee shop industry embraces this legacy of innovation by adopting new
ideas and constantly adapting to changing customer behaviors.
Objectives

To be able to know what age consumes more coffee by socio-demographic

variables, to know consumers interest in coffee shops by determining the level of
satisfaction of the customers of the coffee shop business in terms of services,
place/location and product offerings and its price; what problem faced by the café and
its solution, to determine the extent of relationship between the customer’s profile
variables and their level of satisfaction and to propose some business operation
initiatives that will enhance the operation of the coffee shop business in Bugallon
Pangasinan.

Statistics and Evaluation

Based on NCBI web page, they conduct a survey where a sample of 159
undergraduate students from a midsize private university in the Midwest completed
the online anonymous survey, which was approved by the campus Institutional
Review Board. This research helps us to identify the demographic profile for students
who drinks a lot of coffee. Some students received course credit for completing the
survey. The survey took ∼15 minutes to complete.

table 1

frequency of caffeinated beverage consumption in past 30 days

Consumption in the past 30 Coffee/espresso (%) Energy drinks (%)

days (times)
0 31.2 63.5
1–2 11.5 21.8
3–5 18.5 5.8
 age distributions for energy drinks and coffee

Age first started drinking Energy drink (%) Coffee (%)

(years)
<14 7 6
14–16 31 23

Most young adults reported recent consumption of some form of caffeine.

Eighty-six percent reported caffeine use in the past 30 days, 64% had coffee, 30% had
espresso, and 36% of students had at least one energy drink. There was a wide range
of caffeine use: 33% had never had an energy drink, and 23% had never had coffee or
espresso. Consumption frequency of these drinks in the past 30 days is shown in
Table 2. More young adults had tried energy drinks before the age of 14 years (7%),
compared to coffee (6%), and by the age of 16 years, 38% had used an energy drink,
whereas only 29% had consumed a coffee beverage

It means even though at a young age most students consume caffeine, so it concludes
that we also need to adjust our store based on the taste of our young adult consumer.

Gathering the Data

table 2

From the statistic table 2 of perfectbrew website they conclude that among all the
beverage, coffee is one of the main consumers consume with 63% in data and adults
from 60 above mostly the main customers in café.

Planning and Analyzing the Data

How we come up with the coffee shop in Bugallon? We noticed these problems in
the market:

- The need of proper place to rest after going to some overpopulated and
stressing environment like market and school.
- Coffee and milk teas are trend today
- People are looking for some place to relax and have something to eat
- Citizens are searching for affordable coffee, milk teas and relaxing
environment
.
These are the factors that influence our decision to start the coffee shop business.

A Nation of Coffee Lovers

According to the World Coffee Portal’s 2021 survey, coffee drinkers have four or
more cups of coffee a day – that’s a lot of opportunity for coffee shops to shine. From
the same survey, over a fifth also stated they visited a coffee shop up to three times a
week.

Professional, Quality Coffee

With professional coffee machines, steamers and premium coffee, customer’s get the
ultimate coffee experience that, for many, cannot be achieved at home. For the
average coffee drinker, this is the most convenient way to enjoy high-quality coffee.

A Relaxed Social Space

One of the primary reasons why coffee shops have become so popular over the last
decade is the feeling of comfort and relaxation they can provide. This feeling is
especially prevalent when you compare coffee shops to other competing locations,
such as restaurants, pubs and fast-food chains. Coffee shops offer a uniquely calm
atmosphere where people can gather with family and friends to catch up over a cup of
something warm.

WHY ARE COFFEE SHOPS POPULAR WORKSPACES?

A good coffee shop will create a warm, homely feel, yet at the same time create
spaces where people can sit and work in relative privacy. This balance is why the
coffee shop has overtaken places such as libraries, becoming the go-to location for
those freelancing or working out of the office.
 The SWOT analysis

- It is to determine the strength, weaknesses, opportunity and threats that our

business will face.

BUSINESS STRENGTH WEAKNESSES OPPORTUNITY THREATS

NAME
ROMACAFE Strong employee • Loyal customers • Changes in -Other
attitudes • Adequate tastes/preferences competitors
• Excellent location for the •Seasonal change - Comments of
customer service target market - Social media other customer
• Leadership in • Increase in advertising that might
product population damage the
innovation reputation of
• Product store.
differentiation

Innovation in café ROMACAFE

Coffee Shops During Covid-19

Being able to remain open during the coronavirus crisis relies on the ability to swiftly
adapt to changing safety measures and customer expectations. In the age of COVID-
19, coffee shops must continue to prioritize health and safety by providing sanitizer
stations, displaying signs that encourage mask-wearing and placing barriers at tills for
the safety of staff and customers.
Some coffee shops may also consider making changes to the physical store – this
might include things like:

- Rearranging indoor seating areas to aid social distancing.

- Removing seats and tables to reduce the number of customers in one place.
- Renovating outdoor spaces to encourage visitors to eat and drink in the fresh
air.

Working from Coffee Shops

Someone working with their laptop in a coffee shop. As working away from
traditional offices becomes the norm for many, coffee shops must think about how
they can accommodate and entice workers to set up camp in their stores. Offering
comfortable but somewhat secluded seating areas with power outlets and plenty of
room to get cosy with a laptop is essential if you want to retain a loyal customer base
of hard workers. Giving your patrons access to free wifi is another must for the
modern-day coffee shop.

Events in Coffee Shops

Working in coffee shops might be an attractive option for some, but getting the
chance to feel like part of a community is another reason why people keep coming
back to coffee shops, even when the ability to drink quality coffee at home becomes
more prevalent.

COVID-permitting, hosting events and clubs in coffee shops is a great way to draw in
new customers and establish the business as a welcoming hub for local communities.

Innovative coffee shops are starting to consider how their premises can become multi-
functional spaces through offering things like:
 - Live Music Events
- In-Store Competitions
- Spaces for Clubs and Communities to Meet
- Collaborations with Other Local Businesses.

A barista talking to a customer

Loyalty schemes are a tried and tested method of getting customers to return to your
business. However, with competition being stiffer than ever, it’s important that you
change up your loyalty schemes to continue enticing coffee drinkers. Offering free
products and exclusive deals is a brilliant way to reward loyal customers, especially
those who continued supporting you throughout the pandemic.

Updating Coffee Shop Menus

With different types of coffee drinks trending online over the years, it's important that
coffee shops keep up with the shifting desires of the customer base. In particular,
younger consumers are interested in high-quality, sustainable coffee drinks and are
more willing to try different types and flavours.

Coffee shops have more opportunities to attract new customers when diversifying
their coffee range. As a result, many large and independent coffee shops have
introduced a range of unique drinks, such as:

- Boba Tea
- Dalgona Coffee
- Vietnamese Egg Coffee
- Turkish Coffee
 Conclusion and Recommendation

Coffee is becoming popular and important agricultural product in Philippines.

Despite efforts of local government, the market for local specialty coffee is relatively
small. To develop marketing strategies that could increase the demand and expand for
local specialty coffee, price premiums that consumers are willing to pay for local
specialty coffee relative to the conventional coffee product are required. However, no
other study has examined this important issue in Philippines. Expansion of the market
for local specialty coffee could support the local farmers and the communities that
produce the coffee. Brochures as the promotional strategy are widely used by the
selected coffee shop business. Problems encountered by the coffee shop managers
with the employees were absence without leave among employees, poor
comprehension of employees, duplication of duties, lack of resourcefulness of
employees and high turnover of employees. The coffee shop customers are satisfied in
terms of courtesy of the staff, friendliness of the staff, well-groomed and sensitivity to
the guests needs. Customers are satisfied in terms of accessibility of the coffee shop
and they are also satisfied when the food and beverages are served in their right
temperature and its price because it is affordable.

To hold the customers, the business should give them very satisfactory
service, extra attention, personalized service and products/services innovations. From
the interview conducted, the managers believe that people still want a cozy and chic
atmosphere, thus they promise to give extra attention to the service to their discerning
market expects and deserves.
 Implications and limitations of the study

The results of the study are interesting for practical reasons. From a theoretical
point of view, these results seem to show that the personal profile of a manager,
particularly age, education level and experience, are associated with the type/area of
innovations. Studies that examine linkage between socio-demographic characteristics
of restaurant managers and the area of innovation are scarce in the literature. From a
practical point of view, it is suggested that socio-demographic profile of managers can
indicate and predict the direction of current and future business activities, and
therefore the owners should watch who they employ. Most importantly, managers
should conduct surveys among customers regarding their expectations on regular
basis in order to create practical strategies to improve their service to the customers
(e.g. ability to customize dishes) and increase profits. Positive correlation between
aforementioned marketing activities and business success was found by many authors
(Agarwal et al., 2003; Sin et al., 2005; Leskiewicz Sandvik, Sandvik, 2003).
Moreover, they should stay well informed about the trends within the industry by
following relevant publications or through contact with faculties, educational centers
and similar institutions and associations and facilitate the innovation process in that
regard. Before beginning major innovation programs, managers may need to think
about internal capability, staff training and collaboration with external partners
(faculties, suppliers, distributors, customers etc.). Several social implications can arise
from applying innovations in the restaurant industry. Promotion of healthy menu
items might affect public health and therefore quality of life Food, materials and
energy waste reduction, as a part of environmental
REFERENCES

https://www.philstar.com/business/2021/04/15/2090795/filipino-coffee-drinkers-
pump-southeast-asias-caffeine-rush-2025

https://www.perfectbrew.com/blog/coffee-statistics-infographic/

https://www.academia.edu/5024505/
Status_of_Coffee_Shop_Business_in_Batangas_City_Basis_for_Business_Operation
_Initiatives

https://www.researchgate.net/publication/
317554393_Innovations_in_the_restaurant_industry_An_exploratory_study