Bo's Coffee Club Proves Filipino Businesses That Innovate Can and Will Survive Against Foreign Competition
All the cries that foreign investors will automatically crush the local industry are just false. The first proof is how Jollibee managed to prove itself against McDonald's first in the Philippines and now in the world. Now, it's time to feature Bo's Coffee Club. Although I'm not such a big fan of coffee clubs myself (since I prefer tea)--I think it would be time to talk about another creative entrepreneur known as Steve Benitez. Steve is the founder of Bo's Coffee Club way back in 1996 and it's still going strong today even when there are other alternatives such as the tea shops which are popping up left and right.
Endeavor Philippines said this very positive thing about Steve himself as the founder of the famous local coffee shop:
Fast forward to 2015, Bo’s Coffee sets itself apart by serving customers with authentic and unparalleled Filipino hospitality and is vying with international chains, such as Starbucks, and even some local copycats. Bo’s Coffee is in fact the first coffee chain in the Philippines to launch a loyalty app, enabling the company to gain in-depth insights into customer purchasing behavior and preferences. Steve, who was also the President of the Entrepreneurs Organization Philippines, is proof that local entrepreneurs can compete head-to-head with international brands with the right blend of innovation and customer service.
I could think about how Bo's Coffee Club managed to survive in the face of competition. So far, there have been plenty of competitions. I personally want to think that both coffee shops and tea shops are almost inseparable. One can get a glass of coffee from a tea shop and a glass of tea from a coffee shop. I could remember how I ordered some tea from Bo's Coffee Club while waiting for my classmate in college. Though, I still found it pricey back then without understanding that coffee shops and tea shops have to charge higher because of their premium ingredients, longer operating hours, and larger crew as well as to maintain all that fine quality. If Bo's Coffee Club didn't charge its prices (which are fairly priced) then the company wouldn't be able to expand.
1996 was, for me, one of those simpler times so I didn't really care about Bo's Coffee Club. I found it burdensome to pay for their products until I got into the Taiwanese tea craze. Drinking coffee milk tea from a Taiwanese tea shop is no different from a coffee shop's premium coffee, price-wise. The milk tea craze happened and it became a substitute for coffee. The prices in tea shops aren't significantly lower. Coffee shops have to sell at a higher price too, as mentioned, due to the fact it's not easy to maintain their good quality of food and services. Tea shops tend to sell a little bit lower if they don't offer the delicious food that coffee shops offer to their customers. Jolly Bubble, for one, sells delicious food so I can expect higher prices. Then again, both are direct competitors especially when some branches operate at a 24/7 crew--the higher cost of employment and cost of utilities means they have to sell higher.
Bo's managed to endure from 1996 to the present. What makes Bo's Coffee Club stand out? I would say it's their constant innovation. Notice that competitors tend to be near each other when they're renting in the malls. Bo's opened its branches here where the milk tea franchises are popping. For example, Bo's will be facing off against Chatime, Yifang, and ITealicious in selling beverages. Bo's Coffee Club also competes against the international brand Starbucks. Guess what? Bo's, as a coffee club, still stands strong because it continues to innovate to serve as much quality as possible. Sure, I may be preferring a glass of fruit tea. However, I might want to grab some of Bo's delicious premium pastries which I believe the price is worth the unique taste. I may also want to get some Bo's Coffee if ever I'm craving coffee than coffee from a tea store.
I would like to say that inviting foreign investors to do business in the Philippines is a good thing. It will drive competition. I don't think Bo's Coffee Club will continue to innovate (and raise prices when necessary to do so) if it wasn't for foreign competition. Bo's Coffee Club chose to face the competition head-on. Its innovative thinking and winner mentality are why it continues to survive for decades. Hopefully, like Jollibee, Bo's Coffee Club may soon become a worldwide brand to compete against Chatime, Gong Cha, and the like to give customers more choices along the way.