Sustainability of Homegrown Coffee Shops in Cebu City, Cebu, Philippines

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Citation

Reblora, R. M., Diaz, W. D. B.-O., Macuto, M. T. V., & Talamo, R. S. (2026). Sustainability of Homegrown Coffee Shops in Cebu City, Cebu, Philippines. International Journal of Research, 13(3), 175–194. https://doi.org/10.26643/ijr/12

Main Author:
Rona Marie Reblora

Co- Author:
Welou Dil Bato-On Diaz
Maria Trinidad Victoria Macuto
Roselio Serafina Talamo

University of Cebu Main Campus

Abstract
            This study determines the level of sustainability of selected homegrown coffee shops in Cebu City, Cebu, Philippines, focusing on the three pillars of sustainability: economic viability, environmental protection, and social equity. Anchored on Brundtland’s Theory of Sustainability (1987) and supported by Fiedler’s Contingency Theory of Leadership and Fayol’s Administrative Theory of Management, the research examines how internal management practices and business conditions influence long-term sustainability. A descriptive-correlational research design will be used with a researcher-made checklist survey questionnaire. Purposive sampling will select ten (10) coffee shop owners or managers from ten (10) homegrown coffee shops in Cebu City. Data will describe respondent profiles (gender, civil status, citizenship, educational attainment, and years in operation), assess sustainability levels, and identify common operational problems encountered. Statistical treatments will include frequency and percentage, weighted mean, and chi-square to test the relationship between respondent profile and sustainability level at a 0.05 level of significance. Findings will serve as the basis for a proposed action plan that can help homegrown coffee shops improve sustainability practices, strengthen competitiveness, and address key operational challenges in Cebu City’s growing coffee market.

Keywords: Homegrown Coffee Shops, Business Sustainability, Cebu City

INTRODUCTION

Rationale

Sustainability in homegrown coffee shops in Cebu City is a growing trend that reflects both local culture and global environmental consciousness. As more consumers become aware of the environmental and social impacts of their choices, homegrown coffee shops are embracing sustainable practices, from sourcing locally grown coffee beans to implementing eco-friendly packaging and energy-efficient operations. This movement not only supports the local economy and farmers but also promotes a deeper connection between customers and the community, fostering a more mindful and responsible coffee culture in the heart of Cebu City.

            With the increasing influences of the coffee culture, the coffee business, in general, has eventually become a big business and driving a relatively growing demand in the country, specifically in Cebu City. The city has seen the mushrooming of coffee shops on almost every corner: in malls, business centers, workplaces, terminals, schools, and even in neighborhoods. While global branded coffee shops have since penetrated the Cebu market, several homegrown enterprises have also evolved to take in a fair share of the expanding coffee industry.

            But as in any business, when competition rises, it usually becomes a challenge to capture the increasingly competitive market. As an economy goes, so go local entrepreneurs. Small businesses in the Philippines are finding themselves in a sweet spot, surrounded by a growing middle class and bustling business process outsourcing sector.

Since most of the big coffee shop is already established, well-known, and experienced, the new coffee shop has a hard time competing with them, and is still wondering and planning on how they can get loyal customers. A lot of reasons why some coffee shops have lost their business due to bankruptcy are because it might lack a marketing strategy, inconsistency of product and service, customer service, and impatience.

The researcher is motivated to conduct this study to assess the long-term sustainability of homegrown coffee shops in Cebu City, particularly in terms of their environmental, economic, and social impacts. Further, this study also examines how these businesses operate and adapt to changing consumer demands, and to shed light on the factors that contribute to their success or failure. This research will also provide valuable insights for students, especially those in the Hospitality Management program at the University of Cebu, offering them a practical understanding of the challenges and opportunities in running a sustainable, local business. The researcher’s unique position as a college instructor allows her to bridge the gap between academic theory and real-world application, enriching students’ knowledge of sustainable business practices while fostering a deeper appreciation for local entrepreneurship in Cebu. Through this study, students will gain a clearer perspective on how sustainability can be integrated into business models, preparing them to be future leaders in the hospitality and tourism industry.

Theoretical Background

This study is mainly anchored on the Theory of Sustainabilityby Gro Harlem Brundtland (1987). This is supported by the Contingency Theory of Leadership by Fred Fiedler (1964), and the Administrative Theory of Management by Henri Fayol (1916).

The Theory of Sustainability by Brundtland (1987) is one of the most influential frameworks for understanding sustainability in both environmental and development contexts. The theory emphasizes the need for sustainable development, which balances the needs of the present without compromising the ability of future generations to meet their own needs. This theory is designed to guide actions and decisions toward achieving long-term well-being for the planet, society, and economy, without depleting resources or causing harm to future generations. Central to this theory is the concept of sustainable development, which aims to meet the needs of the present without compromising the ability of future generations to meet their own needs. Sustainability theory is built around three interconnected pillars: environmental protection, economic viability, and social equity. Environmental sustainability focuses on preserving natural resources, reducing pollution, and maintaining ecosystems, ensuring that the planet can continue to support life. Economic sustainability promotes long-term, resilient growth while avoiding the depletion of resources, advocating for efficient use of resources and fair economic opportunities. Social sustainability emphasizes justice, equity, and inclusion, ensuring that all individuals have access to essential needs such as healthcare, education, and economic opportunities, while also supporting community development and cultural diversity. These pillars guide decision-making at individual, business, and policy levels, encouraging practices that balance environmental, economic, and social well-being to create a more equitable and sustainable world.

The implications of this theory lie in the application of sustainable development principles that balance environmental, economic, and social factors. Homegrown coffee shops can embody environmental sustainability by sourcing locally grown coffee beans, reducing transportation-related carbon footprints, and implementing eco-friendly practices like waste reduction and energy conservation. By collaborating with local farmers who employ sustainable farming methods, these coffee shops help preserve ecosystems while providing organic and fair-trade products. Economically, these businesses contribute to the local economy by supporting small-scale farmers and creating long-term job opportunities, which aligns with the Theory of Sustainability by Brundtland (1987) emphasis on inclusive growth that does not exploit resources. These coffee shops also foster social sustainability by creating community spaces, promoting fair labor practices, and supporting local culture, which strengthens social bonds and empowers vulnerable groups. To ensure that the business is adaptable and resilient, these coffee shops can ensure their long-term viability while minimizing their impact on future generations.

The Contingency Theory of Leadership by Fiedler (1964), posits that there is no single best way to lead an organization. Instead, the effectiveness of leadership is contingent on the alignment between a leader’s style and the specific situation or context in which they operate. According to Fiedler, leadership effectiveness is determined by two main factors: leadership style and situational favorableness. Leadership style is categorized as either task-oriented or relationship-oriented. Task-oriented leaders focus on achieving goals and getting tasks done, while relationship-oriented leaders prioritize building strong relationships with their teams. Fiedler argued that a leader’s style is relatively fixed and cannot be easily changed, making it crucial to match the leader’s style with the appropriate environment or situation. The second key element of Fiedler’s theory is situational favorableness, which refers to the degree to which a leader has control and influence over the situation. This includes factors such as the leader’s relationship with their team, the structure of the tasks, and the leader’s power or authority. Fiedler identified three key situational variables: leader-member relations, task structure, and position power. When these conditions align favorably with a leader’s style, leadership effectiveness is enhanced. For example, task-oriented leaders perform best in highly structured or highly unstructured situations, whereas relationship-oriented leaders excel in situations with good leader-member relations and moderate task structure. Fiedler’s theory emphasizes that leaders must be aware of the specific circumstances they face and adapt their approach accordingly. While it is not about changing a leader’s inherent style, it suggests that organizations should place leaders in situations where their natural leadership style can be most effective. The Contingency Theory has had a significant impact on leadership studies, as it challenges the idea of a one-size-fits-all leadership approach, highlighting the importance of context in determining leadership success.

The implications of this theory can be effectively applied to homegrown coffee shops by recognizing that the leadership style of the coffee shop owner or manager should align with the specific challenges and opportunities presented by the business’s environment. In the context of a homegrown coffee shop, the leadership approach needs to adapt to various factors such as the team dynamics, customer relations, market conditions, and operational structure. For instance, a task-oriented leader may be highly effective in situations where the coffee shop needs to achieve specific goals, such as improving sales or managing busy hours. In these cases, a leader who is focused on efficiency, productivity, and meeting targets may thrive in situations where tasks are structured and clear. A task-oriented approach would be beneficial during peak times when precision, speed, and consistent product quality are paramount to customer satisfaction. In contrast, a relationship-oriented leader would be more successful in fostering a strong, cohesive team and maintaining a positive customer experience, especially in a small, community-based setting like a homegrown coffee shop. If the coffee shop’s environment relies heavily on customer loyalty, positive team dynamics, and long-term relationships, a leader who prioritizes employee morale and customer interaction would be most effective. Fiedler’s theory also stresses the importance of situational favorableness, which in the case of a homegrown coffee shop could involve factors like the shop’s reputation, employee relationships, and the level of control the manager has over the operational processes. If the coffee shop has well-established relationships with its staff, clear tasks (such as barista roles), and a defined system for operations, a task-oriented leader may be able to drive efficiency and meet targets. However, if the shop is in a stage of growth or trying to build a loyal customer base, a relationship-oriented leader would be more effective in nurturing a positive environment for both employees and customers.

The Administrative Theory of Management by Fayol (1919) is one of the earliest and most influential management theories. Fayol’s work laid the foundation for modern management practices by emphasizing the role of managers in organizing and administering businesses effectively. Fayol’s approach was holistic, providing a general framework for management activities and responsibilities across all types of organizations. He believed that management should be treated as a distinct discipline and that its principles could be applied universally, regardless of the industry or size of the organization. Fayol identified five key functions of management: planning, organizing, commanding, coordinating, and controlling. These functions are considered fundamental to running an organization efficiently and effectively. Planning involves setting objectives and determining the best course of action to achieve them. Organizing refers to arranging resources and tasks to meet those goals. Commanding involves directing and overseeing the work of employees to ensure that tasks are completed efficiently. Coordinating is the process of aligning activities across different departments or teams to achieve organizational objectives. Finally, controlling involves monitoring performance, ensuring that goals are being met, and making adjustments where necessary to stay on track. Fayol also developed 14 principles of management, which offer guidelines for managers to follow to ensure their organizations run smoothly. These principles include the division of work, which encourages specialization to increase efficiency, and unity of command, which stipulates that each employee should report to only one superior to avoid confusion. Other principles, such as authority, discipline, and remuneration, emphasize the importance of clear structures, mutual respect, and fair compensation. Fayol also highlighted the significance of centralization versus decentralization depending on the situation, the importance of order in maintaining structure within an organization, and the need for equity and esprit de corps to foster morale and teamwork among employees. Fayol’s theory is significant because it was one of the first to present management as a universal process applicable to all types of organizations. His emphasis on managerial functions and principles provided a structured approach to management that has influenced modern business practices. Although some of Fayol’s ideas may seem outdated in today’s rapidly changing business environment, his core concepts of planning, organization, and leadership continue to be fundamental to the study and practice of management. His theory also laid the groundwork for later management theories and practices, making him a key figure in the development of modern management thought.

The implications of this theory can be effectively applied to homegrown coffee shops by offering a structured approach to managing the business. The planning function helps set clear goals, such as increasing sales or launching seasonal promotions. Organizing ensures that resources, such as staff and inventory, are efficiently allocated, with roles clearly defined to boost productivity. Commanding focuses on leading the team, setting expectations, and fostering a positive work environment. Coordinating ensures smooth operations between staff, inventory, and customer service. Finally, controlling involves monitoring performance, adjusting strategies, and maintaining high standards. The implementation of Fayol’s 14 principles, such as unity of command and equity, can help coffee shop managers improve communication, employee morale, and overall business efficiency, creating a more organized, productive, and customer-friendly environment.

According to the study of J. S. Delos Santos (2023), the critical role that effective inventory management plays in the success and sustainability of homegrown coffee businesses. Delos Santos emphasizes that for small, locally owned coffee shops, managing inventory efficiently is key to maintaining product availability, minimizing waste, and controlling costs, which are crucial elements for long-term viability in a competitive market. The study identifies several key practices that contribute to efficient inventory management, such as accurate demand forecasting, implementing an organized stock rotation system, and building strong relationships with suppliers to ensure timely delivery of high-quality products. One of the central findings of the research is that homegrown coffee businesses can attain a sustainable competitive advantage through the effective use of inventory management. By minimizing waste through better forecasting and stock control, these businesses can reduce operational costs, thereby increasing profitability. Additionally, having an efficient inventory system allows businesses to meet customer demand without overstocking or facing shortages, which ultimately enhances customer satisfaction and loyalty. Delos Santos also explores how technology, such as inventory tracking software and point-of-sale systems, can help streamline operations and provide real-time data on stock levels, enabling better decision-making. Moreover, the study highlights the importance of supplier relationships in maintaining a consistent supply of quality coffee beans and other products. Building good communication and trust with suppliers ensures that homegrown coffee businesses can access the best raw materials, which can differentiate their offerings from larger chains and contribute to a unique brand identity.

According to the study of H. K. Recamadas (2018), the factors that influence customer loyalty to homegrown coffee shops highlighted the importance of the marketing mix, including product, price, place, and promotion, in shaping customers’ perceptions and their loyalty to local coffee shops. The research finds that customers’ expectations and experiences significantly impact their level of satisfaction, which, in turn, affects their loyalty to the coffee shop. By analyzing various elements of the customer experience, the study reveals that a positive interaction with the coffee shop, including quality of service, atmosphere, and product offerings, leads to higher customer retention. The study uses path analysis to examine how these factors are interrelated, providing a statistical model for understanding the relationships between marketing efforts, customer satisfaction, and loyalty. Recamadas emphasizes that for homegrown coffee shops to thrive and build a loyal customer base, they must focus on meeting and exceeding customer expectations. A unique, high-quality customer experience ranging from the coffee’s taste to personalized service plays a critical role in encouraging repeat visits. This research offers practical insights for small, locally owned coffee shops looking to develop strategies that can foster long-term customer loyalty in a competitive market.

According to the study of M. A. Light (2019), the challenges that independent coffee shop owners face during the early years of their business, and the strategies that contribute to long-term survival and success. Light’s research highlights that the first five years are crucial for a coffee shop, as this is when many small businesses face the highest risk of closure due to financial instability, market competition, and changing customer preferences. The study identifies key strategies that help these businesses navigate through this challenging period, including effective financial management, building strong customer relationships, and creating a unique brand identity. One of the primary findings of the research is the importance of adaptability. Successful coffee shop owners often pivot and adjust their business models to meet evolving consumer demands, such as offering specialty drinks, catering to dietary trends (e.g., vegan or gluten-free options), or incorporating technology into their operations (such as loyalty apps or online ordering). Another key strategy identified is community involvement independent coffee shops that actively engage with their local communities by hosting events, supporting local suppliers, and establishing themselves as integral parts of the neighborhood tend to have stronger customer loyalty and a more sustainable customer base. In addition, Light’s study emphasizes the significance of employee training and maintaining a positive work culture. Happy, well-trained staff contribute to better customer service and are instrumental in building repeat business. Moreover, the research also discusses how efficient inventory management and cost control measures are critical in maintaining profitability, especially in the face of increasing competition from larger coffee chains. Ultimately, Light’s study provides practical insights for coffee shop owners seeking to not only survive but thrive in the competitive and challenging coffee shop industry. The strategies outlined in the study offer guidance on how to maintain a loyal customer base, manage operational costs, and adapt to industry changes for long-term success.

The study by Vickery, S.K., Jayaram, J., & Droge, C. (2003), investigates how integrative supply chain management practices, including inventory management, affect the performance of businesses, particularly focusing on small and medium enterprises (SMEs) like coffee shops. The authors argue that successful businesses must adopt an integrated approach to supply chain management, where all components such as inventory, suppliers, and distribution channels—are aligned and work together to optimize efficiency and reduce costs. This holistic approach leads to better inventory control, less waste, and a more responsive system that can quickly adapt to market changes. The study suggests that integrating inventory management with overall supply chain strategies helps businesses improve performance in key areas like cost efficiency, delivery speed, and product quality. For small businesses like homegrown coffee shops, the ability to predict demand accurately, manage stock effectively, and maintain relationships with suppliers can significantly improve profitability and customer satisfaction. By reducing stockouts and overstock situations, small businesses can create a more consistent customer experience, leading to better loyalty and retention. Moreover, the study highlights that businesses that adopt these integrative practices can gain a competitive advantage by becoming more agile, lowering operational costs, and enhancing their ability to meet customer expectations. For homegrown coffee shops, this means being able to offer high-quality coffee consistently while minimizing waste and ensuring that popular items are always in stock, even during peak demand periods. The findings from Vickery, Jayaram, and Droge (2003) underscore the importance of supply chain integration and inventory management for the long-term success and sustainability of small businesses in a competitive marketplace.

The study by Koksal, M. H., & Kucuk, M. (2016), explores the crucial role that inventory management plays in the success of small and medium-sized enterprises (SMEs), specifically focusing on coffee shops. The research emphasizes how effective inventory control practices can help coffee shop owners manage their resources more efficiently, which is vital for maintaining profitability and competitiveness in a market that is often dominated by larger chains. Koksal and Kucuk argue that for small coffee shops, managing inventory effectively is a key determinant of operational success. Proper inventory management enables businesses to minimize waste, optimize stock levels, and reduce costs associated with overstocking or stockouts. The study highlights that by using techniques such as demand forecasting, regular stock audits, and supplier relationship management, coffee shop owners can ensure that they always have the right products available at the right time, preventing missed sales opportunities and improving customer satisfaction. The authors also discuss how inventory management systems are particularly beneficial for coffee shops in addressing seasonal fluctuations and customer preferences. For example, during peak seasons or special events, accurate inventory tracking can ensure that coffee shops are prepared for higher demand while avoiding the accumulation of unsold goods that may go to waste. Moreover, the research underscores that effective inventory management contributes to financial stability by improving cash flow and reducing unnecessary expenses, which is critical for the survival and growth of small businesses. Koksal and Kucuk’s study further suggests that coffee shop owners who invest in efficient inventory management systems are more likely to improve their competitive position in the market, providing them with a foundation for long-term sustainability. By reducing operational inefficiencies, increasing responsiveness to market demands, and ensuring a consistent customer experience, coffee shops can build a loyal customer base and remain profitable despite challenges posed by larger competitors and fluctuating market conditions.

The study by Van der Meer, R. (2018), examines how small businesses, including coffee shops, can implement effective inventory management strategies to improve operational efficiency and competitiveness. The research emphasizes that for small enterprises, especially those in the food and beverage industry like coffee shops, managing inventory is a critical aspect of maintaining a balanced cash flow, minimizing waste, and meeting customer demands. Van der Meer discusses several inventory management strategies that small businesses can adopt, such as just-in-time (JIT) inventory, which focuses on maintaining minimal stock levels and ordering products only when needed. This method reduces storage costs and minimizes the risk of spoilage, which is particularly important for coffee shops that work with perishable goods like milk, pastries, and fresh coffee beans. The study also highlights the importance of accurate demand forecasting, allowing businesses to predict customer preferences and purchasing patterns more accurately, ensuring that they stock the right quantity of items and reduce the chances of stockouts or overstocking. Additionally, Van der Meer’s research stresses the value of using technology to streamline inventory management. Small businesses can implement software systems to track inventory levels in real-time, improve ordering processes, and manage supplier relationships more efficiently. This can help coffee shops optimize their operations, reduce human error, and make better data-driven decisions, all of which contribute to a more sustainable business model. Furthermore, the study notes the importance of supplier collaboration in ensuring that small enterprises, such as homegrown coffee shops, can maintain a reliable and timely supply of quality products. Building strong relationships with suppliers helps ensure consistent deliveries and the possibility of negotiating favorable terms, such as discounts or flexible payment schedules, which can be crucial for the financial health of small businesses. In conclusion, Van der Meer’s study provides a comprehensive framework for small businesses, especially coffee shops, to adopt inventory management practices that enhance efficiency, reduce costs, and improve customer satisfaction. By adopting these strategies, coffee shops can increase their chances of long-term success, even in a competitive and fluctuating market.

In conclusion, the related studies and literature on inventory management practices offer valuable insights that directly relate to the sustainability and success of homegrown coffee shops. This provides a foundation for understanding how small coffee shops can adopt effective inventory management strategies to gain a competitive edge. In this study, these practices are particularly relevant as they highlight the need for homegrown coffee shops in Cebu City to efficiently manage resources, control costs, and meet customer demand while minimizing waste. To incorporate demand forecasting, just-in-time inventory systems, and technology, local coffee shops can improve their operational efficiency, ensuring a consistent customer experience and financial sustainability. Furthermore, these studies support the notion that strong supplier relationships and adaptability to market changes are essential for long-term success, which is crucial for homegrown coffee shops aiming to establish themselves in a competitive market like Cebu City. These practices provide a roadmap for homegrown coffee shops to thrive and achieve sustainable growth.

THE PROBLEM

Statement of the Problem

The study aims to determine the sustainability of a homegrown coffee shop business in Cebu City, Cebu, Philippines. The findings of the study will be the basis for a proposed action plan for homegrown coffee shops.

Specifically, this study will seek answers to the following questions:

  1. What is the profile of the respondents in terms of:

1.1 gender;

  1. civil status;
    1. citizenship;
    1. highest educational attainment; and
    1. years in the business operation?

2. What is the level of sustainability of a homegrown coffee shop in terms of:

  • economic viability;
    • environmental protection; and
    • social equity?

3. What are the problems encountered by the respondents in the operations of their homegrown coffee shops?

4. Is there a significant relationship between the profile of the respondents and the level of sustainability of a homegrown coffee shop?

5. Based on the findings of the study, what action plan may be proposed?

Statement of the Null Hypothesis

            The following null hypothesis will be tested at a 0.05 level of significance:

Ho1: There is no significant relationship between the profile of the respondents and the level of sustainability of a homegrown coffee shop.

Significance of the Study

The following terms are defined operationally which greatly helps the individuals and entities as indicated below:

Coffee Shop Owners – This will help them identify what specific challenges need to be rectified and facilitate improvement to make a sustainable and profitable business. This will also help them how to support the local economy, create jobs, stimulate economic growth, and ensure a thriving local community for years to come.

            Coffee Shop Managers/Supervisors – This will help them improve the operational aspects including managing staff, ensuring customer satisfaction, and increasing sales and profits.

            Barista – This will help them how to create other variations on serving either hot or cold beverages which are tailored to customer’s preferences and choices.

Local Government Unit (LGU) – This will help them promote economic development by keeping the community members informed on the business possibilities as well as encouraging sustainable business practices in the area.

            Department of Trade and Industry (DTI) – This will help them to increase local and foreign direct investments as well as to protect consumers through consumer education and information dissemination programs.

            Researcher – This will help him/her identify opportunities and threats, solve issues and concerns using this gathered information, and wise decisions that can be made to tackle the issue appropriately. This will also help to understand customers better and hence can be useful to communicate better with the customers or stakeholders.

            Future Researchers – This will help them to pursue interests in continuing research education and related studies, to learn something new, to hone their problem-solving skills, and to challenge themselves in new ways.

RESEARCH METHODOLOGY

This chapter covers the research design, research environment, research respondents, research instruments, research procedures, the gathering of data, and statistical treatment of data used in the study.

Research Design

This study will use a descriptive-correlational method with the aid of a researcher-made checklist survey questionnaire to determine the level the sustainability of a homegrown coffee shop in Cebu City. 

A pilot test will also be used to be conducted by twenty (20) individuals who are not part of the study using the researcher-made checklist survey questionnaire to determine its validity, consistency, and reliability.

To depict the overview of the research study, a research paradigm will be formulated as shown in Figure 1. This is an interaction of force elements composed of input, process, output, and feedback.

      INPUT                                     PROCESS                                 OUTPUT      

Figure 1.

Research Flow

Figure 1

Research Flow

Research Environment

This study will be conducted specifically in Cebu City, Philippines, where many coffee shops are located and accessible to many business offices, schools, malls, and terminals.

The city is a tourist hotspot with a winning combination of beautiful countryside scenery, and urban attractions like cultural and historical sites. Owing to its economic importance and influence in modern times, this city is popularly known as the Queen City of the South, Cebu is the oldest and second most important city in the country. Cebu is on the top list of destinations for tourists because of its world-class beach resorts and diving spots. Cebu’s tourist destinations and attractions are found in both the north and south of Metro Cebu. Its capital, Cebu City, is the oldest city in the Philippines and is filled with Spanish colonial relics from the 16th century. It is also considered to be the birthplace of Christianity in the Far East. Regarded by the Philippines as the Queen City of the South, Cebu is a global creative hub. It is one of the country’s largest cities and is a bustling port. Its harbor is provided by the sheltered strait between Mactan Island and the coast. The country’s oldest settlement, it is also one of its most historic and retains much of the flavor of its long Spanish heritage. Cebu has a population of 2.5 million and is the oldest city and the first capital of the Philippines. Under Spanish rule for three centuries, Cebu has the oldest university, San Carlos University, and the oldest street, Colon Street, built by the Spaniards.

Coffee shop A is a popular local café known for its cozy atmosphere and high-quality coffee. Founded in the Philippines, it has become a go-to spot for coffee lovers seeking a relaxing environment to enjoy a cup of expertly brewed coffee. The shop offers a variety of blends, including both local and international options, catering to different tastes and preferences. Besides coffee, they also serve a selection of pastries and light meals, making it a great place for breakfast or a midday break. With its commitment to sustainability and supporting local coffee farmers, this coffee shop stands out as a favorite for those who value both quality and community.

Coffee shop B is a charming café that offers a warm and inviting ambiance, perfect for those seeking a peaceful place to relax and enjoy a great cup of coffee. Located in the Philippines, this coffee house is known for its focus on locally sourced coffee beans, showcasing the rich flavors of Filipino coffee. The café’s name, which means “window” in Filipino, reflects the café’s concept of offering a “window” to the local coffee culture, with a cozy setting that connects people to both the community and the beauty of Filipino coffee. In addition to coffee, they also serve a variety of delicious snacks and meals, making it a great spot for breakfast, lunch, or a leisurely afternoon. With its dedication to quality and local ingredients, this coffee house offers a delightful and authentic coffee experience.

Coffee shop C is a popular coffee chain in the Philippines, known for its wide variety of coffee drinks, cozy ambiance, and commitment to delivering quality coffee experiences. Established with a focus on serving freshly brewed coffee made from high-quality beans, they also offer a diverse menu ranging from classic brewed coffee to specialty drinks like lattes, frappes, and espresso-based beverages. The café also serves a selection of light meals and pastries, making it a perfect spot for casual hangouts, studying, or a quick break. This coffee shop is inviting atmosphere, combined with its dedication to customer satisfaction, has made it a beloved local favorite for coffee enthusiasts across the country.

Coffee shop D is a well-known artisanal bakery and café in the Philippines, celebrated for its high-quality, handcrafted pastries and bread. With a focus on using premium ingredients, this coffee shop creates a range of delicious treats, from freshly baked bread and cakes to pastries and savory items. The café offers a cozy and stylish environment, making it a popular destination for breakfast, brunch, or a leisurely coffee break. Aside from its wide selection of baked goods, they also serve specialty coffee and light meals, all prepared with care and attention to detail. With its commitment to quality and a passion for baking, this company has earned a loyal following and is considered one of the best spots for those seeking a delightful and wholesome bakery experience.

Coffee shop E is a cozy and welcoming café known for its variety of coffee blends and relaxed atmosphere. Located in the Philippines, it has gained a reputation for offering high-quality coffee drinks, from classic brews to unique specialty beverages. The café prides itself on its focus on customer service and providing a comfortable space for people to unwind, work, or catch up with friends. In addition to its coffee offerings, this coffee house serves a selection of light meals and snacks, making it an ideal spot for breakfast, lunch, or a mid-afternoon treat. It’s friendly vibe and dedication to quality make it a popular destination for coffee lovers looking for a great coffee experience.

Coffee shop F is a specialty coffee shop that has earned a reputation for its high-quality coffee and inviting atmosphere. Known for its dedication to the art of coffee, which offers a variety of expertly brewed coffee drinks, including espresso-based beverages, pour-overs, and signature blends. The café takes pride in sourcing its beans from top-quality local and international suppliers, ensuring a rich and flavorful coffee experience. Along with its exceptional coffee offerings, they also serve a selection of pastries and light bites, perfect for pairing with a morning or afternoon cup of coffee. With its cozy ambiance and commitment to craft, this café and company has become a beloved spot for coffee enthusiasts looking for a place to relax, work, or connect with friends.

Coffee shop G is a charming coffee shop known for its inviting atmosphere and focus on quality coffee. Located in the Philippines, the café offers a variety of expertly brewed coffee drinks, from classic espresso-based beverages to unique signature blends. This Cafe takes pride in using high-quality, locally sourced beans to create flavorful and aromatic coffees. Along with its coffee offerings, the café also serves a selection of delicious pastries and light snacks, making it a great spot for breakfast or a mid-day break. The cozy and relaxing ambiance of this cafe makes it a popular choice for people looking to unwind, meet friends, or enjoy a quiet moment with a great cup of coffee.

Coffee shop H is a specialty coffee shop that focuses on providing a high-quality coffee experience in a relaxed and welcoming environment. Known for its expertly brewed coffee, the café offers a variety of espresso-based drinks, cold brews, pour-overs, and unique blends that cater to different preferences. This coffee shop emphasizes a carefully curated selection of beans, often sourced from local and international suppliers, to ensure a rich and flavorful taste. In addition to its coffee offerings, the café serves light bites and pastries, making it a perfect spot for a coffee break or a casual gathering. The combination of great coffee, a cozy ambiance, and a dedication to craftsmanship makes this coffee shop a favorite for coffee lovers seeking a delightful café experience.

Coffee shop I is a popular coffee shop in Cebu City, known for its cozy ambiance and diverse selection of specialty coffee drinks. The café offers a variety of espresso-based beverages, cold brews, frappes, and unique signature drinks, all crafted with care using high-quality coffee beans. Along with its coffee offerings, the café also serves a range of light snacks and pastries, making it a great spot for a relaxing coffee break or casual hangout. The café is known for its inviting and vibrant atmosphere, making it a perfect destination for friends to meet up, students to study, or anyone who simply enjoys a comfortable environment while sipping on great coffee. Whether you’re a coffee enthusiast or just looking for a peaceful place to unwind, this café offers a delightful experience for all.

Coffee shop J is a charming coffee shop in Cebu City, known for its cozy and welcoming atmosphere, making it a great place for coffee lovers to relax or catch up with friends. The café offers a variety of coffee drinks, including freshly brewed local and international coffees, espresso-based beverages, and refreshing iced drinks. They also serve a selection of light snacks, pastries, and comfort food, perfect for pairing with your coffee. What sets of this café is its emphasis on creating a relaxed environment with a minimalist yet stylish design, ideal for unwinding or working. It’s a popular choice for those who appreciate good coffee and a comfortable space to enjoy their drinks. Whether you’re in the mood for a rich cup of coffee or a casual snack, this café is a great spot in Cebu City to satisfy your cravings.Bottom of Form

Research Respondents

The respondents for this study will be the owners or managers of homegrown coffee shops in Cebu City. Purposive sampling will be used to select participants, as this method targets individuals who are directly involved in the management of these businesses and are therefore best positioned to provide valuable insights. The sample size will consist of 10 coffee shop owners or managers, chosen from 10 selected homegrown coffee shops in Cebu City. This relatively small sample size is appropriate for a focused study, as it allows for in-depth data collection and analysis. Purposive sampling is used for this study because it ensures that the respondents possess specific knowledge relevant to the research, such as operational practices, market trends, and challenges faced by local coffee shops. However, while purposive sampling ensures targeted responses, it may limit the generalizability of the findings, as the results may not reflect the broader population of coffee shop owners. The study will rely on a survey sheet to gather data from the respondents. A checklist survey questionnaire will be used in this study to collect information in quantitative data. This will allow for a comprehensive understanding of the experiences and perspectives of coffee shop owners and managers. Ethical considerations, including confidentiality and informed consent, will be prioritized to ensure the participants feel comfortable sharing their experiences. Finally, once the data is collected, it will be analyzed statistically based on the responses, and to identify patterns and draw conclusions about the operations and challenges of homegrown coffee shops in Cebu City.

Research Instrument

            The use of a researcher-made survey instrument for this study provides flexibility in tailoring the questions specifically to the research objectives. By creating a custom survey, the researcher can ensure that the instrument directly addresses the unique aspects of homegrown coffee shops in Cebu City, particularly regarding their sustainability and the problems encountered. To ensure that the survey instrument is both valid and reliable, it will be validated by experts in the field and pilot-tested. The expert validation process involves gathering feedback from individuals with experience in research methodology or the coffee shop industry, which will help identify any areas of improvement in the survey’s content, clarity, and overall structure. The pilot test, conducted on a small sample of respondents, will test the reliability and internal consistency of the survey, ensuring that the instrument accurately measures what it intends to measure and produces consistent results across different respondents. Additionally, the pilot test will help identify and resolve any issues related to the appropriateness of the questions or any potential biases that could affect the integrity of the responses.

The survey instrument is divided into three main parts to collect comprehensive data. The first part focuses on demographic information or the profile of the respondents, such as age, gender, civil status, citizenship, highest educational attainment, and years in the business operations. This data will provide valuable context and help identify any patterns or trends that might emerge based on the characteristics of the respondents. Understanding the background of the respondents is crucial in interpreting the data on sustainability and the problems encountered, these factors could vary depending on the size and maturity of the coffee shop business.

The second part of the survey centers around the level of sustainability of a homegrown coffee shop business, assessing how different factors affect its operations. The rating scale used in this section provides a subjective measure of sustainability, where respondents evaluate the extent to which their business is sustainable in terms of economic viability, environmental protection, and social equity. A rating scale and categorical responses are used to determine the level of sustainability of a homegrown coffee such as 4 – Highly Sustainable (indicating a high degree of sustainability with the products and services available), 3 – Moderately Sustainable (indicating an equal degree of sustainability with the products and services available), 2 – Less Sustainable (indicating a low degree of sustainability with the products and services available), and 1 – Not Sustainable (indicating no degree of sustainability with the products and services available).

Furthermore, the third part is the problems encountered by the respondents in the operations, in which a checklist instrument will also be utilized, and this is another key area being measured in the study.

Research Procedures

            This section presents the gathering of data and statistical tools to be used in the study.

            Data Gathering.

Before the data gathering, the researcher will send a transmittal letter addressed to the coffee shop owners or managers asking permission to allow the researcher to conduct the study duly noted by the Adviser and endorsement from the Dean of the Graduate School. Upon receiving the duly approved letter request, the research survey questionnaires will be administered by the researcher to the target respondents of the study for one month.

After gathering the data from the respondents, the accomplished research survey questionnaires will be processed, analyzed, and interpreted.

Treatment of Data.

The following statistical tools will be used in the study:

            Frequency Count and percent will be used to summarize, analyze, and interpret the profile of the respondents;

            Weighted Mean will be used to summarize, analyze, and interpret the data on the level of sustainability of homegrown coffee shops and the problems encountered by the respondents.

            Chi-Square will be used to determine the significant relationship between the profile of the respondents and the level of sustainability of homegrown coffee shops.

Definition of Terms

The      following terminologies are operationally defined for better understanding:

Profile of the Respondents: This term refers to the respondents demographic information, such as age, gender, civil status, citizenship, highest educational attainment, and years in the business operations.

Level of sustainability of a homegrown coffee shop. This term refers to the economic viability, environmental protection, and social equity based on the findings and results of the study conducted.

Problems encountered by the respondents in the operations of their homegrown coffee shops. This term refers to the prevailing conditions of a homegrown coffee shop operators, who face challenges such as supply chain issues, competition, marketing struggles, cash flow management, regulatory compliance, staffing difficulties, rising operational costs, maintaining product quality, and integrating technology.

Proposed Action Plan. This term refers to the forces to be created and formulated as business models and strategies. This is also a plan that helps identify key milestones, provides a framework for making decisions, and tracks progress that need areas for improvement on the business model.

Findings

Respondent Profile:
The respondents in the study were primarily coffee shop owners or managers in Cebu City. The majority of the respondents were local entrepreneurs with varying educational backgrounds, and their businesses ranged in operation years from a few months to several years. The findings indicated a diverse group of coffee shop owners, providing insights into different levels of experience and expertise within the homegrown coffee shop sector.

Level of Sustainability:
Based on the survey results, the sustainability of homegrown coffee shops in Cebu City varied. In terms of economic viability, most respondents reported moderate sustainability, with factors such as effective inventory management, customer loyalty, and marketing practices contributing to their economic success. Environmental protection was rated lower, with many coffee shops still in the early stages of adopting eco-friendly practices like waste reduction, energy conservation, and sourcing sustainable products. For social equity, a significant number of coffee shops emphasized their commitment to local sourcing and fair-trade practices, contributing to the local economy and fostering community engagement.

Operational Problems:
Common problems faced by homegrown coffee shops included high operational costs, competition from larger coffee chains, and challenges in maintaining consistent product quality. Many respondents also reported issues with customer retention and marketing, highlighting the need for stronger branding and better engagement with their customer base.

Relationship Between Respondent Profile and Sustainability:
A significant relationship was found between the years of operation and the level of sustainability, with businesses that had been operational for longer periods demonstrating higher sustainability across economic, environmental, and social factors. However, no significant relationship was found between educational attainment or gender and the sustainability of the coffee shops.

Conclusion

Homegrown coffee shops in Cebu City show a mixed level of sustainability. While most businesses are economically viable, there is room for improvement in environmental sustainability practices. Social equity is an area where many shops excel, especially in supporting local farmers and the community. However, operational challenges such as high costs, competition, and customer retention are major concerns that hinder the growth and long-term sustainability of these businesses. The study suggests that sustainability, especially environmental sustainability, is still an evolving concept for many homegrown coffee shops, and a strategic approach to sustainable practices is essential for their survival in a competitive market.

Recommendations:

Enhance Environmental Practices:
Coffee shop owners should adopt more sustainable practices, such as using biodegradable packaging, reducing waste through better inventory control, and incorporating energy-efficient operations. A focus on eco-friendly practices could also help differentiate them from larger chains, attracting environmentally conscious consumers.

Strengthen Marketing Strategies:
Implementing stronger branding and customer engagement strategies will help retain customers and build loyalty. Coffee shops should explore digital marketing, social media engagement, and loyalty programs to strengthen their market position.

Leverage Technology:
Coffee shops can benefit from the use of technology to streamline operations, such as using inventory management software to reduce waste and employing customer relationship management (CRM) systems to enhance customer service and retention.

Training and Skill Development:
Providing continuous training for employees on customer service, product knowledge, and sustainability practices will improve service quality and help create a positive customer experience, leading to higher retention rates.

Collaboration with Local Farmers and Suppliers:
Strengthening relationships with local farmers and suppliers can ensure a consistent supply of quality coffee beans and other products. Homegrown coffee shops should also explore partnerships for sourcing sustainable products, creating a more integrated and resilient supply chain.

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