FARWA HOMBRE Co-Founder/Chief Financial Officer FARRON CAFÉ VENTURES, INC.

If Seoul has a coffee shop lifestyle, Metro Manila could not be far behind. This coffee shop mentality is slowly eating up both the old and the young Filipinos. Several concepts have cropped up, but still the same coffee shop.

Thus, another concept was born Farron Café concocted by young college sweethearts Farwa and Ronnel.

It is very seldom for college sweethearts to jointly put up a business because in a world where money rules even in relationships. The stakes are higher for Farwa and Ronnel, but for youngsters who believe they are destined for each other, nothing could go wrong.

Thus, Farron (Far for Farwa and Ron for Ronnel) Café was born in 2010 in kiosks and karts offering hot and cold drinks to students and young professionals along university belts and school campuses.

The owners tied the knot a year after further strengthening the joint venture.

Now, Farron Café has grown to 235 branches nationwide to become the leading brand concentrating on its niche market.

Ronnel Hombre is CEO of Farron Café Ventures, Inc. His wife, Farwa Hombre, the company’s co-founder and chief financial officer, looks back at how they started and how they kept themselves grounded all these years.

FARRON

The entrepreneurial students knew exactly what they want, their limits and capabilities.

Farwa recalled that she was a student nurse at Our Lady of Fatima University in Valenzuela City and Ronnel was taking up his master’s degree at UE when they decided to go into business.

Since coffee is the most common drink among medical professionals, they thought of a coffee business. But it should be something unique, affordable, no frills, but good. It should be something that will counter the pricey coffee drinks of foreign coffee shops as a good alternative.

Despite failing to convince their relatives and friends, they pursue their dream together.

Farwa pawned some of her jewelries and gadgets while Ronnel borrowed money from his professor. They were able to gather about 1100,000.

A successful couple entrepreneur allowed them to rent a 4-square meter area for less than 15,000 a month because they saw themselves in them when they were just starting their business long time ago.

Farwa and Ronnel did not venture far from their comfort zone also.

In 2010, the first Farron Café kiosk was erected along the UE Recto university belt offering affordable hot and cold coffee drinks to their on-the-go young customers. Three months after, they expanded to CEU, FEU and UST areas still banking on the huge student traffic. They are a constant feature in school events, fiestas, and out-of-town festival.

Despite the demand of the business, both Farwa and Ronnel finished their degrees. Farwa graduated BS Nursing in 2011 and become a registered nurse a year after. Farwa was only 21 when they tied the knot a year after they’ve put up their first kiosk.

Three years later, Farron Café already started franchising using their kiosk and cart business models.

Always on the lookout to improve their business, the couple sought professional help. Francorp, the country’s authority in franchising, came into the picture and polished their existing franchise system.

By 2013, Francorp launched Farron Café. Now, franchisees have a choice for karts, kiosk or full café.

Kart serves ice cold beverage and ice blended drinks, but a kiosk is bigger, normally about 6 square meters in area and could already serve hot drinks. A full café is about 10 square meters with 2-3 tables.

They continue to join fairs and events in schools to promote their brands. They also participated in provincial events and fiestas going to as far as the Panagbenga, the flower festival in Baguio. They also went to Zambales, Marinduque, and Quezon to promote their brand. Now, they have franchisees all over the country. THE COFFEE FRANCHISE With the help of Francorp, the company has built a more credible franchising system.

Farwa described Francorp’s rigidity as like doing a thesis where all the nitty gritty are being unraveled.

“Francorp has a panel that really digs deeper into our business model,” says Farwa.

“Francorp does not want to hurry us, they want a quality franchise,” she adds.

It helps them break into the market with confidence because they are assured it has quality franchise system.

That is why after saturating the schools, they have now a better recall when they go to the malls.

A turnkey Farron Café franchise now costs P500,000 already. The system is all set up and the staff trained by Farron.

Farron Cafe is now known as a specialty beverage retailer. Farron Cafe uses a system that is new to the beverage and food service industry to provide hot and cold beverages in a convenient and timeefficient way.

Farron Cafe provides its customers the ability to drive up and order (from a trained Barista and Staff) their choice of a custom-blended espresso drink, freshly brewed coffee, or other beverages.

This coffee shop offers high-quality option to schools, malls, fast-food, gas station, or institutional coffee.

Using its three store formats: Cart – serving frappe only; kiosk – serving frappe and hot drinks; and in line store – serving frappe, hot drinks and smoothies and with seating.

Their target market has remained the daily commuter, someone traveling to/from work, out shopping, delivering goods or services or just out for a drive.

It delights its captive consumer or someone who is in a restricted environment that does not allow convenient departure and return while searching for refreshments.

In addition to providing quality beverages and drinks and an extensive menu of delicious items, to ensure customer awareness and loyalty, as well as good publicity coverage and media support, Farron Café is committed to help and support local coffee farmers.

Farron Café believes in its threefold mission – product, community and economy– each being as integral to the success of the other two.

Their products seek to provide customers the finest quality and affordable beverage in the most efficient time. The company has to engage and support communities. By accomplishing these two missions, the company can make sound decisions and can confidently grow the business profitably.

GROWTH From its first branch in Feb. 2010 in the University of the East Manila, Manila, Farron Café now has 235 branches in different universities, strategic locations and cities and provinces and many soon to open branches nationwide.

Of the 235 Farron Café outlets, 65 are owned by the company and the rest are under franchise deals. Some franchisees have multiple branches. This year, Farwa expects to grow by another 100 stores, just to duplicate the number of stores built last year.

Most of their outlets are carts and kiosks because these are easily manageable with not much overhead costs.

It has established an office in Roxas District Quezon City while the warehouse is located in Valenzuela City.

It has remained steadfast in its drive to grow the business. It never tires going out to events. It is a regular participant to biggest festivals around the island of Luzon . These are Panagbenga Festival in Baguio City , Strawberry Festival in La Trinidad Benguet, Mango Festival in Iba Zambales, Domorokdok Festival in Botolan, Zambales, Bangus Festival in Dagupan Pangasinan, Ranyag Festival in Vigan Ilocos Sur, Hot Air Balloon Festival in Angeles Pampanga and many more. Farron Café is also a regular participant in different schools foundations and events.

AFFORDABILITY

One thing that contributed their success is affordability of their products. With a student budget in mind, Farron’s tall coffee is only 139 and other blended iced drinks, compared to almost 1100 in the leading coffee shops. Even with the new taxes, Farron is still affordable with the biggest serving at 177 as against similar drink of a foreign brand at 1170 per cup.

In addition, Farron is proud to be using all local coffee beans.

“Our advocacy is to help build Philippine coffee which is now dying because Filipinos love the foreign brands, which are importing coffee beans or roasted coffee,” says Farwa.

Farron is sourcing coffee from the regions. Farwa has lamented how the big multinationals are buying local coffee beans at very low prices compared to the foreign coffee beans. This is what they are trying to correct by giving coffee farmers the right price.

By focusing on schools and universities, Farwa hopes to influence the young professionals to patronize local coffee to help local farmers.

OUT OF SCHOOL YOUTH

Another endearing trait of Farron Café is its inclusiveness. This coffee shop is prioritizing out-of-school youths in the hiring of workers.

“Ever since our advocacy is to hire out of school youths,” says Farwa. In fact, 98 percent of their staff are OSY. They only have 7 college graduates in the head office out of the 150 baristas. There are also 20 deaf and mute workers.

“We put a note in our outlets if they are staffed with deaf and mute,” says Farwa. To hire these special people, Farron is coordinating with the local government units, which normally come up with candidates.

At present, there are 6 working students because they can afford broken schedules.

Aside from the regular salary, workers are given incentives when they hit their quotas.

“This is to inculcate into their minds the essence of hardwork, So, they have to strive to sell higher. As a result, we have mostly repeat customers,” she adds.

THE FILIPINO COFFEE Despite the seemingly saturation of coffee shops in the National Capital Region, Farwa said there is still enough room for new concepts.

But there are also those copycats and Farron Café is not a stranger to this. Entrepreneurs with already deep pockets could dislodge small capital concepts like them and edge them out in choice locations.

“Francorp says, those that will sustain are the ones with good brand,” says Farwa.

“The most important in this business is having a good brand.”

Despite being small, Farron does not scrimp on their choice of coffee beans. Farwa stressed that Filipino coffee beans are also good and they use imported milk from Australia.

They have also a reliable supplier for pastries although some are company produced at their commissary in Valenzuela.

The goal of Farron is to establish themselves as the real Filipino brand of coffee, that they offer quality, but affordable drinks to everyone.

“You can have your coffee with us without getting intimidated,” says Farwa noting that some customers are turned off by flashy environments. Farron Café is trying to remove that stigma that coffee shop caters only to the well-to-do market. They would like to cater to those who are three-in-one coffee drinkers with brewed coffee that is affordable and good.

“We want to be known as the Filipino brand of coffee,” Farwa adds.

In fact, the biggest coffee shop franchise of Farron Café is in Ozamis City, a full café with 200 square meter area.

Return on investment for a cart is 9-12 months depending on the area but others have faster at 2 months, according to Farwa. Their franchisees are varied, some are young, some retirees, and OFWs.

They are looking at penetrating other cities outside of the National Capital Region.

Even their marketing and promotion of the brand is done simpler though social media and a few pitches on TV shows.

Going to other ASEAN countries is the next step. Francorp is now preparing for their eventual foray in Indonesia, Thailand and Cambodia.

“Hopefully, we can bring the Filipino coffee outside of the Philippines,” says Farwa.

Farwa and Ronnel, who are avid big bike riders, are looking at further expanding their business. They are trying to establish another beverage chain called Cha Thai, offering authentic Thai drinks of similar kiosk and cart models. They have a few outlets already.

Farwa, now 27 years old, said that Thai tea drinks are different from the teas commonly serve in the country which are mostly Taiwanese.

They have decided to offer teas because the ASEAN economic integration is picking up and the countries in this region are mostly tea lovers except for the Philippines. Cha Thai, however, is targeted to serve the A and B market in a full-café setting.

STEWARDS Young as they are, Ronnel is only 31 and Farwa 27, the couple clearly identify themselves as just mere stewards of the business and that everything belongs to God because they are just instruments to help others.

“The deaf and mute and the young people who have only finished high school are being deprived of opportunities for decent employment,” says Farwa. They would always encourage these people to go back to school, but since most of them are now supporting also their families, they have lost interest.

“We’re so happy and thankful that we’ve gone this far,” said the Born Again Christian couple.”

The most important lesson they learn in this business is to have the passion to sustain the business. That is why their tagline is “Love in Every Cup”, which means that, “If you prepare the coffee with love then you put God in every cup.“

They already have two boys, 6 and 3 years old, that they send to school everyday before they head to office and the warehouse or at the commissary and to check branches because it pays to be hands-on. They have also ventured into farming and will soon be renting a farm lot for coffee farming.

Farwa, who has not really practiced her profession as a nurse, has always been grateful to God because despite her love for entrepreneurship, she was still able to finish her course in nursing. She is praying if God really wants her to proceed to become a doctor or not.

“I have been praying a lot if I should proceed to medicine or not. I am praying to go where the Lord wants me, it is all up to Him,” says Farwa, whose mom is a Muslim.

“Not all can be entrepreneur, not all are gifted with this knack for business. So, know your passion and stick to that passion,” says Farwa grateful that she is gifted with both a nursing profession and entrepreneurial skills.

During her elementary school, Farwa would sell Chocnut and other candies to her classmates that she bought on weekends. She was like a walking sari-sari store then.

She looks up to Joe Magsaysay of Potato Corner for being able to bring the brand overseas in a mainstream market. Hopefully, Farron Café can duplicate Potato Corner.

She looks up to the Francorp people particularly Samie Lim, the father of franchising, and Bing Limjoco, the mother of franchising, for their sincere and genuine efforts to help them succeed.

Despite coming from a complicated family structure, and eventually growing up with grandparents she knew, Farwa has come to terms with everything. She still considers herself lucky and grateful she has grandparents who really take good care of her.

She harbors no hatred, thankful that her grandparents have taught her to offer all her pains to the Lord.

“There is nothing that can be done about the past, but the Lord can change my future,” says Farwa.