Who is Pickup Coffee
Pickup Coffee, which launched in March of 2022, has disrupted the coffee industry in the Philippines. In the startup’s first year, they opened 60 stores and just before the end of 2024, they expanded to 300 stores nationwide, rivaling the footprint of leading coffee chains. By creating a local brand that offers on-the-go premium yet affordable beverages, Pickup Coffee has quickly become a household name.
Why We Invested
The Company: Pickup Coffee’s ability to grow exponentially is due to their ability to blend convenience, quality, and a customer-oriented approach. They cater to the lives of fast-paced individuals by offering quick service, leveraging mobile technology for pre-ordering, payments, and loyalty programs. This seamless integration reduces wait times and enhances the customer experience. Additionally, their strategic placement in high-traffic and highly accessible areas, like public transportation stops, office buildings, and universities ensures a steady stream of customers.
One of the key reasons for their success is cost efficiency. By focusing on takeaway service, they save on overhead costs like rent and maintenance associated with large spaces or seating areas. This model also simplifies operations and allows Pickup Coffee to offer premium beverages at an affordable price. As a result, their store unit economics are positive, store payback periods short, and cash conversion cycle attractive. Furthermore, they adapt their offerings to cater to the Filipino palate, featuring flavors and blends that resonate with local tastes, enhancing their appeal to the market.
The Market: The Philippines is the largest coffee market in Southeast Asia, with the highest per capita coffee consumption in the region and the second highest in Asia. On average, Filipinos consume over 3 kilograms of coffee annually, with 8 out of 10 adults drinking approximately 2.5 cups daily. Despite this strong coffee culture, the market is largely dominated by instant coffee sold in sari-sari stores. Meanwhile, specialty coffee options are often limited to international chains with premium prices, making high-quality coffee less accessible to the average consumer.
The Team: A key driver behind our investment in Pickup Coffee is the founding team. Founded by Diego Lorenzo and Jaime Fernandez, the two bring together a unique combination of expertise. Diego, with over a decade of experience in finance and private equity, honed his skills at top banks and private equity firms. It wasn’t until completing his MBA at Wharton that he gained interest in entrepreneurship. Through seeing the success of coffee companies in markets similar to the Philippines, including China and Indonesia, he identified a significant gap in the local coffee industry.
Jaime, originally from Spain, acts as the company's operator. With a background in the aerospace industry and consulting at McKinsey in the Philippines, he developed a deep interest in the Philippine market. His entrepreneurial journey began when he founded several Philippine startups and subsequently joined the Foxmont team, which ultimately led him to meet Diego. Together, their complementary skills—Diego’s market insight and Jaime’s heavy involvement on the ground—fueled the inception of Pickup Coffee.
Their diverse experiences bring unique perspectives to the table. This combination of financial insight, strategy, and an understanding of the local market is what makes them such a strong team and positions Pickup Coffee for success in the competitive coffee industry.
By addressing the gap between affordability and quality, the company has redefined how coffee is consumed in the Philippines. As they continue to expand their footprint, their goal of making premium coffee accessible to all remains at the core of their success. With a proven track record and a scalable approach, Pickup Coffee is well-positioned to become a leading name in the coffee industry beyond the Philippines.