Matcha mayhem: Blank Street eyes $100m expansion
Blank Street coffee is reportedly in early talks to raise at least $100m in new funding as it eyes further expansion.
The cafe chain, which has more than 50 shops in the UK, is known for its matcha drinks and has grown rapidly since it was founded in 2020.
The business operates dozens of locations in New York, Boston and Washington, and first opened in London in 2022.
Blank Street capitalised on the popularity of matcha – a drink made with vibrant green caffeinated powder – while other coffee chains, like Pret a Manger and Starbucks, have been forced to downsize.
The talks for new funding, first reported by the Financial Times, are in an early stage.
The firm was valued at around $500m last year but could see its value soar to nearly $1bn in a deal, according to reports.
Blank Street counts more than 30 London sites
The pastel green coffee chain has more than 30 locations in London, including sites in St Pauls, Moorgate and Liverpool Street.
Blank Street’s first London locations were unveiled in Fitzrovia and Shoreditch in 2022, and the firm also operates in Manchester, Birmingham, Edinburgh, Glasgow, Leeds and Cambridge.
The coffee chain went viral on social media soon after its introduction to the UK, as it capitalised on the popularity of matcha among gen-Z Brits.
Recent additions to its matcha offerings include Lemon Loaf Matcha, Cherry Glaze Matcha and Banana Bread Matcha.
Blank Street turned a profit in the UK for the first time in the year to December 2024, according to its most recent accounts.
The company turned a £1.3m profit, up from a £4.2m loss in the previous year and turnover more-than tripled to £35.8m.
Coffee chain ‘cements matcha leadership’
The firm said it has “cemented its leadership” in the matcha category by appealing to gen-Z and millennials through social media and seasonal campaigns.
Blank Street’s directors said in its results: “The UK coffee market continues to expand despite economic pressures, increasingly rewarding operators with clear value propositions and differentiated experiences.
“Blank Street UK’s focus on premium products, menu innovation, and distinctive store designs positions us to capture this shift vs our larger competitors.”
Established coffee chains – including Starbucks and Caffè Nero – have jumped on the matcha trend in recent years, and Greggs became the latest UK chain to launch an iced matcha offering.