Blank Street Coffee’s revenue surged last year as the New York-based chain continued to ramp up its operations across the U.K.’s crowded and highly competitive market.
The four-year-old coffee chain credited new store openings and production innovation for boosting its turnover by 517% to £11.4 million ($15.2 million). The company only began trading in the U.K. in June 2022, so the results reflect its first full year of operating in the market.
Blank Street UK said it acquired more than 1 million customers in 2023 as it opened 13 new stores in London and one in Manchester. As of today, the coffee chain’s network has grown to encompass a total of 40 locations in the U.K., while in its home market of the U.S., Blank Street has 44 stores.
Although Blank Street’s U.K. business reported a net loss for the year of £4.2 million, the company said this was due to the investments needed in expanding its network and developing new products. The chain’s leadership said it expects its U.K. operation to achieve operational profitability this year.
Blank Street said its core offering of classic coffees, such as flat whites, Americanos and lattes, accounted for 77% of its total beverage sales, but it boosted the company’s revenue with signature and seasonal offerings that included Summer Cold Brew Menu, Blueberry Matcha and Chocolate Orange Mocha.
Blank Street’s cofounder Issam Freiha credited the new beverage categories for positioning the chain as one of the key players in the industry and setting it apart from its competitors.
The coffee chain was first established by Freiha and his fellow cofounder Vinay Menda as an electric-powered coffee cart in Williamsburg, Brooklyn in August 2020. Their strategy involves selling premium beverages and food items at lower prices by keeping overhead costs lower than their competitors and making full use of technology to improve efficiency.
Blank Street says it uses espresso machines that are fully automatic, so baristas can focus more of their time engaging with customers and providing a better service. Located in areas with heavy foot traffic, Blank Street keeps rental costs low by using small-format stores and carts.
Allegra World Coffee Portal estimated in April that the market for branded coffee had grown to more than 10,199 shops across the U.K., but the London-based market research group also noted that sluggish sales had compelled many operators to scale back expansion and focus on higher-performing outlets.