Blank Street Coffee, a coffee chain founded in Brooklyn in 2020, is reportedly in preliminary talks to secure more than $100 million in funding to fuel its ambitious expansion plans. Sources close to the discussions, which are still in their early stages, suggest that while neither the funding target nor the valuation are finalized, the company could achieve a valuation approaching $1 billion. Last year, Blank Street was valued at around $500 million. Major investors backing Blank Street include Left Lane Capital, General Catalyst, and Tiger Global.
The coffee brand has experienced rapid growth, appealing to younger consumers with its trend-focused drinks, particularly its range of matcha-based beverages. Since its launch, it has expanded significantly, operating around 50 locations in the UK, including sites in London, Manchester, Birmingham, Edinburgh, Glasgow, Leeds, and Cambridge. It also has 46 stores in the US, primarily on the East Coast, with plans to open in Los Angeles in June 2026. A new London location is also slated for the Elephant & Castle development in summer 2026.
Financially, Blank Street's UK operations have shown strong performance, achieving profitability for the first time in 2024 with pre-tax profits of £1.3 million. Turnover for its UK arm surged by 214% to £35.8 million in the 2024 financial year. This growth contrasts with challenges faced by other established coffee chains like Starbucks and Costa Coffee, which have reported closures or losses in the UK market. Blank Street's success has been attributed to its small-format stores, competitive pricing, and effective social media engagement, especially with Gen Z consumers.
