Stay informed with free updates
Simply sign up to the Retail & Consumer industry myFT Digest — delivered directly to your inbox.
The café chain Blank Street is in early discussions to raise $100mn or more in new funding to fuel expansion as it capitalises on the popularity of its coffee and matcha drinks with young consumers.
The business, which was valued at about $500mn last year, could achieve a valuation of close to $1bn in any deal, according to people familiar with the matter. However, they cautioned that talks were at a preliminary stage and neither the funding target nor the valuation have yet been confirmed.
Blank Street declined to comment.
Blank Street is among a new generation of cafés appealing to younger consumers and capitalising on shifting tastes, while more established brands struggle.
Starbucks last year closed some UK stores as part of a global restructuring, while Pret A Manger in September wrote off a third of the value of its 2018 acquisition by European investment group JAB.
Meanwhile, Coca-Cola recently ditched plans to sell Costa Coffee, the UK’s largest chain, after bids from private equity suitors fell short of its expectations. Coke had been seeking about £2bn for Costa, roughly half the £3.9bn it paid to acquire the company from Premier Inn owner Whitbread in 2018, as operating losses have mounted.
Founded in 2020 in Brooklyn through a coffee cart, Blank Street expanded rapidly after its formula of fast service and social media-friendly beverages proved a hit.
It was established by Vinay Menda and Issam Freiha, who previously worked at a venture capital fund, and has raised money from investors including Left Lane Capital, General Catalyst and Tiger Global.
Blank Street markets drinks including Lemon Loaf Matcha and Cherry Glaze Cold Brew, allowing customers to order ahead on the start-up’s mobile app.
The business operates in dozens of locations including New York, Boston, Washington and London. Since launching in London in 2022, Blank Street has expanded to more than 40 UK stores including Scotland and tripled its turnover to almost £36mn in the 2024 financial year, according to accounts filed in October.
The new funding will help Blank Street grow its business, including launching in new cities. It was also expanding to Los Angeles, according to a recent job advertisement.
