Coffee industry 'waking up' to new competition, says Blank Street boss

Coffee chains have been part of a “sleeping industry” that is starting to wake up as new rivals and innovative drinks shake up the scene, the UK boss of Blank Street has said.

Ignacio Llado, the president and co-founder of the chain’s UK business, said competition was intensifying as businesses work harder to attract customers.

“It’s definitely becoming more competitive, that is one of the things we’ve seen,” Mr Llado told the PA news agency.

“It is almost like we’ve seen the waking-up of a bit of a sleeping industry.

“This is actually positive for us too because we thrive off innovation and we innovate better when we feel that we now need to raise the bar a notch higher.”

Blank Street, which was founded in New York five years ago, reported its first pre-tax profit in the UK – at £1.3m in 2024, from a loss of £4.2m the previous year.

Turnover surged by about threefold to £35.8m year on year.

It has launched a variety of flavours, such as banana bread, carrot cake and blueberry, which have been shared widely on social media platforms like Instagram and TikTok.

The first UK shop launched in London in 2022 and it now has 41 across the country, with new openings in Manchester, Birmingham and Edinburgh, and plans to launch in Leeds.

Mr Llado said: “2024 was definitely the year with a tonne of novelty.

“That doesn’t mean that we’re only going to be relying on new flavours consistently coming out.”

He said the business does not “sleep on” coffee shop staple drinks which it continues to invest in, alongside innovative flavour launches and seasonal menus.

Starbucks last week announced it was closing some UK stores following a review of its global coffee shops.

It has also been simplifying its menu, with plans to reduce it by 30% by the end of 2025 as it focuses on fewer, more popular items.

Meanwhile, Mr Llado said Blank Street was enjoying “more demand than ever before” from both consumers and landlords in the UK who want to see a shop opened in their local area.

This is being driven by consumers prioritising “accessible luxuries” that they can enjoy with friends amid cost-of-living pressures.

“People are more ready than ever to spend on a product or an experience that involves stepping out of their home,” he said.