The company behind Leeds’ first coffee roastery is expanding its presence in the city centre with the help of a six-figure loan from NPIF II – Mercia Debt Finance, which is managed by Mercia as part of the Northern Powerhouse Investment Fund II (NPIF II).
North Star Coffee Roasters is to open sites on Great George Street and in the Victoria Quarter as part of its plans to target high-footfall locations in the city. The funding will enable it to complete the fit-out works, with the new outlets due to open in June, and is expected to create eight new jobs.
North Star currently has coffee shops at Leeds Dock and on Sovereign Street, with a roastery in Armley. It also supplies coffee to around 1,200 subscribers and 350 wholesale customers. All of its coffee is ethically sourced and the company has achieved B Corp status.
North Star was the first specialist roaster in Leeds when it opened in 2013. Founders Holly Kragiopoulos and her husband Alex had met while studying at Northumbria University and spent three months travelling around Kenya and Malawi working with coffee growers before starting the business. The company now employs 13 staff.
Holly Kragiopoulos, founder, said: “The new outlets will help us deliver on our growth and impact strategy. While addressing problems in the coffee supply chain, we are also doubling down on our physical stores. After 13 years building the business, we feel the time is right to showcase our brand in high-footfall areas.
“We also want to support job creation in Leeds and highlight the role of baristas. All our baristas receive a living wage and incredible training – we want to show it’s not just a ‘filler job’. Being a barista should be a respected profession, as it is in Australia and New Zealand.”
Gary Whitaker of Mercia Debt added: “Holly and Alex are passionate about quality and ethics. They have built a business they can be proud of and made a real contribution to the coffee scene – both in Leeds and in the wider coffee industry. We are pleased to be able to support North Star’s expansion.”
Sarah Newbould, Senior Investment Manager at the British Business Bank, said: “Hospitality businesses like North Star Coffee Roasters play an important role in creating community spaces, supporting local employment and driving regional growth. It’s great to see NPIF II helping a business with such a strong regional reputation expand its presence even further across Leeds and create new opportunities within the local economy.”
Keiran Taylor of UHY BPR Heaton provided fundraising advice to the company.
The £660m Northern Powerhouse Investment Fund II (NPIFII) covers the entire North of England and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.
The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North of England. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for the North’s smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.