Blank Street Coffee’s shops have taken over New York City as they lure in customers with cheap lattes and cold brew.
Now the upstart chain aims to attract even more consumers who want to slash their coffee budgets through a subscription program.
The Blank Street Regulars program, which opened to the public this summer, has drawn roughly 5,000 paying members — and another 4,000 are on the waiting list to join.
For more than a decade, startups have turned to subscription models to generate guaranteed revenue, which can make their businesses more attractive to investors and juice their valuations. More established companies have also turned to monthly subscriptions as they try to draw regular customers looking for a deal. For example, members of Panera Bread’s Unlimited Sip Club pay $11.99 per month for “free” coffee, tea, caffeinated lemonades and fountain sodas every two hours.
Since its launch three and a half years ago as a coffee cart in Williamsburg, Brooklyn, Blank Street has grown to 74 locations across New York City, London, Boston and Washington. The typical Blank Street location is small, with limited seating and a semi-automated Eversys espresso machine to make drinks.
The startup has raised roughly $100 million, with backing from the likes of General Catalyst, Tiger Global and a co-founder of Warby Parker, according to PitchBook.
As of March, the company was valued at $177 million, down from its prior valuation of $218 million roughly a year earlier, according to PitchBook. Many startups have seen their valuations decline as the Federal Reserve raised interest rates and economists worried about a recession.
The chain has its critics. Blank Street’s rapid growth — and venture funding — have drawn grumbling and skepticism from some coffee drinkers. However, its prices have helped attract customers, especially as the cost of coffee beans soared in 2021 and $8 lattes became more common.
In New York City, ordering an oat milk latte today will set a Blank…
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