Making It with Jon Davids 168 - “We Raised $118M With a Tiny Coffee Shop” | Blank Street Coffee
Feb 4, 2025
Discover the remarkable journey of a coffee cart that transformed into a thriving brand with 65 locations across multiple cities. Explore how Blank Street Coffee's pivoting business model attracted significant investment while engaging with local communities. The discussion touches on the challenges and controversies that arise from rapid growth and its effects on local economies. Uncover innovative strategies that set coffee shops apart, and rethink traditional business models for maximizing value and profitability.
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Blank Street's Beginnings
- Blank Street Coffee started as a small coffee cart in Brooklyn in 2020, offering cheaper drinks than Starbucks or Dunkin'.
- They expanded rapidly, opening carts across Brooklyn and Manhattan before launching their first physical cafe.
Small is Mighty
- Blank Street's small stores (500 sq ft) keep rent low (estimated $3,500/month vs. $15,000/month for average NYC cafes).
- This allows for lower operating costs and higher profit margins.
Indification Strategy
- Blank Street uses the "indification" strategy, creating a local, indie feel.
- This resonates with consumers seeking authentic community experiences.