Taylor Street Baristas has taken on a completely different type of crowdfunding, allowing its investors to either get cash back on the money they invest or exchange their cash equity for coupons to use in store.
They’re the first company to off a ‘coffee bond’ on Crowdcube, but the company felt it was a fitting reward for its supporters, who, more likely than not, will love a good coffee.
The company said on its campaign page: “The UK coffee market is estimated to have annual sales of over £6 billion. Branded coffee shops account for more than 40% of these sales, delivering revenue growth at a rate far above the rest of the retail sector. In 2009, one in nine UK consumers visited a coffee shop daily. Now it’s one in five, and it’s estimated that the UK will add a further 1,000 branded coffee shops by 2018.”
Therefore, it decided to launch a new type of coffee shop to satisfy those who prefer the local, independent experience rather than a large chain like Starbucks, Costa or Nero.
“The specialty coffee market is growing even faster, and the numbers of both branded coffee chains and quality artisan independents are exploding with this segment adding over 306 stores in 2013 alone. Taylor St is at the forefront of this coffee revolution in London and we now boast among the highest volumes of specialty coffee in the UK, with over 1 million cups sold last year alone,” founders Nick, Andrew and Laura Tolley and CEO Richard Shaer said.
The company is looking for an investment of £1.5m, of which £458,500 has already been raised (at the time of writing). It’s offering an interest rate of eight per cent if you’re happy with getting the cashback after four years or 12 per cent if you want your returns in coupons to redeem at any of the company’s coffee shops.