Black Sheep Coffee

About Black Sheep Coffee

Black Sheep Coffee operates as a British coffeehouse chain, originating in London, England, in 2013. The company was established by university flatmates Gabriel Shohet and Eirik Holth, who left their respective jobs to challenge the established coffee market. Their journey began with pop-up stalls around London before opening their first permanent location, a venture partly funded by a Kickstarter campaign in 2014 that raised £23,000.

The business model centers on operating a chain of coffee shops in urban locations, many of which transition into cocktail bars in the evening. Revenue is generated through the direct sale of beverages, food items, and alcoholic drinks to consumers. The company also engages in e-commerce, selling its roasted coffee beans, Nespresso-compatible pods, and branded merchandise through its website and on Amazon. A significant part of its growth strategy involves a franchise model, which has led to rapid expansion across the UK and internationally. This model allows franchise partners to operate their own stores under the Black Sheep brand, benefiting from central support, training, and marketing.

A key differentiator for Black Sheep Coffee is its focus on using specialty-grade Robusta coffee beans, a departure from the industry's heavy reliance on Arabica. This choice underpins their 'Robusta Revival' house espresso. Beyond their signature coffee, the product lineup includes a variety of barista-made drinks, teas, smoothies, and food items like Norwegian waffles, bagels, and pastries. The company directly sources its beans from plantations, ensuring adherence to specific picking, drying, and washing processes. Their commitment to social responsibility is evident through initiatives like the "Free Coffee Board," which allows customers to donate coffees to the homeless, and a focus on using compostable or plastic-free packaging.

Since its inception, Black Sheep Coffee has achieved several milestones, including significant funding rounds from private investors, which fueled its global expansion. Notable investors include individuals associated with major companies like Spotify and Coca-Cola. In 2019, the company acquired eight stores from competitor Taylor St Baristas, expanding its London footprint. The company has expanded its presence to over 100 locations globally, including shops in the UK, France, the UAE, the Philippines, and the United States. It has reported substantial revenue growth, doubling from £10.7 million in 2021 to £21.3 million in 2022, while continuing to invest in expansion.