North Star Coffee Roasters expands in Leeds with six-figure loan
What's the deal? North Star Coffee Roasters, a Leeds-based specialty coffee brand, is opening two new city centre sites after securing a six-figure loan from NPIF II — Mercia Debt Finance. The new outlets on Great George Street and in the Victoria Quarter are expected to open in June, creating eight jobs.
Founded in 2013 by husband-and-wife team Holly and Alex Kragiopoulos, North Star was Leeds' first specialist coffee roastery. It now operates cafés at Leeds Dock and Sovereign Street, a roastery in Armley, and supplies around 1,200 subscribers and 350 wholesale customers.
The company employs 13 people, holds B Corp status, and sources its coffee ethically.
Why now? After 13 years building the brand, the founders say it is time to move into high-footfall areas. "We feel the time is right to showcase our brand in high-footfall areas," Holly said. The expansion reflects what the company describes as growing demand for high-quality coffee in busy city centre locations.
Holly also stressed the importance of professionalising the barista role. "All our baristas receive a living wage and incredible training — we want to show it's not just a 'filler job'," she said. "Being a barista should be a respected profession, as it is in Australia and New Zealand."
What could go wrong? The UK high street remains a tough environment for hospitality businesses, with rising costs and shifting consumer habits. Expanding into premium city centre locations means higher rents and overheads — a gamble even for well-established independents.
North Star will also face stiff competition. Leeds' speciality coffee scene has grown significantly since 2013, and the new sites will need strong footfall to justify the investment.
The signal: The loan came from the £660M NPIF II fund, operated by the British Business Bank, which provides loans from £25,000 to £2M and equity investment up to £5M for small and medium-sized businesses. It is a sign that public-backed finance continues to flow toward regional independents with strong brands and ethical credentials.
North Star's expansion also reflects a broader trend: speciality coffee operators moving from niche neighbourhood spots into mainstream retail locations. As consumer expectations around quality rise, independent roasters are increasingly competing for the same prime pitches once dominated by chains.
Read more: bdaily.co.uk
