North Star Coffee Roasters, widely regarded as the pioneer behind Leeds' first coffee roastery, is set to expand its presence in the city with two new high-footfall locations. The company will open sites on Great George Street and in the Victoria Quarter next month, following a six-figure loan from NPIF II – Mercia Debt Finance, managed by Mercia as part of the Northern Powerhouse Investment Fund II (NPIF II).
New Locations and Job Creation
The funding will be used for fit-outs of the new shops, which are expected to create eight jobs. These openings will complement North Star's existing outlets at Leeds Dock and Sovereign Street, along with its roastery in Armley. The firm, which employs 13 staff and holds B Corp certification, also supplies coffee to approximately 1,200 subscribers and 350 wholesale customers.
Founders' Vision and Expansion Strategy
Founded in 2013 by Holly Kragiopoulos and her husband Alex, who met at Northumbria University and spent three months travelling in Kenya and Malawi working with coffee growers, North Star has grown steadily. Holly Kragiopoulos commented: “The new outlets will help us deliver on our growth and impact strategy. While addressing problems in the coffee supply chain, we are also doubling down on our physical stores. After 13 years building the business, we feel the time is right to showcase our brand in high-footfall areas.”
She added: “We also want to support job creation in Leeds and highlight the role of baristas. All our baristas receive a living wage and incredible training - we want to show it’s not just a ‘filler job’. Being a barista should be a respected profession, as it is in Australia and New Zealand.”
Support from Investors and Advisors
Gary Whitaker of Mercia Debt said: “Holly and Alex are passionate about quality and ethics. They have built a business they can be proud of and made a real contribution to the coffee scene – both in Leeds and in the wider coffee industry. We are pleased to be able to support North Star’s expansion.”
Sarah Newbould, senior investment manager at the British Business Bank, added: “Hospitality businesses like North Star Coffee Roasters play an important role in creating community spaces, supporting local employment and driving regional growth. It’s great to see NPIF II helping a business with such a strong regional reputation expand its presence even further across Leeds and create new opportunities within the local economy.”
Keiran Taylor of UHY BPR Heaton provided fundraising advice to the company.
