But is its model what customers want?
This coffee cart, which is called Mint Coffee, is a new business in McCarren park that was born out of necessity. With the continuing development of Williamsburg, more and more businesses have been moving into the neighborhood. This has caused problems for the small businesses that are already here, as they cannot keep up with the competition. One of these small businesses is Mint Coffee, which started operation in 2020 because there was not enough affordable coffee options in Williamsburg. The owners decided to open up their own cart because they believe that providing a great cup of coffee should be accessible to everyone.
Although I initially found the chain concept confusing, upon further inspection I realized that it was genius. Venture capitalists are always looking for asset-heavy businesses with a bright future. By starting out as an individual business and later expanding into a franchising model, Blank Street was able to appeal to this type of investor.
The company’s success may be due to how Blank Street has Broken the Chain mold, focusing on creating strong relationships with local coffee shops. These partnerships have allowed them to create a detailed customer profile and influence the shopping habits of locals- resulting in more customers coming back for their next cup. Additionally, they focus on small business ownership and providing quality products at an affordable price – both of which help to keep overhead costs low. Finally, they are constantly innovating their marketing methods in order to stay ahead of the competition. Results-wise, Blank Street has seen substantial growth along with ample investor interest; indicating that their strategy is working well.
With Blank Street, Vinay and Issam are hoping to provide consumers with quality coffee without breaking the bank. With locations across the country and plans to expand even further, these entrepreneurs seem poised for success.
As Blank Street Coffee Shop edged closer to its beta launch, the founders were acutely aware of how their business model would differ from those of their predecessors. For Menda and Freiha, scale was the key to success. Although Luckin and Blue Bottle had raised funding from venture capitalists and been successful enough to open a second location, they chose not to rely on profit margins as their primary source of income. CafeX also relied heavily on memberships and catering services, which helped them sustain high volumes while shielding them from short-term fluctuations in revenue.
The founders of Blank Street opted instead for a system that emphasized fixed costs (rent, food expenses) plus variable costs (coffee beans). This created an environment in which profits could be generated through price differentiation – that is, by charging higher
