North east coffee shop brand Deli No 1 has told M&C it will build a regional cluster of 14 units before expanding nationwide.
The Daniel Moxon-led group, which opened its second unit this month at a development in Beverley, will focus on retail parks and high footfall shopping areas to build its presence.
“We have a plan to open 14 of these units locally over the next five years. That will allow us to build a good reputation to do with financing and the amount we would be turning over could allow us to open three units a year instead of one,” Moxon said.
After building the cluster in Yorkshire, Deli No1 will look to create a national presence for its specialty coffee shops with a view to rival other national brands.
“We want to expand and take some of the market back from the Costas and Starbucks,” Moxon said. “We want to grow as big as we can: we are not looking to sell the business, we want to build a brand.”
He added “there’s no reason” why Deli No1 could not match the presence Costa has in the UK over the same time period.
Moxon said there are two new build retail developments in the Deli No1 pipeline at Humber and Scarborough where he hopes to replicate the success at the Wykeland Group’s shopping development in Beverley called Flemingate.
Deli No1 has a prime site in the shopping centre opposite Debenhams that benefits from consistently high footfall seven-days a week.
“We have mastered what we are after over two years at our first location. This is the store we have our future concept modelled on so we are now looking at busy new developments we can get a primary unit in.”
He said new build retail developments are the focus because many town centres have dwindling footfall while these out of town retail parks benefit from seven-day trade and high footfall.
Deli No1 serves speciality coffee made and aims to offer a “sophisticated alternative” to other high street coffee options.
Its stores are designed with a modern industrial where guests can enjoy the hand-crafted coffees with food.
