Knoops to double in size following £8.3m fundraising
The business will now press ahead with its pipeline of an additional 20 openings from March 2024, targeting major cities and university towns, with medium-term ambitions for 200 stores across the UK
Knoops, the chocolate cafe, has announced plans to more than double in size in 2024 following a £8.3m fundraising which leaves the business debt-free and positioned for higher profits next year.
The fundraising, led by a £5.5m investment from the London-based retail and property group Morleys Stores Limited, allows Knoops to meet the booming demand for expertly-crafted chocolate drinks through an expanded network of UK stores – as well as enhancing a multi-channel offer which gives fans the chance to create ‘Knoopology’ with their own drinks at home with Knoops chocolate flakes.
Knoops currently has 15 branches, including seven in London, with plans in place to take the number of outlets to 20 nationally by March, including new openings in Edinburgh, Leeds and Exeter.
The business will now press ahead with its pipeline of an additional 20 openings from March 2024, targeting major cities and university towns, with medium-term ambitions for 200 stores across the UK. The firm has also just launched a new app allowing customers to tailor their own drinks.
The company was founded by the company’s self-taught “master distiller” Jens Knoop in 2013 in Rye, East Sussex, creating a range of expertly-crafted chocolate drinks with sustainably sourced ingredients.
Knoops executive chairman and CEO William Gordon-Harris said: “When I first went into Jens’ shop in Rye five years ago, I knew he was onto something. The business clearly had amazing potential and now thousands of customers are enjoying their “Knoops moment” every single week thanks to Jens’ vision. Our stores are doing a roaring trade at all times of the day and are hugely popular with customers of all ages.”
John Egan, a non-executive director for both Morleys and Knoops, added: “Following this fundraising, Knoops is in a fantastic position to grow from a position of real financial strength. We have a huge market to shoot for and an easily scalable business – we’re still on the runway when it comes to how far Knoops can go. Bernard Dreesmann, the chairman of MSL, spotted the Knoops brand in High Street Kensington and he was incredibly impressed by Jens’ concept and the vision and strategy for the business set out by William.
“Our significant investment in Knoops is part of the group’s diversification away from the core department store business. We are delighted and excited to be part of the Knoops journey, and see the business creating a new category in the hot drinks market.”