GenZ Coffee Brand Blank Street Brewing Up $1B Valuation on Matcha Craze

FomoAnxiety · 2026-04-01T10:16:03+00:00

Blank Street coffee chain aims for a $1 billion valuation in a funding round to cater to GenZ's matcha demand. The company has rapidly expanded since 2020, focusing on app-based service and trendy drinks, while rivals like Starbucks face mixed fortunes.

FomoAnxiety

2026-04-01 10:16:03

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Coffee chain Blank Street will reportedly hit a $1 billion valuation in a new fundraising round to help it meet growing demand from matcha crazed GenZ consumers.

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Matcha Fueled Growth

According to an article in the Financial Times, the Starbucks SBUX +3.31% ▲ rival is said to be in early discussions to raise $100 million or more to fuel expansion of its coffee and matcha drinks focused offering. However, the report cautioned that talks involving the company, which was valued at about $500 million last year, were at a prelimimary stage.

In August 2020, Blank Street launched its first store, a tiny coffee cart nestled in the garden of a Brooklyn diner. It has since expanded rapidly, with 46 locations in the U.S., including Washington and Boston and 50 in the U.K. including London.

Mixed Fortunes for Rivals

The growth has been driven by its focus on fast ordering and service via its app and social-media friendly drinks like Lemon Loaf Matcha, Banana Bread Matcha and Cherry Glaze Cold Brew which younger people like to highlight on their instagram pages. It also sells accessories like branded t-shirts and boxer shorts.

It hopes to use the new funding to expand the business including moving into new locations such as Los Angeles.

Its growth comes at a time of mixed fortunes in the coffee sector with Starbucks looking to restructure its ailing business and improve its customer service. This also includes hitching a ride on the matcha train with new drinks. Coca-Cola KO -0.29% ▼ recently announcing that it had ditched plans to sell Costa Coffee after private equity bids fell short of its expectations.

Is SBUX a Good Stock to Buy Now?

On TipRanks, SBUX has a Moderate Buy consensus based on 13 Buy, 11 Hold and 3 Sell ratings. Its highest price target is $120. SBUX stock’s consensus price target is $100.26, implying a 11.91% upside.

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