North Star brews up city centre expansion

A specialist coffee roastery is expanding its footprint in Leeds following a funding boost.

North Star Coffee Roasters has received a six-figure loan from NPIF II – Mercia Debt Finance to open two new sites on Great George Street and in the Victoria Quarter.

Founded in 2013 by husband-and-wife team Holly and Alex Kragiopoulos, who met while studying at Northumbria University and spent three months travelling around Kenya and Malawi working with coffee growers before starting the business, North Star became Leeds’ first specialist coffee roastery and has since grown into one of the city’s best-known independent coffee brands.

The company, which sources its coffee ethically and holds B Corp status, now employs 13 people across its operations.

North Star currently operates cafés at Leeds Dock and Sovereign Street, alongside its Armley roastery, while supplying coffee to around 1,200 subscribers and 350 wholesale customers.

Holly and Alex say the investment will fund fit-out works ahead of the openings, which are expected in June, and create eight new jobs.

They add the expansion reflects growing demand for high-quality coffee in busy city centre locations.

Holly said: “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.

“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.”

Gary Whitaker of Mercia Debt added: “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.”

Keiran Taylor of UHY BPR Heaton provided fundraising advice to the company.

The £660 million NPIF II fund, operated by British Business Bank, provides loans from £25,000 to £2 million and equity investment up to £5 million to help small and medium-sized businesses.

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.”

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