Citizens Coffee, the New York-born brand renowned for bringing the vibrant Australian brunch culture to America, is accelerating its mission to become the nation’s most scalable and premier specialty coffee and breakfast brand. The cult-followed breakfast brand has launched a Series B investment round to drive growth towards its goal of $100M in annual sales by 2029 through a multi-year expansion plan. The crowdfunding campaign follows the success of their 2021 record-setting Series A campaign which raised $1.2M in just 30 days and saw notable investors back Citizens including Randi Zuckerberg (Facebook) and Sean Davis (MLS Captain). This enabled Citizens to expand into the Texas market, where their 2023 Houston opening on Montrose became their most profitable store to date. StartEngine will house the fundraise which has raised nearly $400,000 in a matter of days, and Citizens anticipates this round being fully subscribed in a matter of weeks. A full list of tiered perks is provided below this release.
Since the initial Series A crowdfunding success, one of the fastest Food & Beverage raises in Republic history, Citizens has expanded to four profitable U.S. locations and achieved a 170% increase in lifetime revenue, growing from $10M to over $27M. With plans to open 40 new locations across the U.S. by 2029, starting with a new Austin location expected by the end of 2024, this investment opportunity invites both seasoned investors and devoted Citizens’ customers to be part of a national growth journey. Specialty coffee and sit-down breakfast are among the fastest-growing segments in the hospitality industry. Citizens is emerging as a leader in this space, driving its strategic expansion into major markets and capitalizing on the rapid growth of these sectors.
Justin Giuffrida, CEO of Citizens Coffee, comments on the brand’s future: “It’s important for us to scale while staying true to how we’ve grown the business since day one. Since opening the original Citizens store in Chelsea, New York, we’ve been incredibly intentional in our approach to hospitality, and our growth strategy is no different. We’ve carefully planned our expansion and crafted an investment strategy that lets us innovate in our space while staying true to our core mission of being a community-focused business that serves the best coffee and breakfast in town. We have identified a gap in the market – Americans are hungry for better breakfast. Consumer behavior is reflecting that and we are excited to be the change that the market is craving.”
Citizens Coffee: A Brand on the Rise
Since its inception in 2016, Citizens Coffee has grown from a single location in New York City to become a dominant force in the city’s brunch and coffee scene. The brand has three New York locations in sought-after neighborhoods Chelsea, Soho, and Gramercy, and the brand’s first interstate location in bustling Houston, Texas, quickly became their most profitable location. This is a testament to the growing consumer demand for ‘better breakfast’. Co-founders Justin Giuffrida and Andrew Geisel have cultivated a brand that’s more than just a coffee shop, it’s a community hub that embodies the spirit of Australian hospitality. The brand’s commitment to quality, innovation, and community engagement has garnered a loyal customer base and set the stage for national expansion. With $27M in lifetime sales and a rapidly growing national presence, Citizens is well on its way to achieving its goal of becoming the top performing breakfast and coffee brand in the United States.
A Market Ripe for Growth: Proven Success in Specialty Coffee and Breakfast Brands
Citizens Coffee is strategically positioning itself among the most successful and high-growth brands in the specialty coffee and breakfast industry, with a goal to achieve $100M in annual sales by 2029. The company surpasses Firstwatch, a $1B publicly listed breakfast chain, with an impressive average unit volume (AUV) of $2.4M per location, compared to Firstwatch’s $2M. Citizens also outperforms IHOP’s $1.8M AUVs. This strong performance aligns Citizens with industry giants like Blue Bottle, which achieved a $700M valuation with 75 stores before being acquired by Nestlé, and La Colombe, which secured a $900M valuation with just 30 stores before its acquisition by Chobani.
Citizens Coffee has also seen a remarkable 29% year-over-year sales increase in Q2 this year, far exceeding the industry average of 2-5%. The brand’s future growth will be driven by its expansion in store locations, a robust CPG line, and wholesale distribution, with plans to extend its presence in Texas, New York, and additional East Coast and Southern markets.
Introducing Citizens At Home: Expanding Beyond the Café
With a pipeline of projected store growth, Citizens has announced the launch of its new business arm, ‘Citizens At Home’, offering a premium range of coffee beans, pods, and K-cups. With pod sales set to overtake instant coffee, this expansion represents a key opportunity to scale sales nationwide and bring Citizens’ signature coffee experience directly to customers’ homes. The goal is to create more touchpoints for consumers to enjoy Citizens, whether at home, in restaurants, or at the office, building stronger brand equity. This new arm diversifies the business and unlocks a new revenue stream in one of the fastest-growing categories of specialty coffee. As pod coffee overtakes instant coffee in the U.S. market, Citizens is poised to scale both its retail and café presence simultaneously.
Commitment to Community: The Local Legends Initiative
At the heart of Citizens Coffee’s mission is a deep commitment to the communities they serve. Through their “Local Legends” initiative, launched earlier this year, Citizens partners with three local community groups each month, donating a portion of proceeds to each organization. This program is a key component of the brand’s journey to becoming a certified 1% company by 2026, a milestone that will see Citizens contributing 1% of their revenue to local charities annually.
“At its core, Citizens is a people-based business. We’re in the business of making our locals’ days better through great food, coffee, and hospitality. We spend time learning about the communities we enter and seeing how we can make an impact. Our Local Legends campaign, in which we donate a portion of our revenue to local nonprofits and community groups, is something that we are very proud to be a part of and a key differentiator of Citizens. No matter how large we grow, we will always be a community-focused brand.” – Andrew Geisel, Head of Growth & Development.
With no signs of the Australian brand slowing down, Citizens invites investors to join them on this exciting journey to redefine breakfast culture nationwide.
Tiered Investment Perks:
● Invest $250+ and receive: 20% off web store
● Invest $500+ and receive: 5 free brunches**, 20% off web store
● Invest $1000+ and receive: Free coffee for a year**, 20% off web store, and 2% bonus units
● Invest $2500+ and receive: Free brunch for a year**, 20% off web store, and 4% bonus units
● Invest $5000+ and receive: Free coffee for life**, 20% off web store, and 5% bonus units
● Invest $10,000+ and receive: Free brunch for life**, 20% off web store, and 7% bonus units
● Invest $50,000 and receive: Advisory equity**, 20% off web store, free brunch for life** and 15% bonus units
● Invest $100,000 and receive: Advisory equity**, 20% off web store, free brunch for life** and 20% bonus units
**(conditions apply)
