The small format, value-focused chain is exploring funding options to scale from 33 stores to 300 over the next five years as it seeks to catalyse rising consumer demand for convenience and affordability in the US
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Sixty-percent of Matto’s food and beverage menu is available for $3 if purchased via its app | Photo credit: Matto Espresso
Value-focused US coffee chain Matto Coffee is preparing for its first investment round to support ambitious outlet growth.
Founded in 2016, Matto Espresso has grown to 33 sites across New York, 27 of which are franchised, with a focus on small-format stores and affordable beverages.
The coffee chain is seeking to reach 300 US sites over the next five years focusing on university campuses and high footfall transport hubs.
Sixty-percent of Matto’s food and beverage menu is available for $3 if purchased via its app – a popular promotion that currently generates 53% of revenues.
Value has become increasingly important in the US branded coffee shop market, with many operators introducing lower cost food and beverage ranges as consumers cut back on discretionary spend amid the high cost of living.
World Coffee Portal’s Project Café USA 2025 report shows that the average price of a 12oz latte across major US branded coffee chains now exceeds $4.50 – 50% higher than the same sized beverage when using Matto Espresso’s app discount.
In an interview with Bloomberg, Matto Espresso Founder Jennifer Maman said the chain’s value prices are sustainable due to its low-lost, small-format stores, which typically range between 200-400sq ft in size. The company also has lower staffing costs than most chains, with an average of just two members of staff per store.
While Maman did not discuss in detail how it could approach fundraising, Matto Espresso’s real estate-efficient business model could prove attractive to investors, especially amid property prices in New York.
In 2021, fellow New York-based operator Blank Street secured $32m to accelerate its micro-retail coffee shop concept, courting investment from private equity firms Tiger Global and General Catalyst. The business, which trades from both small-format stores and mobile carts, has since raised a further $73m and now operates 82 sites across the US and UK.