MSIF loan gives coffee franchise Optimum growth
A Liverpool-based coffee shop chain has used a £200,000 loan from MSIF to expand its franchise portfolio.
The Optimum Holdings Group will use loans from MSIF’s Merseyside Loan & Equity Fund (MLEF) and Small Loans for Business to expand and develop its Costa Coffee franchises.
Optimum Holdings is the parent company to a number of subsidiaries which include several drinks and retail businesses, an Energie Fitness Club franchise, Optimum Electrical and Optimum Alarms & CCTV.
Owned by husband and wife team David and Emma Connor, Optimum has an annual turnover of £4.5m and employs more than 100 staff.
It plans to take on a further 40 to 50 staff over the next three years and turnover is expected to grow to £6m by 2013.
Managing director David Connor said: “We were finding it difficult to raise the full amount of finance we needed from the banks. We were introduced to MSIF and they were very positive straight away. Initially we got a £50,000 loan through the Merseyside Small Loans for Business Fund to open up our London Road site and then a further £150,000 through the Merseyside Loan & Equity Fund to open the Costa Coffee in our Energie Fitness Club in Waterloo.”
The company’s Costa Coffee outlets are overseen by Operations Director Alan Rawlings, who added: “The coffee culture is thriving and includes the full spectrum of young and old which is why I think we are doing so well. People are still spending money on their coffee even if they are cutting back elsewhere.
“As a franchisee our outlets tend to be in the suburbs and I think this has been an advantage allowing us to build up a great relationship with our customers who tend to be local. In the city centre the clientele tends to be more transient.”
Paul Humphray, investment director for the MLEF said: “Optimum has built up an impressive portfolio and the franchising arm of the business is particularly successful. We combined two of our funds to service different aspects of their funding requirements and create a tailored package to suit their needs.”
The company opened its 13th franchise at Stanley Road in Bootle in August.
