The UK coffee chain posts around $1 million in positive EBITDA for FY2025 as new franchise agreements secure at least 39 additional stores across southern England.
Black Sheep Coffee has reported its first positive annual EBITDA after 12 years of losses, marking a financial turning point for the London-founded coffee chain as it accelerates franchise expansion across the UK.
The company generated approximately $1 million in positive earnings before interest, taxes, depreciation and amortisation (EBITDA) in FY2025, according to a report by MCA Insight on October 19, 2026. Co-founder Gabriel Shohet expects earnings to increase further in FY2026, following years of prioritising network growth and investment over profitability.
Founded in London in 2013 by Shohet and Eirik Holth, Black Sheep Coffee has expanded to more than 130 stores across the UK, the United States and the Middle East. The founders have continued investing in the business through Brexit-related disruption, the Covid-19 pandemic and rising operating costs.
The latest result represents progress towards profitability, although positive EBITDA does not necessarily mean the company has achieved a net profit. The business has not disclosed a full breakdown of FY2025 revenue, earnings by store format or the contribution of franchised locations in the reports reviewed.
39 New Stores Planned Across Southern England
The financial milestone comes as Black Sheep Coffee strengthens its UK franchise network. On October 15, 2026, the company announced three franchise development agreements covering a minimum of 39 additional stores across Greater London, East and West Sussex, and the South West of England. The agreements are expected to increase its store count by more than 30% as the new locations are developed.
The commitments comprise at least 14 stores across Greater London, 12 across East and West Sussex, and 13 across Bristol, Somerset, Gloucestershire and Herefordshire. The development programme will extend the brand into additional high streets, shopping centres, business centres and retail parks.
The Greater London agreement brings every London borough under a franchise territory partner, while the Sussex development has been awarded to existing franchise partners Stuart Carter, Farouk Somani and Ali Cheval. An existing partner is also extending its commitment across the South-West, building on recent openings in Plymouth and Exeter. The new stores are planned over the coming years, with the London agreement covering a five-year development period.
Black Sheep Coffee’s Head of Franchising, Lewis Blakey, described the agreements as a significant milestone, highlighting the allocation of the remaining Greater London boroughs to a territory partner. Following the latest signings, just five territories remained available across the UK and Ireland, according to Propel’s October 15 report.
The model relies on multi-unit franchise partners capable of developing several locations within defined territories. This allows Black Sheep Coffee to expand its footprint without relying exclusively on company-funded openings, although franchise growth also requires investment in training, supply chains, quality control and operational support.
A Different Proposition in a Crowded Coffee Market
Black Sheep Coffee has built its identity around specialty-grade Robusta coffee, challenging the traditional preference for Arabica in the specialty coffee sector. The company says Robusta accounts for approximately 85% of its coffee sales, alongside an Arabica offering, matcha, cold drinks, smoothies and food.
Its expansion strategy spans conventional high-street cafés, shopping centres, transport hubs, retail parks and drive-thru locations. This mix gives franchise partners opportunities to serve different customer groups and adapt their sites to local demand.
The company is also pursuing a more extensive UK network. In March 2026, MCA Insight reported that Black Sheep Coffee was targeting 300 UK locations by the end of 2028, with franchise agreements playing a central role in its development plans.
For prospective franchisees, the company seeks experienced multi-unit or multi-brand operators. Its official UK franchising website specifies a minimum commitment of 10 or more sites and at least £1 million in cash or liquid assets, signalling a focus on partners with the resources to develop territories rather than operate a single café.
Profitability Becomes the Next Test
Black Sheep Coffee’s first positive EBITDA provides a new financial benchmark after more than a decade of investment-led expansion. The forecast improvement for FY2026 will be an important indicator of whether the company can sustain its growth while strengthening operating performance.
The 39-store commitment adds another layer to that test. As franchise partners develop new territories, the company will need to maintain brand consistency and store economics while supporting a larger network.
