Popular Manchester coffee house eyes up future growth

Michaels Coffee House is set to expand after receiving a six-figure investment from NPIF-FW Capital Debt Finance which is managed by FW Capital and is part of the Northern Powerhouse Investment Fund.

Opened in August 2017, Michaels Coffee House is an independent café located in the Royal Exchange Arcade in the heart of Manchester’s shopping district. The business is owned by Thasos Michael and offers organically grown, high-quality, locally roasted, single origin and Rainforest Alliance certified coffee beans, along with a variety of contemporary beverages and homemade food. 

The business has enjoyed impressive growth and sought funding to support the next stage of its development. 

Thasos Michael, Owner of Michaels Coffee House explains: “We’ve built up a great reputation across the city and Michaels Coffee House is famous for our pistachio and Spanish lattes - both best sellers for their unique flavour and rich smoothness - along with a range of delicious pastries, homemade toasties, cakes, yogurt pots and soups. We are at the point where we are looking to grow the business further and consider new opportunities which will create additional jobs and meet increasing customer demand. The backing and support from Loz O’Connor at FW Capital has been great. He has been very helpful and gone that extra mile to get the funding over the line.”

Loz O’Connor, Fund Manager at FW Capital said: “Firstly, thanks must go to Geoff Clowes from the Access to Finance team for the introduction to the business. Michaels Coffee House is an established, well-known business based in central Manchester, and I was thrilled to work with Thasos to help in supporting his growth aspirations. He has lots of great ideas for expansion and this investment supports his plans for growth through additional coffee shops, allowing the team at Michaels Coffee House to provide the best possible service for their rapidly expanding customer base.”

Debbie Sorby at the British Business Bank said: “We're excited to see Michaels Coffee House on such a promising growth trajectory, fueled by NPIF investment. In central Manchester, the coffee shop is contributing to the vibrant business landscape in the city, with exciting opportunities on the horizon it really does exemplify the flourishing entrepreneurial spirit of the North. We’re looking forward to seeing the team’s continued success.”

The current NPIF investment phase has now completed with the British Business Bank launching the Northern Powerhouse Investment Fund II in March 2024.

The Northern Powerhouse Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.