A Costa Coffee franchise business is resuming plans to build Cumbernauld’s first drive-through coffee shop after securing a £600,000 financing facility to stabilise its operations.
Coffeepots, owned by Pat Dunese and Colin Wilson, expects to create 25 new jobs when the latest outlet opens early in 2021. The financing, provided by HSBC through the government-backed coronavirus business interruption loan scheme (CBILS), comes after lockdown forced the four-month closure of Coffeepots’ 13 cafes across central Scotland.
“Our plans for growth were put on hold when Covid-19 hit as our income suddenly ground to a halt, but the support from HSBC UK has provided us with much-needed cashflow during this time, helping us continue paying our overheads and progressing plans to open new sites in Scotland,” Mr Dunese said.
Coffeepots is also eying up further expansion with a move outside the Central Belt into Peterhead. This would also be a drive-through outlet, and is expected to open in late spring creating a further 25 jobs.
Grant Bett, relationship director at HSBC UK, said: “The hospitality industry was hit hard during lockdown and we’re pleased to have been able to help Coffeepots look to the future again as it re-embarks on its plans for growth.
“We’re committed to supporting UK businesses during this period of uncertainty.”
Launched in March along with a raft of other measures to support the economy through the pandemic, CBILS provides facilities of up to £5 million to small and medium-sized businesses that have experienced lost or deferred revenues. This financing is available through more than 100 accredited lenders across the UK.
Related: Costa Coffee Franchise
The scheme was closed to new applications at the end of September, though lenders have until the end of November to process all CBILS applications.
Data published at the end of September by HM Treasury showed that a total of nearly £15.5 billion had been lent at that time under CBILS to more than 66,500 businesses, an approval rate of 47 per cent. Banks have received more than 123,000 applications for CBILS loans, which come with an 80% Government guarantee.
By Kristy Dorsey
Source: Herald Scotland