All NewsNovember 5, 2025

Fast growing coffee, cafe chain files for Chapter 11 bankruptcy

Coffee has been a growing business that’s also wildly competitive.

Over 6-in-10 Americans (62%) drink coffee every day, according to data from the National Coffee Association.

A large percentage of sales, however, goes to the major players.

“As of late 2024, U.S. coffee chain sales grew by 8% year-over-year, reaching a market size of $49.5 billion​. This growth rate and launches of new products have been driven primarily by large coffee brands such as Starbucks, Dunkin’, and Dutch Bros, with Starbucks opening nearly 500 new stores in 2023 alone​. Additionally, the number of coffee shops in the U.S. has surpassed 40,000, which is 7% higher than pre-pandemic levels​,” Toast Lab reported.

That leaves very little space for smaller, independent chains. Younger coffee drinkers, however, have helped keep keep some lesser-known brands alive.

“Data for revenue in independent cafes is less consistently tracked, but their popularity with Millennials and Gen Z has helped keep many afloat. Over one-third of people aged 18-29 report having recently visited a coffee shop — while only one-quarter of older adults could say the same,” according to Toast Lab.

Some chains, however, continue to struggle and one fast-growing coffee and cocktails cafe chain has just filed for Chapter 11 bankruptcy protection.

The Blend combined coffee and cocktails

Starbucks has tried a number of different ideas to add traffic in the late afternoon through the evening hours. One of those ideas was adding coffee-based cocktails to its menu.

The chain rolled out an evening menu with alcohol, light bites, and other new food to about 500 locations in 2016. It killed the experiment not long after in early 2017.

“It is not surprising that Starbucks decided to end its experiment with selling alcohol. Starbucks tends to do well when it keeps its focus on coffee and poorly when it gets distracted and tries to do too much else,” Matthew Barry, beverage analyst at Euromonitor International told Beverage Daily.

Coffee and cocktails, however, seem like a natural pairing especially given the popularity of the espresso martini.

The Blend Coffee and Cocktails mixed a menu of unique coffee creations made from its proprietary beans.

This includes an exclusive espresso blend — crafted from Brazil, Nicaragua and Peru beans sourced from a specialty wholesale roaster in Seattle and available only at The Blend. The espresso blend offers a bold, smoky profile with notes of cherry, malt and walnut,” the chain shared on its website.

The chain also offers an array of flights.

The Blend Coffee & Cocktails offers coffee flights and alcoholic drink flights, including mimosa, fuzion, and bloody mary options, according to the company’s website.

And, of course, it sells the third-most popular drink served in bars and restaurants.

More Bankruptcy:

“The latest Union data shows that the Espresso Martini is very much still on trend. In fact, it grew by 50 percent in this 12-month period, becoming Union’s No. 3 top-selling cocktail, having bumped the Moscow Mule, which is now No. 4,” said Union Chief Growth Officer Gary Ross.

It was a mix that allowed The Blend to grow quickly, but the chain has hit some financial difficulties and has filed for Chapter 11 bankruptcy.

Over 6-in-10 Americans drink coffee daily.

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The Blend Coffee and Cocktails Chapter 11 bankruptcy

  • The Blend Coffee (in particular entities such as The Blend Coffee 14 LLC and The Blend Coffee 6 LLC) filed for Chapter 11 bankruptcy protection.
  • The cases were filed on November 4, 2025 in the the Middle District of Florida.
  • The judge assigned in at least one of the cases is Roberta A. Colton.
  • Chapter 11 suggests they are seeking reorganization rather than immediate liquidation. P
  • There appear to be multiple LLC entities of the brand that filed separately, possibly indicating multiple location entities or subsidiaries.
  • On their voluntary petition, they reported assets in the range of $0–$100,000.
  • They reported liabilities in the range of $100,001–$1,000,000.
  • The business is classified in the industry of “Restaurants and Other Eating Places.” Source: PacerMonitor

History of The Blend Coffee & Cocktails:

  • Founded by Stacha Madsen and her daughter Nichole Richardson, who previously ran a Seattle coffee stand.
  • Opened first Florida café in downtown St. Petersburg around 2020.
  • Expanded rapidly across St. Petersburg with locations on 4th Street N, 34th Street N, Central Avenue, and Magnolia Heights.
  • Rebranded to “The Blend Coffee & Cocktails” to include alcoholic drinks alongside coffee.
  • By 2024, had opened eight locations in the area.
  • Known for creative offerings like coffee flights and all-day breakfast.
  • Filed Chapter 11 bankruptcy in November 2025 after rapid expansion.