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Popular Manchester coffee house expands into the Arndale Centre

Press release 06 February 2025

Michaels Coffee House has expanded, opening a second site in Manchester’s Arndale Centre. Run by entrepreneur Thanasis Michael it has signed a 10-year lease to occupy a 544 sq ft unit on Halle Place.

image of three men standing in front of michaels coffee house

Michaels Coffee House has expanded, opening a second site in Manchester’s Arndale Centre. Run by entrepreneur Thanasis Michael it has signed a 10-year lease to occupy a 544 sq ft unit on Halle Place.

Michaels Coffee House was established in August 2017 by Cypriot Thanasis Michael, who came to the UK in October 2013. After many setbacks, Thanasis worked in a variety of retail roles before becoming a barista at Starbucks in the Trafford Centre and in the Arndale Centre.

Thanasis was inspired to launch his own business, specialising in organically grown, high-quality, locally-roasted, single origin and Rainforest Alliance certified coffee beans, along with a variety of signature and unique beverages and coffees including its famous pistachio, hazelnut praline lattes and Spanish lattes. These are all best sellers for their unique flavour and rich smoothness, along with delicious pastries, daily freshly made in store toasties, cakes, and yoghurt pots.

Michaels Coffee House received investment from FW Capital through the first Northern Powerhouse Investment Fund (NPIF I) in 2023 is now seeing their growth plans come to fruition.

Thanasis Michael, Owner of Michaels Coffee House explains:

We have experienced significant growth over the last year and worked hard to open our newest coffee house. It's in a great location in the Arndale Centre and I feel like I'm coming back to my roots because I worked on this very site as a barista for Starbucks before setting up Michaels Coffee House. I've come from zero to achieve this success after arriving in the UK and speaking only a little English. I'm showing that anything is possible with the right attitude and hard work. Believe in yourself and never give up. The team at FW Capital shared my vision and have backed my growth plans which is great.

The team at FW Capital represented by Loz O’Connor, Fund Manager and Mark Gardiner, Portfolio Executive, have worked closely with Thanasis Michael to help him realise his growth ambitions.

Loz O’Connor, Fund Manager at FW Capital said:

Thanasis' success story is one of grit and determination, showing what can be achieved when you set your mind to it. His journey is inspirational, and I'm thrilled that we've been able to back the successful opening of his second coffee house. Thanks should also go to Geoff Clowes from Manchester Business Growth Hub's Access to Finance team who introduced us to Thasos. The investment is helping him to meet the demands of his rapidly expanding customer base.

Sue Barnard, senior manager at the British Business Bank, said:

Michaels Coffee House is a well-known establishment within Manchester, so it's great to see the business expanding. Having secured funding through the first NPIF, we're so pleased to see Thanasis using this finance to drive forward growth, and open a new venue.

Geoff Clowes, Access to Finance Adviser at GM Business Growth Hub said:

Michaels Coffee House is growing fast, and I'm delighted to have been able to support their expansion plans. The NPIF funding from FW Capital has made a real difference and I wish Thanasis and the team all the best with their latest venture. It's also been great to work with the team at FW Capital once again to help local entrepreneurial businesses receive much needed finance to realise their ambitions.

The funding was from NPIF – FW Capital Debt Finance, which was managed by FW Capital and part of the Northern Powerhouse Investment Fund. It provided loans in the NPIF region with a focus on Cumbria, Cheshire, Greater Manchester, Lancashire, Merseyside and the Tees Valley.

The British Business Bank has since launched the £660m Northern Powerhouse Investment Fund II in March 2024.

The new £660m Northern Powerhouse Investment Fund II (NPIFII) covers the entire North of England and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.

The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for the North’s smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance. FW Capital will provide debt finance options from £100,000 to £2million to businesses based in the North West of England. NPIF II - FW Capital Debt Finance can provide loans in the NPIF II area with a primary focus on the North West regions of Cheshire, Cumbria, Greater Manchester, Lancashire and Merseyside, with some flexibility to lend across the North.

Further Information

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Notes to editors

About The Northern Powerhouse Investment Fund

  • 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 will invest in Microfinance, Business Loans and Equity Finance sub-funds which will offer financing ranging from £25,000 to £2m, specifically to help small and medium sized businesses secure the funding they need for growth and development.
  • The Northern Powerhouse Investment Fund is operated by British Business Financial Services Limited, wholly owned by British Business Bank, the UK’s national economic development bank. Established in November 2014, its mission is to make finance markets for smaller businesses work more effectively, enabling those businesses to prosper, grow and build UK economic activity.
  • The Northern Powerhouse Investment Fund is supported by the European Regional Development Fund, the European Investment Bank, the Department for Business, Energy and Industrial Strategy and British Business Finance Limited, a British Business Bank group company.
  • The NPIF covers the following LEP areas: Tees Valley Combined Authority, Greater Manchester, Cheshire and Warrington, Cumbria, Liverpool City Region, Lancashire, Humber, Leeds City Region, Sheffield City Region, York, North Yorkshire and East Riding
  • The project is receiving up to £140,359,192 of funding from the England European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020. The Department for Communities and Local Government is the Managing Authority for European Regional Development Fund. Established by the European Union, the European Regional Development Fund helps local areas stimulate their economic development by investing in projects which will support innovation, businesses, create jobs and local community regenerations. For more information visit European Growth Funding
  • The funds in which Northern Powerhouse Investment Fund invests are open to businesses with material operations, or planning to open material operations, in, Yorkshire and the Humber, the North West and Tees Valley.

Northern Powerhouse Investment Fund II

About GM Business Growth Hub

GM Business Growth Hub is Greater Manchester’s business support organisation. GM Business Growth Hub, part of The Growth Company, helps unlock potential in businesses that want to achieve more. They provide support with funding, innovation, people, sales and sustainability.

GM Business Growth Hub is a community of specialists with a passion for helping businesses, of all sizes and sectors, to realise their full potential. Our advisors also have extensive knowledge and insight in Greater Manchester’s growth sectors, from advanced manufacturing and health innovation to green technology, digital, creative and media. 

 Whatever your business is, GM Business Growth Hub can help. They work hand-in-hand at every stage of a business’s growth journey. Whatever the need, GM Business Growth Hub has the right support to succeed. GM Business Growth Hub is part-funded by the UK government through the UK Shared Prosperity Fund.

Find out more - GM Business Growth Hub: Resources to support and grow your business | GM Business Growth Hub

About The Growth Company 

The Growth Company is an award-winning social enterprise with a 30-year history of enabling growth, creating jobs, and improving lives. They help people and businesses across the UK to develop, grow and succeed through a range of employment, skills and business support services. Their combined offer provides unrivalled insight, which means they are uniquely placed to help the places they work with to shape and deliver the best services to meet local priorities. 

The Growth Company delivers profit with purpose and has been awarded a Gold Mark for its commitment to social value and impact. More information about the Growth Company can be found here: The Growth Company

About UK Shared Prosperity Fund 

GM Business Growth Hub received £7.5m of the UK Shared Prosperity Fund. 

The UK Shared Prosperity Fund provides £2.6 billion of funding for local investment by March 2025. The Fund aims to improve pride in place and increase life chances across the UK investing in communities and place, supporting local business, and people and skills. For more information, visit- UK Shared Prosperity Fund

This project has been made possible thanks to Greater Manchester Combined Authority securing funding to deliver UKSPF projects.

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