After months of earning less than $100 daily, Audrey Finocchiaro and her then-boyfriend Sam Lancaster considered abandoning their coffee cart.
Shared with CNBC Make It, the couple constructed the wooden cart with bicycle tires and a kickstand in her parent's basement in 2016, using up her credit card's $1,500 limit for materials, and called it The Nitro Cart. During that summer, they attended various events, from sheep shearing events to farmers markets across Rhode Island, serving small batches of nitrogen-infused cold brew.
Finocchiaro, 30, describes how she and Sam worked together to set up their coffee cart daily, citing the lack of earnings and their relationship adding to their frustration. However, their outlook changed that fall when Lancaster took the cart to Brown University, and the cart was sold out for the first time, bringing in $400 in sales in just 30 minutes. They began returning to campus daily, establishing a reputation among students and collaborated with local restaurants to offer their nitro cold brew on tap to endure the winter.
Presently known as The Nitro Bar, the business has achieved remarkable success, generating $4.5 million in sales over the past year, according to documents examined by CNBC Make It. With a staff of 50 individuals, The Nitro Bar operates three brick-and-mortar coffee shops and a smaller coffee trailer, and its cold brew is offered on tap at over 50 additional locations spanning Rhode Island and Massachusetts.
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According to Finocchiaro, the co-founders, now married, have successfully navigated profitability and expansion since their business's first profitable year in 2019. Here's the journey of building The Nitro Bar, from grueling 80-hour workweeks to garnering attention on TikTok and a fair share of good fortune.
A Blessing of $100,000 Funding
Finocchiaro reflects on her frugal upbringing and her initial belief that the cart would only last for one summer. It was not until the spring of 2017 that she and Lancaster realized the scalable potential of their business model when they were approached by a pair of venture capital investors, one of whom Finocchiaro had previously worked for. After trying their cold brew at a farmer's market, the investors created a spreadsheet to project the potential growth of The Nitro Cart based on the number of carts and wholesale tap accounts.
An entrepreneur, preferring anonymity, noted that the business had significant scalability and achieved substantial growth quickly. On Sunday, the investors invited Finocchiaro and Lancaster over, presented the financial projections, and offered a $100,000 loan at a 10% interest rate to support their business expansion, which had the option to be converted into a 10% equity stake in The Nitro Bar.
I'll Eventually Catch Up With You
The $100,000 loan gave Finocchiaro and Lancaster some financial stability, but it did not mean they could relax. They both worked tirelessly, often seven days a week, to transform their cart into The Nitro.
Finocchiaro mentions that keeping track of their cash flow was stressful in the early days, thinking if someone had taken money from their account. Nowadays, they start their days at 5:30 a.m. by running with their dogs before checking on their shops and making lists of tasks for the week. By 6 p.m., they consciously try to stop discussing work, emphasizing the importance of finding balance to avoid burnout from working long hours.
The Power of Social Media Presence
Finocchiaro mentions that The Nitro Bar has amassed over 220,000 followers on TikTok. She attributes the brand's popularity on the platform to what she calls "the Ben & Jerry's effect," where customers feel connected to the brand like they are supporting individuals rather than just a business. This approach has contributed to a 60% increase in sales since gaining traction on TikTok. Finocchiaro also shares her journey as a small-business owner on her TikTok account, with over 67,000 followers.
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