Isle of Bute Coffee, the island’s first speciality coffee house, is enhancing its offering with the launch of a coffee garden – a sociable outdoor space akin to beer gardens – and the island’s first micro roastery, supported by a funding boost from the British Business Bank.

Owner and Bute native Mhairi Mackenzie opened the café in 2023 after relocating with her family from Glasgow. Motivated by a desire to help revitalise the island following the Covid-19 pandemic, Mhairi established Isle of Bute Coffee to bring high-quality speciality coffee to both residents and visitors.

She has since built commercial partnerships with local businesses, including the Glenburn Hotel and Bute Yard.

In 2024, Mhairi purchased the café’s premises, formerly home to The Buteman newspaper, and began transforming the neglected courtyard into a welcoming outdoor space. A loan from DSL Business Finance through the British Business Bank’s Start Up Loans programme, along with funding support from Business Gateway and the SJ Noble Trust, helped cover the renovation costs, including fitting upgraded windows and doors.

A new multi-purpose workshop will house the coffee roastery, which will use a cutting-edge, eco-friendly Aillio Bullet micro-electric roaster to create in-house signature coffee blends. The space will also serve as a venue for events, workshops, and classes, building on the café’s role as a community hub.

Once completed this summer, the new space will triple seating capacity from eight to 24, offering outdoor seating where customers can relax in the sun-trapped private courtyard.

Mhairi said: “The aim is to create a welcoming space where people can connect, learn, and enjoy great coffee. Securing funding to support the expansion plans is an exciting step forward, not just for our business, but for the whole community.

We’re proud to collaborate with local suppliers through the Bute Kitchen initiative, which helps support the island’s economic regeneration by promoting local produce. Our menu features baked goods from nearby bakers, smoked trout and cheeses from Isle of Bute Smoke House, and chutneys and preserves from Gather Deli and Bute Produce.”

She said: “Sustainability and high social and environmental standards are very important to us, and we’re working towards achieving B Corp certification for the café in the near future to reflect these values. Being the first on the island to roast our own coffee is something we’re really excited about, and we can’t wait to hear feedback from our lovely customers.”

Since its inception in 2012, the Start Up Loans programme has delivered nearly £1.3 million to 124 start ups based in Argyll and Bute.

Barry McCulloch, Senior Manager, UK Network, Scotland at the British Business Bank, said: “It’s fantastic to see Isle of Bute Coffee expanding its offering and creating even more opportunities for locals and tourists to connect, while enjoying the island’s vibrant community spirit.

Mhairi’s dedication to supporting the area shines through in everything she does. This is a brilliant example of how the Start Up Loans programme can empower smaller businesses to thrive and make a real difference to the local economy.”

Lindsay Hamilton, loan officer at DSL Business Finance, added: “Mhairi presented a strong business plan to support her funding application. Her passion for quality coffee and community development was evident from the outset. At DSL Business Finance, we are committed to supporting small businesses with the funding they need to grow and thrive.

We are delighted to have played a role in helping Isle of Bute Coffee expand and look forward to seeing the coffee roastery and garden flourish. We wish Mhairi every success in this exciting new chapter.”