Coffee is indubitably a perfect business choice. PJ’s Coffee has maintained a fine position at the top of the coffee wave for more than 42 years. The company has started aggressive and determined strategic development of its concept, with a projected growth of approximately 200% in the forthcoming three years. The company would love for potential franchisees to be a part of a beautiful journey together. Pj’s Coffee has around 140 franchise locations in the United States.
What is Pj’s Coffee Shop?
Pj’s Coffee is a very special business venture started in New Orleans. Many people have ended up experiencing the love of fine dining, food, and coffee in New Orleans. It is one of the perfect coffee locations among the ones spread all over the countries,
The company is considered to offer franchisees a beignet program, loosely translated to a highly unique selling proposition in the world of coffee shops with freshly-made French donuts sprinkled with sugar from confectioners gaining recognition in the French Quarter.
What does Pj’s Stand for?
Pj’s in the Pj’s Coffee shop stands for Phyllis Jordan or PJ started the Pj’s Coffee in 1978. As per Pj’s Coffee, in 2008 the brand was acquired by New Orleans natives and brothers Paul, Steven, and Scott Ballard. Pj’s Coffee is also known as Pj’s Coffee of New Orleans.
Is Pj’s coffee A Franchise Opportunity?
Every franchises strives hard to make every visitor of a Pj’s Coffee location a repeat and permanent customer with quality products and a unique brand experience that by far surpasses every industry standard.
Pj’s Coffee offers top-level support to its customers and franchises owners.
- Distribution of products
Strategic partnerships permit them to distribute their coffee from their roasting facility directly to the door of a person’s story in a cost-effective and timely manner.
- Promotions and marketing
The promotional and marketing campaigns of Pj’s Coffee are known to drive the frequency of consumer interactions, raise the level of sales, and encourage more store visits.
- Lease procurement and site evaluation
The internal team of the company, along with their real estate brokers, help with every minute detail, be it lease reviews or sire identification.
- Construction and design
The company works closely with its customers and a team of dedicated and efficient professionals to construct and design a store for them on budget and time.
- Education and training
They have crafted a multi-level training program that includes training online, at specific locations, and in classrooms.
- Ongoing operations consulting
They provide operations support all year round to ensure that the implementation and working of new operational procedures, promotional campaigns, and product rollouts go smoothly and properly.
|Pj’s Coffee Franchise Review and Information|
|Industry Type||Food franchise opportunities|
|Sub Category||Coffee franchise opportunities|
|Founder/Management Head||Phyllis Jordan|
|Employees at Company H.O||80|
|Franchise Expansion Plan||US states: Alabama, Arkansas, Arizona, California, Colorado, Connecticut, District of Columbia, Delaware, Florida, Georgia, Idaho, Illinois, Kentucky, Louisiana, Maryland, Michigan, Missouri, Mississippi, North Carolina, New Jersey, Nevada, Oklahoma, Pennsylvania, South Carolina, Texas, Virginia|
|Number of Units||142|
|Number of Franchise Units|
|Social Media Handles|
|Company Office Location||New Orleans, LA|
Pj’s Coffee Franchise Requirements and Application
The financial requirements to become a franchisee can be well-elucidated in the table provided hereafter
|Initial Marketing Fee||$10,000|
How much is a Pj’s coffee franchise?
The total investment required to start the operations of a Pj’s Coffee franchise cost tends to range somewhere between an estimated amount of $406,000-$1,024,000.
|Pj’s Coffee Startup and On-going Franchise Costs|
|Pj’s Coffee Franchise Fee||$10,000-$35,000|
|Pj’s Coffee Franchise Cost||$406,000 – $1,024,000|
|Term of Agreement||10 years|
Pj’s Coffee Franchising Formats
Pj’s Coffee operates two models, the Traditional model, and the Non-traditional model.
- Traditional model
It includes larger-scaled coffee shops, with a full-service menu, that are generally located within free-standing buildings featuring a drive-thru (most likely) or strip malls.
- Initial franchise fee: $35,000
- Initial investment: $406,000-$1,024,000
- Size: 1200-2000 sqft
- Non-traditional model
It includes comparatively smaller-scaled coffee shops, with a limited service menu, that are generally located within other businesses such as shopping malls, military bases, hotels, university campuses, colleges, airports, military bases, healthcare facilities, etc.
- Initial franchise fee: $25,000
- Initial investment: $191,875-$486,500
- Size: 250-1000 sqft.
Pj’s Coffee Training to Franchises
Franchisors tend to offer initial training programs along with a variety of ongoing support options to help potential and present franchisees run and prosper their businesses.
It offers on-the-job training and classroom training for more than 72 hours. Apart from this, it provided ongoing support in the form of co-ops, newsletters, grand openings, conventions & meetings, safety & security procedures, lease negotiations, field operations, site selection, franchisee intranet platform, and proprietary software.
As far as marketing support is concerned, Pj’s Coffee indulges in Co-op advertising, National Media, SEO, Social Media, Ad Templates, Website Development, Loyalty Apps, and programs.
What is Pj’s coffee Term of Agreement and Renewal?
The term of a franchise agreement is 10 years. Considering the median sales provided by several franchise locations of the coffee franchise, it can take about 8.5 years for a person to recoup his investment at an average profit margin of 15%. Any profit margin less than 15% might elongate his time to reap the benefits of the return on his investment.
Does Pj’s coffee provide Financial Assistance to Franchises?
Pj’s Coffee at New Orleans has unique relationships with several third-party sources which tend to offer financing to cover the following when it comes to the provision of financial assistance to owners
- Startup costs
- Accounts receivable
How much do Pj’s coffee franchise owners make?
The estimated profit a franchise owner can make along with the time to recoup his initial investment is shown hereafter
|Initial midpoint investment||Profit Margin||Estimated profits||Time to recoup the investment|
The Pj’s Coffee franchise owner can make $ 808,240 as revenue and with a profit margin of 20% can make $161,649 every year.
What are Pj’s coffee revenue and profit?
Over the last few years, Pj’s Coffee has expanded a lot. The company has proven to be a profitable business venture for a franchisor with a retained earning of $476,253 in 2021, witnessing an increase of 21% when compared to the return of $392,937 million in 2020. This has proven to be a good growth indicator for the company.
What are Pj’s coffee franchise owner reviews?
The business model and products offered by Pj’s coffee prove to be exceptionally well and seem to work out so well for the franchisees and themselves. The ability of franchisees to work with the company is what tends to set them apart from other companies.
A solid company, Pj’s Coffee proudly presents a kind and supportive team to provide support to franchisees. They are sure to emphasize the importance of being there whenever needed.
Apart from this, the franchise provides franchisees great flexibility to prioritize daily responsibilities. A franchisee can enjoy an invaluable experience while owning several locations along with a well-balanced work and personal life. It is a family-centered company with great interpersonal relationships.
Pj’s Coffee Shop Franchise Rankings
The rankings associated with Pj’s Coffee Franchising are provided below
- #280- Prestigious Entrepreneur Franchise 500 list.
- #71- Fast Casual Top 200 Movers and Shakers Awards
- #143- Top Franchises for Veterans
- #2- Upcoming Coffee Franchise by Franchise
Franchise Deck Analysis and Overview
Pj’s Coffee was discovered in 1978 and spearheaded by brothers Steve, Paul, and Scott Ballard upon being acquired by Ballard Brands in 2008.
The company and its franchises have witnessed incredible growth and success forever and are considering ramping up its development efforts at international and national levels. Their business model is built to be replicated in traditional and non-traditional markets easily to bring together a common spirit to several parts of the nation and is highly versatile.
Pj’s coffee has been looking for suitable entrepreneurs passionate about their excellence in hospitality while embodying the perfect spirit of the brand.
Pj’s Coffee Franchise Worth the Cost and Profit?
In bad times or good, people always crave their coffee; this has been highly evident during the COVID crisis. In 2020 when other industries were trying to stay afloat, Pj’s Coffee was thriving. Their locations experienced an estimated 18.8% increase in sales when compared to the previous year with an average of $910,706 in net sales. Pj’s Coffee shop has simply proven its resistance against recession, economic ups and downs, and whatnot.
With impressive AUVs for several drive-thru locations of Pj’s Coffee as mentioned below. It can be said that this coffee opportunity is definitely worth the franchise cost ranging somewhere between $406,000 to $1,024,000.
- The top 50% of drive-thru locations is $787,144
- The top 25% of drive-thru locations is $910,706
- The top 10% of drive-thru locations is $1,010,703
|Competition Analysis of Pj’s Coffee|
|Franchise Cost||Franchisee Fees||Royalty + Ad fees||Expected Profit||Recoup of Capital||FD Rating|
|Starbucks Franchise||$315,000||7%||$1,235,000||7-11.5 years|
|7 Brew franchise||$503,800-$1,112,500||$45,000||4.5-7% + 2%||250,000||4 years|
|Scooters coffee franchise||$272,000 to $362,000||$40,000||6%+ 2%||$700,000||6-12 years|
|Caribou Coffee franchise||$200,000 – $1.1 Million||$25,000-$50,000||8% + 2-3%||$511,213 to$992,940||5.5 years|
|Tim Hortons Franchise||$670,000||$35,000||4.5-6% +||$158,144||11 years|
|Dunkin Donuts Franchise||$217,300- $1.5 million||$40,000-$90,000||5.9% +||$250,000||5.5 years|
The Franchise Deck rating for Pj’s coffees is 3.7/5.0.
Conclusion: Should You Buy Pj’s Coffee Franchise?
There are a few reasons why someone might want to start a Pj’s Coffee shop franchise. Perhaps the person is passionate about coffee and wants to share their love of the beverage with others, or they may simply want to own and operate their own business. Whatever the reason, starting Pj’s Coffee is a great way to get involved in the coffee industry and make a lot of money.
Entrepreneurs who want to open a franchise in the coffee franchise opportunities category can look at
- Starbucks Franchise
- Biggby Coffee Franchise
- 7 brew Franchise
- Scooters Coffee franchise
- Dunkin Donuts Franchise
- Caribou Coffee Franchise
- Tim Hortons Franchise
- Black Rifle Coffee Franchise
- Dutch Bros Franchise
- Dunkin Donuts Franchise
Frequently Asked Questions (FAQs)
- Is Pj’s coffee franchise profitable?
Yes, Pj’s Coffee franchise is highly profitable.
- Can you make money owning a Pj’s coffee franchise?
A potential franchise owner can make a good amount of money by owning Pj’s coffee.
- Is Pj’s coffee a franchise?
Yes, Pj’s Coffee is a franchise that is continuing to expand to over 200 locations in several developmental stages. Now is the perfect time to join hands with the company to reap the benefits of the exciting opportunities being offered by them.
- How do Pj’s coffee franchises make money?
Pj’s Coffee aims to bring in the same spirit to people with their lunches, quality breakfasts, freshly baked pastries, and meals infused with a slight charm of the Southern hospitality that is present in the roots of the company.
PJ’s Coffee has been a staple of the coffee industry for over 40 years. The Pj’s Coffee franchise model has made it easy to own and operate a successful shop. PJ’s Coffee offers a wide range of coffee and specialty drinks that appeal to a wide range of customers. Their signature roasts are crafted with care and attention to detail to ensure the best flavor.
The franchise provides training and support to help franchisees succeed.The Pj’s coffee franchise cost is not very high as compared to its counterparts
PJ’s Coffee is committed to providing quality products and excellent customer service and
The franchise offers a variety of food items and pastries to complement its coffees.
PJ’s Coffee is committed to giving back to its communities and supporting local charities. The franchise offers flexible hours and convenient locations for customers.
PJ’s Coffee franchise is dedicated to using the highest quality ingredients and sustainable practices.
The franchise has a commitment to environmental stewardship and sustainability. The franchise provides a unique and inviting atmosphere for customers.
PJ’s Coffee has something for everyone, from specialty drinks to specialty pastries. PJ’s Coffee is dedicated to providing a great experience for customers and franchisees alike. PJ’s Coffee is a great opportunity for entrepreneurs to own their own business and make a difference in their community.