Franchisor Stories

PJ's Coffee of New Orleans Franchise Costs, Fees, Profit and Data for 2025
Franchise Opportunity Deep Dive: PJ's Coffee Of New Orleans is an American chain of retail coffeehouses focused on growth potential.

Franchisor Stories

Franchise Opportunity Deep Dive: PJ's Coffee Of New Orleans is an American chain of retail coffeehouses focused on growth potential.

PJ's Coffee of New Orleans is a franchised chain of coffeehouses that capitalizes on its roots in the Crescent City to deliver New Orleans-flavored drinks utilizing the finest quality arabica beans and small-batch roasting.
PJ’s Coffee of New Orleans was founded in 1978 in New Orleans by Phyllis Jordan, who emphasized quality, community, hospitality and a distinctly New Orleans sensibility; she also pioneered the brand’s original cold-drip method — a 24-hour steep that yields a smoother, less acidic cup. The company began franchising in 1989 and has since grown to nearly 200 franchised locations.
Mission: PJ’s Coffee aims to share Southern hospitality and New Orleans culture and flavor with a wider audience.
Vision: PJ’s Coffee aims to drive targeted market growth through multi-unit development, product quality and innovation, and community engagement, while creating an additional profit center by selling PJ’s-branded products in cafés and in retail channels such as supermarkets and grocery stores.
PJ's Coffee Of New Orleans touts opportunities for growth in all 50 American states.

Initial Costs: The estimated initial investment required to begin operation of an inline/endcap model PJ’s Unit ranges from $498,500 to $887,000. The total investment necessary to begin operation of a traditional free-standing model PJ’s unit ranges from $915,000 to $1,698,000.
The 2025 Franchise Disclosure Document (FDD) breaks these costs down as follows:
| Type of Expenditure | Inline/Endcap | Traditional Free-Standing | ||
Min | Max | Min | Max | |
| Initial Franchise Fee | $15,000 | $30,000 | $15,000 | $40,000 |
| Real Estate Deposit | $2,500 | $12,500 | $5,000 | $12,500 |
| Furniture, Fixtures & Equipment | $155,000 | $243,000 | $191,500 | $243,000 |
| Opening Advertising | $12,500 | $12,500 | $12,500 | $12,500 |
| Training Expenses | $3,500 | $5,000 | $3,500 | $5,000 |
| Insurance | $2,500 | $5,000 | $5,000 | $7,500 |
| Other Prepaid Expenses | $3,500 | $6,000 | $4,500 | $8,000 |
| Opening Inventory | $10,000 | $14,000 | $10,000 | $14,000 |
| Exterior Signage | $7,000 | $24,000 | $20,000 | $30,000 |
| Leasehold Improvements | $230,000 | $460,000 | $550,000 | $1,200,000 |
| Small Wares | $8,000 | $10,000 | $8,000 | $10,000 |
| POS/BOH Computer System | $2,500 | $5,500 | $2,500 | $5,500 |
| Legal, Accounting & Organizational Costs | $2,500 | $5,000 | $2,500 | $5,000 |
| Construction Drawings | $11,500 | $14,500 | $55,000 | $75,000 |
| Additional Funds (3 Months) | $30,000 | $30,000 | $30,000 | $30,000 |
Initial Franchise Fee: The initial franchise fee can range from $15,000 to $40,000 depending on the type of PJ's Unit model and the agreement. The initial franchise fee for the first unit under a multi-unit agreement is $40,000. The option fee for each subsequent PJ's Unit (numbered two or greater) is a reduced franchise fee of $15,000. Existing franchisees acquiring an additional license pay $30,000.
Ongoing Fees: PJ's Coffee Of New Orleans franchisees are responsible for the following ongoing fees, according to the 2025 FDD:
| Type of Fee | Amount |
| Royalty Fee | 5% of net sales/week |
| Marketing Fund | 2% of net sales/week |
| POS Software License Fee | $141/month |
| Labor Management Program Fee | $20/month |
| Mobile App/Loyalty Program Fee | $159/month |
| QuickBook Essentials | $50/month |
ROI Potential: According to the 2025 FDD, the 117 PJ’s units operating for the entirety of FY 2024 reported the following net sales:
Average | Median | High | Low | |
| Traditional w. Drive-Thru (82) | $626,592 | $556,715 | $1,281,210 | $183,632 |
| Traditional w/o Drive-Thru (26) | $502,763 | $488,382 | $934,567 | $242,329 |
| Non-Traditional (9) | $504,390 | $270,588 | $1,201,091 | $183,632 |
| All (117) | $589,674 | $533,705 | $1,281,210 | $183,632 |
PJ’s Coffee uses a multi-level program that combines online modules, classroom instruction and on-site, hands-on training to prepare new owners and their teams, reinforced by an immersive mock-store training facility built to replicate a PJ’s café for bar skills and classroom sessions.
Franchisees receive end-to-end launch and operating support, including design/construction guidance from project managers, coordinated product distribution from the New Orleans roasting facility, and turnkey marketing campaigns to build awareness and traffic; coaching and resources continue through day-to-day operations.
PJ’s invests in standardized, modern store tech — most notably a systemwide move to a unified POS that maintains PCI compliance and simplifies processing — along with carefully specified equipment packages selected for efficient, consistent café operations.
Liquid Assets: $175,000
Net Worth: $500,000
PJ’s also considers creditworthiness, a favorable debt-to-income ratio and secondary sources of income.
Ideal candidates are people who are passionate about the brand and coffee, actively involved in the business and community, and excited to work within the franchise system.
Franchise must operate during minimum hours of 6:00 a.m. to 8:00 p.m. on weekdays and 7:00 a.m. to 8:00 p.m. on weekends. Hours must be diligently and efficiently exercised and franchisee, or designated manager, must devote full-time to the development of the unit (unless otherwise approved). The unit must always be under the direct, full-time, on-location supervision of the franchisee or a trained and competent employee acting as a full-time manager.
Franchisee must attend and complete the initial training program and must also attend mandatory additional training sessions if requested by the franchisor, limited to no more than two in a 12-month period. Franchisee must also attend all PJ's annual conventions unless an approved exigent circumstance exists.
Franchisee must ensure all employees wear uniforms of the color, design and specifications designated by the franchisor and present a neat and clean appearance.
PJ's Coffee participates in the International Franchise Association's VetFran program and offers a 20% discount on the initial franchise fee to eligible veterans. Eligibility requires being an active member or honorably discharged veteran from the U.S. Armed Forces. For a business entity, an eligible veteran must hold more than 15% of the total voting power of the ownership interest.
PJ’s also takes part in a franchisee referral program. The referred candidate must meet the franchisor's criteria for approval, sign a franchise agreement and pay the applicable initial franchise fee. The incentive for the referring franchisee is $5,000. This incentive applies only to the first PJ's unit of the referred franchisee.
“I wanted to quickly get into a system that already was built and had the playbook for me. I love the freedom that owning a business gives me. Yes there are times where you have to come in and work early hours or late hours, but I love the freedom that it gives me from being able to pick up my kids from school, I can set my own hours.”
- Tance Hughes, PJ’S Coffee Franchisee — Natchez, Mississippi
For more franchisee testimonials and success stories, visit https://www.pjsfranchise.com/reviews/.
Coffee consumption in America remains on the rise, with two-thirds of Americans consuming the beverage on a daily basis, fuelling industry growth that’s expected to increase by approximately $50 billion between 2025 and 2029.
With advances in technology like mobile ordering and an increased emphasis on convenience driven by retail drive-thru experiences, the potential for further growth is significant. Innovation in the product sphere driven by advances like cold brew technology fuel further growth.
Overall, the future for franchised retail coffee shops in America is bright, driven by innovation, digital advances and innovation.
PJ's Coffee of New Orleans distinguishes itself in the franchised retail coffee shop sphere via product innovation influenced by its New Orleans roots as well as an emphasis on quality and community engagement.
In terms of competition, PJ's Coffee Of New Orleans faces several notable players in an increasingly crowded retail franchise coffee shop marketplace, including Starbucks, Dunkin’ Donuts, BIGGBY COFFEE*, Caribou Coffee, Peet’s Coffee, Coffee Beanery, La Colombe Coffee Roasters and Tim Horton’s.
However, while these institutions offer various caffeinated experiences, PJ's Coffee’s unique focus on southern hospitality, quality, innovation and the New Orleans roots reflected in its menu servings set the franchise apart.
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