Franchise Deep Dive: PJ's Coffee Of New Orleans Franchise Costs, Fees, Profit and Data

LAST UPDATED: 2/2024

FRANCHISE WEBSITE: https://www.pjsfranchise.com/ 

NUMBER OF LOCATIONS: 160+

REPORTED COST TO GET IN: $207,000 to $1,131,000

REPORTED ROI (Item 19): $856,294 (AUV for the top 50% of drive-thru locations)

PJ's Coffee of New Orleans is a coffee shop franchise that offers premium beverages and freshly baked goods. The franchise is part of Ballard Brands, which is headquartered in New Orleans, Louisiana, and operates a portfolio of restaurants, food and coffee establishments. The parent company also owns a manufacturing facility that roasts, packages and distributes coffee and tea to its franchise locations. 

How Many PJ's Coffee Locations Are There?

PJ's Coffee was founded in 1978 by Phyllis Jordan, a pioneer in the coffee world known for her dedication to using top-notch beans and perfecting the roasting process. From the beginning, the franchise has been committed to maintaining the highest standards of coffee quality. This commitment is reflected in their roasting methods, which take place just blocks away from the French Quarter in New Orleans. Over the years, PJ's Coffee has grown to over 160 locations. 

What Is PJ's Coffee’s Business Model?

The business model of PJ's Coffee revolves around providing a comprehensive franchise opportunity for individuals interested in owning and operating their own coffee shop. Here's an overview: 

• Flexibility: Franchise owners have the flexibility to shape their day-to-day responsibilities according to their preferences and lifestyle. They have the freedom to make decisions that suit their personal and professional goals.
• Proven Systems and Processes: PJ's Coffee has developed a business model with established systems and processes to make running the franchise seamless for owners. This includes operational procedures, training programs, and ongoing support.
• Training and Support: Franchise owners receive comprehensive training and resources to handle the daily operations of their business effectively. This includes online, classroom and hands-on training, as well as operational consulting and marketing support.
• Quality Products: PJ's Coffee focuses on serving high-quality coffee made from top-grade Arabica beans. They prioritize freshness and sustainability in their sourcing methods, ensuring a premium coffee experience for customers.
• Community Engagement: PJ's Coffee emphasizes creating a welcoming and community-oriented atmosphere in their coffee shops. Franchise owners are encouraged to build lasting relationships with their customers and become an integral part of their local communities.
• Growth Opportunities: PJ's Coffee franchise owners have the opportunity to expand their business by opening additional units in new markets. The brand supports owners in their growth and expansion endeavors.

PJ's Coffee offers two primary franchise models: Traditional and Non-Traditional.

Traditional Model:

• Size: 650 sq. ft. - 2,000 sq. ft.
• Initial Franchise Fee: $35,000
• Initial Investment: $406,000 - $1,131,000
• Description: Larger-scaled PJ's with a full-service menu, likely featuring a drive-thru, located within strip malls or free-standing buildings.

Non-Traditional Model:

• Size: 250 sq. ft  - 1,000 sq. ft.
• Initial Franchise Fee: $25,000
• Initial Investment: $192,000 - $534,500
• Description: Smaller-scaled PJ's with a limited menu, possibly located within other businesses such as college/university campuses, healthcare facilities, hotels, airports, etc.

PJ's Coffee also offers additional options for franchise development:

Multi-Unit Option Agreements: Initial franchise fee for the first PJ’s location is $35,000, with a reduced fee of $10,000 for each subsequent unit.

Master Franchise Agreements: Initial master franchise fee is $250,000 minimum (varies depending on the size of the country or countries). The total investment depends on the number of PJ's developed.

These models provide flexibility for potential franchisees based on their preferences, location, and investment capabilities.

How Much Can PJ's Coffee Owners Make?

PJ's Coffee franchise owners have the potential to achieve impressive average unit sales volumes (AUVs), as indicated by data from Item 19 of their Franchise Disclosure Document (FDD). While exact dollar amounts can vary due to factors such as location and operational efficiency, PJ's Coffee has demonstrated strong performance even during challenging economic times.

In 2022, PJ's Coffee locations experienced a 14.3% increase in same-store sales compared to the previous year, highlighting the brand's resilience in a recession-resistant industry. The AUVs for PJ's Coffee drive-thru locations are as follows:

• $856,294 AUV for the top 50% of drive-thru locations
• $1,034,105 AUV for the top 25% of drive-thru locations
• $1,185,171 AUV for the top 10% of drive-thru locations

How Much Does It Cost to Open a PJ's Coffee Franchise?

The total estimated investment ranges from $207,000 to $1,131,000. This includes:

• Initial Franchise Fee: $25,000 - $35,000
• Real Estate Lease for Premises: $2,000 - $12,500
• Furniture Fixtures & Equipment: $50,000 - $215,000
• Opening Advertising: $12,500 - $12,500
• Travel and Living Expenses While Training: $3,500 - $5,000
• Insurance: $2,500 - $5,000
• Various Deposits, Licenses & Permits: $2,000 - $6,500
• Opening Inventory: $10,000 - $14,000
• Signage: $4,000 - $18,000
• Free Standing Leasehold Improvements: $50,000 - $725,000
• Small Wares: $9,000 - $12,000
• POS System & Computer: $2,500 - $5,500
• Legal & Organizational Fees: $2,500 - $5,000
• Construction Drawings: $1,500 - $30,000
• Additional Funds: $30,000 - $30,000

PJ’s Coffee also requires a minimum of $150,000 in liquid capital and a net worth minimum of $500,000 for a single unit.

What Is the Franchise Fee for PJ's Coffee?

The franchise fee ranges from $25,000 to $35,000. 

Who Are the Leaders of PJ's Coffee?

• Danielle Roppolo - Director of Franchise Performance at PJ’s Coffee
• Lory Schwartz, CFE - Franchise Development Manager at PJ’s Coffee
• Ryan Robin - Real Estate Manager at PJ’s Coffee
• Peter Boylan, III - President of Ballard Brands
• Felton Jones, Jr. - Chief Roast Master at Ballard Brands
• David Mesa, Jr., CFE - Executive Vice President & Chief Development Officer at Ballard Brands
• Ryan J. Stansbury, CFE - Vice President of Franchise Development at Ballard Brands
• Tori Bermond, CFE - Director of Franchise Development at Ballard Brands
• Lindsay Lambert, CFE - Senior Franchise Development Coordinator at Ballard Brands
• Cassidy Cancienne - Franchise Development Coordinator at Ballard Brands
• Catherine Barton - Director of Non-Traditional Development at Ballard Brands
• Mario Arthur - Senior Project Manager at Ballard Brands
• Christy Pitard - Location Development Coordinator at Ballard Brands
• Patrick Shaheen, CFE - Vice President of Performance & Operations at Ballard Brands
• Logan Myers - Distribution Manager at Ballard Brands
• Reid Nolte - Vice President of Marketing at Ballard Brands

What Helpful Articles Can I Read to Learn More?

• Brewing Success: Opening A Coffee Franchise in a Small Town
• PJ’s Coffee 2023 Franchise Triumphs, 2024 Aspirations
• Where Coffee Meets Community, Part 1: PJ’s Franchisees Making a Difference
• PJ’s Coffee of New Orleans Looks Back on 45 Years of Coffee Craftsmanship
• PJ’s Brewing Growth in Texas, Florida and More

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Every great franchisee had help buying a franchise. Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit www.1851growthclub.com and start your journey.

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