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- 2023 Franchise 500 Rank
#175 Ranked #280 last year
- Initial investment
$406K - $1M
- Units as of 2022
142 52.7% over 3 years
Founded in 1979 by industry innovator Phyllis Jordan, PJ’s Coffee of New Orleans is a national coffee shop franchise known for roasting only the top 1% of Arabica beans. The business tha began franchising in 1989 is particularly popular for its cold brew iced coffee, brewed using a specially developed process known as cold drip, which reduces the coffee’s acidity and preserves its strength and flavor.
Aside from their famous coffee, every PJ’s Coffee franchise is also a market favorite for its organic tea and fresh breakfast pastries to go. On top of being a successful national coffee chain, PJ’s Coffee is known for being part of the culture of the communities they serve, being a place where people share a special bond and connect over a shared passion—coffee.
Why You May Want to Start a PJ's Coffee Franchise
Coffee is one of the world’s most traded commodities and provides most of America’s caffeine demand. The industry is a huge, multi-billion dollar business. Many Americans drink not just one, but multiple cups of coffee per day, making coffee a massive demand for the U.S.
Indeed, there is no better investment formula than a thriving industry and a successful brand. But what makes the PJ’s Coffee franchise system even more successful is the company's support to franchisees. From site evaluation and lease procurement to training and education to marketing and promotions and more, PJ’s franchisees get all the help and resources they need to carry on the brand’s winning tradition.
What Might Make PJ's Coffee a Good Choice?
PJ’s Coffee has ranked in Entrepreneur’s Franchise 500 multiple times in recent years. This ranking is based on an evaluation of more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability.
Additionally, PJ’s has ranked in Entrepreneur’s Top Franchises for Veterans multiple times in recent years. The coffee shop offers veterans a large discount off the franchise fee required when become a franchisee with the business.
How to Open Your Own PJ's Coffee Franchise
To open a PJ's Coffee franchise, you should make sure you're financially ready with enough liquid capital available for the initial investment, including a franchise fee and other startup expenses.
The franchising process starts with the usual getting-to-know-you phone and video calls. You will be evaluated on your financial suitability in owning a PJ’s Coffee franchise. If you pass this initial phase, you may be given paperwork, including a Franchise Disclosure Document. You are given the opportunity to validate what you find in their Franchise Disclosure Document by contacting existing franchisees. You will also get to meet the team and visit some of the PJ's Coffee locations.
When you decide to begin a PJ's Coffee franchise, you will sign a franchise agreement and pay all the initial fees. You will also meet the team that will prep you up for the training and the rest of the process, all the way to your grand opening. After your shop opens, support and marketing continue to be offered to you in order to give your franchise the best possible chance of success.
About PJ's Coffee of New Orleans
More from PJ's Coffee of New Orleans
Coffee is a Great Business Choice
The Coffee Industry is booming across the globe. Worth $50 Billion a year in the United States alone, a whopping 64% of all US consumers drink coffee daily, and coffee is the second largest traded commodity globally. PJ’s Coffee has stayed on top of that coffee wave for over 42 years. We’ve begun aggressive, strategic development of our concept with projected growth of 200% in the next three years, and we would like you to be a part of it.
PJ’s Coffee of New Orleans is Special
Many have experienced the New Orleans’ love of coffee, food, and dining. PJ’s Coffee locations are bringing this spirit to areas all over the country with fresh baked pastries and quality breakfasts, snacks, and lunches ever-so-slightly infused with the charm and Southern hospitality that is in our roots.
Now offering a beignet program for franchisees – fresh French donuts sprinkled with confectioner’s sugar famous in the French Quarter, a truly unique selling proposition in the coffee shop industry.
Only the top 1% of the world’s Arabica beans are accepted to be small batch roasted in quantities of 300 lbs. or less by our Chief Roastmaster, an artisan for PJ’s Coffee over 25 years.
We strive to make each visitor to a PJ’s Coffee location a permanent, repeat customer with our unique brand experience and quality products that far surpass the industry standard.
PJ’s Coffee Provides Top Level Support
Site Evaluation & Lease Procurement – Our internal team coupled with real estate brokers assist with every detail from site identification to lease reviews.
Design & Construction – We work closely with you and a team of professionals to design and construct your store, on time and on budget.
Training & Education – We have developed a multi-level training program that includes online, classroom, and at location.
Product Distribution – Strategic partnerships allow us to distribute our coffee from our roasting facility to your store in a timely and cost-effective manner.
Marketing & Promotions – Our marketing and promotional campaigns drive consumer frequency, increase sales and encourage increased store visits.
Ongoing Operations Consulting – We provide year-round operations support to ensure promotional campaigns, product rollouts and new operational procedures are implemented properly and go smoothly.
Award Winning Franchise with Documented Business Success
- Entrepreneur Magazine Franchise 500 Awards PJ's Coffee is ranked #437 on the prestigious list, improving by 41 slots in the past year
- Fast Casual Magazine Top 100 Movers and Shakers Awards
- Franchise Business Review Top 50 Franchise Rankings
- AUV The top 25% of locations featuring a drive-thru achieved $839,513 average unit volume
- Same Store Sales Increase Locations featuring a drive-thru averaged same store sales increase of 12.1%
Take Control of Your Future, Invest in PJ’s Coffee, a Strong Growing Brand!
PJ’s Coffee Franchisee Testimonials:
We loved the products and the business model, and it all worked out so well. The ability to work with them is what sets them apart. They are very reasonable people and it’s a solid company. When we went to meet the team, everyone was super kind, and it was very apparent that they provide a ton of support to their franchisees. It’s important to feel like you can always reach out to somebody when needed.” -Angela Harmon
PJs has provided me with the flexibility to prioritize my day-to-day responsibilities. While demanding, the work/life balance I have been able to obtain while owning my locations is invaluable. PJ’s is a family-oriented brand and that is evident every day - we have great working, as well as personal, relationships with many folks at corporate. It truly is a family centered culture that I am excited to grow with!” -Andrew Jones
- Franchising Since
- 1989 (34 years)
- # of employees at HQ
- Where seeking
This company is offering new franchisees worldwide.
This company is offering new franchisees in the following 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
- # of Units
- 142 (as of 2022)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a PJ's Coffee of New Orleans franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $406,000 - $1,024,000
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- 20% off franchise fee
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 10 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- PJ's Coffee of New Orleans has relationships with third-party sources which offer financing to cover the following: startup costs, equipment, inventory, accounts receivable, payroll
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 72+ hours
- Classroom Training
- 72 hours
- Ongoing Support
Purchasing Co-opsNewsletterMeetings & ConventionsGrand OpeningSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaSocial MediaSEOWebsite DevelopmentLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- # of employees required to run
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Franchise 500 Ranking History
Compare where PJ's Coffee of New Orleans landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where PJ's Coffee of New Orleans ranked on other franchise lists? Find out below.
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