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How Much Does it Cost to Open a Coffee Shop?

By: PJ's Coffee

Category:About PJ's Coffee

A group of purple cups of coffee next to coffee beans

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According to the National Coffee Association, daily coffee consumption among Americans has hit a 20-year high in 2024. Coffee is the second most consumed beverage in the world (behind water), and 400 million cups are consumed daily in the U.S.

The most popular places to consume coffee outside of the home are in transit, at work and at eating establishments. Regardless of season or occasion, it’s a staple in most people’s routines.

With a consistently hot commodity, coffee shops are a popular business opportunity for many entrepreneurs. That said, how much does it actually cost to open a coffee shop? It mainly depends on the model (traditional or non-traditional), the size, and the condition of the location (extensiveness of improvements and construction in the space).

Traditional Full-Service

A traditional PJ’s Coffee typically has the largest footprint, ranging from 1,200 to 2,200 square feet. These locations can be standalone or in a strip mall along with other businesses, generally on an end cap and featuring a drive-thru. Traditional PJ’s stores serve the full range of menu items, including a full line of beverages, a variety of freshly baked pastries, hot breakfast sandwiches, beignets and various grab-and-go items.​

One full-service location requires an initial franchise fee of $35,000. After that, leasehold improvements — which often include construction and/or renovation of the space — are often the most costly expense, followed by furniture, fixtures and equipment that generally requires an upfront spend of roughly $165,000. Franchisees’ total initial investment ranges from $650,000 to $800,000 on average for one traditional full-service PJ’s Coffee in an existing building with a drive-thru. The investment isalmost always higher when locations are built from the ground up.

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Multi-Unit Agreement

At PJ’s Coffee, over 50% of our franchisees operate with multi-unit agreements — which typically cover three or more locations. These could be multiple full-service locations, multiple non-traditional locations or a mix of the two. These franchisees enter into a multi-unit option agreement based on the number of locations they’d like to open in a defined market over a specified period of time.

Since the franchisee must build or remodel each location, the total investment for multiple locations varies widely. However, PJ’s reduces franchise fees for multi-unit agreements. For example, the initial fee for three units is $35,000 for the first location plus $10,000 for each additional license at the time of signing, totaling $55,000. We are proud to offer a 20% discount on franchise fees for veterans in honor of their service.

Having multiple franchising options has enabled PJ’s to significantly broaden its presence, reaching new states and communities across the Southeast and extending far beyond. Most importantly, prospective franchise owners are afforded the opportunity to tailor their investments by selecting the ideal size and number of stores to fit their financial goals and business ambitions. This customized approach also fosters sustainable growth and stability for the brand.

“Whether you’re interested in a single unit or multiple locations, PJ’s Coffee provides the flexibility and support to help you succeed in the coffee business,” said Director of Franchise Development Tori Bermond.

Learn more about owning a PJ’s Coffee franchise and download the PJ’s Coffee franchise brochure today.

For more information about opening a coffee shop, check out some of our other blogs:

  • $1,042,644*

    Average Unit
    Volume (AUV)

  • 19.8%

    4-year Same-Store

    Sales Increase

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Learn More About Our Available Markets

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Investment Tiers
  • Traditional Model

    A larger scaled PJ's with a full service menu offering located within a strip mall or free-standing building likely featuring a drive-thru.

    • Size: 650sqft - 2,000sqft
    • Initial Franchise Fee: $35K
    • Initial Investment: $459,000- $1,152,000
  • Non-Traditional Model

    A smaller scaled PJ's possibly with a limited menu offering located within another business - College/University Campuses, Healthcare Facilities, Hotels, Government Facilities, Military Bases, Airports, Shopping Malls, Etc.

    • Size: 250sqft - 1,000sqft
    • Initial Franchise Fee: $25K
    • Initial Investment: $228,000 - $511,000
  • Multi-Unit Option Agreements

    PJ's offers opportunities to enter into a Multi-Unit Option Agreement to develop multiple PJ's over a specified development schedule in a designated market. The initial franchise fee for the first PJ’s location is $35,000. Subsequent PJ’s Units receive a reduced franchise fee. The fee for each PJ’s Unit numbered two or greater is $10,000.

  • Master Franchise Agreements

    PJ's offers opportunities to International Franchisees to enter into a Master Franchise Agreement to develop multiple PJ's over a specified development schedule in a designated country or countries.

    • Initial Master Franchise Fee: $250k minimum (Varies depending on size of country or countries)
    • Total Investment: Varies depending on the number of PJ's developed
A Few More...
  • 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
  • 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
  • I think if someone is looking for a franchise opportunity they should find something that fits their lifestyle. If you're a morning person, a coffee business might be good for you. I'm a morning person so waking up at 4 A.M. is fine, the whole 'wake up and smell the coffee' thing - that's me. - Anthony Satterlee
  • I decided to look into coffee and probably spent about 3 years doing the investigation. I decided on PJ's because the quality of the product is just head and shoulders above everybody else. - Tom Lewis
  • It's easy to be successful. You can become part of your community in a way you can't otherwise in a lot of other businesses. I would highly recommend it. - Polly Fisher
  • The best part of being a franchisee is the freedom. It gives you the opportunity to provide for your family, but also be a part of your family. It gives you time to play with your children or take a vacation, but still have a fantastic business. - Kelly Songy
  • I decided owning a PJ's Coffee shop was the way to go. From start to finish, corporate was there for me when I selected a location, ordered equipment and furniture. - Mateusz Dabrowski
  • I fell in love with PJs Coffee and the brand, years before I ever owned a location and now I own two! I wanted a business that, with the right staff, would be able to operate successfully without me having to be there all day every day. PJs coffee gives you that flexibility and freedom. I also love the family atmosphere that corporate provides and the camaraderie between franchisees is wonderful! You are in business for yourself, but not by yourself, and that is a great sense of comfort and security. I love this business!

    - Roxanne DeNicola
Featured Blogs
  • Understanding the PJ’s Coffee Franchise Disclosure Document (FDD) Read More
  • PJ’s Coffee Eighth Annual Veteran Franchise Giveaway: A Path to Business Ownership Read More
  • How Much Does it Cost to Open a Coffee Shop? Read More
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