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Why Coffee Is A Consistently Hot Commodity For Pj’s Franchisees

By: PJ's Coffee

Category:About PJ's Coffee

As thesecond largest commodity in the world, coffee is in constant demand. It is also one of the most widely consumed beverages in the United States.Sixty-two percent of U.S. consumers reported they had a coffee drink within the past day, according to the National Coffee Association’s 2017 report. Consumption is at an all-time high, surpassing last year’s record highs by 5 percent.

This significant growth has not gone unnoticed by entrepreneurs looking for new opportunities. It’s invigorated the PJ’s Coffee brand, demonstrated by same-store sales growth of 6.8 percent at our top-tier locations between 2015 and 2016.* And we’re looking to increase our footprint to 100 locations worldwide by the end of 2017. Here’s why we’re so optimistic:

Increasing Demand for Coffee

The coffee industry has always been lucrative, but has only been increasing in recent years. The surge in consumption and demand for coffee has been attributed to a variety of factors. Coffee’s popularity among millennials, however, has continued to be a driving force behind the increased consumption.

  • Millennials – a demographic comprised of 19- to 34-year-olds – account for about 44 percent of U.S. coffee demand.

  • Many consumers are also beginning to drink coffee at an earlier age. Younger millennials born after 1995 have started drinking coffee at 14.7 years old, while older millennials did not start drinking coffee until 17.1 years on average.

Because coffee is becoming increasingly appealing to younger consumers, the industry will likely continue to grow through the foreseeable future.

The Rise of the Cold Brew

During a time of heightened consumption, the coffee industry has been evolving in order to meet existing and new demand. The increasing popularity of cold brew coffee stands out among the industry’s biggest recent trends. The main difference between a cold brew and regular hot coffee is in its preparation. To make a cold brew, you need to steep coffee grounds in room-temperature water for 6 to 20 hours. The cold brew process was previously less popular than regular drip coffee, since it took longer to make, and there wasn’t much demand. As it became more ubiquitous, however, consumers began noticing the benefits of cold brews, especially their lower acidity and “fuller” taste.

Tapping into a Thriving Market

Worth over $100 billion worldwide, the coffee industry continues to present a sound investment opportunity with constant demand. There are many different factors driving coffee industry growth today – from changing demographics to the rise of coffee culture. Whatever the reasons, coffee continues to be one of the world’s most sought after commodities.

Entrepreneurs are clamoring to get into the booming coffee industry. But for someone with little or no experience within the coffee segment, breaking into the industry can be challenging. Partnering with an established brand is one of the best ways to position yourself for success. By investing in a coffee franchise instead of starting an independent coffeehouse, you will have access to all the tools and support that business owners need to build profitable business in a growing vertical. From a proven business model to widespread brand recognition, a franchise like PJ’s franchisees have the perfect opportunity to break into or grow within the industry.

If you’re interested in becoming part of a global coffee empire that still has a neighborhood feel, download our franchise brochure today.

*Top tier of franchised units. Reference Item 19 of the PJ’s FDD for details.