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Where Are Coffee Franchises Growing Fastest? A Look at Convenience Stores

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PJ’s Coffee convenience store partnership showcasing coffee franchise expansion into nontraditional locations.

Key Takeaway: PJ's Coffee's recent development agreement with Estepp Energy, bringing the brand to seven convenience store locations in Kentucky, demonstrates how strategic, nontraditional growth can expand brand awareness while delivering the same premium coffee experience guests expect.

While traditional cafés remain an important part of coffee franchise development, convenience stores have quickly become one of the fastest-growing channels for premium coffee. As consumers prioritize speed, convenience and quality, retailers are investing heavily in upgraded food and beverage programs, creating new opportunities for coffee brands to expand beyond the traditional storefront.

Why Convenience Stores Are Investing in Premium Coffee

Today's convenience stores are evolving into people’s go-to place to refuel, whether its their vehicles or themselves.

That evolution creates advantages for both c-store operators and coffee brands, including:

For entrepreneurs considering coffee franchise ownership, these partnerships demonstrate how the industry often easily adapts to changing consumer expectations.

How PJ's Coffee Is Expanding Its Convenience Store Strategy

This isn’t merely a trend for PJ's Coffee; the brand is actively investing in it.

Most recently, PJ’s Coffee signed a seven-unit franchise agreement with Kentucky-based Estepp Energy, bringing its New Orleans-inspired menu to convenience stores throughout Central Kentucky. Rather than relying on a single format, the development will include full cafés with drive-thrus, end-cap locations, and in-store coffee counters, demonstrating the flexibility of the PJ's Coffee model.

"The beverage category has changed tremendously over the last decade, and we saw an opportunity to launch a higher-quality, distinctive coffee concept in our stores,” said Steve Estepp, founder of Estepp Energy, in a recent article with Convenience Store News. “PJ's Coffee stood out to us because the product is excellent and the brand has a strong reputation throughout the Southeast—plus, the flexible format truly made it a seamless fit with our stores."

For PJ's Coffee, it's another example of thoughtfully expanding the brand into locations where its guests already live, work, and travel.

What This Means for Franchisees

As consumer expectations evolve, the most successful franchise systems are the ones that continue identifying sustainable opportunities for growth while staying true to what makes the brand unique.

The recent development agreement with Estepp Energy is a great example of that approach. Rather than applying a one-size-fits-all development strategy, PJ's Coffee adapts its footprint to fit each market through full cafés with drive-thrus, end-cap locations, and in-store counters. That flexibility allows the brand to expand into high-traffic locations while delivering the same premium coffee experience its guests expect.

It's worth noting that this nontraditional growth isn't a shift away from traditional store development—it's an addition to it. For entrepreneurs evaluating single-unit ownership, the core café model remains the foundation of the brand's growth strategy.

By expanding through both traditional cafés and nontraditional locations, PJ's Coffee is increasing brand visibility, introducing new guests to the concept, and creating additional avenues for thoughtful, sustainable growth as consumer habits continue to evolve.

The Future of Coffee Franchise Growth

As convenience stores continue elevating their food and beverage offerings, they're becoming an increasingly important part of the coffee industry's future.

As entrepreneurs evaluating franchise opportunities, it's worth looking beyond where a brand operates today and considering how it's preparing for tomorrow. PJ's Coffee's investment in convenience stores reflects a long-term strategy centered on innovation, operational flexibility, and meeting guests wherever they choose to enjoy premium coffee.

Interested in learning more about owning a PJ’s Coffee franchise? Fill out our inquiry form to start the conversation.

FAQs:

  1. Why are convenience stores becoming popular locations for coffee franchises?

Convenience stores are evolving into destinations for high-quality food and beverages, attracting commuters, travelers, and daily guests looking for premium coffee with added convenience. This shift has created new growth opportunities for coffee franchise brands.

  1. How is PJ's Coffee expanding into convenience stores?

PJ's Coffee is growing its convenience store presence through strategic development agreements, including a seven-unit deal with Estepp Energy in Kentucky. These locations feature a mix of full cafés, drive-thrus, end-cap locations, and in-store counters to meet the needs of different markets.

  1. What are the benefits of nontraditional franchise locations?

Nontraditional locations help introduce a brand to new guests, increase visibility in high-traffic areas, and create additional opportunities for long-term expansion alongside traditional café build-outs.

  1. What should entrepreneurs look for in a growing coffee franchise?

Beyond a strong brand and quality products, entrepreneurs should evaluate how a franchise is adapting to changing consumer preferences, expanding into new markets, and pursuing long-term growth opportunities that support franchisees.