How Much Does it Cost to Open a Coffee Shop?
By: PJ's Coffee
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.
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:
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$1,042,644*
Average Unit
Volume (AUV) -
19.8%
4-year Same-Store
Sales Increase
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