Sunday, November 19, 2023

[UPDATE] Despite Frothy Market, Colorado Coffee Chain Sees Potential

Ziggi’s Coffee this week announced the development of 50 new locations within "the Greater Atlanta area." This expansion comes at a time when Ziggi’s is growing throughout the nation with over 200 locations in various stages of development and 50 set to open within the next year, according to the release.  The signing of 50 new locations "within the city of Atlanta" is a first for the brand, as this marks Ziggi’s largest development deal to date. 

"We are thrilled to embark on this journey, expanding Ziggi’s Coffee throughout the bustling city of Atlanta with a milestone of a development deal signing," said Brandon Knudsen, Ziggi’s CEO and Co-founder. 

Doubting the realistic possibility of developing 50 units within the "city of Atlanta," a representative for the company clarified that in fact the locations will open in the greater metro Atlanta area and not within the city itself. 

"This achievement speaks volumes about the dedication of our team and the loyalty of our customers. Our commitment to innovation, quality, and creating meaningful connections remains at the center of who we are, and we can’t wait to serve the Atlanta community with our 50 new locations."  Knudsen added.

“We are so thrilled to welcome this amazing group to the Ziggi’s family,” said Justin Livingston, VP of Franchise Development for Ziggi’s. “The Ziggi’s brand has experienced monumental growth, but with a focus on finding only the perfect franchisees to join the opportunity. Signing an agreement for 50 units with such an experienced group is tremendous validation to the systems and brand experience Ziggi's brings to markets. Closing a market to a single franchisee to develop is a decision we take very seriously, and this team is the perfect fit. We look forward to seeing them grow the Atlanta market and continuing our pursuit of finding more incredible franchisees with an unwavering commitment to creating long-term mutually beneficial relationships.”  Livingston added.

Despite mentions of an "amazing group" and an "experienced group," the release never named the franchisee, nor did it indicate if any locations have been identified or when any may open.  ToNeTo Atlanta contacted reps for Ziggi's and was told such information could not be shared at this time, but to expect it soon.  

Founded in Longmont, Colorado in 2004, Ziggi’s Coffee began franchising in 2016 and today has 75 locations open across 16 states.  The company is now headquartered in Mead, about 35 miles north of Denver.  Although the company operates both drive-thru and traditional coffee shop locations, future growth seems tied to the drive-thru units.   

That said, drive-thru coffee shops are quickly turning into the next mattress store/car wash/cupcake joint/ burger shop with locations seemingly on top of one another.  

Industry titan Starbucks is constantly building and at times relocating Atlanta area locations, while new players such as Scooter's, Biggby, 7 Brew and Dutch Bros., among others, are vying for market share.  Even Caribou Coffee, which had gone through a retrenchment from the market, is returning to Kennesaw with other stores in the works.  

For its part, Scooter's, which is drive-thru only, has six locations in Georgia including two in Roswell and Marietta with the others all way OTP in Winder, Gainesville, Rome and Gray, a little north of Macon.   

7 Brew, another drive-thru only concept, currently has five locations in Georgia including three outposts in Augusta and one each in Thomasville and Buford.  

This video from the opening of 7 Brew in Greenville aka "G Vegas" is cringe worthy. 

Dutch Bros., which is also drive-thru only, went public in 2021 and has in recent months made inroads into Tennessee, Alabama and Florida but does not currently have any deals done in metro Atlanta, but is actively looking, according to a source familiar with their plans.  Bikini Beans Coffee, a Hooters-like coffee shop in Arizona, has thus far not grown beyond its home market.  

In addition to the aforementioned coffee shops, Whataburger, Tim Horton's, Raising Cane's and even Chick-fil-A are also all actively looking to add units in metro Atlanta.  Whataburger has over the past year or so opened a dozen units in metro Atlanta with a goal of having 50 open by 2030.  

Have you ever had Ziggi's Coffee?  Do you think Atlanta need another coffee shop?  What chain coffee shop do you think makes the best cup of joe?

Please share your thoughts below. 

3 comments:

Anonymous said...

I don’t know… 50 locations throughout the Metro ATL? That’s on top of all the Starbucks, all the Dunkins, all the independent bagel shops, of which I would group Einstein and Goldberg in there, all the Starbucks within targets, and some within Kroger‘s, all the McDonald’s mc caf├ęs, and then all the Tim Hortons that will begin to emerge… All the craft coffee shops… then you can add all the QT. on the race tracks. to waffle House and IHOP? I don’t think 50 Ziggys based on their size is realistic given the already emerging landscape. I would say that while others suggest Tim Hortons are to market just in time that a short time leader for Ziggys is literally just too late and missed the boat!

Anonymous said...

You could just name off every restaurant that has coffee.

Anonymous said...

If there product is good then it’s not too far fetched. Dunkin’ and Starbucks leave a lot to be desired and Metro Atl is growing constantly. That said, doubt we’ll get anything near Paulding county.

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