ATLANTA Raving Brands Inc. said today that it had agreed to sell its PJ’s Coffee division to New Orleans Roast LLC and New Orleans Brew LLC of Louisiana. Terms were not disclosed.
The deal, which includes franchise rights to the 48-unit chain and a coffee-roasting business that supplies the chain, is expected to close later this spring, subject to due diligence and closing conditions. Earlier this month, Raving Brands sold its Mama Fu’s Asian House brand to franchisees based in Austin, Texas. Last year it sold the rights to Moe’s Southwest Grill burrito chain to Schlotzsky’s parent Focus Brands Inc.
New Orleans Roast and New Orleans Brew have been PJ’s franchisees since 1995 and currently operate five units. The companies are also affiliated with 53-unit WOW Cafe & Wingery of Covington, La.
Paul Ballard, a partner in New Orleans Roast and New Orleans Brew, said, “Like Phyllis Jordan, who founded this great coffee company in 1978, our family has been vested in and passionate about PJ’s throughout the course of the company’s 30-year history.”
Most PJ’s Coffee locations are in the Southeast.
Stephen M. LaMastra, president and chief operating officer of Raving Brands, said the deal would put the concept in “great hands with the direction of these local owners, who have been heavily involved in the success of PJ’s for many years, and who are committed to the integrity of this great brand.”
He added, “Raving Brands is committed to a portfolio strategy with its concepts but must be willing to look further for partnership or even sale to highly qualified partners who are eager to take a certain concept to the next level.”
New Orleans Roast and New Orleans Brew said future growth would focus on Louisiana and the Gulf region and on increased wholesale distribution from PJ’s coffee-roasting facility.
Raving Brands bought PJ’s Coffee in 2002, the first concept that the company did not start from scratch. With the sale, the restaurant concepts remaining in the company’s portfolio include Doc Green’s Gourmet Salads, Shane’s Rib Shack, Boneheads Grilled Fish and Piri Piri Chicken, and Flying Biscuit Cafe.