The Colorado-based coffee chain has highlighted the Pacific Northwest as key to its US outlet growth as it continues to drive towards 100 US stores by the end of 2023
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Ziggi’s Coffee currently operates 72 stores across 16 states | Photo credit: Ziggi’s Coffee
US drive-thru coffee chain Ziggi’s Coffee has signed a new franchise agreement to open nine stores in the state of Washington as part of plans to scale in the Pacific Northwest.
In partnership with new franchisees Ashwani and Sujata Kumar, the deal will see Ziggi’s Coffee open its first outlets in the state and add to its single store in Portland, Oregon.
The Colorado-based coffee chain said the Pacific Northwest, comprising the states of Washington, Oregon and Idaho, will be a key area for growth as it seeks to reach 100 stores across the US by the end of 2023.
The drive-thru chain currently operates 72 stores across 16 states, primarily in Colorado. Ziggi’s Coffee has more than 160 sites in various stages of development and expects to open 30 new outlets within the next 12 months.
“The Ziggi’s Coffee franchise concept is exploding throughout the nation as we continue to sign on incredible franchisees that will live and breathe the Ziggi’s mission. With the recent addition of the Kumar family, the brand continues its expansion within the Northwest region and will soon bring the great taste of Ziggi's to many communities in the great state of Washington,” said Justin Livingston, Vice President of Franchise Development, Ziggi's Coffee.
Founded in 2004 with a drive-thru site in Longmont, Colorado, Ziggi’s Coffee began franchising in 2016. In January 2023 the chain signed its 200th franchise agreement.
Ziggi’s expansion plans are emblematic of a growing, and increasingly competitive, US drive-thru coffee shop market.
Oregon-based Dutch Bros and Nebraska-based Scooter’s Coffee, both drive-thru only chains, have forecast reaching 800 outlets respectively by the end of 2023, while market leader Starbucks has unveiled plans to increase its drive-thru footprint by 2025. Currently, 70% of its 9,300 company-operated US stores feature the format.
Additionally, Panera Bread trialed artificial intelligence (AI) technology in select New York drive-thru stores in August 2022 and introduced a new pick-up ordering function for its drive-thru stores in June 2023. Approximately 40% of Panera Bread’s 2,100 stores in the US and Canada are drive-thru.
Further highlighting the popularity of the format in the US compared to other global markets, Germany’s Coffee Fellows debut US store in Texas featured drive-thru. None of the Munich-based coffee chain’s 220 outlets across Europe offer the convenience format.