The beverage category inside convenience stores has become one of the fastest-growing segments in US retail food service. On June 17, 2026, PJ’s Coffee of New Orleans announced a 7-unit license agreement with Estepp Energy, a family-owned operator of more than 13 convenience stores across Central Kentucky, to bring the Southern coffee franchise brand into the Bluegrass State.
PJ’s Coffee of New Orleans has been building a presence beyond its Southern stronghold over the past several years, expanding its franchise concept through locations in universities, travel centers, and traditional storefronts. The franchise brand already operates a location on the University of Kentucky campus, giving it an established customer base in the state before this new development agreement takes effect.
A 50-Year Family Business Adds a Premium Coffee Partner
Steve Estepp, founder of Estepp Energy and co-brand operator under the Coffee Dudes label, signed the agreement to develop PJ’s Coffee across his Central Kentucky store network. Estepp Energy has operated convenience stores in the Lexington area since 1975, when Estepp’s father opened the first location. The company has since grown to more than 13 stores and already co-brands with Freddy’s Frozen Custard & Steakburgers and Little Caesars, making multi-brand co-location a core part of its operating model. “Over the years, we’ve always looked for ways to make our stores better and provide our guests with stronger food and beverage options,” says Steve Estepp, founder of Estepp Energy. “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.”
PJ’s Coffee Builds on a Growing Convenience Store Strategy
The deal reflects a broader pattern in US franchising: established coffee and QSR brands pairing with convenience store operators to capture off-premise demand without the overhead of standalone locations. PJ’s Coffee has developed flexible formats — full cafés with drive-thrus, end-cap installations, and in-store counters — that fit different store configurations. Ryan Stansbury, CFE, executive vice president of franchise development for PJ’s Coffee, described the operator fit: “Their deep understanding of convenience retail and hospitality, combined with PJ’s flexible format and premium coffee experience, makes them an ideal partner to introduce the PJ’s Coffee brand to more guests throughout Central Kentucky.”
Good to know
PJ’s Coffee was founded in New Orleans in 1978 and began franchising in 2008. The brand is known for its cold brew and specialty coffee menu and operates locations across the US in standalone cafés, university campuses, and travel centers.
Seven Units Planned Across Multiple Store Formats
The 7-unit agreement covers a combination of formats across Estepp Energy’s Central Kentucky footprint. Operating partner Brendon Farrar will work alongside Estepp to roll out the locations through a mix of full café builds with drive-thrus, end-cap counters, and in-store installations, depending on each site’s layout. No specific timeline for all seven openings has been announced publicly. The agreement follows a period of active development for PJ’s Coffee in new markets and continues the brand’s stated strategy of expanding through experienced multi-unit and multi-brand operators.
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