Gregorys Coffee: From $1M Stores to $45M Revenue & Franchising Plans

Gregorys Coffee, a New York-born chain that bypassed the dominance of Starbucks and Dunkin’ to build a $45 million revenue business, is betting on franchising to accelerate growth. Founded in 2006 by Gregory Zamfotis, who traded a law career for a passion for coffee, the company has quietly expanded to 53 locations across seven states, with stores averaging over $1 million in annual sales. The move into franchising, backed by Craveworthy Brands, signals a shift from organic expansion to a more rapid scaling strategy.

From Sandwich Shop to Specialty Coffee

Zamfotis’s path to building a coffee empire began not with beans and baristas, but with a family sandwich shop. While attending Brooklyn Law School, he worked at his father’s New York City eatery, eventually taking over day-to-day operations. This experience sparked an entrepreneurial drive and a realization that he preferred the energy of the food business to a legal career. After graduating, he launched Gregorys Coffee, identifying a gap in the market for a higher-quality coffee experience in the Midtown Financial District. “If you were in the Midtown Financial District, the areas where the majority of New Yorkers are spending their time working, the only options for coffee really were Starbucks or Dunkin,” Zamfotis explained in an interview with Entrepreneur.

The $45 Million Brew

The company’s success isn’t simply about filling a void; it’s about a commitment to quality. Gregorys Coffee roasts its own beans in Long Island City, New York, and emphasizes fresh pastries and personalized service. This focus on quality has translated into impressive financial results. Revenue reached approximately $40 million last year and is projected to hit $45 million in 2026. According to Money Down, typical stores now generate greater than $1 million in annual sales, with high-performing locations reaching $1.6 million and drive-thru models averaging $1.4 million.

Scaling Challenges and the Franchise Push

Zamfotis quickly learned that maintaining quality at scale was a significant challenge. He immersed himself in the coffee industry, attending conferences and visiting other shops to refine his approach. This dedication led to improvements in the coffee program and training standards, which resonated with customers and fostered brand loyalty. For roughly twelve years, every person in a leadership position at Gregorys was promoted from within, often starting as a barista, fostering a strong internal culture.

However, continued expansion through company-owned stores presented limitations. To accelerate growth, Gregorys partnered with Craveworthy Brands in August 2025. As InFeeds reports, Craveworthy brings a platform built for franchising, offering training, shared services, and operational support to potential franchisees. This partnership allows Gregorys to tap into a wider network of operators and expand more rapidly than it could on its own.

Franchising Terms and the Competitive Landscape

Craveworthy Brands, which also manages brands like Sizeable Chicken and Taffer’s Tavern, is positioning Gregorys as an attractive franchise opportunity in a competitive market. The initial investment for a Gregorys franchise ranges from $200,000 to $700,000. Craveworthy CEO Gregg Majewski believes Gregorys’ 20-year track record and strong brand recognition, particularly in a challenging market like New York City, craft it a compelling option for potential franchisees. Majewski noted that some larger coffee chains are no longer actively seeking franchisees, creating an opening for Gregorys.

The move into franchising isn’t without its risks. Maintaining brand consistency across franchised locations is crucial, and relies on effective training and adherence to established systems. Craveworthy’s experience in managing multiple franchise brands will be key to navigating these challenges. The success of the franchising model will also depend on attracting qualified franchisees who are committed to upholding the Gregorys Coffee brand standards.

What’s on the Horizon for Gregorys

Gregorys plans to sell 50 to 75 franchise locations in its first year of franchising. The company aims to replicate the success it has achieved in its existing markets, offering a consistent, high-quality coffee experience to customers across the country. The partnership with Craveworthy Brands provides the infrastructure and expertise needed to support this ambitious expansion plan. The company’s long-term success will hinge on its ability to balance rapid growth with its commitment to quality and customer service, the particularly elements that set it apart in a crowded coffee market.

Looking ahead, the company will be closely monitoring franchisee performance and gathering feedback to refine its systems and procedures. The initial rollout of franchises will likely focus on markets with strong brand awareness and a demonstrated demand for specialty coffee. The success of these early franchises will be critical in attracting additional operators and building momentum for the Gregorys Coffee brand nationwide.