Peet's Coffee Planning Massive Expansion

By Anna Rose Welch, Editorial & Community Director, Advancing RNA

Company plans more than 90 new stores, largest expansion in 47 years

Peet’s Coffee & Tea announced plans to open four new stores in Western PA, three of which will be located in Pittsburgh. The fourth will be located in Brentwood. This move is the second phase of the company’s largest ever expansion project since it opened 47 years ago.

This phase of the expansion project began in Ohio in July, when the company opened 10 stores in Cleveland and 8 stores in Columbus. Over the next 18 months, Peet’s plans to open more than 90 stores in 8 markets across the Midwest and the East Coast. The next phase of the project will occur in Michigan, where the company plans to open 7 new stores.

This move is as an important step toward building the brand’s name, which a little over a year ago was somewhat under the radar in the coffee business. While Peet’s carries the reputation of being the “pioneering” Bay Area roasting company and an inspiration to coffee giant Starbucks, the company has always been most well known on the West Coast. According to food industry analyst Marcia Mogelonsky of Minitel International, “People on the East Coast, other than those who visit California and fall in love with Peet’s, don’t know anything about it… While Starbucks has become a cliché, Peet’s has very much gone under the radar of the masses.” 

In July 2012, the company was purchased by a private German holding company, Joh. A. Benckiser (JAB), for nearly $1 billion. Since 2001, Peet’s had been a public company, however following the sale to JAB, the company became private once more — a move that enabled the company to “have money to grow without having to watch its flanks,” Mogelonsky said. Following the sale in 2012, Peet’s former CEO, Pat O’Dea, did not comment on whether the company had plans to expand East. O’Dea did say that “There’s lots of opportunity for Peet’s to grow that’s consistent with the brand.” Based on the new expansion plans, it appears executives are determined to make Peet’s into a national brand.

In an era where employment is down, Peet’s will be bringing much-needed jobs to all of the communities surrounding the new locations.  Currently, Peet’s is partnered with Pittsburgh company, Mediterra Bakehouse, to provide customers in Pittsburgh, Cleveland, and Columbus with fresh baked goods. By taking advantage of local producers, the company is able to give back to the community while supplying the freshest goods.

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