EPISODE · Sep 26, 2025 · 33 MIN
Citizens Coffee: Scaling an Australian-Style Café Brand Across Texas & Beyond
from Inside Startup Investing with Chris Lustrino · host Kingscrowd
In this episode, we catch up with Justin Giuffrida, CEO and co-founder of Citizens Coffee, to hear how the company’s Australian-style café model is performing as it scales beyond New York into Texas. The update? Citizens is thriving. After record openings in Houston, the team has now launched Austin, which became the best-performing opening in company history—hitting profitability in just six weeks and trending toward Citizens’ most profitable locations to date.Citizens runs a high-margin breakfast & coffee model, pairing chef-driven, fresh food with third-wave coffee, best-in-class hospitality, and local community partnerships. Their stores open at roughly $500K per unit—a fraction of the cost of many national chains—and achieve a 24-month payback period, with stores averaging 21% four-wall EBITDA. The company plans to scale to 40 locations in five years, targeting $120–$150 million in revenue, with CPG (retail) launching in parallel to expand the brand’s reach and potential exit pathways.With the brand’s strongest performance now outside NYC—specifically in Austin and Houston—Citizens is executing a scalable entry into Tier 2 markets with lower cost structures and equal (or better) unit economics. 02:14 – What’s Brewing in 2025Justin shares current momentum and milestones—record openings in Texas03:36 – Proving Portability Beyond NYCHow Citizens performed in Houston and Austin vs. NYC; why Texas was the bet07:40 – The Risk of Scaling RetailChris on the risk of new locations; Justin on build costs ($500K), efficiency, and payback (24 months)10:26 – Local Marketing & “Local Legends”Citizens’ launch playbook: grassroots, partnerships, and charity-based LRM14:01 – ICW AnnouncementChris plugs Investment Crowdfunding Week (Sept 29–Oct 2)14:46 – Differentiation vs. StarbucksAustralian café model: chef-driven food + third-wave coffee + hospitality & frequency19:42 – Growth Plan: 40 Locations in 5 YearsTexas expansion strategy and the path from 3 openings/year to 10/year22:31 – Managing Debt & Investor ProtectionHow Citizens balances debt and equity while remaining cash-flow positive25:16 – Why CPG (Retail) Fits the BrandCPG strategy to extend brand trust and boost exit optionality28:19 – Localization & Shelf StrategyChris on go-to-market for CPG; Justin on sequencing markets with brand equity29:50 – Projections & Exit Comps$120–$150M revenue target with CPG; comps like Blue Bottle & La Colombe31:55 – Final Message to InvestorsProof of concept in 3 major markets & the 5-year plan
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Citizens Coffee: Scaling an Australian-Style Café Brand Across Texas & Beyond
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