Summary
Acquire Australia's #1 Smash Room brand. Two Melbourne venues operating under management. Passive profit. $400k WIWO includes 80k database & IP. Huge growth potential.
Revenue
$1,330,000 pa
Rent
$240,000 pa
Expenses
$950,000 pa
Net Profit
$130,000 pa
Location Details
57 Cochranes Road, Plus second location in Keilor, VIC.
https://thesmashroom.com.au/pages/locations
Potential
Immediate scalability is available through multiple proven channels. The business is positioned for national expansion with a strategy for new locations in major cities. Locally, revenue can be boosted by activating 300m² of unused space at Moorabbin for Escape Rooms or F&B. Further upside exists by utilising function rooms for expanded corporate packages and introducing new concepts like VR or mobile units, capitalising on the rising demand for fun, activities or team building.
Skills
No specific industry experience is required. The business is fully systemised with a comprehensive 70-page Operating Handbook and trained staff in place. Suitable for a first-time buyer or experienced operator. Key attributes required are general people management, leadership, and basic financial oversight to keep expenses in check. If you can manage a small team, you can run this business. Sales or marketing experience would be a bonus to drive corporate growth.
Hours
Operating hours can be seen here: https://thesmashroom.com.au/pages/locations
Lease
Long leases for both venues with +5 and +10 terms availabe.
Employees
3 Full time, 2 part-time, and numerous casual staff.
Reason for Sale
The current owner has multiple business interests. The decision to sell is driven by a desire to focus capital and time on another venture. This business requires a focused operator to tighten operations and capitalise on the massive brand equity already built.
About the Business
This is a rare opportunity to acquire Australia’s most recognised smash/break room brand, The Smash Room.
Currently operated under an absentee owner model, as the business generates passive net profit of $140,000.
This is an ideal fit for a hands-on owner or passive investor. By stepping in to actively manage the venues, a new owner can either replace the existing manager to generate additional profit, or continue a passive investment.
Includes both venues, Moorabbin and Keilor.
Active subscriber list of 80,000+ emails.
Includes all IP such as "The Smash Room" trademark.
All arcade games, table tennis, pool tables, safety gear, breaking tools, audio/visual systems, signage, and POS hardware.
All current inventory of breakables and merchandise is included in the price.
Nothing is excluded from the sale.
Established in 2021, The Smash Room is Australia’s category-defining experiential entertainment brand. The business was founded to professionalize the "rage room" concept, transforming it from a niche novelty into a mainstream entertainment and corporate team-building experience. The concept was born from a personal mission to provide a safe, therapeutic outlet for stress relief, inspired by the founder's family experience with mental health support.
The business has grown organically with zero active sales or marketing initiatives. A new owner has immediate low hanging fruit opportunities.
Moorabbin (Flagship): A 950m² facility, recognised as the world's largest smash room. It is designed for high volume, featuring multiple rooms, arcade zones, and capacity for large corporate events.
Keilor East: A 460m² facility servicing the north-western corridor.
The setup cost for these facilities sits at approximately $450,000.
Operational Structure The Smash Room operates under a fully managed, absentee ownership model. The current owner dedicates approximately one hour per week to a high-level management meeting (EOS structure).
The business runs on a comprehensive 70-page Operating Handbook that standardises all procedures, from booking flows to debris removal. This strict adherence to proprietary safety protocols has resulted in a flawless safety record since inception, allowing the business to secure insurance and corporate contracts unavailable to smaller operators.
History
The Smash Room was founded in 2021 by Rick Bazerghi who was inspired by his late sister who suffered from severe mental health struggles. A visit to a rage room was one of the few times she found relief. Following her tragic passing, Rick dedicated himself to elevating the concept, and share the experience with all of Melbourne.
He professionally engineered the industry's safest, most premium facility. The business was built to destigmatise stress relief, transforming a niche activity into a mainstream, purpose-led entertainment brand.
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