Summary
Easy to run cafe, great for a first time operator. Set in a great location, in a pedestrianised laneway in the centre of town, a true local's favourite. Using around 35/40kgs Per/week
Revenue
$14,000 pw
Rent
$1,200 pw
Expenses
$4,800 pw
Net Profit
$4,080 pw
Location Details
The cafe's laneway location has made it a popular spot for families with kids locals with their dogs plus a healthy amount of tourists. Located near the local school, offices, preschool and various retail stores has helped build a solid client base.
Potential
The cafe has been under the same ownership for over seven years. During this time the current kitchen space has worked well, however there is scope to extend the kitchen with Complying Design Certification from council (already discussed with them plus the landlord has given their consent)
There is also the potential to use the venue in the evenings for a bar. The laneway location would make this a perfect spot for this. Up until now this venue has only traded during daytime hours.
A selection of retail items would also work well.
Skills
Currently a husband and wife team operate the business and have focussed on getting to know their customers, maintaining a relaxed and friendly atmosphere and becoming a part of the local community. Attention to detail has also been important especially with learning their craft regarding specialty coffee making, ensuring customers get a consistent cup and come back for more! Operating over 7 days the owners tend to work 4-5 days a week depending of staffing at the time.
Hours
Operating seven days a week, open between 6:30am and 2:30pm Monday to Saturday and 6:30am to 12:30pm on Sundays.
Lease
The owners have so far renewed their lease twice and have just signed a new 3 year lease with a 3 year renewal option.
Employees
The cafes staff comprise of the two owners plus approximately six staff members working at various times during the week. Daily the cafe operates on 3 staff in winter and 4-5 in Summer.
Reason for Sale
We have owed and operated the business for nearly 10 years and have decided that it is time for a change and to let some new owners take the cafe to the next level!
About the Business
The business is a family owned and operated cafe with a large and airy indoor space with a warm and inviting decor, timber furniture and flooring. There is also a fairly large outdoor dining area outside in the laneway. There are retail areas within the cafe selling branded merchandise, clothing and a good choice specialty coffee beans. The cafe has the choice of counter ordering service or an order ahead app that is mainly used by takeaway clients. There is a good choice of simple healthy food, smoothies and cold drinks as well as pastries, cookies muffins and cakes. The daily service is divided roughly evenly between takeaway and dine-in customers.
Client wise the cafes customer base is made up of the staff, parents and kids from the local schools, owners and staff from the local businesses - real estate agents, beauty spas, bars and restaurants, Pilates studios and gyms etc. paramedics, police, members of the Australian armed forces, local church groups, mothers groups, they have even made coffee for the Governor of New South Wales! The vast majority of the cafes customers are loyal regulars that have been coming to the cafe for several years, some of them since day 1!
What makes this venue unique in Avalon is its laneway setting. The general feedback from customers is that it is a safer, quieter and easier place to enjoy a coffee outside with family, children and dogs. It is also somewhere some people like to come to have a quiet coffee away from the concentration of passers by some of whom might want to stop talk to them.
This venue has worked extremely well as a coffeee shop and has a solid local following. Being profitable it has allowed the owners to enjoy a good income making it a good investment for them. It has survived two lockdowns during COVID with an easy transformation from dine-in into a takeaway only venue. The indoor space was originally divided in half offering a passive income from a separate sub-tenant based at the back of the shop. This could easily be done again with the right tenants. Compared to some of the tenancies in Avalon the rent for this venue is on the lower end meaning a better return on investment each week. While the current operational set up works extremely well, there is still scope for expansion to get an even better return on investment.
History
We purchased the business in 2014 and have put a big emphasis on customer engagement through warm and welcoming service, being at the cafe often to get to know our customers and employing good staff. These simple approaches plus making the switch to the current coffee around 6 years ago has seen turnover more than quadruple since taking over.
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