Summary
Fully operating restaurant with loyal clientele, modern fit-out, strong lunch & dinner trade. High foot traffic location with growth potential.
Revenue
$25,000 pw
Rent
$1,442 pw
Expenses
$20,000 pw
Net Profit
$3,500 pw
Location Details
558 Lonsdale st CBD
Prime location in Melbourne CBD surrounded by offices, universities & residential. High visibility, strong daily traffic and easy access for customers.
Potential
350 sqm venue with dual entrances (Lonsdale Street & Healeys Lane), fully licensed for food & alcohol. Rare CBD property offering flexibility for restaurant, bar, café, events, or multiple businesses under one roof. High exposure, strong foot traffic, and laneway access create huge potential for late-night hospitality, functions, catering, or a unique laneway bar/speakeasy concept.
Skills
No specialised skills required to continue operations. A background in hospitality or management is helpful, but the current setup, systems, and trained staff ensure a smooth handover. This business is ready for an owner-operator, investor, or group seeking a profitable venue with minimal transition challenges.
Hours
Currently trading 7 days with flexible hours; liquor licence allows evening and late-night trading.
Lease
Secure 10-year lease at approx. $75,000 annual rent — highly competitive for CBD size & location.
Employees
Strong team in place: kitchen, service and management. Staff are experienced and can remain under new ownership to ensure a smooth handover and continued strong performance.
Reason for Sale
Owner is pursuing other ventures and cannot continue managing daily operations. The venue is profitable and well-positioned, making this a rare opportunity for new ownership to build on its success
About the Business
This is a rare opportunity to acquire a fully licensed 350 sqm restaurant and bar in the heart of Melbourne CBD. Strategically positioned with dual entrances (Lonsdale Street & Healeys Lane), the venue offers maximum visibility and flexibility, ideal for multiple business concepts.
The premises are fully fitted with a commercial kitchen, bar, dining areas, karaoke/private event rooms, and storage, allowing immediate continuation of operations. The liquor and food licences make it versatile for day and night trade. Current weekly revenue sits between $24,000–$28,000 (verified via POS system), proving the strength of the business.
With its size and layout, the venue is not limited to just one concept. It can be run as a restaurant, café, bar, retail-hospitality mix, or even multi-business hub under one roof. The laneway access via Healeys Lane makes it particularly attractive for concepts like a speakeasy bar, late-night venue, or unique retail offering alongside food and beverage service.
The lease is highly competitive for the location and size, at approx. $75,000 annual rent, secured on a 10-year lease. This long-term security gives a buyer confidence to build and grow in one of Melbourne’s busiest and most iconic CBD locations.
Staff are well-trained and experienced, covering kitchen, front of house, and management. A smooth handover is possible, with existing systems and processes already in place for efficient operations.
This business represents a turn-key opportunity for an operator or investor to take advantage of Melbourne’s booming CBD hospitality market. The size, licences, dual access, and established trade provide a foundation rarely available in this part of the city.
History
Encanto was created by the same experienced owners behind La Tonada, a successful restaurant in Carlton North. With years of proven hospitality experience in Melbourne, the team developed Encanto as a larger CBD concept to capture office workers, international visitors, and the vibrant nightlife scene. The venue has quickly built a strong reputation for quality food, events, and unique customer experiences.
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