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Meet you at The Coffee Club

Tuesday 4 May 2010, 9:36AM

By Bayleys

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Coffee Club
Coffee Club Credit: Bayleys
Meet you at The Coffee Club
Meet you at The Coffee Club Credit: Bayleys

HASTINGS

Hastings’ only Coffee Club Cafe Bar Restaurant in a prime Stortford Lodge location is now for sale by negotiation offering an opportunity to become part of one of Australasia’s fastest growing franchises.

Established just eight months ago in stylish, purpose-built premises in busy Omahu Road near the hospital, The Coffee Club business is for sale as a going-concern through Jerry Mussa and Rollo Vavasour of Bayleys Hawke’s Bay.

“The current owners have certainly put in the hard yards and got the business up and running effectively. They have fine-tuned The Coffee Club systems to perfectly suit the Hastings market and now reluctantly have to move on for family reasons,” says Mr Mussa.

“in the relatively short time it has been open, the business has carved out a niche for itself in the Omahu Road area drawing on the numerous offices and motels in the vicinity along with the natural catchment base provided by hospital staff and visitors.”

The Coffee Club franchise began in Brisbane in 1989 with its entrepreneurial founders setting out to create a European-style cafe concept that was more than just a place to have coffee. Building on the notion that The Coffee Club should be a natural meeting place that was casual yet stylish, and affordable, the highly successful franchise model now has 25 stores open throughout New Zealand, and a further 250 stores throughout Australia and Thailand.

“The Hastings outlet is the Coffee Club’s ‘Cafe Bar Restaurant’ concept – one of six now in New Zealand – and offers the convenience of being fully licensed, having extended trading hours, dedicated chefs, table service and a la carte dining. An all-day menu covering the spectrum from light snacks to full meals is freshly prepared and cooked on-site with daily specials allowing the chef to have some creative input,” says Mr Mussa.

Naturally with the name The Coffee Club, coffee takes centre stage with the signature blend grown according to the stringent UTZ Certified Code of Conduct for responsible coffee production which covers good agricultural and business practices along with social and environmental considerations.

The modern 250sq m premises provide seating for up to 100 people with both indoor and outdoor dining options. A quality fit-out has provided a fresh, welcoming and classy cafe setting with all chattels included in the sale.

The head lease on the property is held by The Coffee Club master franchisor with a premises licence agreement in place for the business.

Mr Vavasour says while previous retail management experience would be an advantage for a new owner, The Coffee Club’s tried-and-true business systems and training means someone looking to own their own business under an established umbrella could easily pick up the reins and run with the concept.
“The business would be ideally suited to a couple or a family wishing to take advantage of the ground work that has been done in setting up this business. As it is part of an established and recognised franchise, the risks are minimised since you essentially follow a proven path and have the back-up of the franchisor,” says Mr Vavasour.

“In terms of a lending profile, banks tend to look favourably at franchise businesses such as The Coffee Club because there are verified systems and on-going support from the franchisor provided. With the business benefits of volume buying arrangements, standardised accounting and reporting systems and timely research into new products and trends by the franchisor, a franchised operation is generally a safer bet than an independent business proposition.”

Mr Mussa says that whilst all of the initial set-up and foundation work has been done in the business, there are still untapped growth opportunities for a new owner.

“More focused advertising is needed to attract customers into the cafe to dine throughout the day and into the evening with an emphasis on the quality of the experience. There is already an established arrangement in place with neighbouring motels for charge-backs to the client’s accommodation account and this could be promoted more, along with expanding The Coffee Club’s VIP scheme which rewards loyalty,” says Mr Mussa.

“A more concentrated effort could also be put into online, text and social network-based marketing which is becoming increasingly popular and can complement more conventional advertising mediums.”