Coffee franchise is no grind for new owners

The Coffee Club Cafe Bar Restaurant in Hastings is in a fresh, welcoming and 'classy cafe' setting with all chattels included in the sale. Photo / Supplied

The only Coffee Club Cafe Bar Restaurant in Hastings, within a prime Stortford Lodge location at 110 Omahu Rd, is for sale by negotiation through Jerry Mussa and Rollo Vavasour of Bayleys Hawke's Bay who are selling the business as a going concern.

Established just eight months ago, the modern 250sq m premises provides seating for up to 100 people with indoor and outdoor dining options.

"The sale offers a purchaser the opportunity to become part of one of Australasia's fastest growing franchises," Mussa says.

"The current owners have put in the hard yards and have the business up and running effectively," he says. "They have fine-tuned The Coffee Club system to perfectly suit the Hastings market and are now reluctantly moving on for family reasons.

"The business has carved out a niche for itself in the Omahu Rd 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 founders setting out to create a European-style cafe concept that was "more than just a place to have coffee".

Mussa says the Hastings outlet is based on the Coffee Club's "cafe bar restaurant" concept, of which there are now six in New Zealand.

"It 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," he says.

Reflecting the name of the businesses, coffee takes centre stage at The Coffee Club, with its signature blend grown according to the stringent UTZ Certified Code of Conduct. The code governs "responsible coffee production" according to a set of criteria that includes good agricultural and business practices, and efficient farm management.

Vavasour says the quality fit-out in The Coffee Club has created a fresh, welcoming and "classy café" 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.

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 programme enables someone wanting to own their own business to easily pick up the reins.

"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," Vavasour says. "As it is part of an established and recognised franchise, the risks are minimised since the buyer will essentially follow a proven path with the back-up of the franchisor.

"In terms of a lending profile, banks tend to look favourably at franchise businesses such as The Coffee Club because they have verified systems and ongoing support from the master franchisors. Franchised businesses also have the benefit of volume buying arrangements; standardised accounting and reporting systems; and ongoing research into new products and trends by the franchisor."

Mussa says that while 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 scheme could be promoted more.

"A more concentrated effort could also be put into online, text and social network-based marketing which can complement more conventional advertising mediums."