Cool cafe at Hot Water Beach

Hot Waves Cafe's sheltered garden seating provides a cool refuge from the sun. Photo / Supplied

The land, buildings and business of a well known cafe at famous Hot Water Beach are for sale following 14 years of ownership.

LINK business broker, Carron Chote is selling Hot Waves Cafe, which has served local and international visitors since 2005.

The asking price of Hot Waves Cafe and the surrounding property is $1,566,000; made up of the freehold landholding, valued at $1.2m and the Hot Waves business itself, valued at $366,000, including stock.

Chote says the cafe is a "vibrant operation", a friendly refuge from sun and salt air, and a business that takes full advantage of the fact the Coromandel Peninsula destination attracts an estimated 700,000 tourists annually.

Chote is marketing the going concern business and property — at 8 Pye Place — following a decision by the present owner to hand over the reins.

She points out that while the beach draws throngs of holidaymakers, relatively few facilities are available in the area to service them.

"Hot Waves is the only venue open for dinner locally, and although the peak season is October-to-May, the winter months also offer stable income due to other
food outlets closing for three months.

"During that period, this leaves the cafe to service all visitors to Hot Water Beach," says Chote.

The prime location, beautiful property and established gardens appeal to a lot of newcomers and many residents of the area are regular patrons.

The al fresco dining area also showcases local artists which is an added attraction to the venue, she says. The property also includes two indoor seating areas and a large commercial kitchen, all of which were purpose-built in 2003.

"The owners gained resource consent after owning the property since 1993, and have invested heavily in building the successful business," Chote says. The property has 3500sq m of land, with the cafe building and parking lot occupying three quarters of the site.

"The remaining space has the potential for a residence which would have fabulous views across Hot Water Beach and out to Mercury Island; completing an exceptional business and lifestyle opportunity."

Chote says the business has shown a steady revenue increase over the last few years, with this year's figures set to continue an upwards trajectory.

"With Government estimating that international tourist numbers will rise to 4.9 million by 2023, there is huge growth potential for hotspots like Hot Water Beach. And Hot Waves Cafe is perfectly placed to take advantage of the growth expected."

The cafe now employs three full-time and six part-time staff with the owner working five days a week. However, the full-time staff are well capable of running the cafe when the owner is absent. "Additional seasonal staff are also available from the deep pool of travellers and university students, who holiday in the region during the busy period," says Chote.