Room for growth spurt at kid's playland

Kid's play equipment in the background with café tables and chairs for parents in the foreground at Chipmunks Pakuranga Playland. Photo / Supplied

The franchise for Chipmunks Pakuranga Playland and Cafe on Ti Rakau Drive in Pakuranga is being offered for sale as a going business concern within leased premises via expressions of interest through Anthony Gilbert, business broker with Affiliated Business Consultants.

"The asking price for the business, including all the equipment, the building fit-out and a new long-term commercially friendly lease through to 2025, is $695,000," Gilbert says. "This is a popular facility that was established in 2002, which underwent a massive playground upgrade in February."

According to the Chipmunks website, the brand and franchise operation originated in Port Chalmers, near Dunedin, in 1997, and has since grown to 15 franchisee outlets in New Zealand, three in Australia and a pending Chipmunks Playland in Jakarta.

Gilbert says the franchise is committed to offering the latest, safest and best play equipment available.

"With an emphasis on constant improvement both to the brand and to the facilities and equipment, this franchise is top of the range when it comes to providing an excellent opportunity to those who seek the rewards of a well-run franchise operation.

"However, while the franchisees are assisted and supported along the way, they are also given the freedom to decide on their own entry prices, cafe menus and such like."

Gilbert says Chipmunks is in the process of rolling out new programmes, healthy menu options and new merchandise to provide the best possible play experience for children. "The landlord has invested in a number of improvement projects, the most notable being the replacement of the entire roof in 2009. And the upgrading of Chipmunks Pakuranga Playland and Cafe earlier this year included a new foam toddler area, two-level pirate ship and many interactive games. The most exciting investment in new equipment is the 'Ball Battle' - a two-level enclosed area complete with ball cannons which shoot foam balls via compressed air.

"No one else in Auckland has the Ball Cannons equipment and it's bringing in the older kids in droves - especially now during the school holidays. The place is packed."

He says the upgrade not only increased business but also justified an increase in pricing, which has resulted in significantly enhanced profitability.

Gilbert says the Pakuranga franchise provides a huge range of other specialised play equipment and has separate play areas for babies, toddlers, and preschoolers.

"The 5m inflatable slide is still the centrepiece," he says.

The Playland Cafe, which seats 165 people, is patronised by parents and the introduction in April of new health-focused menus is proving popular.

"The new menus also provided the opportunity for an increase in pricing and this is further adding to the increased profitability," Gilbert says. "The menu is simple but effective and is prepared by a number of trained staff on site."

Gilbert says Chipmunks is a highly popular party venue for children with birthday and themed parties being a major focus on weekends. The Pakuranga Playland has five birthday party rooms, enabling multiple parties to be hosted at any one time.

"The Playland is also very popular for group bookings and is well supported by childcare centres and kindergartens for term outings. Being an all-weather facility also brings in many groups that were originally destined for other places but had to alter their plans due to bad weather."

While this franchise does not currently operate after-school or holiday programmes, other Chipmunk franchises successfully operate these programmes.

"Chipmunks Pakuranga therefore offers a substantial upside to a purchaser who is keen to incorporate these programmes into the business. This is a 100 per cent cash business with no debtors to collect from."

He says Chipmunks Pakuranga boasts an extremely low staff turnover and receives a steady stream of applications from prospective employees. "The owner has taken an active interest in this business and its operations and this has paid off. By employing reliable full time and part-time staff the owner's active input now averages only 25 hours per week."