This is a unique business which derives its revenue from two separate but entirely complementary sources . Specifically, it operates both as a retail café from its premises which are located in a busy commercial precinct on the fringe of the CBD and it also enjoys strong revenue from the very lucrative corporate catering market . This catering component of the business has been progressively developed over the 16 years that the business has been operating and now accounts for approximately 75% of the gross annual revenue of the business . This diversity of income which is all generated from the one trading location and by the same administrative and retail staff , provides unequaled stability, economies of scale, and therefore year on year net profit outcomes. The current owners took over from the original proprietors in 2009 and so it has only had two owners over the entire 16 years that it has traded. Significantly and uniquely the core business hours require only 5 days trading (Monday to Friday) from 6.00am to 3.00pm on each day. This is in contrast and a major advantage over most retail and catering operations which typically require extensive time input in the evenings and on weekends.
KEY FEATURES INCLUDE :
- Gross revenue circa$1.5 M per annum
- Trading to 31st December 2019 indicates an annual net profit of ‘circa’ $250,000 for the full year
- Excellent 63% gross profit margin ( achievable because of the catering component to the revenue stream)
- Excellent cash flow
- Low value stock holdings
- Strong brand recognition throughout Perth metro area. The corporate brand is strong, consistent and instantly recognizable
- Long established repeat client base
- 75% of the business’ income is derived from the lucrative corporate catering market.
- Potential to franchise or replicate the business – with all the work done establishing the concept and brand, an entrepreneurial new owner could easily replicate or franchise the brand across WA or even interstate.
- Extremely well documented business ensuring that revenues , expenditures and annual profits can be confidently demonstrated and proven.
- Excellent operating processes and procedures to ensure a smooth and seamless transition to the new owner and ease of management going forward
- Huge potential –There is no advertising and very little marketing conducted by the current owners. The business relies mostly on its repeat customer base and on strong word of mouth referral. Targeted marketing to the vast corporate catering market in Perth would be likely to substantially increase sales.
- Quality plant and equipment through out – all equipment is less than three years old.
This is an excellent opportunity for an energetic and motivated owner to take over a proven and profitable business which has a strong and successful trading history and genuine growth potential going forward