Fully describe the business's activities?
This newly established franchised coffee shop, opened just 8 months ago, is located in a recently renovated shopping centre with high foot traffic. The business is owner-operated and already delivering excellent profits. A liquor license was approved at the beginning of July, creating further growth opportunities. This is a turnkey opportunity within a strong national brand, ideal for a hands-on buyer.
How does the business operate on a daily basis?
The business employs 12 staff members who support the owner with daily opening and closing operations. Trading hours are as follows:
Monday to Saturday: 07:30 â 17:00
Sunday: 08:00 â 14:00
Do any have management potential?
The business does not have a manager in place; however, a supervisor is on site to assist the owner in the day-to-day operations.
How involved is the Owner in running the business?
80%
When does the current lease end?
30 November 2029
Is there an option of renewal & what period?
Yes for 5 years
What is the annual escalation %?
6%
What is the square meters of the business?
Approximately 184 square meters inside seating area and approximately 43 square meters outside seating area
What lease deposit and/or other surety is required?
R247,184.18
Strengths?
Strong Franchise Brand: Backed by an established national brand with proven systems and support.
High Foot Traffic Location: Situated in a newly renovated shopping centre attracting consistent customer flow.
Turnkey Operation: Fully fitted, staffed, and operational with no additional setup required.
Liquor License Approved: Recently approved liquor license (July), opening new revenue streams.
Excellent Profitability: Strong financial performance within just 8 months of trading.
Owner-Operated: Daily involvement ensures quality control and customer satisfaction.
Weaknesses?
No Dedicated Manager: Limited leadership structure with only a supervisor assisting the owner.
New Business: Although profitable, the business lacks a long trading history, which may be a concern for conservative buyers.
Owner-Dependent: Heavy reliance on the ownerâs presence for operations and decision-making.
Opportunities?
Expansion of Trading Hours: Potential to extend Sunday hours or introduce evening service leveraging the liquor license.
Introduce Events or Promotions: Wine tastings, live music, or themed evenings could attract new clientele.
Appoint a Manager: Hiring a full-time manager could free up the owner and improve scalability.
Catering & Delivery: Offering corporate catering or partnering with delivery platforms can boost revenue.
Threats?
Economic Pressure: Consumer spending may be affected by economic downturns or rising interest rates.
Competition: Other coffee shops or eateries in the centre could pose competitive pressure.
Staff Turnover: Retaining trained staff in the hospitality sector can be challenging.
What is the reason for the sale?
The ownerâs spouse has been transferred to Cape Town, necessitating the familyâs relocation.
Annual Turnover Amount between R 500 thousand and R 6 million