Turnaround Opportunity – Established Music Lounge & Social Venue in Cosmos City

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Asking Price

R1,300,000

Monthly Profit

Asset Value

R 800,000

Stock Value

R 50,000

Yearly Net Profit

R 0

Summary

Well-located café and social venue in Cosmos City, combining food and music in a growing urban market. Ideal opportunity to revitalise and shape a community-focused lifestyle destination with strong upside potential.

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Fully describe the business's activities?

The business operates as a hybrid concept, combining a simplified café-style food offering with a music-led social environment.
The kitchen focuses on light meals, beverages and takeaway items, supported by a streamlined menu designed for efficient, low-complexity operations.
The venue is strategically located within a strip mall and benefits from a prominent street-facing façade, enhancing visibility and accessibility to passing foot traffic.
A distinguishing feature of the operation is its use of resident DJs, creating an engaging and relaxed atmosphere that drives customer activity beyond traditional daytime trade.
This elevates the business into a recognised social and nightlife destination within Cosmo City, offering clear potential for further growth through events and extended trading.

How long has the business been established?

5 years
The business was originally highly successful, consistently achieving monthly turnover in excess of R1 million.
However, due to personal circumstances and miss-management by the previous owner, the operation experienced a period of poor performance and subsequent legal complications.

The current owner acquired the business under distressed conditions and invested approximately R700,000 into rebranding and repositioning the concept.
Despite this investment, the project remains ad hoc in nature and does not align with his broader portfolio of ventures across Gauteng, KwaZulu-Natal, and the Western Cape.
As a result, a decision has been taken to exit the business and recover capital for a new opportunity in Durban.

How does the business operate on a daily basis?

On a day-to-day basis, the business operates as a straightforward café and social venue, with activities centred around food preparation, customer service, and maintaining a relaxed in-store atmosphere.
The operation is currently run under a manager-led structure, overseeing staff, daily cash handling, and general operational requirements. During trading hours, the focus is on serving walk-in customers from the surrounding area, with peak periods typically aligned to after-work and evening trade.
The music element forms an important part of the offering and is driven by resident DJs, particularly later in the day, enhancing the overall customer experience and encouraging extended visits.

How are the clients attracted to the business?

Customer traffic is supported through basic social media and limited print exposure within the local area.
Its position on a main road in Cosmos City further enhances visibility and contributes to steady walk-in trade.

What Advertising/Marketing is carried out?

Social and Print Media

What competition exists?

While nearby competition mainly consists of smaller takeaway outlets, few offer a combined food and music experience of a similar nature.
Its position on a main road further supports steady walk-in trade from the surrounding community.

Are there up-to-date Management Accounts available?

Historical financial information is available for review.
More recent trading performance and operational updates will be discussed directly with interested parties during the due diligence process.

How could the profitability of the business be improved?

Profitability can be enhanced through more focused marketing, increased hands-on management .
The introduction of headline acts or themed events will help to boost customer traffic and peak-period revenue.

What is the total staff complement?

6
The retention of the staff is 100% optional for the buyer --- to be negotiate with the seller and the staff

Give a breakdown of staff/ functions/ length of service?

Manager
- all day-to-day
-1 year

Junior Manager
- all rounder
- 1 year

Chef
- responsible for all food
- 1year

Chef Assist
- additional kitchen help

DJ
- Music

Head Waiter
- floor service and management

How involved is the Owner in running the business?

The business is currently operated under a manager-led structure, with limited direct involvement from the owners.
As part of a larger hospitality group with multiple established concepts, Luna Café has functioned as an ad-hoc project rather than a core focus.
This creates a clear opportunity for a new owner to introduce more active, hands-on management and unlock the full potential of the business through focused oversight and operational input.

When does the current lease end?

31 October 2029

What are the trading hours?

Sunday / Thursday / Friday / Saturday -- 1 pm to 1 am
Monday / Tuesday / Wednesday -- closed

Do you require a licence?

Yes, all are in the process , and with no objections .
All docs are available and trade is being conducted whilst licensing arrives

What lease deposit and/or other surety is required?

A rental deposit of approximately 3–5 months’ rent is typically required, supported by personal surety.
The current owner holds a R300,000 deposit with the landlord, giving flexibility to an incoming purchaser:

Take over the existing deposit (added to the purchase price); or
Negotiate a revised deposit arrangement directly with the landlord, subject to approval.

These options allow the structure to be aligned with the buyer’s financial approach and landlord requirements.

What are the main assets of the business?

The business is sold as a going concern and includes the following key assets:
• Fully equipped kitchen with essential food preparation equipment
• Sound system supporting the music and DJ environment
• Furniture and seating for customer use
• Office equipment for administrative functions
• Television units contributing to the in-store experience
* 2024 Nissan NP 200 with canopy
* CCTV system
* Billboards
* and many more

* The retention of the current name is available , or re-branding can be considered

How have they been valued ?

Fair market value
After the current owner acquired the business , he has invested between R 800k and one million in the business

Which assets are on lease/HP and with whom?

The Point Of Sale system is on lease and should be taken over by the new owner

Strengths?

• Strong position within Cosmos City, a densely populated and growing residential area supporting consistent local demand
• Limited direct competition offering a similar combination of food and music

Weaknesses?

• Limited direct owner involvement has resulted in underutilisation of the business’s full potential

Opportunities?

• Increased owner involvement and hands-on management could stabilise and significantly improve overall business performance
• Further growth can be achieved through enhanced marketing, improved operational structure, and stronger utilisation of the existing concept
• The current owners will not be competing in this specific area, allowing a new owner to establish and grow the business without direct competition from the seller

Threats?

• Economic pressures within the local market potentially impacting discretionary spend

What is the reason for the sale?

The owner is based in Durban and, due to increased commitments within their broader hospitality interests, is unable to provide the required hands-on involvement.
As a result, the business is being offered for sale as they refocus their attention on other ventures.

Why is this a good business?

This opportunity is underpinned by its location in a densely populated area of Cosmos City, providing access to a large and consistent customer base.
The business enjoys strong visibility and faces limited direct competition offering a comparable blend of food and music.
The existing setup provides a solid foundation, allowing a new owner to revive, refine, or reposition the concept to better align with market demand and unlock additional value.

The business can be acquired either as a going concern (asset sale) or, alternatively, through the purchase of shares in the business-specific entity (Pty) Ltd.