Ref. No - BFS938495

LocationSouth Africa, Gauteng

Ref. No - BFS938495

Sector - Food

Asking Price
R2,600,000
Monthly Profit
R93,917
Asset Value
R 1,419,592
Stock Value
R 50,000
Yearly Net Profit
R 845,257

Summary

This is an opportunity to acquire more than just a coffee shop. With its distinctive concept, carefully developed menu and appealing upmarket setting, the business has made an encouraging start in its first year of operation. Combining sit-down dining with takeaway sales, it caters to a broad customer base while offering scope to grow the existing operation. The concept also presents exciting possibilities for future expansion, making it an appealing prospect for an entrepreneur or investor looking for long-term potential.

Give me more information

Fully describe the business's activities?

The business is an upmarket coffee shop offering a unique and enjoyable dining experience in a stylish, peaceful and relaxing setting. The menu has been carefully put together, with a focus on quality food, good coffee and appealing presentation. It offers customers a place to enjoy a meal, catch up with friends or family, or simply relax and enjoy the atmosphere.

The coffee shop caters for both sit-down and takeaway customers, making it suitable for those who want to spend time enjoying the surroundings as well as those looking for something convenient on the go. What sets it apart is its combination of quality food, a welcoming atmosphere and a more relaxed coffee shop experience. It appeals to customers who appreciate good food and coffee in a comfortable setting where they can take their time and enjoy the experience.

How does the business operate on a daily basis?

The coffee shop operates with staff responsible for preparing and serving food and beverages, assisting customers and maintaining the overall presentation and cleanliness of the premises. The team manages both sit-down and takeaway orders, ensuring customers receive friendly service and a consistent experience. Daily activities include food preparation, coffee and beverage service, stock management, cleaning and general operational duties. The business follows an established routine to keep service running smoothly and maintain the quality and atmosphere that customers expect.

What Advertising/Marketing is carried out?

Facebook

What competition exists?

There are some similar businesses in the area

How could the profitability of the business be improved?

There remains considerable opportunity for a new owner to further develop the business, including:

- Developing a dedicated children's play area. There is more than sufficient space available, and this would further strengthen the business as a family destination.
- Actively promoting the venue for kitchen teas, baby showers, painting sessions, business functions, year-end functions and similar events.
- Introducing a pottery-painting concept similar to Clay Café or Colour Café, which would complement the existing café environment and create an additional revenue stream.
- Expanding digital marketing. To date, marketing has primarily been managed in-house through Facebook. A dedicated monthly social media budget of approximately R5,000 across social media (Facebook, Instagram and TikTok) presents a significant opportunity to increase local awareness and customer traffic.

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

1 x Manager
1 x Chef
3 x Cooks
3 x Baristas
4 x Waiters

Do any have management potential?

Yes, one of the waiters

How involved is the Owner in running the business?

Daily in the mornings

When does the current lease end?

2030

What are the trading hours?

Mon - Sat: 06H00 - 17H00
Sun: 07H00 - 15H00

What are the main assets of the business?

Refer to asset register

Strengths?

- Strong Start: Has performed well in its first year of operation, demonstrating encouraging customer acceptance of the concept.
- Distinctive Concept: Offers a different take on the traditional coffee shop, combining an upmarket feel with a peaceful and relaxed atmosphere.
- Well-Developed Menu: Features a carefully developed menu that helps distinguish the business from ordinary coffee shops.
- Customer Appeal: Attracts families and customers looking for a comfortable place to enjoy quality food and spend time together.
- Multiple Sales Channels: Generates business through both sit-down dining and takeaway orders.
- Growth Potential: Having established itself within its first year, the business has the potential to build further on its existing customer base and develop its market presence.

Weaknesses?

- Limited Trading History: Having been in operation for only one year, the business has a relatively short trading record.
- Brand Awareness: The concept is still establishing itself in the market and may require further time and marketing to build wider recognition.
- Customer Base Development: There is still potential to grow its regular customer base and increase repeat visits.
- Operating Costs: Maintaining an upmarket environment and quality menu may require ongoing investment in staff, ingredients and presentation.
- Market Competition: The coffee shop operates in a competitive industry where customers have various dining and coffee options.

Opportunities?

There remains considerable opportunity for a new owner to further develop the business, including:
- Developing a dedicated children's play area. There is more than sufficient space available, and this would further strengthen the business as a family destination.
- Actively promoting the venue for kitchen teas, baby showers, painting sessions, business functions, year-end functions and similar events.
- Introducing a pottery-painting concept similar to Clay Café or Colour Café, which would complement the existing café environment and create an additional revenue stream.
- Expanding digital marketing. To date, marketing has primarily been managed in-house through Facebook. A dedicated monthly social media budget of approximately R5,000 across Facebook, Instagram and TikTok presents a significant opportunity to increase local awareness and customer traffic.

Trade Mark Registered
The business name and logo are registered trade marks and were specifically developed and protected with the intention of expanding the brand.

The trade marks are excluded from the current business selling price. However, should a prospective purchaser be interested, the owner would be open to discussing the separate acquisition of the trade marks and associated intellectual property.

This would provide the purchaser with the opportunity not only to acquire the existing store, but also to own and further develop the brand as a franchise network.

The brand has already been developed around three scalable store formats:

- Blue Line Store – full-service store with kitchen
- Boutique Store – café/seating format without a full kitchen, including pastries and related products
- Express Store – smaller grab-and-go format

Should a purchaser elect to acquire the trademarks, the associated intellectual property and brand development material can be included as part of that transaction.

The name of the business was deliberately selected as a distinctive, premium and highly marketable name within the coffee and café sector.

Threats?

- Competition: Existing coffee shops and new entrants may compete for customers, particularly if they offer similar food and dining experiences.
- Rising Operating Costs: Increases in food prices, rent, electricity and wages could put pressure on profit margins.
- Economic Pressure: Customers may reduce spending on eating out and premium coffee experiences during difficult economic periods.
- Changing Customer Preferences: Shifts in food trends and customer expectations may require the business to adapt its menu and offering.

What is the reason for the sale?

The decision is primarily driven by the owner's need to focus on a new pizza brand franchise under development and his other company, event management.
Location

Contact | Enquire

Joe

Joe De Gouveia

LocationSouth Africa, Gauteng

Preferred method of contact

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