Ref. No - BFS937286

LocationSouth Africa, Western Cape

Ref. No - BFS937286

Sector - Food

Asking Price
R980,000
Monthly Profit
R29,943
Asset Value
R 25,843
Stock Value
R 0
Yearly Net Profit
R 359,315

Summary

A boutique coffee roasters crafting small-batch, artisanal brews with a bustling café and premium supply to Airport and V&A Waterfront outlets.

Give me more information

Fully describe the business's activities?

This boutique coffee roasting business specialises in small-batch, artisanal coffee production combined with a thriving café experience. The owner, deeply passionate about quality, personally roasts coffee beans three times a week to ensure consistent flavour and exceptional standards. The café serves freshly brewed coffee in an area with lots of customers, especially over weekends. Complementing its café operations, the business supplies premium coffee to two outlets servicing customers at the Airport and V&A Waterfront.
STOCK IS NOT INCLUDED IN THE PRICE AND WILL NEED TO BE CALCULATED AND SETTLED ON THE DAY OF HANDOVER.

How does the business operate on a daily basis?

Daily operations are efficiently managed by a skilled barista, who handles opening duties, customer interactions, and reconciles transactions at the end of each day. A detailed daily report is sent to the owner, ensuring smooth communication and oversight. This combination of hands-on craftsmanship, loyal customer relationships, and operational excellence positions the business as a leader in the artisanal coffee space and a prime opportunity for future growth.

What Advertising/Marketing is carried out?

Currently, the business's only digital presence is its beautifully designed website.

What competition exists?

There is another restaurant in the same location that caters to sit-down customers.

How could the profitability of the business be improved?

The profitability of the business could be improved by securing additional external contracts, such as partnering with more local businesses, events, or corporate clients for bulk coffee orders or regular supply agreements. Expanding the customer base beyond the café could help stabilise income and reduce dependency on foot traffic, especially during slower seasons.

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

- 1 x Barista
- 2 x Helpers that can double as baristas

Do any have management potential?

No

How involved is the Owner in running the business?

The owner is involved in the business, particularly in the roasting process, which they handle three times a week to ensure the quality and consistency of the coffee. They also oversee daily operations through regular reports from the barista, ensuring smooth communication and maintaining a hands-on approach to the business's overall performance.

When does the current lease end?

??

What are the trading hours?

09:00 - 16:30 Week days
09:00 - 15:00 Sat + Sun

What are the main assets of the business?

The roasting machine and grinders are both aged.

Strengths?

High-Quality Product: The owner’s hands-on approach to roasting ensures a consistently high-quality product, making the coffee a standout in the market.
Loyal Customer Base: The café has built a strong following among customers who appreciate premium coffee and excellent service, creating a reliable revenue stream.
Prime Location: Situated in a high-traffic, nature-inspired area, the business benefits from significant foot traffic, attracting a steady stream of potential customers.
Diverse Revenue Streams: In addition to café sales, the business generates consistent income from contracts with key clients at the airport and the V&A Waterfront.
Efficient Operations: Daily operations are streamlined with a skilled barista managing the café, and detailed reports ensure the owner stays informed without needing to be present every day.
Scalability: The business has opportunities for growth, especially through securing more external contracts or expanding its customer base beyond the current reach.

Weaknesses?

Aging Equipment: Both the roasting machine and grinders are outdated, which could impact efficiency and quality in the long term.
Limited Digital Presence: The business currently only has a website as its digital footprint, potentially missing out on online marketing and broader customer engagement opportunities.
Dependence on Foot Traffic: While weekends and good weather bring in customers, the business can be vulnerable during slower periods, particularly in winter and rainy seasons.
Seasonal Fluctuations: Business volume can fluctuate based on the season, with slower periods during rainy weather and winter, leading to inconsistent cash flow.
Low Staff Flexibility: With a small permanent staff and reliance on casual workers, there may be challenges in maintaining consistency during busy periods or ensuring the staff is fully trained for peak times.

Opportunities?

Expanding External Contracts: Securing more contracts with local businesses, events, or corporate clients could provide a steady income stream, reducing reliance on foot traffic and boosting profitability.
Growing Digital Presence: Developing an active social media presence and expanding online marketing efforts could attract new customers, increase brand awareness, and drive online sales.
Introducing Delivery Services: Offering a delivery service, either locally or through third-party platforms, could help reach a broader customer base, particularly during slower seasons or rainy weather.
Expanding Product Range: Introducing new coffee blends, snacks, or specialty products could attract a wider audience and encourage repeat visits.
Improving Seasonal Sales: Implementing promotions or loyalty programs during slower months, such as the rainy season, could help maintain consistent sales throughout the year.
Upgrading Equipment: Investing in newer, more efficient roasting machines and grinders could improve product quality and operational efficiency, potentially reducing downtime and maintenance costs.

Threats?

Economic Downturns: A downturn in the economy could lead to reduced discretionary spending, which may impact sales, especially during slower periods like the rainy season or winter months.
Increased Competition: The growing popularity of artisanal coffee could attract more competitors, including larger chains and local cafés, which may have more resources for marketing and customer acquisition.
Rising Costs: Increases in the cost of raw materials, such as coffee beans, as well as overhead costs like utilities and rent, could affect profitability if not managed carefully.

What is the reason for the sale?

The partners decided to end their business relationship and sell the business due to personal reasons.
Location

Contact | Enquire

Elmo

Elmo Lombard

LocationSouth Africa, Western Cape

Preferred method of contact

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