Common Grounds Gowrie Café – If you build it they will come

Business Details

EOI 30/07/2019 + SAV
The future of profitable and thriving hospitality businesses in Canberra is located in the suburbs where customers live.

Compare the size of the markets in the Inner South and North of Canberra. According to the last census (2016), the number of people in the Inner South was 27,007, and the Inner North was 53,002- a combined total of 80,009.

Consider now the population of Tuggeranong at the last census - 85,154.

Well, surely the explanation of why there are this many cafes in the Inner North and Inner South is the income and specifically the disposable income.

Contrast the household Income 2016 Census and median and unit house prices June 2018:  
North Canberra: $1,981 - $925,000
Inner South: $2,333 -  $1,265,000
Tuggeranong: $2,051 - $570,000

Surely, the reason that there aren't more businesses servicing customers in Tuggeranong and Belconnen is that customers prefer to drive for 25 minutes, getting there and then spending a king's fortune in parking if they can find it?

Common Grounds at the Gowrie Shop proves what we've always known. If you build it, they will come.

An abundance of free parking, customer-generators like childcare, excellent public schools, and the discount pharmacy complement the Gowrie Shops.

The owner spends approx. 25 hours per week working in this business and he has been running this coffee shop for almost 6 years. As an entrepreneur, he feels like he need a new challenge. He would also like to pursue a different lifestyle given recently born new family member. 

For this prime location, you’d be only be expected to pay $4,461.04 (GST inclusive) rent per month, which is an exceptionally fair rate in today’s Canberra market. The current lease will expire in August 2019 but the landlord has guaranteed there is an option of 3 or 5 years + 3 or 5 years, up to the buyer.

In brief:
• Turnover of $1,035,794 and PEBITDA of $160,819 in FY 2018.
• Open 7 days and operate 54 total trading hours per week.
• No close competition – no similar businesses within 3km radius.
• Outstanding reputation for specialised coffee and food offerings.

Contact exclusive business broker Frank Walmsley on sales@capitalcommercial.com.au by providing your full name and contact number, stating the fact that you are interested in owning Common Grounds Gowrie Café.

Financial Snapshot

Reporting Period 2018 Weekly Average 2017 Weekly Average 2016 Weekly Average
Sales $1,035,794.00 $19,919.12 $1,003,100.00$19,290.38 $939,544.00 $18,068.15
Gross Profit $648,161.00 $12,464.63 $615,660.00$11,839.62 $561,847.00 $10,804.75
PEBITDA $160,819.00 $3,092.67 $188,148.00$3,618.23 $127,563.00 $2,453.13
Rent $46,794.00 $899.88 $40,956.00$787.62 $46,315.00 $890.67
Wages and salary $360,147.00 $6,925.90 $342,183.00$6,580.44 $320,672.00 $6,166.77

Business Summary

Canberra, Australian Capital Territory
Cafe/Coffee Shop.

The premises are leased.
• Lease commenced on: 4 August 2016
• Lease expires on: 3 August 2019
• Term of the lease: 3 years
• Option: 3 years
• Bank guarantee: An amount of 3 months of rent plus GST being $12,373.48 at the commencement date
• Base rent: $44,994.48 plus GST per annum
• Current monthly rent: $4,461.04 (incl GST)
• Annual increases: Fixed increase review - 4%. Review date is each anniversary of the commencement date.
• Public liability insurance: $20 million
• SQM: 110 SQM (including alfresco dining)

Total employee wages for 2018 were $360,147. Total employee superannuation was $33,422 in FY 2018. The owner contributes approx. 25 hours per week to the business and was paid $49,400 (including super) in FY2018. Employees consist of: • 1 Owner / Manager • 1 Head Chef • 1 Sous Chef • 1 Manager / Barista • 5 Wait Staff • 1 Cold Drinks Person • 1 Barista
Mon - Fri: 7:30 am to 3:30 pm; Sat - Sun: 8:00 am to 3:00 pm
Owner Operated

Enquire Now

Sales Summary

Sale Status : For Sale

Sale Method : Expression of Interest

Investment Amount : EOI 30/07/2019

Stock at Value : $10,000.00

Finance Options :

Frank Walmsley

1300 793 690

0400 446 605

sales@capitalcommercial.com.au