On the market: Cibo coffee shops among the hospitality and tourism businesses for sale right now across South Australia
Five city coffee shops across Adelaide are among several SA hospitality and tourism businesses looking for a new owner - and that owner could be you. See what’s on the market.
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New franchisees are being sought for five Cibo Espresso outlets as part of a sell-off of hospitality venues across the state.
Offers from a little more than $100,000 up to $500,000 are being sought for the coffee shops located in the Colonnades, West Lakes and Marion shopping centres, Pirie Street in the city and another outlet in the northern suburbs.
The sales follow the recent sale of the Cibo outlet in Rundle Mall, with new owners taking over in recent weeks.
Raine & Horne Business Sales principal Melanie Winter, who brokered the deal at Rundle Mall and who is selling the West Lakes kiosk, said many hospitality operators had adapted to COVID-19 conditions and were reporting improved sales as restrictions eased.
“The Rundle Mall cafe wasn’t really affected by COVID as much as some of the other cafes in the city which are more reliant on office workers,” she said.
“Many cafes, particularly in the suburbs, are doing quite well – they’ve modified their businesses and the takeaway component has provided another side to their business.
“West Lakes is reporting really strong growth and has been strong throughout COVID.”
According to Ms Winter, the West Lakes kiosk generates about $1 million in annual sales, with offers around $430,000 expected for the business.
New Cibo franchisees require the approval of the franchisor, hospitality group Retail Zoo, and are put through a four-week training course before operating a Cibo outlet.
Retail Zoo chief marketing officer Joanne Bradley said the five Cibo coffee shops had been listed for sale prior to COVID-19.
“At any one time the brand may have several businesses on the market – sometimes these sale opportunities are serious and other times they are speculative,” she said.
“We have seen an increase in buyer inquiries as people look to become their own boss as a result of a redundancy or employment uncertainty.
“However, uncertainty about the trajectory of the pandemic has engendered caution among buyers as they take a ‘wait and see’ approach.”
Benchmark Business Sales broker Troy Foran recently listed a Cibo coffee shop in Adelaide’s northern suburbs.
He said COVID-19 had created uncertainty around business valuations, prompting many business owners to stall plans to sell up in the current environment.
“There are more buyers at the moment than there are sellers – people that have either been put off of work or are looking for opportunities to be their own boss,” he said.
“I think there’s a lot of uncertainty from a seller’s point of view as to whether any damage has been done to the value of the business because of COVID.
“But the reality is, in South Australia, because we have dealt with COVID really well, values haven’t changed much at all.
“In some sectors of business values have increased as new opportunities presented themselves resulting from COVID.”
Cibo coffee shops on Bank Street and Rundle Street in the city were recently shut down while another CBD outlet on the corner of King William and Grenfell streets will reopen on October 8 after a temporary closure due to COVID-19.
A new company-operated outlet at Harbour Town will open on October 14.
The Cibo sales come amid a sell-off of South Australian hospitality businesses in the wake of COVID-19, including the Hotel Richmond, Cumberland Hotel and The Salisbury Hotel, which are all seeking new owners.
HOSPITALITY/TOURISM BUSINESSES FOR SALE
Baird Bay Eco Tourism and Accommodation
Location: Baird Bay, Eyre Peninsula
Price: $2.25m (business and freehold)
Accommodation and tourism business including beachfront property and residence. The business provides eco tours to popular areas around Baird Bay, visiting local marine life including sea lions and dolphins. A purpose-built vessel “Neo Phocus” is also included, with capacity for 15 passengers, as well as a fishing charter licence.
Hotel Richmond
Location: Adelaide
Price: $2.2m + stock
The well known Rundle Mall venue includes 30 accommodation rooms, gaming machines, bar and restaurant. It also includes two function areas for hosting weddings, corporate functions and events. The first floor balcony offers expansive views over Rundle Mall.
The Retreat at Stirling
Location: Stirling
Price: $2.5m
The luxury B&B in the Adelaide Hills offers accommodation across three apartments, as well as expansive office space, indoor swimming pool and facilities, plus a spacious principal residence. The property is located on close to a hectare of land.
Cumberland Hotel
Location: Glanville
Price: POA
The live music venue offers buyers the opportunity to acquire the freehold and business. The historic venue offers indoor and outdoor stage facilities as well as six gaming machines, accommodation, a main bar and full commercial kitchen. At more than 1000sq m, the site offers buyers development potential.
The Salisbury Hotel
Location: Salisbury
Price: POA
The northern suburbs pub is being offered to the market for the first time in 35 years. Located adjacent to Parabanks Shopping Centre, the venue includes 40 gaming machines and underwent a $3 million upgrade in 2018. The freehold and business is on offer, including bars, indoor and outdoor dining, sports bar and commercial kitchen.
Cross Keys Hotel
Location: Cavan
Price: POA
The hotel includes a gaming room with 34 upgraded machines, sports bar with TAB and Keno facilities, indoor and outdoor dining, a newly built drive-thru and bottleshop and extensive car parking. A new 35-year lease is available to the purchaser.
