Not so sweet: Dessert bar chain Cowch calls in administrators

Popular dessert bar chain Cowch has appointed administrators after facing soaring costs and natural disasters but the founder is hopeful new investors will emerge to save the business.

Arif Memis started the Cowch chain in 2014.

Popular dessert bar chain Cowch has appointed administrators after struggling through a perfect storm of rising interest rates, soaring costs and natural disasters.

SV Partners this week took control of companies in the Cowch group that was founded in 2014 by former Sydney banker Arif Memis and his wife Havva.

The company had until recently been in expansion mode and last year produced more than 34,000 litres of gelato, 73,000 pancakes, 63,000 crepes, 48,000 waffles and more than 6000 cakes from a new factory in Brisbane’s southside.

Mr Memis said Thursday that Cowch’s four dessert bars would continue to trade while a buyer or new investors were sought for the business.

“I would hope to stay involved in the business in some way because it has been my baby from the start,” Mr Memis said. “I don’t drive flash cars or anything because all the money we earned from the business was put back into the business.”

Cowch joins a growing number of hospitality businesses hitting the wall amid deteriorating economic conditions following Covid-19.

Arif Memis with wife Havva Memis and daughter Ezel.

Mr Memis said the company, which has outlets at Chermside, Broadbeach, South Bank and Garden City, had faced growing costs increases as well as rising interest rates. “We tried to keep it going by continuing to put our hands in our pockets,” Mr Memis said.

“Last year, was a disaster with rising interest rates, raw material hikes and floods. It got to the point where we could not continue any more.

“For example, prices of some ingredients have gone up 700 per cent. We could not pass that onto our loyal customers- we could not ask them to pay $50 for a pancake.”

In 2021, the company opened a $2.5m factory capable of producing thousands of desserts not only for its own outlets but for a growing range of clients including Sofitel, Brisbane Convention & Exhibition Centre and Tattersalls Club. There also were plans to stock its desserts in IGA store around Queensland.

Queensland Treasurer Cameron Dick visited the factory along with the Minister of Employment and Small Business Di Farmer in 2021. The facility produces pancakes, waffles, and crepes for national and international distribution into food service and retail outlets.

Terry van der Velde and Terry Rose from SV Partners have been appointed administrators.

“Unfortunately, like many other businesses, Cowch has not been unaffected by conditions beyond its control including (though not limited to) the COVID-19 pandemic, floods and continued economic challenges,” SV Partners said.

SV Partners said administrators are committed to exploring all options to ensure Cowch’s future success.

“The administrators will be working closely with management, staff, creditors, and other stakeholders to provide a positive outcome for all parties involved,” SV Partners said.

“SV Partners are optimistic that customers will continue to support the local family business as it continues to trade through the administration, while the administrators work to secure investors to ensure the future of Cowch is secured.”