Wynnum Coffee Club owners ‘gutted’ after having to close cafe after seven years

The owners of a Coffee Club franchise on Brisbane’s bayside say they are “gutted” after having to close permanently following breakdowns in discussions to renew their lease.

The Coffee Club at Wynnum has closed after seven years.

The owners of a Coffee Club franchise on Brisbane’s bayside say they are “gutted” after having to close permanently following breakdowns in discussions to renew their lease.

John and Cathy Shepherd announced on social media this morning they have served their last coffees at their Wynnum location on Bay Terrace following seven years of being part of the waterfront suburb.

“We would like to inform our customers that we have not been able to come to an agreement to renew our lease and regrettably we will be closed permanently from Monday 28th August 2023,” the social media post said.

“We would like to thank our many loyal customers for your support over the last (seven) years … Thank you Wynnum Community! We look forward to seeing you again soon.”

The Coffee Club on Bay Terrace at Wynnum. Picture: Facebook

Mr Shepherd said because the business is a franchise, the landlord’s representatives negotiated terms for a new lease agreement with the franchisor, The Coffee Club, who then discussed the terms with the franchisee.

The couple refused the new terms, which they said included a proposed rent increase of more than 20 per cent.

Owners of The Coffee Club at Wynnum, John and Cath Shepherd with their daughter, announcing their Wynnum shop has closed.

Paul Dugan from Dugan and Co, the commercial real estate agency with the listing for the site, made a statement “on behalf of the executors of the landlord” where he said reports of a rent increase were not accurate.

“The tenant had an option for a further lease term and elected not to exercise their option, following discussions between the tenant and the landlord which included a proposed significant reduction of rent compared to the amount under the current lease in recognition of market conditions,” the statement said.

The Coffee Club on Bay Terrace at Wynnum. Picture: Facebook

“The site was leased to The Coffee Club (Properties) Pty Ltd A.C.N. 066 111 742, and operated by a franchisee of The Coffee Club. The landlord is not privy to the arrangements between The Coffee Club franchisor and franchisee.”

The Coffee Club chief operations officer, Paula Nelson, said their Wynnum venue had ceased trading after seven fantastic years of serving the Wynnum community.

“The store has ceased trading as the rental agreement comes to an end and our Franchise Partner moves overseas,” she said.

“We are excited to continue serving our Wynnum locals at The Coffee Club Tingalpa.”

Mr Shepherd opened up about the couple’s emotions after becoming a “community hub” in Wynnum for almost a decade.

“We’ve been here seven years, we live just up the road, it’s the perfect business for us,” he said.

“We love this community, our kids go to Iona College and Redlands girls college and they’ve all grown up together here at the shop basically.

“We’ve got to know everyone personally, especially over the Covid period, where everyone was sticking together.

“There’s 120 seats at this shop, it’s a big cafe, and it’s been a community hub for years now but the news that we’re closing has really upset locals – there’s been customers come to the shop in tears this morning.”

The Coffee Club on Bay Terrace at Wynnum. Picture: Facebook

Mr Shepherd said their situation was a sign of the struggles small businesses were still facing almost three years since the Covid pandemic.

“Initially we struggled to get the shop back on its feet after Covid, all you really got offered from the federal government was a small loan, we amassed a little bit of finance during Covid and then we eventually got it all back on its feet,” he said.

“But then Fair Work continued to increase the pay for staff and we’re paying employees $30 an hour for a weekday and $38 for a weekend – I mean how many cups of coffee at half price do you have to sell to recover all of that.

“Wynnum’s also not really been invested in for the past 10 years, we thought we got in early before the rise but now everyone’s just sitting on their feet and now we also haven’t been able to secure a new lease.

“It seems like nothing is being done for small businesses.

“We’re absolutely gutted.

“We’ll now just invest all our time and effort in the Tingalpa shop but this (Wynnum) one is on our doorstep.”

Mr Shepherd said he was also concerned for his staff with only four out of 12 employees being able to transfer to their Tingalpa location and the other eight being left without work.