Hospitality businesses thrive in Covid by banding together under Otto’s Style brand

A merging of some of Townsville’s best food and coffee operators has been the “silver lining” to the COVID-19 storm, as a beloved brand takes some well-known haunts under its wing.

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A merging of some of Townsville’s best food and coffee operators has been the “silver lining” to the COVID-19 storm, Otto’s Fresh Food Market co-owner Don Peel says.

Mr Peel was commenting on the marriage of several businesses under the Otto’s Style brand as it looks to further expand its Market Precinct in Idalia with new retailers and restaurants.

Coffee roaster Coffee Dominion merged with Otto’s last year, while The Spirited Goat cafe at the Precinct merged with Otto’s in April as it expanded its offer and relocated across a laneway into Otto’s former kitchen and bar.

Meanwhile, another popular coffee and food operator Good Morning Coffee Trader was bought out by Otto’s last year as part of a transition to retirement by its owners.

Mel Crawford and Don Peel outside The Spirited Goat Cafe and Bar at Otto's Market Precinct in Idalia.

Mr Peel said COVID-19 was the catalyst for much of the change.

When COVID-19 hit the survival of hospitality businesses was very much at risk.

Otto’s had been built into a hugely popular business employing about 100 people at its Fresh Food Market in Warrina shopping centre and Market Precinct in Idalia.

Within a few weeks, trade was decimated.

Mr Peel said the government’s JobKeeper wage support program had been a lifesaver.

It enabled them to retain staff and continue to develop online and drive-through services.

But a key issue was supply.

Mr Peel said it was when they talked with Coffee Dominion about investment in bulk to ensure they had stock that the conversation turned to merging to benefit one another.

The offer to buy out Good Morning Coffee Trader came at the same time.

“It made sense to bring them all together. We are stronger together. It ticked a few boxes for everybody,” Mr Peel said.

Co-owners of Otto's Fresh Food Market Sandra and Don Peel with Otto's chief operating officer Rob Aumend out the front of their new premises in Idalia. Picture: Zak Simmonds

More recently, The Spirited Goat cafe had been looking to expand. Instead, they merged with Otto’s and relocated into Otto’s kitchen and bar in the Precinct.

That allowed The Spirited Goat to offer a full dinner menu and serve cocktails, beers and wine.

It has meant Coffee Dominion operator Jonathan Whitfield and The Spirited Goat operators Mel and Harry Crawford have joined the Otto’s parent company as shareholders.

The entire group now has more than 250 people.

Melanie Jackson with the Coffee Dominion van at the Ross River boat ramp in South Townsville Picture: Evan Morgan

“Covid was a major challenge. Dealing with the unknown and trying to make decisions was difficult,” Mr Peel said.

“(But) the silver lining (of the mergers) has been tremendous.

“Because we run each entity in its own right and the local founders of those entities are still involved, it means we can maintain the culture really well.

“I call it a Sesame Street style of business because in the end we are just cooperatives.”

Originally published as Hospitality businesses thrive in Covid by banding together under Otto’s Style brand