Food, beverages and live crays at Paihia
The tourists line up every day at Paihia’s main wharf — but that’s no hardship.
It’s a great place to pass the time while waiting to board ferries, sight-seeing vessels, cruise ships, fishing charters, adventure-tourism boats and and array of other craft . . .
This busy location is right at the epicentre of Bay of Islands tourism, and significantly — its main food-andbeverage operations have now been placed on the market for sale.
Bayleys’ tourism and hospitality group manager Paul Dixon — with his colleague Carolyn Hanson — is selling the two well-sited providers: “35 Degrees South Aquarium Restaurant and Bar” and its neighbour, “Alongside Restaurant”.
Well known for operating a fully stocked aquarium, which is complete with a population of heritage crayfish, the famous establishments are being sold by expressions of interest, closing at 4pm on April 12.
They feature in Bayleys’ latest
Total Property portfolio magazine. The fully licensed eateries have been strategically developed to compliment different sectors of Paihia’s hospitality market, Dixon points out.
“Collectively, they can seat 460 patrons, drawn from among locals, regular national and international tourists, plus seasonal cruise ship passengers. Nearby Waitangi Wharf is the main disembarkment point for these cruise ship passengers, while the ships dock in the middle of the bay.
“In the current cruise ship season, from September 2017 to June 2018, the Bay of Islands is scheduled to host 63 passenger liners.”
Dixon says the casual-dining operation known as 35 Degrees South Aquarium Restaurant and Bar, towards the end of 2013. “A previous, somewhat dated hospitality operation, had been running in various guises for several decades. The Alongside function venue opened shortly after that, in December 2013.”
He says the two new venues — which share food and beverage storage and preparation amenities but have a different ambience — retain the famous 60,000 litre restaurant centrepiece aquarium.
Ironically, the scores of fish who survived the noise and disruption of a long refurbishment programme all died a year later when power to the venue was cut as a result of Cyclone Lusi, and staff were prevented from entering the premises for health and safety reasons.
In a twist of fate, the demise of 35 Degrees’ fish population ensured the crayfish contingent in the aquarium had plenty of protein to feast on — with some of those crustacean survivors still on show today.
“The 35 Degrees operation targets walk-in diners or those seeking a casual drink,” Dixon says.
“Alongside is a larger, more openplan venue suitable for larger groups and functions — such as weddings, sizeable birthday or anniversary groups, parties, and corporate functions. The outside deck, much of it shielded by canopy or umbrellas — totals 600sq m.
Sitting above the waterline, the wharf/deck creates an atmosphere few other destinations in Northland can replicate.”
Hanson says the two venues also offered efficiencies of scale in stock purchasing, staffing, and back-office administration.
Combined, they employ some 25 full-time staff, with an addition of 20 part-times staff brought in over the busy summer period – making them one of the largest food and beverage operations in Northland.
Together, the dual businesses generated a turnover of more than $3 million in the 2016/17 financial year.
Unless booked for private functions, 35 Degrees only operates for lunch and evening dinner service, while Alongside opens for breakfast through to dinner, with most of its functions held in the later part of the day. 35 Degrees serves a menu designed by high-profile chef Martin Bosley.
“The business owners carefully analysed food and beverage spend patterns for not only Paihia Wharf but also the nearby town, and Russell on the other side of the bay.
“With a proliferation of ‘coffee and muffin’ style food outlets in both locations they have chosen not to compete in that sector — and it’s a decision which has proven to be totally apt,” Hanson says.
“Late afternoons and evenings are when both 35 Degrees South Aquarium Restaurant and Bar, and Alongside come into their own — at a time when they dominate the hospitality and functions market in Paihia.
“With the ‘engine room’ of the businesses (the kitchen and bar infrastructure, and customer toilets) physically straddling the two entities, each can, and do, operate simultaneously while serving different bookings or audiences.
“Their location on the waterfront. adjacent to the central park, and at the entrance to the departure point for virtually all the bay’s marinerelated tourism activities — means 35 Degrees South enjoys substantial profile to foot traffic and attracts walk-in customers.”
Both venues are on 10-year leases running through to 2023, with one further 10-year right of renewal and a further seven-year right of renewal after that. Rental on the two properties is a total of $302,000pa.
Dixon says the two businesses would suit an existing restaurant operator looking to take a step up in size and scale.