Cool cafe business at hot beach
The land, buildings and business of a well patronised cafe at Hot Water Beach, are for sale following 14 years under the present ownership. LINK business broker, Carron Chote is selling Hot Waves Cafe, which has served local and international visitors since 2005.
She describes a vibrant operation, attracting a good slice of the estimated 700,000 tourists visiting the famous Coromandel Peninsula beach each year.
Chote is marketing both the business and its property at 8 Pye Place, following a decision by the present owner to hand over the reins.
She points out that while the well known beach draws throngs of holidaymakers, relatively few facilities are available in the area to service them.
“Hot Waves is the only venue open for dinner locally, and although the peak season is October-to-May, the winter months also offer stable income due to other food outlets closing for three months.
“During that period, this leaves the caf to service all visitors to Hot Water Beach,” says Chote.
The prime location, beautiful property and established gardens certainly appeal to newcomers, while many residents of the area are regular patrons as well.
The al fresco dining area also showcases local artists, supplying valued local input to the venue.
In addition to this area the property includes two indoor seating areas and a large commercial kitchen, all of which were purpose-built in 2003.
The owners gained resource consent after owning the property since 1993, and over the years have invested heavily in building the business into the success it has become. The property has 3500sq m of land, with the cafe building and parking lot occupying three quarters of the site.
“The remaining space has the potential for a residence. This would enable a dwelling with fabulous views across Hot Water Beach and out to Mercury Island, completing this exceptional business and lifestyle opportunity.”
Chote says the business has shown a steady revenue increase over the last few years, with this year’s figures set to continue an upwards trajectory.
“With Government estimating that international tourist numbers will rise to 4.9 million by 2023, huge growth potential exists for hotspots such as Hot Water Beach. And, of course, Hot Waves Cafe is perfectly placed to take advantage of the mammoth growth expected.”
The cafe now employs three fulltime and six part-time staff with the owner working five days a week.
“However, the full-time staff are capable of running the cafe when the owner is absent, while additional seasonal staff are also available from the pool of travellers and university students holidaying in the region during the busy period,” Chote says.
● The asking price of Hot Waves Caf and the surrounding property is $1.566 million. This comprises the freehold landholding, valued at $1.2m and the Hot Waves business itself, valued at $366,000, including stock.