Louis Baxters can now be yours
This is what you have been waiting for!
Louis Baxters is the Heart of Subiaco.
This bustling cafe serves locals and visitors who work, reside and venture to this inner-city suburb every day. It is open Monday to Friday from 6am-3pm (closed Public Holidays and Christmas-New Year Break) and is largely popular for its speciality coffee, reliably fast, personable and smooth service, ease of food options and well-designed interior.
The space is filled with ambient, funky tunes emanating from Sonos Speakers positioned thoughtfully throughout the interior, a large mural by Anya Brock adorns the wall, Scandinavian cone-shaped pendants provide the tables with an abundance of soft light, the cafe comfortably seats 29 people (16 inside, 13 outside), has a small fully-functioning commercial kitchen (although the current menu under-utilises it), climate control air conditioning, a TV streams the morning news and sports events to strengthen the connection this community has to the world, and it offers a treasured selection of newspapers - The West Australian, Financial Times and The Australian. Chilled still and sparkling water is complimentary to all guests with the in-built Purezza Water System, an in-house cold-pressed juicing machine provides a refreshing alternative beverage option and the food on offer is made from scratch, in house daily. All recipe cards and training will be provided: the current owners are not qualified chefs so you’ll find the menu on offer is easy to maintain, without sacrificing quality or consistency. Most popular items are the Bagels, Bircher Muesli Cups, Banana Bread and Morning Muffins.
Louis Baxters proudly serves freshly roasted coffee from the skilled artisans at Laika Roasters in Lathlain. The coffee is a single origin bean that has been selected and tailored specifically to be paired with milk; it has a profile of apple, honey and touches of dark chocolate. Other single origin beans are on rotation to serve those who come in to try something new. The gorgeous all-white La Marzocco Coffee Machine and Grinding Equipment are owned by the business and are still under warranty.
LOCATION, LOCATION, LOCATION!
Located in Subiaco Square, at the Subiaco Train Station, this cafe rubs shoulders with neighbours such as Woolworths, Coles and Target, and in the greater area: Bunnings, Perth Modern, St John of God Hospital, the Regal Theatre and the Subiaco Oval district. Some 600,000-700,000 people travel along the train line underneath the cafe every month and Subiaco is one of its most popular stops - every day around 3,000 people flow in and out of it. This area is a fast growing, modern, developing suburb that is well connected to its local businesses and its residents: the population sat at about 17,000 in 2016 and is projected to reach at least 20,000 by 2026: the business has already noticed the benefits with an increase in locals and businesses, especially from the opening of nearby apartments and development projects in Subiaco Common to the West.
With proposed changes to the Subiaco Oval area, recognised as Subi East, this will be “among the most significant urban renewal projects WA has ever seen. 35.6ha of land will be rejuvenated to create a vibrant new north-eastern gateway to Subiaco – one that reflects and celebrates the rich heritage of the area, while realising the importance of its prominent location on the doorstep of the Perth CBD.” The development consists of a new high school, apartments, sporting facilities and cultural centre that will bring another 2,000 residences, at a minimum, to the local area over the next thirty years, and Louis Baxters sits in a prime position to serve their needs. Equally significant is the abundance of businesses and professional services that exist to bring people into the area.
Subiaco is Perth’s biggest suburban office market with some 4,370 businesses operating in this area and this number is set to increase once the World Class Hotel and Cinema development on Hay Street also opens, and the Subiaco Pavilion Market begins its $235 Million Dollar Redevelopment which includes three seperate buildings, of which one is a twenty-four storey block mostly of apartments and some five hundred car parking spaces. The City of Subiaco Council has done an outstanding job of supporting the local businesses by offering free timed parking to visitors which has created a positive incentive for those seeking to come into the suburb for their work, study, health and shopping needs. The council also engages with the cafe for local events such as the Annual Bike to Work Breakfast, and other local Foundations have involved the cafe for their events such as the Heart Foundation Walk. Buses also help connect people to Louis Baxters via the route towards the University of WA, Sir Charles Gairdner Hospital, Hollywood Hospital and the new Children’s Hospital in the outer reaches of Subiaco, along Kings Park. “Ruby” the Subiaco Tram is a free hop-on, hop-off service that brings tourists and visitors to the cafe and runs a route every hour from Subiaco Square.
The cafe has been successfully operating since 2014, and in the nineteen months that the current owners have operated the venue, Louis Baxters has generated $600,000+ in total revenue. The lease has three years remaining at $36,694 annually, excluding GST and Outgoings - a rent free period may be offered by the landlord and they are happy to continuously renew. There are two private car parking spaces allocated underground, one private restroom, and over $150,000 worth of assets: all of which are clean, in near-new condition, or have recently been replaced. There are no disused assets stored inside the cafe - everything that is included is put to use to generate a return. All branding, marketing assets, social media pages, photographic content, and digital signatures will be yours. On Facebook and Instagram, recent pushes for engagement have resulted in 1,700 followers and their latest promotional video which explains the relationship between Louis Baxters and Laika Roasters, showing the process of bean to cup, has attracted 15,000 viewers and was seen by 23,300 others.
THIS CAFE IS READY FOR YOU!
So why are they deciding to sell? It has not been an easy decision for them; this business is profitable, has a recently rejuvenated interior, is in excellent condition, and attracts new customers to their regular base daily. Instead, it comes as a decision that will allow them the opportunity to devote more time to their other business ventures. Louis Baxters is not just a cafe to them, the owners have transformed this cafe into a popular, communal hive that brings professionals, passionate creatives and outgoing locals to a place to meet up and build a future for each other. If this is an opportunity you are curious about, one where you can envision yourself working and/or investing in this inner-city neighbourhood, one where you have the time to spend serving and getting to know the regulars and take a keen fascination in their lives, passions and interests, and you want to be a part of something growing and exciting, then this is an ideal investment for you.
This business requires no improvements or alterations, has a digital POS system on an iPad which syncs with Xero automatically, has built a great relationship with long term suppliers with no contracts attached, has a fantastic reputation in Perth for its coffee, food and service, is low maintenance and steadily attracts customers due to its proximity to the railway, connection to local businesses, word of mouth referrals and convenient location in the centre of the suburb. This cafe is perfectly positioned for a smooth walk in/walk out transfer of ownership, with all financials, asset breakdown, social media platforms, photographic content, equipment, furniture, inventory, supplies and goodwill included. This business will thrive with an owner/owners who can occupy roles inside the cafe: currently it is run by the couple who own it, and they have two additional staff members who are rostered on about 30 hours a week each.
This cafe has recently undergone a major redesign of its interior and branding, and its proven takeaway-focused menu has been highly successful. There is no need for more capital investment, however if you wanted to make the most out of any investment into the cafe, here’s some ways that the owners can see an opportunity for more income:
offering customers a dine-in menu cooked-to-order will fuel sales (this hasn’t been done because the owners are not qualified chefs)
opening on the weekends is a financially viable option (this hasn’t been done because of the owners’ other business commitments)
the alfresco area could be built out with more alfresco seating options (this has not been pursued due to a lack of time to design a layout and to begin talks with the council for approvals)
the space could be hired out for private meetings, or workshops after hours (not explored due to owners’ other business commitments outside business hours)
signage could be improved (not explored because customers successfully find/notice the cafe on their own)
a devoted catering menu could help the businesses that surround the cafe during their meetings/events (not explored due to a lack of ability)
coffee supplies could be sold online through the website (this has not been done because they sell out of goods in store), and
the cafe is not yet available on UberEats, Deliveroo or other food delivery platforms which could also increase revenue further still (this has not been done because food sells out currently).
That said, with the utmost respect, this is an independent professional cafe of relatively low risk due to a proven history of sales, of it's incredible exposure to foot traffic driven by its location and proximity to businesses, residents and services, and the cafe’s interior, food, coffee and friendly service is of an incredibly high, modern standard that customers love and appreciate. As this is a business for sale, understanding numbers is crucial for any investor - the continuing success of this investment, or any other, will come from you and you alone. All this cafe requires going forward is an understanding of the standards to be maintained and guidance for your team. You don’t have to have experience operating a venue before, but a respect for numbers, a love for coffee and for people would enable you to thrive, to relish the chance to work for yourself, with no franchise fees or contracts to be owed or paid, to build a future for yourself that will only grow in its value, and to have the freedom to enjoy your time in this amazing place.
This is why the Purchase Price is $250,000.
The owners are looking forward to hearing from you.