Popular Student Café With Letting Rooms
- Asking Price: £84,950 +SAV
- Turnover: The business generates a turnover in the region of £103,000 per annum.Gross profit 24%
- Tenure: Leasehold
Hilton Smythe welcomes to the market The Chattery. The café was originally established by our client in 1977. This is a well-run business that has been completed to a high standard. The owner is now looking to sell the café, due to the desire to take a well-deserved retirement. The café offers a varied menu serving hot and cold meals throughout the day. They sell high quality fayre and have been awarded a 5 star food hygiene rating. The business sees a large amount of repeat loyal trade from the locals and a generous amount of trade from students and tourists. The business is currently generating an advised turnover of around £103,000 per annum, with a gross profit of 24%, as of 2012 accounts. This is a healthy turnover that could be increased. Evening bistro nights, could bring in more trade for the café and should maximise the amount of custom. The business has an alcohol and live music licence. The alcohol licence is until 1am and the music licence till 11:30pm. The café doubles up as a live music venue, once a month, specialising in American music. Our client currently charges £10-£15 each night, this is very popular with students. Above the café are 9 student letting rooms, if all rooms are let out, the rooms could generate £28,000 per annum, this is not included in the business accounts. The rent for the whole building is £22,000 per annum, the letting rooms’ cover the rent for the building, allowing the business to run rent free. Social media is a great way of attracting new custom. Included in the sale is the business Facebook page this has over 1,000 likes, this page is regularly updated with photos and event information. This is a fantastic opportunity that is not to be missed. Hilton Smythe highly advise early viewing to take in the full potential of the trade.
The business is run and managed by our client, with the help of 5 part time members of staff. The wage bill is around £550 per week.
The business opening hours- Monday: 10am – 3pmTuesday - Friday: 10am – 5pmSaturday: 10am – 4:30pmSunday: Closed
The Chattery is located in Uplands, Swansea. The café is situated close to the centre of Swansea. This is a vibrant area, with a large variety of businesses. There are independent and larger brands in this area such as, a KFC, Tesco Express, Subway and also pubs, hair salons, takeaways, a computer shop, barbers, cake shop and much more. This is a great location that receives a large amount of footfall and passing trade daily. Directly outside the property is on street parking, there are also car parks close by. Swansea is approximately just a short 5 minute drive away from this location. Swansea is a popular tourist location that sees a large amount of visitors each year. There are many attractions with several museums, beaches, art galleries, markets and also a marina. Uplands has several university campuses, each within close proximity of this café. This is great for the live band nights and letting rooms, which are included in the sale. There are several bus stops dotted around Uplands, these have regular routes into Swansea and other towns. The closest train station is in Swansea town centre. The A483 is the closest arterial A-road, this connects to the M4 motorway, which runs across the South of Wales.
The Chattery is a well-presented property that looks inviting. There are windows across the front of the property, which allows for a bright and airy retail space. There are steps and a disabled access up to the entrance. On the railings there are flower boxes for decorations. As you walk into the café you are welcomed with a long dining area, with 61 covers. This is a great space with various table and chairs set up. To the rear of the room is the service counter and preparation area. Equipment includes-TillCoffee machine Washing machine Dish washer Sink Work surface Storage cupboards FridgeCoffee grinder Tall glass door fridge for beers and winesWine rack Behind the service counter, is the large kitchen, storage room and access to basement. The basement is currently unused and the storage room is completed with shelving and racks. Through a corridor is a storage area, this is a conservatory. This storage room has: Fridge/freezer, 2 chest freezers, upright fridge, shelving and racking. The kitchen has: Commercial stainless steel 2 pot sink, 6x microwaves, 2x under counter, fridge, under counter freezer, tall fridge, storage space, toaster, commercial grill, washing machine, stainless steel work tops, 2x 2 pan fryer (one large one mid-sized), gas cooker, 6 hob with a griddle attachment and air vent. A corridor at the rear of the property leads to the W/C and access to the yard at the back of the property. Out back there is a courtyard, which has seating and tables mainly for staff or as a smoker’s area in the evenings. There is also access to the upstairs flats. The property has a first and second floor, these could be transformed into two flats. These floors are currently used as student accommodation split into 9 rooms. Our client rents out the 9 rooms, during term time for £75 per week, 42 weeks of the year, if all of the rooms are rented out the total earnings will be £28,000 per annum. The flats have their own access at the back of the property or alternatively through the side door at the front.
We are advised the business is being sold as a Leasehold opportunity. Original lease length: 10 yearsRemaining lease length: 5 years as of 2016. Rent: £22,000 per annum