Most expensive cafe space?

admin

Is this Australia's most expensive cafe space [$73,000 per sq metre]? http://www.theage.com.au/business/property/shoebox-cafe-serves-up-hefty-auction-price-tag-20131030-2whh4.html

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FreshCoffee2

Without the benefit of any insider information, one can only conclude that the business is going great guns and is able to sustain paying big rent, because the sale/purchase price of the space, will be tied to the rent, and it would be madness for someone to buy the space, then lose money on its investment, if the rental income that the space is bringing, is not high enough to allow the owner of the space to make a reasonable profit from the deal in toto. So on the basis of not having any info except that which is in the artikill, the only logical conclusion is the 2 girls running the cafe are making a mozza and are able to pay huge rent, making the sale price of the space a worthwhile investment for the buyer. No? As an aside then....the writer of the artikill isnt doing the cafe owners any favours because he is indirectly telling his readers, that they have money coming out of their ears ????? and is thereby perpetuating the ever circular idea that you sell a cuppa coffee and you make a fortune ( same as when a coffee company sells a kilo of coffee, they made a squillion.....) 😉

Koffee_Kosmo

The $73.000 per sq meter is based on the " expected Auction sale price " Don't know why the owners are selling after trading for only 3 months ( as per article )

Inside there is standing room only for proprietors Sally Twist and Narelle Ryan who have been dishing out coffee, rolls and toasted jaffles to loyal patrons six days a week since opening three months ago.

FreshCoffee2

At first read I too took it to mean it was the cafe business that is for sale. After a more detailed read it now looks to me its the real estate that is for sale rather than the biz. "...A precious patch of retail real estate in Little Collins' Causeway building measuring just three square metres will be auctioned on Thursday..." and "...But two CBD shops, one in Swanston and the other in Collins, show retail spaces are easily the city's most pricey property...." The article is confusing, on the one hand talking about real estate and strata title space, and then seeming to refer to past sale prices on nearby businesses where I think what is meant is the real estate that the businesses occupy.... However the title of the article is what indicated to me at first cursory look that the cafe (biz) is for sale. Modern journalism?

admin

$73,000 per sq m. - would have been cheap at that price; apparently sold for $380,000, or $126,666 per square metre!!! A 8)

conikal

Fresh Coffee wrote:

,....... the only logical conclusion is the 2 girls running the cafe are making a mozza and are able to pay huge rent, making the sale price of the space a worthwhile investment for the buyer...

If their rent is based on say 9% property value, ( typical commercial rate ?) ... then even at $380k they would only be paying $650 a week rent for a cafe business...or less than $100 per day ! Isnt that cheap property for a cafe business ? I wonder if they have to pay for use of the "communial" table area ?

[deleted]

As the "world's most expensive coffee", who is the "we" that must stop drinking it? At the prices cited in the story, there is likely not too many "we" reading this article. (I might get a half a pound of Jamaican Blue Mountain once a year, but that's the extent of my spurge.) The author needs to send this article to a publication where the civet coffee drinkers might read it.