Cafe (or coffee sales) Sentiment in NZ

[Alun Evans]

Hi all. We are very seriously looking at getting something going back home this year. We have been looking at cafes since 2007, but the selling price vs the net profit (and of course the ROI) were not realistic back then. Since November last year prices for cafes have begun to drop,k some expedentially. I am seeing some cafes selling for less than half of what was wanted for them early 2007. My question is how is cafe segement going? Obviously the kiwi economy in general is struggling, but P&L numbers I am seeing from prespective purchases are still OK (or at the most sales are down 5-8% on last year). Would appreciate any comments...

[jules]

I dont know much, but according to my boss in Nelson, all the crappy cafes have gone and the old through back to the lammington is over, He has noticed a younger crowed drinking coffee sine starbucks moved in which is normal, but thats just nelson, hes been open for 7 years ish and has had his best year ever, I would imagine that weelys is still full of stiff comp but Ive been watching mojo grow and grow, But I still like emporio coffee they seem to be getting stronger every day according to me sister in law who live in wellys. Were would you open Alun we are planing to be back in NZ late feb, And ready to roll.

[Alun Evans]

Mate, already open. Just a roastery mind you. Not yet at the stage where we are keen to do the cafe thing in NZ. More focusing on Asia and perhaps the Middle East for cafes- keep the focus on roasting in NZ/Australia. Our cafe business is kind of the old style kiwi cafe (as I remember it in the 90's). Not that keen on the plug and play cake/muffin/sandwich style I have seen popping up in Auckland. Keen to talk more about your feb plans.

jules said:

I dont know much, but according to my boss in Nelson, all the crappy cafes have gone and the old through back to the lammington is over, He has noticed a younger crowed drinking coffee sine starbucks moved in which is normal, but thats just nelson, hes been open for 7 years ish and has had his best year ever, I would imagine that weelys is still full of stiff comp but Ive been watching mojo grow and grow, But I still like emporio coffee they seem to be getting stronger every day according to me sister in law who live in wellys. Were would you open Alun we are planing to be back in NZ late feb, And ready to roll.