The Moeraki Tavern is a major tourist magnet between Oamaru and Dunedin.
The Moeraki Tavern is a major tourist magnet between Oamaru and Dunedin.
The Moeraki Tavern - just a stone's throw from the famous Moeraki Boulders - is being marketed for sale by Dunedin business partner for ABC Business Sales, Jono Kennedy.
The area, once renowned as a whaling village and later as a main port for north Otago, is now a major tourist magnet between Oamaru and Dunedin. "Some tourists even rate the destination as being among 'the seven-wonders of the South Island'," Kennedy says.
Built in 2002, the tavern is in a prime position, flanked by a breath-taking sprawling coastline.
"The business has a solid track-record of averaging 62 per cent gross profit - spread across all activities - for its two working owners.
"Owned and operated by the same people since 2011, the large (273sq m) tavern is recognised as a well-rounded hospitality destination - consistently receiving glowing reviews," says Kennedy.
"Traditional beer, wine and spirits complement the cuisine and service and these are the cornerstones of success for this business."
Kennedy credits "a relaxed and welcoming Kiwi style of hospitality" for shaping the business into the high-performing operation it is today.
"It's year-on-year cash surplus indicates an enviable track record - the result of the seamless systems, efficient operations and overall positive management of the current owners."
For prospective owners, the hard yards have been done, with net profit increasing and an 8 per cent rate of increase in sales revenue over the past four years showing no signs of slowing down.
It offers customer favourites: great food, cold beer, a pool table, jukebox, big screen TVs for sporting events and a large deck overlooking the water.
People come to Moeraki Tavern to enjoy Kiwi hospitality in a beautiful setting.
An open-plan dining area is tucked away at the rear of the premises, affording a more relaxed dining experience, while the recently upgraded commercial kitchen serves pub favourites such as "the fisherman's catch", "Moeraki burger" and famous "Moeraki seafood chowder".
"The tavern's primary business activity is spread between the bar and restaurant," says Kennedy.
"Additional revenue is generated from an off-licence that offers general convenience items to the permanent population of 90, boosted by holidaymakers in the warmer months."
This business boasts an impressive gross margin - when combined with relatively small and manageable expenses, resulting in a consistent and sizeable owner-operator income of well over $350,000.
"Being the only tavern in the immediate area, it's a busy business catering for tourists, visitors and locals year-round. However, there's plenty of room for a new owner to make their mark by adding to this, with a mix of frontline hospitality, management and business development.
"A new owner could increase the number of marketing channels used to promote the venue and its regular events. There is scope for an activities-based business to boost sales of the convenience side of the trade as well, as becoming a booking agent for local attractions.
"This is a solid business providing a new owner good returns, a lifestyle change and the opportunity to own a business that will continue to benefit the region for many years to come," says Kennedy.
The tavern staff members are adept in sales and operational aspects of the business and are capable of running the tavern in the absence of the two working owners.
The current owners offer flexible hand-over assistance, including - by negotiation - remaining with the business for a longer term, plus on-call availability to ensure a smooth transition process.
The three-bedroom, 2015 architecturally designed owner's residence is also available by negotiation.
"Moeraki Tavern's culture is one of true Kiwi hospitality. The new owner may be someone with previous hospitality experience, or with a natural flair for people and service delivery.
"They may simply possess strong business development expertise and be looking to grow this unique site beyond what has already been achieved," Kennedy says.
"The beauty of this proposition lies in its simplicity. There's a straightforward hospitality model that has been executed with precision, dedication and control by the current owners.
"This has resulted in great financials, with potential for a prospective buyer to build on."
