Here is my ‘Big Picture’ proposal for a new hospitality concept, launched in Sydney Australia in early 2018.
This is a 5-year exit plan. It is created and built from ‘the ground up’ to be sold-off to a national franchising company for 4 to 5 times its set up costs.
It is underpinned by a number of similar F&B operations launched throughout Sydney, and then finally sold off as a chain, with some international operations ending up as far away as Singapore-Dubai-Las Vegas-New York and London.
So this is how it works.
We conceptually 'invent' create and document a ‘ground breaking’ new hospitality concept.
This concept must be absolutely unique and iconic in every way imaginable, with an overwhelming commercial ‘point of differentiation’ in the Sydney market.
We invent a new brand name and my new client registers all the necessary registrations including domain and Australian trademarks.
We create and build the “Flagship” model in a prime Sydney retail location. We use all my teams skills and experience to create a massive Sydney launch, with all the media hype and fanfare imaginable. We have over 38 years of experience in creating that kind of launch.
Within 3-6 months we can show the world what we have created, and we secure a passive (usually overseas based) investor to finance and build up to 6 new Sydney operations in the next 3-5 years.
If we create a commercial success we could fill a 'Ball Room' full of investors that will back stage 2.
Just for the exercise let’s call the new company “Newco”. “Newco” agrees to a fair shareholding contract between my client and the seed investor.
“Newco” has a shareholders agreement with my client and agrees to the 5-year sellout. Newco owns all the new operations, but does not own the flagship operation (unless you choose to sell to “Newco”) and most certainly does not own the trademark or the ‘intellectual property’ that will be generated by the expansion of the new Sydney operations.
My client owns the trademarks and all registered branding names at all times. “Newco” only gets a license to trade under a legally binding contractual licensing agreement.
“At the end of the day the man that owns the ‘Gold’ is the man that owns the registered branding names, licenses-intellectual property & Trademarks ”
Above all else we are creating and building a new branding name, and making the subsequent purchase as attractive as possible to a national company ready for franchising and/or a national roll out.
The most important thing is where 'your' branding name sits in the marketplace at the time of sell out, in approx. 4-5 years time.
There are literally dozens of examples of this scenario in the greater Australian market place over the past 10 years, with the recent purchase of the Bavarian Beer Café group for a massive AU$200 Million Dollars. Google out: Sale of urban purveyor group.
A remarkable sell-out price for 20 operations (no freehold properties-just leases estimated at 6-8 times the real market price) All these huge sell out profiles have one thing in common.
Above all else-the purchasing company saw the value in paying premium prices in purchasing and potentially exploiting the ‘branding name’, and that always remains the absolute possession of my clients at all times, right up to the point of sale.
Now i am not suggesting for a moment that a new Sydney hospitality concept expansion will be worth hundreds of millions of dollars in a few short years, but i am suggesting that 'Newco' may well be worth up to 4 or 5 times the initial establishment costs, if the structure is created-branded marketed and sold off professionally.
CLICK HERE TO VIEW DOZENS OF MICHAEL'S ICONIC NEW CONCEPTS FOR 2018
Below is a list of 30 unique and iconic hospitality concepts, ripe for Sydney expansion or commercial exploitation, from a small 100 square meter concept Cafe up to a 1,500 square meter live Jazz music venue.
- Cafe Del Mar "Piccolo" Cafe Bar: Exploiting a world famous music branding name.
- Pasta La Vista Baby: An iconic "sit-up" Pasta and Italian Wine Bar.
- Hank’s ‘Cool Jam’ Café: underpinned by a famous Sydney Jam branding name.
- The Cheesecake Emporium: Based on the famous American “Cheesecake factory”
- Petal and Bean Cafe: A unique combination of a high-end Cafe with a high-end florist.
- The Great Auzzie Seafood Bar: A high-end Fish & Chippery in the front of house and a sit-up Oyster & Champagne Bar at the back of house.
- Sliders Bar: A unique Slider 'Mini-Burger' and American Craft Beer Bar.
- The Dancing Crab Company: Based on the internationally renowned Singaporean Chilli and pepper Crab concept.
- The Royal Dutch House Of Pancakes: An upmarket Pancake concept with the latest styles of today's dining trends.
- Jamaican Brew: An authentic Jamaican Rum Bar and Jerk Chicken concept.
- The 'Itzy Bitzi' Snazzy Jazzy Blues-Bourbon and American Beer Bar.
- Cafe Gaudi: A unique Cafe operation based on the world famous Catalonian architect.
- Boris & Natasha: An authentic Russian/Ukrainian dessert Cafe and Teahouse.
- The Laundro-Mat Cafe: An upmarket Cafe in the front of house with a State of the Art Laundry and unique WI-FI Business center at rear.
- Sardi’s Of New York: Based on one of America’s most famous restaurants.
- Barossa Valley Wine and Produce Bar: Exclusive South Australian F&B produce.
- Dukes Canoe Club: Authentic Hawaiian Hula Bar and Grill.
- The House Of Paella: Specializing in Paella and Sangria Bar.
- Portugalia: Authentic Portuguese Peri-Peri Chicken-Sherry and Port Wine Bar.
- Reuben’s International Stage Deli: Based on a New York institution.
- Bagel Brothers: Classical Brooklyn Bagel House and Café.
- Bretzel House: Authentic German Bretzel House and Bier Bar.
- The House Of Brews: A combined 6 Australian Craft Beer Bars under the one roof.
- The Gin Palace: A replical of an authentic London institution.
- Cafe Saint Germain: A replica of an authentic Parisian cafe with a famous music label.
- Bourbon Street Beat: A New Orleans inspired Bar operation.
- The 'Speakeasy' Prohibition Bar: Based on the famous 1920 American era.
- The Yardhouse: Famous Beer Bar with over 100 Beers on tap.
- The House of Calzone: Sit up Bar and bistro.
- Street Kitchen: A group of 8 Street food Caravans all under the one roof with live music & entertainment with a full bar operation representing each operations alcohol produce.