In the past 5 years, Sydney has been the host city to dozens of iconic food and beverage launches, with a fair slice of those concepts and branding names ending up with operations outside of New South Wales with a handfull of them outside of the country.
As Australia's premier market, Sydney still offers a host of "Sizzling" hot commercial opportunities in today's market. There are literally dozens of unique Cafe-Bar and Restaurant ideas and concepts to consider, but Michael feels that there is no greater opportunity today than the conceptual creation and launch of a new Australian Craft Beer Bar chain:
It is no secret that just as in New Zealand-The United States and in The United Kingdon, the Craft Beer industry is just kicking off, with the establishemnt of a number of high profile branding names in the Sydney Brisbane and Melbourne markets.
It is perfectly clear for anyone who cares to look, that the large national brewing companies, both local and international are buying up smaller Australian craft brands, and bringing them into their massive portfolios.
From the recent sale of the Bavarian Beer Cafe chain for a whopping $AU200 Million, down to a boutique South Australian brand exiting for just under AU$50 Mill, these remarkable exit prices are paid for the one underlying reason.
The big-end brewers want their branding names and client bases for their own national and international companies, befor they grow too big. (google out: sale of little creatures/urban purveyor group or 4 pines)
This 5 year project is created and designed right from the start to attract a lucrative exit from a national or international brewer/equity group or franchising company and triple or quadruple the seed capital investor's initial investment.
So here is the idea:
Between New South Wales, Victoria and Queensland there would be in excess of 20-30 quality Australian craft brewers that would sell their back teeth to get a chance to place a number of permanent taps in the boyuant Sydney Bar market.
They simply cannot get taps into the major hotels and pubs as they are controlled (some say strangled) by the massive national breweries. We source and appoint one of these Craft brewers to be in the 'deal' with us, and agree to a purchase option at an agreed sell out price within the 5 year exit period.
There are dozens of quality producers that would be bowled over by this opportunity. It would be all their dreams come true. We then brand and trademark a new 'Beer Brand' We use this brand in underpinning the new Sydney beer bar operations, just like James Squire/Coopers/4 Pines/Murray's and many other similar high end operations throughout NSW, Victoria and Queensland. We may choose to specialise in a certain region of Australia, for example a Tasmanian Brew and Whisky House.
We then secure a 5 star Sydney retail footprint (minimum seating of 250) and launch the new operation, with a clear and distinct commercial point of differentiation in every way imaginable.
- Bar style and presentation
- Food concepts and open kitchen designs
- Live and electronic entertainment
Over the following 5 years We build on with new Sydney operations, or we may choose to move on to Brisbane or Melbourne, possibly to Newcastle or other rural NSW and Victorian footprints. Once we have made an impact in the East Coast markets, we will no doubt attract some attention from the nations bigger players, and eventually draw in offers to exit.
The exit strategy enables the purchaser to buy out all the existing operations, the third party contracts with other Pubs and bars, and most importantly, the brewery and all the registered branding names-trademarks and the intellectual property generated by the creation of the chain over 3 Australian states.
The local market overview is extremely strong with examples of this happening, usually with massive pay out exit prices.
Michael Vale would be more than happy to have an exploratory meeting with genuine interested parties to discuss this proposal in far greater detail.