The Albany franchise of one of New Zealand's leading hospitality businesses is on the market for sale.
Lone Star Albany was established in 2014 and has been trading consistently since then. The current owners are the second franchisees, showing that the business model is easily transferable.
While some hospitality businesses may have seen a slight reduction in sales since the Covid-19 lockdowns, Link Business broker Jeff Wiley says Lone Star Albany has managed to trade consistently with weekly sales averaging around $50,000 (including GST).
“Based on current trading and forecasting, a full-time working owner can look forward to an annual surplus of at least $340,000. We have been told that the franchisor is also working on strengthening the buying power. This would only add to the bottom line and could see the surplus easily exceed $450,000,” says Wiley.
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Lone Star Albany is located in The Foundation complex, on a busy corner site on Oteha Valley Road, near the Westfield Shopping Centre, Albany bus station and North Harbour Stadium.
Albany is a rapidly growing area of Auckland. Many new projects are being developed in the area, including new residential apartment buildings, new offices for Auckland Council and an expansion to the Westfield Shopping Centre. Lone Star Albany is ideally located to reap the benefits of these new developments for years to come.
On top of its prominent location, there is scope to extend the trading hours and to open for lunches.
The business currently is open seven days a week, from 5pm to 9pm, and employs seven full-time staff and 18 part-time staff. The owners this year have worked hard to keep the wage bill low. This year it has been consistently around 25 percent.
The current lease has a further six years to run, with one further right of renewal. If this renewal was exercised, it would take occupancy to 2031.
Wiley said this was a rare opportunity to buy into one of New Zealand’s most robust franchise businesses.
“Lone Star’s guiding phrase is ‘love, care and generosity’, and in times like these that goes a long way. When people are dining out, they’re looking for a place where they can feel welcomed and know they are going to have a great time.
“This is where Lone Star’s consistent franchise systems really shine through. Comprehensive training, detailed processes, exceptional buying power and the outstanding support you will receive from the franchisor is second to none.”
It has a restaurant area seating up to 120 people, a fully covered outdoor area which seats 100 people, a bar and a large professional kitchen.
Current owners Andy and Ron Fincham said they were proud to have been associated with Lone Star. “For 32 years Lone Star has been a legendary name within the hospitality industry. From the time we took over the Albany location, the franchisor has worked alongside us, offering various degrees of support to ensure our store is successful.
“We have found that the operation is very simple to follow, and it’s easy to hit the ground running. With seven Lone Star stores in Auckland alone, there is also great support from the other franchisees.”
The investment for Lone Star Albany is $1,150,000, which is made up of $405,000 tangible assets and $745,000 intangible assets. Stock of $20,000 is additional. Full financial records for the business are available on request.
