Tropicana Cafe, Tonga

Neiafu
Vava'u, Tonga
Summary
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Type of Contract: 

Description

USD 199,000 or USD173,500 for 50% of building

Cafe Tropicana is a well known, highly established and extremely popular internet cafe, bar and restaurant situated on the main street of Neiafu town centre on the pristine Vava'u island group of the Kingdom of Tonga.

This fully licensed and multi faceted business is located amongst the post office, grocery store, fruit store, bookshop and banks and is perfectly situated to capture all passing trade, be they locals or tourists, making it without doubt the premium revenue generating cafe business on Vava'u.

Cafe Tropicana's central location combined with its popular reputation offering the warmest hospitality means there is a steady stream of customers from when the doors open until closing time. All this and an ocean view from the shady coral balcony too!

The Venue

Cafe Tropicana is an established part of the local community. This efficient and extremely well run business has been in operation since 2004 and with the present owners since 2007. With well trained, friendly staff who offer a warm welcome and excellent service coupled with great food and drink, this dynamic business caters to not only loyal locals and passers by but to the many tourists who visit this unique island group all year round.

Cafe Tropicana is located next to The Adventure Backpackers complex.

The entire site is approximately 138 metres square (1,502 square feet) in area. Standing capacity, for parties/functions etc is over 70.

The indoor area and comprises seven internet stations a reading lounge, fully equipped kitchen, laundry room, booking agency, icemaker, several storage areas, video projector stand/screen, bakery area and a service and counter area totalling 105 metres square (1,143 square feet). At present the seating accommodates 20 customers. Cafe Tropicana is the largest indoor cafe in Vava'u and is a venue much in demand for gatherings of all kinds due to the space available.

The outdoor coral balcony is approximately 31 metres square (337 square feet) and comprises an ocean view dining area and bathroom, icemaker cupboard, and outside storage facilities. The popular balcony area, fully covered and shaded using a native creeper, accommodates up to 20 seated customers.

The present owner's attention to detail in all aspects of this business, coupled with prompt and friendly service is evident in the inviting ambience they have created here.
This is a unique internet cafe, bar and restaurant business indeed. The best in Vava'u !

The Business

Cafe Tropicana operates days only 5 ½ days a week, you could extend to 7 days and nights if you wish.

Café Tropicana offers the following services for tourists, ex-pats and Tongan’s:

• Full-scale Café with a healthy provisioning and takeaway service
• Internet Service (7 computer stations and Wi-Fi)
• Office Services (Photo, fax, laminate, A4/A3 colour printing, etc.)
• Real Espresso Coffee (And we can show you how to make it)
• Bakery (Cakes, pies, muffins, breads, etc.)
• Liquor Sales of beer, wine and spirits
• Sole Kingdom Koffie distributor in Vava’u
• Sale of local postcards, arts, crafts, etc.
• Nautical Charts and chartlets
• Courtesy Flags and Tongan Flags
• The largest swap a book library in Vava’u
• Cellphone hire
• Digicel and TCC cellphone credit resellers
• Kayak rentals – new service
• Free Luggage/shopping storage facilities.
• Commercial Laundry – new service
• Commercial Icemakers – new service
• Bulk rain water sales (yachties) – new service
• Rubbish disposal (yachties) – new service
• International courier agencies – new service
• Computer repairs, harbour Wi-Fi (optional) – new service
• Booking agency (space sub-leased to Vavau Adventures/Kart Safaris owners) – new service

The current owners bought the cafe from the original developers in 2007 and have concentrated on providing an all year round one-stop shop that is profitable. Lately focussing on reducing expenses using solar and a water header tank before expanding the floor area into an adjacent building by popular demand.

WHERE TO LIVE:

Long term Accommodation can be interesting to find in Vava’u but the owners have several options for you to look at…
You can quite literally raise the roof on the café itself and build a home on a second level – use the kitchen, toilet and internet from downstairs and just put a shower, 2 bedrooms and living area upstairs… 5 seconds to work and fantastic sea views from the deck…
Or, simply take over the lease on either, or both of their homes

- a massive 4 bedroom house with a self-contained 1 bedroom unit below. The house is 1.5km from the café and has amazing harbour views as well as huge garden and storage areas. Live in one house and rent the other out… or

- a 2 bedroom cottage 2.5km from the café with even more amazing harbour views!

THE LEASE:

Cafe Tropicana has a land lease running through till 2021 with the previous developers that is available to transfer as well. The lease then changes ownership to a major Tongan Corporation that wants the café to stay as we attract customers to their other shops in the same block.

The next door neighbour, Adventure Backpackers, recently renewed their lease with the same landlord without issue and we have just (April 2012) extended our Internet, booking service and new Laundry into a room left vacant by the Duty Free store moving next door with the same landlord.

THE COMPANY:

Café Tropicana Ltd is a Tongan corporation and all business licenses are held by the company. This ensures an easy and expedient transfer of ownership.

OWNERSHIP

The new owner(s) will literally OWN the café building!

The building is half owned by the current owners and one of the original developers of the land. 50% or 100% of the building is available to buy, as the original developers now wish to sell as they are retiring to NZ shortly.

INCOME

Unlike other businesses, Café Tropicana has a consistently high daily cash income and a very short off season, which is also a rarity here in Tonga! February has traditionally been our quietest month – time for a break back home, diving, sailing, make changes to the business or just relax.

CAFÉ STOCK

All stock will be sold to the new owner(s) at real value so the business is ready to run and make money from day one. The estimated value of the stock is between $5-7,000 US Dollars at any given time.

TRAINING PERIOD

The owners of Café Tropicana offer a handover of the business to the new owner(s), with a two week training period if desired by the new owner(s).

WHY ARE THE OWNERS SELLING?

The current owners arrived as a couple, they are not anymore.

WHAT ARE YOU WAITING FOR?

Ready income, beneficial location, expansion opportunities available from this unique business location, great lease and ownership options. If you are interested in food service, then this business could be a dream come true.

However, if you are looking for a lifestyle business in the islands then this business may also be perfect for you!

Café Tropicana is that rare business that does not require a million hours of work just to make a decent income. You don’t even need to be from the food industry in order to succeed, you simply need to be creative and dedicated to customer service.

Owning café Tropicana gives you the opportunities to not only own a profitable café in Tonga, but to live a lifestyle of in a South Pacific paradise!

The current owners have built up a loyal and regular clientele over since 2012 by refining and adapting their offer to the local market, tourists, ex pats and their needs. Cafe Tropicana has had much hard work invested into the first growth years and is ready to expand and develop - perfect timing for the new owner to reap the rewards.

The present owners have a clear and defined sales and marketing strategy in place which will serve to enhance and grow the steady revenue stream this iconic cafe already enjoys. Turnover is without doubt buoyant and upwardly mobile.

Price: 
$199 000USD
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