Award-winning restaurant sale throws up a menu of options for new owners

A winner at two of New Zealand’s biggest restaurant competitions has been placed on the market for sale.

Joust Beach Bar and Buffet in the coastal township of Orewa just north of Auckland is a casual dining restaurant and bar located by the sea. In 2005 the restaurant was the Auckland regional winner of the Monteith’s Wild Food Challenge, then a year later won recognition in the New Zealand Beef and Lamb Hallmark of Excellence Awards.

The business has been owned throughout by mother and son team Joy and Justin Stedmances – with Joy running front of house services and Justin heading up the kitchen brigade. However, after running the successful hospitality operation for seven years, the duo are looking at new lifestyle opportunities.

Joust has been placed on the market for sale through leading real estate agency Bayleys with offers being taken through until November 18. Bayleys commercial and industrial sales and business broker Mustan Bagasra said the establishment had three separate ‘zones’ for customers – the front restaurant service area overlooking Orewa’s main road, the smaller bar area adjacent to the restaurant, and a large outdoor dining courtyard at the rear of the premises.

An open-plan kitchen enables the activity and aromas of the kitchen to be observed by both bar and restaurant patrons in theatrical style. The bar area has capacity for 12 customers.

“Meanwhile, the covered courtyard allows for private functions and events to be held simultaneously with public dining in the front restaurant area,” Mr Bagasra said.

“For many restaurants, having a function book out the entire premises for a night means they have to turn away regular clientele. By operating two independent dining areas, Joust avoids such clashes as the courtyard can be configured to have guests arriving and departing through their own dedicated access route.

“Alternatively, the rear courtyard can be used as an overflow area when the main dining floor overlooking the beach books out. With a retractable roof above, the 70 square metre outdoor courtyard also comes into its own over the summer months when Joust benefits from a substantial ‘walk up’ trade as a result of being directly across from the vast Orewa Beach.”

In addition to the food and beverage business, the building housing Joust has a three-bedroom flat above the restaurant, which is included in the lease. The building as a whole is leased through until 2014 with three further three-year rights of renewal.

The downstairs area of 154 square metres has an annual lease of $59,000, while the upstairs 120 square metres of accommodation – housing staff who work at the restaurant – is leased for $15,500 per annum and is GST exempt.

Earlier this year, Joust’s a-la-carte menu was converted to a buffet style eatery – the only one of its kind in the Orewa township whose catchment area spreads well up the nearby Whangaparaoa Peninsula and across into Silverdale.

Some $30,000 was invested in an armada of new buffet servery stations, and reconfiguring the dining area to enable a more efficient foot-traffic flow past the foodservice sections.

“With no other competition around the region in this buffet market, and with consumers now conscious about their budget when dining out, Joust has the potential to provide a solid return on investment,” Mr Bagasra said.

The business is being sold with a number of weddings and birthday functions already booked in for the upcoming summer season. Further scope for developing revenues would come from increasing Joust’s daytime café trade during summer weekend days.

“With the opening of the new State Highway One expressway several years ago, retail and foodservice businesses along Hibiscus Coast Highway - what was previously a motorway running through the middle of a seaside town - have in fact thrived, as the precinct became far more pedestrian friendly. It made the crossing from the beach to the retail area far easier.”

Mr Bagasra said Joust currently employed two full time staff, with an additional part-time complement of ten staff. The business operates seven days a week.