Restaurant in fast-growing area for sale
The restaurant features a fusion of Japanese and Chinese cuisine.
The popular Shanghai 1930 restaurant in Flat Bush in southeast Auckland is being offered for sale with all its assets as a going concern business within leased premises at an asking price of $180,000.
"This restaurant would certainly rank among the top three high-end venues in Manukau," says Neville Choksi of Link Business Broking Ltd. "It is located in the fast-growing Flat Bush area where the council has plans for 40,000 new residents.
"An additional 8000 new dwellings have been sanctioned by the Auckland Council to be built within the next few years so the population is only going to grow. And Southeast Auckland has a fast growing Asian population to whom the cuisine offered at Shanghai 1930 is very appealing."
Choksi says the present owner revived the restaurant in December last year after it was shut down for a considerable period. "He has not only undertaken an extensive renovation of the restaurant but has added lots of features and high end chattels which are included in the sale."
The restaurant features a fusion of Japanese and Chinese cuisine and can seat 120 patrons on two levels. It has two substantial bars on the two levels with a spacious outdoor terrace area and a huge video screen for entertainment or conferences. A kitchen with two walk-in freezers is manned by experienced chefs.
"The facilities are excellent for parties, seminars, corporate events, wedding receptions and fashion shows," Choksi says. "With council approval, it could easily be converted into a night club or tavern."
The owner has employed senior-level staff and his involvement in the business is not full time.
"And this professional team of chefs and staff is happy to continue with a new owner."
Choksi says the owner has put the business on the market because of a change in plans with another business opportunity coming his way requiring him to divest of the Shanghai 30 restaurant. "Hence the reluctant sale with the major component of the asking price mainly comprising the assets of the business."
The assets include an extensive range of crockery, glassware and cooking utensils; 14 chandeliers; three refrigerators, chest freezer and two cold storage rooms; numerous sinks and two dishwashers; deep fryer, hob with six burners, rice cooker, grill and two microwave ovens; bar appliances, computer and Eftpos machines; six speakers, projector with screen and a DJ booth; several heaters, a coffee machine, ceiling fan and exhaust system.
The sale also encompasses furniture including 77 chairs, 16 tables, six seater couches, five coffee tables, four armchairs and four cushioned chairs, two bar tables and seven bar stools. Bathroom assets encompass five toilets, two urinals and eight wash basins with other ancillary fittings like soap and towel dispensers. A monitored alarm system with five cameras is also included.
Choksi says the building owner is prepared to offer a rent incentive for a new owner. The current three year lease commenced on November 28, 2013 and has a final expiry of November 2022 if two further three-year renewals are exercised.
"With the opening of the new Tai Ping supermarket in the same complex, pedestrian traffic is bound to increase. A new owner of the restaurant could capitalise on this by opening for yum cha on weekends to attract Asian customers who have been shopping at Tai Ping," he says.
"While Shanghai 30 is presently open only in the evenings for dinner, the vendor with extensive marketing, has been able to book high profile functions enabling him to achieve 'break even' and is on track to achieve decent profits. However a new owner could extend the hours by offering breakfasts and lunches.
"Located at a stone's throw from high end bars which are reporting substantial turnover, it would stand to reason that this venue could also achieve attract substantial clientele."