Iconic cafe-bakery chain for sale

A cafe-bakery chain that’s a popular pit stop for people road-tripping from Sydney is reportedly up for sale and the new owners may look to expand it Australia-wide.

A cafe-bakery chain that’s a well-known pit stop for people road-tripping north or south from Sydney is reportedly up for sale and the new owners may look to expand it Australia-wide.

According to the Australian Financial Review Heatherbrae’s Pies, which was opened by husband and wife duo Russell and Amanda Cox 22 years ago, has engaged boutique investment bank Wyuna Partners to sell the business.

It has three stores with large parking areas, all positioned to capture travellers heading out of Sydney by car and looking for a convenient pit stop.

Its Sutton Forest location is just off the Hume Highway between Sydney and Canberra, its Heatherbrae site is just off the Pacific Highway, north of Newcastle, and its Ourimbah store is also near the Pacific Highway on the NSW Central Coast.

As its name suggests, Heatherbrae’s Pies sells a range of pies, sausage rolls, pasties, cakes and other sweets and well as coffee, competing with fast-food giants such as McDonald’s and KFC along the highways.

Quoting the sales memorandum, the Australian Financial Review said the business turned over around $15 million last year, with revenue from its Sutton Forest location having grown 15 per cent each year since 2019.

In the document, Wyuna claims its gross profit margins are “substantially higher than most ASX-listed quick service restaurant groups” and that it served more than 1.8 million customers last year, with 90 per cent of those being repeat customers.

It is described as a highly profitable business with high levels of operational efficiency that make it ready to be expanded to other parts of Australia.

The investment bank reportedly tried to sell the business – including its three retail properties – last year, and while that is still the preferred option, it is now open to selling the business on a leasehold basis.

Offers for Heatherbrae’s Pies are due by February 29, with a sale hoped to be completed by late April.

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