30-Year-Old Food Institution Hits the Market in Victoria

by Vanessa Lovie 16th of January, 2023

30-Year-Old Food Institution Hits the Market in Victoria

It's humble beginning as a Polish inspired delicatessen in the 1990s has seen this business grow from strength to strength.

When two kids fresh out of university decided the corporate world wasn't for them, they embarked on their own entrepreneurial journey.

The Kransky Stall

In 2009, with the festival season open in Melbourne, the young entrepreneurs set about opening a Kransky stall in Federation Square.

To ensure it was a winner - they needed one major ticket item - high-quality kransky’s!

“We approached this husband-and-wife team and bought 1,000 sausages from them…. We sold out at this festival in three hours and made the most money” current owner.

It was a lightbulb moment and these foodies knew they were onto something.

As these entrepreneurs continued to grow and expand their market business the opportunity to purchase the original delicatessen became available in 2013.

More than just a Delicatessen

Full of ideas and a passion to be successful these budding entrepreneurs embraced the challenge and took over the business.

Modernizing systems, expanding product range, communicating to a broader customer base and importantly relocating to a purpose-built 330sqm Food store café location in the heart of Melbourne’s South Eastern metro growth corridor.

Their formula is simple – stock products that you cannot find at the major supermarkets.

In a world of growing health-conscious buyers looking for foods that are pure and not highly processed, the Foodstore is the answer. They source artisan goods from local makers as well as imported speciality goods from around the world.

Importantly a huge point of difference is their exclusive relationship with their sister ‘smallgoods manufacturing’ business. This has enabled a huge patronage and a draw card attracting buyers to high-quality smallgoods that cannot be easily found elsewhere. “This exclusivity arrangement will be extended to the prospective buyers”

Out the back you’ll see there is a full commercial kitchen that pumps out more of their own product lines and has plenty of upside potential for a new owner.

The European style food-store boasts a 10m long deli counters, you can browse aisles of weird and wonderful speciality foods. A huge wall of pickles and sauerkraut pays homage to the owners’ Polish roots, as well as a freezer full of house made Pierogi Polish dumplings. Salted herrings, smoked eel, tinned sprats, cod liver, hard to find cheeses such as proper quark cheese. You might even catch the staff cracking a 40kg 3yr old wheel of Parmesan.

It's a full European food store, bread, sweets and temptations are plenty; baked cheesecakes, poppyseed strudels and babkas tempt you from top of the deli counter. There's also a café side pumping out coffee and good value sandwiches

The Calibre

This business is nothing short of a well-oiled machine. With management in place and six team members, this business is fully systemised and ready for the new owners.

“It's fully under management. There's a manager and an office manager... I’m there maybe one day a week”

This delicatessen is no run-of-the-mill operation. It has been fully established by these business owners to ensure its success.

“Full supermarket style point of sale system. Where everything is tracked, there's security cameras… etcetera. Operationally, there's some really good systems in place”

Notably, this food-store is a well-established brand within the Melbourne food scene with a suite of editorials published, regular mentions in food media source as well as strong social media following.

So, why the sale?

These business owners always had success as part of their plans.

Over the past 9 years, these passionate business owners and their team have established a very successful business in a growing area.

Expanding on their knowledge and expertise these owners are focusing their sights on food manufacturing. Driven to create innovative products with a plan to become Australia’s best premium small goods supplier. The current owners are moving into the manufacturing space.

The opportunity exists to buy the business with a lease agreement or purchase the business and commercial premises.

Who would be the right buyer for this business?

“We are really genuine people. Hopefully, we find the next custodian.”

It's evident the owner's passion for this 30-year-old delicatessen that launched their first entrepreneurial journey in 2009.

A buyer who can embrace this business, its community and continue the legacy.

When questioned by Bsale whether they need to come from the food industry, the owner shared;

“I didn't come from a food background; I was just passionate about food.”

I think that is the key to owning a delicatessen. You need to be passionate about food and business.

Interested buyers, should make contact with the listing agent. This is a genuine sale of a very unique business in Victoria.

Unless sold prior, Expressions of Interest will close at 4 pm on Wednesday, 22nd of February 2023.

You can view the full listing details here

Tags: festival melbourne vic buying success