We Sold an Ice Cream Shop on the Beach
We Sold an Ice Cream Shop on the Beach
When someone tells me their business has “untapped potential,” I usually smile and move on. Every vendor thinks the next owner will unlock a goldmine. But every now and then, the gap between where a business is and where it could be is obvious. That’s what happened with St Louis Brighton.
Everything Except Someone in It
St Louis is a brand South Australians genuinely love. Founded in 2012, it’s grown to 15 locations across SA and two in the Philippines. The Brighton store sits on Jetty Road. Beachside. Gorgeous fit-out, world-class product, rent well under 10% of revenue. A dream listing.
But it had been sitting with another broker. When the vendor and franchisor called us, I saw what I see constantly in small retail across Australia: a franchise store running under management, ticking along, but not thriving. Small profits, not enough to call it a real business. Not because the model was broken, but because nobody was in it.
The Owner-Operator Reality
The vast majority of small retail and food businesses in Australia need an owner- operator. Full stop. If nobody behind the counter actually cares, the business will do fine. It just won’t do great. And “fine” is dangerous. “Fine” means money left on the table every single day.
What We Did
I appraised the business properly. No fairy tales. An honest, evidence-backed valuation that reflected where it sat, but made it impossible for a smart buyer to ignore the upside. Low rent, iconic brand, beachside foot traffic, a fit-out worth a fortune. The only missing ingredient was an owner who’d show up.
Then we built an Information Memorandum that told the story. Not a data dump. We showed buyers what the business was doing, why, and what would change with the right person running it. The rent ratio, the brand equity, the gap between managed-store and owner-operated performance.
The Right Buyer
Sukhdail Singh had been driving for Uber while his wife taught school. He’d never worked in food retail, but he’d managed teams of 30 to 50 people. When he read our IM, he didn’t just see an ice cream shop. He saw the coffee opportunity, the grab- and-go section, the expanded range. He could picture himself doing it.
He walked in, rolled up his sleeves, and his son Noor, fresh out of Year 12 and studying Finance and Law, stepped in as gelato manager. The family showed up. Record sales followed. The vendor got an asking price. Everyone walked away happy.
The Lesson
For vendors: if your business runs under management and the numbers are “okay,” the right buyer might see more value than you think. You need a broker who tells that story with credibility. For buyers: look past the P&L. If the fundamentals are strong and the only thing missing is someone who cares, that’s an opportunity. For brokers: value it properly, tell the story honestly. That’s how you end up with record sales and a family whose life just changed.
Tags: selling tips business owners
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