Rafters traded 40 years. Its replacement costs $150,000 to buy.
Pete and Simone Rafter were one of Kawana Shoppingworld's original tenants. The site went to a national franchise, and that franchise publishes its numbers.
The opportunity
Rafters ran for more than 40 years at Kawana Shoppingworld, Buddina. It has been taken over by Degani, the brand's 47th store nationally and 9th in Queensland, opening this month under a franchisee named Ren, whose family heritage is Belgian waffles. Fit-out includes a gelato bar and a cold-brew coffee tap. Degani CEO Bruce Scott on site selection: "We're very particular about getting the right location with the right franchisee."
The reason this is the lead and not a shop-opening note: Degani publishes tiered entry costs, so for once you can price a Coast cafe against a real number instead of a rumour. A 40-year independent was replaced by a system with five weeks of training and a documented fit-out spec. That is the whole story of what is happening to Coast retail, with a dollar figure attached.
entry for a 50–100 sqm Degani, up to 60 seats. The Kawana-style in-centre footprint.
What it costs to enter: Degani's published tiers
- From $125,000: 250 sqm+ site with 20+ cars/hour parking. The cheapest entry, and the format that suits a highway or arterial site rather than a mall.
- From $150,000: 50–100 sqm, seating to 60. The Kawana-style in-centre footprint.
- From $250,000: 120–200 sqm, seating to 130.
- From $350,000: 200 sqm+, seating 130+.
- Ongoing: 5% royalty + 2% marketing on turnover, plus a five-week training program at the corporate office before you trade.
The play
- The $125,000 drive-through-style tier is the anomaly worth a phone call: it is the lowest entry of the four and needs parking, not frontage. The Coast has arterial sites with parking and no coffee. Ask Degani franchising directly which Coast postcodes are unallocated.
- Use the tiers as a benchmark even if you never franchise. If your independent cafe plan cannot beat $150,000 for 60 seats, your plan is the problem, not the market.
- Model 7% off the top before you compare. A $700,000-turnover site pays roughly $49,000 a year in royalty and marketing: the price of the system, and the number independents forget to credit themselves for.
- Walk Kawana Shoppingworld in the first fortnight of trade and count the queue at open, 10am and 2pm. A brand-new franchise in a 40-year site is the cleanest natural experiment you will get on Coast cafe demand.
- Talk to Pete and Simone Rafter if you can reach them. Forty years of trading data on that exact catchment is worth more than any feasibility study you can buy.
The catch
Published "from" prices are floors, not quotes. Mall fit-outs routinely land above them, and none of these figures include working capital, stock, or the bond a centre like Kawana will want. The 5% + 2% is charged on turnover, not profit, so it bites hardest in a bad quarter. And the honest reading of Rafters' exit is that a 40-year independent still lost the site: longevity did not protect them, and it will not protect you.
What history says
Barcelona, 1986–1992: the pre-Games years did not mainly reward the boldest new concepts. They rewarded operators with systems, because the ones who could open a second and third site absorbed the demand when it arrived. Independents with better coffee and no playbook watched groups take the corners.