Overview
Lotus Club presents an opportunity to acquire a modern and highly adaptable café and dessert business positioned within a busy and densely populated area of East London. Established in 2022, the business has quickly developed a loyal local customer base and benefits from strong repeat trade, substantial pedestrian footfall, and excellent visibility from its prominent roadside trading position.
The business operates as a café and dessert venue specialising in premium coffee, bubble tea, gelato ice cream, waffles, sandwiches and desserts. In addition to walk-in trade, the business generates further revenue through established partnerships with three major food delivery platforms, providing multiple income streams and increasing overall customer reach.
Offered as a turnkey operation with a stylish fit-out, Lotus Club would suit an owner-operator, a family-run operation, an investor seeking a manageable hospitality business, or an operator wishing to diversify the concept further.
Business Highlights
- Annual turnover of approximately £78,000
- Net profit of approximately £30,000
- Modern café and dessert business established in 2022 with a loyal local following
- Prime, highly visible roadside trading position with exceptional pedestrian footfall
- Established integration with three major food delivery platforms
- Valuable equipment base with an estimated replacement value of approximately £45,000
- Low staffing overheads and no business rates liability
- Recently added mezzanine level offering significant operational flexibility
The Business
The business operates as a café and dessert venue specialising in premium coffee, bubble tea, gelato ice cream, waffles, sandwiches and desserts. Walk-in trade is complemented by established delivery platform partnerships with three major operators, providing multiple income streams and increasing overall customer reach.
Repeat trade is generated from local residents, office workers, students, commuters and evening customers drawn from the surrounding hospitality venues. The business is currently owner-operated with the assistance of one part-time staff member, keeping staffing overheads relatively low and manageable.
The business benefits from strong gross margins on desserts and beverages, established delivery revenue streams and minimal ongoing capital expenditure requirements. It is fully operational and capable of immediate continuation without requiring significant additional investment.
Location
Lotus Club occupies a strong and highly visible trading position in East London, an area well known for its vibrant independent business scene, strong hospitality sector and exceptionally high levels of pedestrian activity.
The premises are situated directly beside bus routes and within less than one minute of an Overground station, providing excellent accessibility for commuters, local residents and visitors alike. The surrounding area includes a substantial mix of residential housing, commercial offices, creative studios, restaurants, bars, pubs and late-night venues, all contributing towards strong and consistent footfall throughout both daytime and evening trading hours. Proximity to a major cash and carry wholesaler, local business centres and densely populated residential developments further strengthens the long-term sustainability of the trading location. East London continues to benefit from ongoing regeneration and investment, making the area increasingly desirable for independent hospitality operators.
Premises & Tenure
The premises have been extensively fitted out to a modern standard with a stylish customer-facing environment. A recently constructed mezzanine level has been added, complete with private bathroom facilities, creating further operational flexibility that could potentially be utilised as a beauty treatment room, office, barber station, storage facility or additional seating area, subject to any necessary permissions.
The premises are held on a leasehold basis, with renewal potential. The landlord is described as supportive and the lease is reportedly renewable, providing future operational stability for an incoming buyer. A substantial range of fixtures, fittings and commercial equipment is included within the sale.
Financial Overview
The business demonstrates healthy profitability for an owner-operated café and dessert model, particularly given the relatively low overhead structure and no business rates liability.
- Annual turnover of approximately £78,000
- Net profit of approximately £30,000
- Estimated replacement value of fixtures and equipment of approximately £45,000
- Low staffing overheads
- Strong gross margins on desserts and beverages
- Established delivery revenue streams
- Minimal ongoing capital expenditure requirements
Stock is charged in addition at valuation.
Growth Potential
The business offers substantial future growth potential and would suit both experienced hospitality operators and first-time business buyers seeking a manageable turnkey operation. Potential opportunities include:
- Extension of opening hours and expansion of delivery operations
- Increased social media, influencer and paid online marketing, plus loyalty schemes
- Introduction of hot food offerings and evening dessert lounge trading
- Alcohol licensing, or conversion to bakery, takeaway or grill concepts
- Rental income or beauty, barber or aesthetics use on the mezzanine level
The mezzanine floor provides a particularly attractive feature, creating additional commercial value beyond the core café operation.
Reason for Sale
The owner is offering the business for sale due to non-related business interests and health reasons.
Next Steps
Lotus Club is a modern, well-presented and profitable café and dessert business trading from a prime East London position, offering a turnkey operation with strong footfall, a valuable equipment base and considerable scope for further growth. To arrange a viewing or discuss this opportunity in confidence, please contact Goodwins Business Brokers. Full details are available in the Information Memorandum.
