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GIN71/ Cup tea lounge/ GIN SPA
71 Renfield St/48a West regent Street, Glasgow, G2 1LP
Virginia Court, Merchant City, Glasgow, G1 1TN
· Well established bar/restaurant/tearoom/spa brand
· Prominent trading positions within Glasgow’s City Centre & Merchant City
· Hybrid venues – Daytime (Cup Tea Lounge)- Evening (Gin71)
· Cup Tea Lounge/Gin71 – 2019 sales £2.16M net of VAT (70% GP)
· Gin Spa – three treatment rooms & newly completed couple’s room
· 2019 Spa sales - £395,279. Spa adjusted net profit c.£120k
· Sale also includes hand blended tea brand (Ambr)
· Strong brand with huge further growth potential
Cup Tea Lounge & Gin71 is a well renowned brand, having been established by our clients in May 2012, when they opened the Renfield Street site, with the Merchant City unit opening in October 2015, before expanding the group’s offering and opening the Gin Spa in December 2018. They previously had an Edinburgh site, as well as a concession within the House of Fraser in Glasgow, and are currently in talks to expand the brand name in a new development in Glasgow’s Financial District at the River Clyde, as well as expanding the spa business.
This is a well-established and well performing business which offers huge growth potential to grow the brand further, and is a proven concept that could be rolled out in cities throughout the UK should a new owner wish to go down this route.
Cup & Gin71 operate a hybrid business model, with Cup Tea Lounge operating from 9am-5pm, before the premises morph into Gin 71 from 5pm-midnight, with new signage, canopies and lighting being introduced to change the whole feel and ambience of the units.
Cup specialise in high end Afternoon Teas, as well as offering an extensive brunch and lunch menu, coffees & cakes etc, as well as an extensive range of their own ‘Ambr’ teas, which is their own brand and is included in the sale.
Gin71 trades primarily as a high-end Gin Bar offering a tantalising range of premium gins, but also does a good selection of cocktails, wines, beers, spirits and soft drinks, all served in sumptuous surroundings in a chilled out yet opulent environment. Gin71 also offers a popular gin tasting class and has presented to over 6,000 guests since it started. The Merchant City venue also offers tasting and grazing menus with a delicious selection of light bites and smaller dishes.
The Gin Spa is a separate business but sits alongside Cup/Gin71 perfectly, with real synergy between the businesses, which offer luxurious package deals combining spa treatments with afternoon tea or gin tasting etc, which prove extremely popular with discerning customers, and is an extremely profitable arm of the business.
It is felt that the sale represents a tremendous opportunity to take on an extremely well run and well-established business that still offers huge growth potential. There is potential to introduce a food offering at Renfield Street as well as utilising the lower ground floor area further, however the real growth potential exists with the new spa area, which can still be increased further, the potential new Glasgow venue, as well as the opportunity to grow the brand outside Glasgow.
Accounting information for the year ending 31st December 2019 shows a combined turnover for both Cup/Gin 71 businesses of £2,163,466 net of vat, producing a gross profit of circa 70%.
Accounting information for the Gin Spa to the year ending 31st October 2019 shows a turnover of £395,279, producing a gross profit of £334,181 (84.5%) and an adjusted net profit of circa £120,000. It is believed that the new couple’s room will see turnover increase to circa £600,000 per annum.
City centre venue
The subjects are held on a full repairing and insuring (FRI) lease which expires on 13th March 2031. The current passing rental for Renfield St is £45,000 per annum and for West Regent Street, £22,500 per annum, subject to 5-yearly reviews.
Merchant city venue
The subjects are held on an original 20-year lease which expires on 21st September 2035 with a current passing rental of £39,000 per annum, subject to 5 yearly reviews. There is also a service charge payable of £18,288 per annum.
The spa subjects are currently held on a month to month lease with a current passing rental of £1000 per month for both properties. The landlord would be willing to offer a new 10-year lease on the same terms for the main spa. There is also a service charge payable of £5108 per annum.
City centre venue
The subjects benefit from a prime trading position on the corner of Renfield Street and West Regent Street, in the heart of Glasgow City Centre.
The subjects are in the middle of one of the busiest commercial areas of the city with a high volume of offices, businesses, hotels, restaurants and bars in the immediate vicinity, ensuring the area is a hive of activity both day and night. Nearby licensed operators include Amber Regent, German Doner Kebab, Bucks Bar, Wagamama, Sarti and Tony Macaroni, and nearby hotels include Park inn by Radisson, Point A, Premier Inn and the Apex. The subjects are only a short walk from Buchanan Street, the city’s main pedestrianised, high-end, retail thoroughfare, as well as both Queen Street and Glasgow Central Railway Stations.
Nearby attractions include the Mitchell Library, Cineworld Cinema, Kings Theatre, Pavillion Theatre and the Theatre Royal.
Glasgow attracts high levels of tourism each year, with a huge number of other attractions and amenities including the Kelvingrove Museum & Art Gallery, The Riverside Museum, The Botanic Gardens and
Glasgow Science Centre to name a few. The city is a cultural hub, with a number of theatres and concert venues including the Hydro, which regularly plays host to many of the biggest concerts and live shows, and has been ranked as the world’s second busiest live entertainment arena.
Glasgow is located in the West of Scotland, 40 miles west of Edinburgh. It is the 4th largest city in the UK and the largest in Scotland, with a population of circa 600,000, however there are around 1.2 million people in the Greater Glasgow urban area.
Merchant city venue
The Merchant City Cup/Gin71 venue along with the Gin Spa benefit from a stunning trading position within Virginia Court, a stylish and upmarket mixed use development tucked away in a beautiful Georgian Courtyard between Miller Street and Virginia Street, in the heart of the Merchant City in Glasgow City Centre.
The Merchant City is undoubtedly Glasgow’s most vibrant and stylish area, and is known as the ‘Style Mile’, being home to many of the most exclusive shops and boutiques, anchored by the Italian Centre, and include Armani, Ralph Lauren, Bang & Olufsen, Belstaff Cruise, Mulberry and Hugo Boss to name a few.
The subjects are also only a short walk from George Square, Glasgow Central and Queen Street Railway Stations, as well as Buchanan Street, the prime retailing thoroughfare in the City Centre.
The Merchant City is a vibrant residential, shopping and leisure area, designed to mirror London’s Covent Garden, and has seen lots of new bar & restaurant openings as well as extensive, prestigious residential developments, which has attracted high levels of young professionals to the area. Nearby licensed operators include Brutti Compadres, Brewdog, The Corinthian, Meditarraneo, Metropolitan, Paesano, The Spanish Butcher and The Spiritualist.
The subjects also benefit from their close proximity to Merchant Square, The City Halls and the Old Fruitmarket, which regularly hold live events and concerts. The Merchant City also hosts the annual Merchant City Festival, which is held over 4 days and attracts more than 55,000 people.
City centre venue
The subjects are accessed via an attractive entranceway on the corner of Renfield Street and West Regent Street, within this imposing and impressive, B-listed Victorian Gothic property.
The interior of the property is home to what has to be one of the finest bars and dining rooms in the whole of Glasgow, with original Victorian Architecture throughout including high ornate ceilings, stained glass windows, feature fireplace as well as stunning ornate Victorian tiles adorning most of the walls, floors and original pillars.
The premises have been designed and fitted to an extremely high standard to compliment the period features with chandelier light fittings and a grand piano finishing off these opulent and decadent premises.
There is a small reception/bar area to the front to greet customers on arrival, and the premises can seat approximately 65 customers laid out in a variety of areas and comprising a mix of stylish comfy leather booths and loose tables and chairs.
The main bar area is positioned to the rear of the premises with a stunning full height gantry to the rear displaying an impressive selection of gins and other spirits.
The subjects also benefit from a large basement dining/function area which was completely refurbished approximately 2 years ago, and can comfortably seat a further 50 customers as overspill seating, although has capacity to hold functions for approximately 100 people. This area can be accessed from the ground floor premises or via a separate entrance from West Regent Street and benefits from its own separate bar area.
· 2 x Well fitted catering kitchens
· Male & Female toilets
· Drinks cellar
· Staff area
· Walk in fridge
· Various storage areas
Merchant city venue
The subjects can be accessed directly from the courtyard itself, via a door positioned within the full display frontage, or alternatively there is a separate entrance from the Virginia Court Mall, both of which lead directly into the main bar/dining area.
The subjects benefit from one of Glasgow’s finest outdoor seating areas, set within the stunning courtyard, providing circa 28 covers which can be enjoyed in all weather, with retractable canopies, gas & electric heaters and a sound system. The business also currently has an occasional licence, initially for a year, which allows for a further 28 outside covers at the other side of the courtyard under gazebos.
Internally, the premises were completely refurbished in August 2020, and have been designed and fitted to an exacting standard in a stunning, stylish fashion with great attention to detail.
The ground floor area provides circa 40 covers, with a mix of booths and loose tables and chairs, and there is also a stylish bar/servery.
The basement level is accessed via an attractive steel and glass stairwell with huge feature foliage wall and clock, and can also be accessed by elevator from the Mall. The basement level provides a large open plan bar/restaurant area and event space, and can seat approximately 70 customers, albeit with a larger standing capacity, and there is also a further good-sized bar area.
· Fully fitted catering kitchen with separate dishwash area
· Male, Female & Disabled toilets
· Ample ancillary storage areas
The Gin Spa sits across from Cup/Gin71, and is accessed directly from the Virginia Court Mall via an attractive entranceway set within a double display frontage.
The subjects have been designed and fitted to a high standard, in a stylish fashion. There is a small reception area with nail bar to the front with three treatment rooms to the rear along with storage and toilet facilities.
Our clients have just fitted out a further area within Virginia Court to create a high-end couple’s room, with two state of the art massage beds, and this area also includes a shower room/WC and mezzanine storage area.
Our clients have an option on taking a much larger space within Virginia Court to expand the Spa business, so this is definitely an area for further growth should a new owner wish to explore this.
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