Byron Bay’s iconic Bayleaf cafe hits the market
Byron Bay’s food scene packs quite the punch for a small town. Its cafe culture rivals the gems dotted along Melbourne’s back streets and laneways, while famous chefs have streamed into town to back a wave of playful yet high-end restaurants.
But few have attained the meteoric success of Bayleaf, the buzzing cafe that has enjoyed year-on-year growth for a decade.
“In any business, that is unusual, but especially in hospitality,” says owner Dan Readman. “It makes it such a unicorn business.”
Having nailed the elusive formula of creating – and sustaining – a hospitality institution, the listing of Bayleaf for sale has sent chins wagging across the country.
Readman and his wife, Nikki Muling, moved from Melbourne to Byron Bay in 2013. When the pair took over Bayleaf, it was a busy operation squeezed into a small shop front on Marvell Street.
“The barista used to stand in front of the oven,” recalls Readman. “We had to tidy that up really quickly, so we needed more space.”
They took over the lease next door and later expanded as their business operations grew. The cafe now spreads over three shopfronts, seating up to 110 patrons, and serves an average of 150,000 meals a year.
“This is a professional operation that’s fully systemised. We have worked hard to make it so that the back end is seamless and nothing has been missed,” says Readman.
The former general manager Jesse Hamilton joined as a business partner nine years ago. And the trio refined, expanded and curated every aspect of Bayleaf to be “very well organised at the back end and very playful at the front”, says Readman. “That’s kind of unique, even in the restaurant world.”
The secret to their success?
“Everyone just wants really good food. Understandable, highly ethical, original and really well executed tasty plates,” says Readman, adding that their understanding of the customer journey is also crucial. “We know how to make people feel good.”
In a move that distinguishes it from its rivals, Bayleaf has steered clear of culinary trends and niches. Its appeal is broad, and its atmosphere is very intentionally relaxed and unpretentious.
On any morning, the place is buzzing – busy but not chaotic. The crowd is mixed and eclectic, from surfers and yogis to retired holidaymakers and celebrity chefs.
“We offer something for everybody; it’s been designed that way,” says Readman. Even the day’s playlists are carefully curated. The cafe’s music choices were so popular they opened up their Spotify accounts to the public a few years ago.
The strength of the Bayleaf brand, resonating with both locals and tourists, kick-started conversations about expanding into other locations.
“We had opportunities in every major city,” says Readman. Although the trio of owners decided not to pursue other venues, it remains an enticing selling point for prospective buyers.
“You could leave this exactly as it is; it runs itself. And then you could replicate it,” says Readman.
Real estate agent Lorna Bailey of Byron Bailey handles the sales campaign after Readman and Muling decided to sell to embark on a new adventure: taking an extended trip overseas with their children.
“We’ve only been out on the market for a week, and I’ve already got interest from interstate, seasoned hospitality people and people with a bright concept,” Bailey says. “I’m talking with some of the biggest coffee names … because if they were to buy it and place their brand in it, it’s a winning business.”
Prospective buyers could look to grow a portfolio of Bayleaf, Bailey believes. “It’s got the legs to do that.”
The seasoned commercial agent has sold multiple Byron cafes in recent years. “The figures [at Bayleaf] are four times what other venues are doing,” she says. “That’s how much volume comes through Bayleaf.”
And there’s scope to boost revenue with the recent addition of a liquor licence.
“We’ve set the place up so someone can open a night trade, afternoon sessions or events in the space,” Readman says. “If you do a successful night trade, you could double revenue.”
Bayleaf’s central location, close to several apartment and hotel developments, is also expected to support the cafe’s continued organic growth.
“A town that has stood still for the last three decades now has quite a bit of development,” says Bailey. “It’s turning into its own urban metropole. With that, the centre of town has been designated as the place to invest.”
Readman believes its youthful appeal will not fade even as Byron Bay’s urban landscape evolves.
“I get 30 resumes a week. Most of them are travellers. Everyone still wants to come here. The uniqueness is here to stay.”
This article was created in partnership with Bayleaf.
