Every cafe owner dreams of finding the sweet spot: high profits, a stellar reputation, and a life outside of the business. But often, the daily grind—juggling staffing issues, creeping food costs, and endless hands-on hours makes that dream feel impossible.
Jordan, the owner of New Neighbour Café, was already serving the local community with passion, but knew money was being left on the table and their quality of life was suffering. Jordan was ready for the next level, and that’s when they brought in hospitality strategy expert, Nathan Demellis.
At GSE Hospitality, we don’t just facilitate sales; we partner with owners like Jordan to unlock potential others might miss. Nathan’s consulting engagement was focused on turning operational potential into concrete profit and sustainable growth.
The Transformation: Engineering for More Profit & More Time
Nathan’s approach was a deep-dive, hands-on restructuring that touched every corner of the business. The goal was twofold: drastically improve margins and design a business that could run efficiently without Jordan constantly tethered to the espresso machine.
1. Menu and Margin Optimisation
The engine of any cafe is its menu, and Nathan got straight to work. He reworked the entire food and beverage offering, balancing cost control with quality presentation. The introduction of recipe costing systems and margin tracking on core menu items immediately shifted the dial. The result? A significant increase in average gross profit margin per item while keeping customer satisfaction strong.
2. Building a Self-Sufficient Team
Staffing can be an owner’s biggest headache. Nathan addressed this by standardising employment contracts and position descriptions to ensure compliance and consistency. Crucially, he designed a flexible cross-training program that enabled baristas and floor staff to switch roles during peak times. This single move not only boosted team efficiency but also successfully reduced wage overhead through flexible rostering. Structured training in leadership, coffee consistency, and customer service further boosted morale and retention.
3. Reclaiming Jordan’s Life
Perhaps the most critical outcome was redesigning Jordan’s owner-operator role. Nathan analysed the owner’s weekly involvement and identified ways to reduce hands-on hours. He introduced systems and delegation structures to ensure smooth operations in the owner’s partial absence. The owner was able to shift their focus from daily operations to business development while maintaining equal (or higher) weekly pay. That’s the difference between owning a job and owning an asset.
4. Designing for Flow and New Revenue
Nathan’s work extended to the physical space, reconfiguring the internal layout to improve staff movement and customer experience. The kitchen-to-counter workflow was optimised, cutting prep times and wait times. This efficiency allowed the business to focus on new growth initiatives:
- New Community-Based Initiatives: This included a partnership with local schools and
the introduction of a “Healthy Lunchbox” concept to offer ready-made, nutritious
options for time-poor parents. - Expanded Revenue Streams: Expanding take-away and catering streams successfully
offset seasonal dips in dine-in trade, creating a more robust year-round business.
The Outcome: Award-Winning Excellence
New Neighbour Café’s transformation speaks for itself. The strategic changes resulted in improved margins and stronger brand positioning. Their operational excellence and community impact were officially recognised when they won Best Café in the Banyule Business Awards!
Today, Jordan operates with a balanced work-life schedule and enjoys consistent profitability. The café has strong local loyalty and sustained growth. In fact, they are now exploring opportunities for a second site, leveraging the proven systems, brand equity, and operational playbook Nathan helped develop.
This story is a powerful reminder: when you combine dedication with the right expert support, you don’t just fix problems —you build a successful, saleable asset.
Jordan’s Leadership: The Power of Action and Coachability
While Nathan provided the strategic framework, the transformation of New Neighbour Café is a testament to Jordan’s dedication, willingness to embrace change, and exceptional coachability. Jordan’s readiness to implement new systems, trust expert guidance, and adapt to a more strategic role was the driving force behind these results. This success story is as much about Jordan’s
leadership and commitment as it is about the strategies employed.
Ready to Write Your Own Success Story?
Are you an owner like Jordan who is tired of working in your business instead of on it? Are your margins shrinking, or are you ready to explore scaling to a second location?
Whether you’re looking to optimise performance, prepare for a lucrative sale, or find your next perfect hospitality opportunity, Nathan Demellis and the GSE Hospitality team are here to help you achieve real results.
Reach out to Nathan for a confidential chat today.
Mobile 0433 270 540
Email n.demellis@gsebrokers.com.au
Don’t wait for your passion to burn out. Let us help you turn your hard work into an award-winning, profitable, and freeing business.
