DasHundHaus BP V1 - Amazon S3 · The shopping strip itself has a mix of ... increase the potential...

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Transcript of DasHundHaus BP V1 - Amazon S3 · The shopping strip itself has a mix of ... increase the potential...

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BUSINESS PROFILE

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Table of Contents

EXECUTIVE SUMMARY 3

BUSINESS PROFILE 4

LOCATION 5

PRODUCT OVERVIEW 6

OPERATIONS 7

STAFF 8

EQUIPMENT LIST 9

OPPORTUNITIES 10

FINANCIAL SUMMARY 11

FINANCIAL INFORMATION - ADD BACKS 12

BUSINESS IMAGES 13-17

WHERE TO FROM HERE 18

COMPETITON INSTRUCTIONS 19-21

APPENDENCIES REFER TO ATTACHED

- PROFIT & LOSS STATEMENT 2016& 2017

- LIQUOR LICENSE

- LESSOR STATEMENT

- NSW LOTTERY PERMIT

- LEASE DISCLOSURE STATEMENT

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EXECUTIVE SUMMARY

Business Name & Trading As: Das Hund Haus

Date Business Commenced: April 2014

Address: Shop 6 / 54 Beaumont Street, Hamilton NSW 2303

Current Licences and Permits Liquor Licence LIQO660010430

Website dashundhaus.com.au

Facebook facebook.com/dashundhaushamilton

Instagram @das_hund_haus

Ave Weekly Turnover: $11,000

Annual rent: $77,438 (ex GST)

Lease Options Available: 31 months from 31st Aug 2017

Staff: 1x Owner, 1x Manager + 3 Casuals

Asking price: Win this bar & restaurant -Trade Promotion Lottery -$25.00 Ticket

Stock at Value (SAV): $2,000

Plant & Equipment Included to the winner, Refer Equipment List

Trial Period Not Applicable

Trial Takings Not Applicable

Assistance & Training Four Weeks or as required.

Terms of Settlement Trader Promotion Lottery - Permit LTPS/17/13039 Winner drawn from lottery 31st August 2017

Reason for Sale: To fund and focus on my online sexual health clinic www.stigmahealth.com, help my partner with her new business Newcastle’s first private spinal rehabilitation centre www.breakingboundaries.com.au and be more available to my family and our 11 month old daughter Charlotte.

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BUSINESS PROFILE

Created by James Sneddon, Das Hund Haus aka ‘The Dog House’ first opened its doors inCharlestown NSW in 2014 offering the local community, German style dining and a rangeof premium imported German draught beers.

Das Hund Haus, opened a second venue, April 2015 in Hamilton (current location) whichis now the only venue in operation with the closure of Charlestown early in 2016.

Located in old "Little Swallows“ - Hamilton’s Oasis, opposite the infamous Kent Hotel, DasHund Haus is a popular Bavarian Bier Garten Wunderbar, offering locals hearty Germanmeals accompanied with imported German draught biers. The German menu staplesinclude Pork Knuckle, Wurst, Schnitzel, Sauerkraut and authentic Pretzels. There are 8taps with 7 German beers that changes seasonally pouring Lowenbrau, Hofbrau,Franziskaner, Paulaner, including a great apple cider.

However there’s more to Das Hund Haus than the impressive and simple to executemenu and imported bier range. Das Hund Haus seats a 130 in total, includes a court yardarea capable of seating 90 providing a fantastic local to enjoy the great weather Newcastleoffers. The business has a 12am liquor license and offers a variety of food and drinkpromotions throughout the week and weekends.

The business has proved very popular with the local residents and people who work in thearea. The business is a true all-rounder with a unique product & service, it performsstrongly across lunch, dinner and weekly run special areas.

The décor of the business is reminiscent of a true Bier Garten Wunderbar, with communalwooden benches, tables and chairs including picket fences. Plants provides splashes ofgreenery throughout the premise. Patrons can get into the fun and right into the GermanSpirit with hire of traditional Lederhosen outfits and costumes.

The business has a good website that showcases the range of products and servicesprovided by Das Hund Haus. There is a Functions enquiry form which generates anaverage of ten enquiries per week. The business is active on Facebook with over 11.5klikes & followers, and an Instagram account.

The owner has gone to great lengths to make the business welcoming to all. To counterthe high-end food available, the business has $12 Pork Knuckle nights and $2 BuckSchnitzel Tuesdays with various drink promotions to make it a venue for everyone.

The current owner has grown takings to approx $11k per week. It is a great business withfurther potential to grow. The owner has pressing family commitments, a new onlinebusiness opportunity to pursue (stigmahealth.com), so retaining the business is not aviable option.

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LOCATION

Hamilton is only 4km from the Newcastle Central Business District. Newcastle metropolitanarea is the second most populated area in the Australian state of New South Wales.Newcastle, Australia’s seventh largest city, is only 160kms north of Sydney. It is located inthe heart of the Hunter Region and bordered by a stunning coastline with beautifulbeaches.

The business is located in a high traffic, high exposure shopping strip position that offerseasy accessible parking for customers. The shopping strip itself has a mix of hospitalitybusinesses that serve the surrounding residential community.

The business is well serviced by public transport with the station only 250 metres away andseveral bus routes passing the business on the way to the train station. There is also anindustrial area located in close proximity and the pedestrian centre for a large chunk of thecity of Newcastle’s population.

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PRODUCT OVERVIEW

SHARE PLATES

Big Bad Wolf $90 A share plate for 2, featuring our signature pork knuckle, pork belly and a selection of sausages served with sauerkraut, mash, bread, mustard and pork jus.

On Heat $75A share plate for 2, featuring our signature pork knuckle, haus prepared chicken schnitzels and a selection of sausages served with sauerkraut, mash, mustard and pork jus.

MAINS

Pork Knuckle $38Our signature pork knuckle served on a bed of mash with jus

Pork Belly $32A slab of crackled pork belly, with mash potato and jus

Wurst Plate $25Selections of sausages, mustard, bread, sauerkraut and gherkin

Salt and Pepper squid $23Squid with cucumber salad

Bier Battered Barramundi 21Bier battered salt water barramundi and pommes frites with mayonnaise.

Hand Crumbed Chicken Schnitzel $17With chips and gravy.

Mulled wine poached pear and walnut salad $15With mixed leaf and fig reduction glaze

BURGERS

Knuckle Sandwich $19Pulled pork knuckle, Bavarian mayonnaise and sauerkraut.

Chicken and Cheese $17Chicken schnitzel with cheese and Bavarian mayonnaise.

Pork Belly Roll $18Crackled pork belly, aioli, cheese and bbqsauce

SIDES $8 -$10

Berliner Curry WurstGarlic PretzelsRoasted PumpkinPommes FritesRoasted CarrotsMashBread BasketChips & Gravy

BIER LIST $8 -$20

7 Keg Taps & 1 CiderFully imported Lowenbrau, Hofbrau, Franziskaner, Paulaner amongst others on tap. With changes seasonally when the opportunity arrives to tap fresh kegs.

The business offers a range of well priced drinks and hearty German meals that are easy to prepare and execute.

All products are prepared fresh daily. The main sellers for the business are Pork Knuckle, Schnitzels and Litres of German Biers.

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OPERATIONS

DAYS OPERATIONAL HOURS

Monday Closed

Tuesday 3.30pm - Late

Wednesday 3.30pm - Late

Thursday 3.30pm - Late

Friday 12.00pm - Midnight

Saturday 12.00pm - Midnight

Sunday 12.00pm - Late

The winner of the business includes all the required equipment and chattels (unencumbered)currently used in the business.

Refer to the attached list.

Hours of Operation

The Business mainly provides a lunch & dinner service, operating between the hours of 3.30pm tolate Tuesdays to Thursday, with the exception of Friday and Saturday staying open till midnight. Thewinner of this business is free to change operational hours and open earlier.

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STAFF

Owner/OperatorOwner/Operator

ManagerManagerFOH

3 x Casual

FOH3 x Casual

Currently the business is operated by the owner and 1 manager full time and 3 casualspaid weekly who are responsible for taking orders, food preparation and customer service.

Staff enjoy working in a conflict free workplace and value the positive team focusedenvironment.

The casual staff are keen to remain in the business and work with the new owners.

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EQUIPMENT LIST

Front Of House, Back Of House & Fixtures

• Hardwood 8 seater outdoor tables and benches

• Roller Door

• Mazzer coffee grinder

• Outdoor Television and Housing.

• 3 door under bench drinks fridge

• POS System - Senpos, 2 printers (Kitchen & Bar) 1 x barcode reader

• Beer System and font, cup plinks and spare cup plinks

• Range hood

• Waldorf single pan 3 basket single pan gas deep fryer

• Combi Rational 10 tray self cooking electric oven

• Benchtop induction hotplate

• 2 Bay Electric Bain Marie

• Microwave

• Stainless benches

• Stainless under bench fridge

• Stainless tall fridge

• Chest Freezer

• Upright freezer

• Dishwasher

• Crockery and Cutlery

• Kitchen Utensils (Pots, Pans, Trays etc)

• Glassware

• Fitout

• Symphony Orchestra Amplifier

• Light fittings

• And all other necessary tools of trade

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OPPORTUNITIES

The owner has done an excellent job tapping into the local market offering a unique menu& beverage range which is easily executed and straight forward to run.

The hard work has been done and now this business is ready for a fresh operator toincrease the potential and to hone in on tighter marketing initiatives and activities to thecommunity.

There are areas that can be improved that can deliver an immediate impact, these are;

Extend Trading HoursBreakfast and earlier week trading would see an immediate revenue lift.

Diversifying The MenuThere is room to expand the menu with additional German favourites and contemporarycuisine. The venue has a large functional kitchen that is mostly underutilised with thecurrent minimal menu.

FunctionsThe business generates a large number of enquiries for functions and it is an area thathasn’t really been pushed. There is obviously great interest from the market and propermanaging would see a dramatic increase in revenue.

Area FocusThe business is a true all-rounder offering a variety of services to patrons. However, the owners have not dedicated the resources to truly develop any particular area. That is to say there is the potential to develop each of the areas quite substantially.

Catering OptionsTap into lucrative catering options for private & corporate functions. The venue has a large kitchen that can handle lucrative external catering options and opportunities.

Update WebsiteThe current website would benefit to include additional images of the food offerings. The website does have detailed ‘function enquiry’ form, but would benefit with a detailed ‘Functions Package’ information kit outlining exactly what can be ordered and what occasions can be catered to.

Take Away Menu & ActivityIncreasing the businesses presence on online ordering websites and services suchMenulog, Eatnow & Uber Eats. To date with minimal activity the business presently sells$200 - $300 in weekly sales which can be considerably improved with a proper onlinetakeaway menu and focused activity.

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FINANCIAL SUMMARY

2016 1st, 2nd & 3rd Qtr 2017

Revenue $597,657.53 $507,439.72

Gross Profit $234,016.49 $254,774.76

Operating Profit $156,639.56 $151,682.82

$0.00

$100,000.00

$200,000.00

$300,000.00

$400,000.00

$500,000.00

$600,000.00

$700,000.00

Financial Performance

Revenue Gross Profit Operating Profit

The business sales has been performing solidly as indicated by the below chart.

Das Hund Haus has all the staff and operational system in place and can be operatedprofitably hands on or at arm’s length under management.

The annual Sales, Cost of Goods and Net Return to the owner have remained consistent for2016 & 2017.

2017 shows a healthy annualised net return to the owner (after addbacks and before tax) of$151,682 on Year to Date sales of $507,439. A reduction in Cost of Goods and Wages on 2016saw increased Gross Profit of $254,774 after 29% COGS and 20% wages deducted.

The improved 2017 profitability is directly due to improved costs of goods management andthe owner taking an active hand on role in the business, in turn reducing casual labour costs.2017 has been Annualised and is not yet finalised.

2016 shows a full year net return to the owner (after addbacks and before tax) of $156,639 onsales of $597,657. Gross Profit was $230,016 after 32% COGS and 28% wages deducted. Thehigher costs attributed to owner running business at arm’s length employing a full timemanager to oversee the daily operations.

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FINANCIAL INFORMATION ~ ADD BACKS

Add‐backs can be defined as expenses paid by the business that add value to the personalwell‐being of the owner or are ‘one off’ and/or extraordinary expenses that are unlikely toreoccur.

Add-backs can be items such as depreciation, finance costs and interest, the owner ormanagers’ salary and superannuation, motor vehicle for personal use, bookkeeping fees,one off legal costs, and personal insurances amongst others.

Accountants will generally advise their business owner clients of the best way to legallyminimize their tax obligations. As a result, many small businesses in Australia will produceaccountant prepared statements with a minimal net profit, and often a net loss for taxationpurposes.

It is important to note that this does not necessarily reflect the actual cash results abusiness may produce, as this is often higher.

Addback items allows a prospective purchaser, their advisors, and financiers theopportunity to evaluate the actual maintainable earnings available to the owner of thebusiness before personal and extra ordinary expenses are deducted

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BUSINESS IMAGES

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BUSINESS IMAGES

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BUSINESS IMAGES

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BUSINESS IMAGES

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BUSINESS IMAGES

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WHERE TO FROM HERE

If you have already purchased a ticket - Congratulations! & best of luck with the draw.

You soon could be living the dream in your own premium bar & restaurant on Newcastle'sbest Eat Street - complete with superb surf beaches, sun drenched climate, great shoppingand of course, the fine dining and drinking

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This premium Bar & Restaurant valued at over $200,000 could change your life. The prizeincludes but is not limited to:

• Das Hund Haus Hamilton, a German style bier café and bier garten• $30,000 Cash• $20,000 Bond• Beer System• Commercial Kitchen• All Furniture• Fully Trained Staff• Full Training and Support.

To enter, all you have to do is buy a 2-for-1 meal voucher in the trade promotion, appropriatelynamed Dog Tags, which will set you back $25, and you could walk away with the lot.

Entries into the competition are automated on purchase of voucher, you do not need to use thevoucher in the venue.

To buy vouchers and get your entry in-to-win the bar and more information on the tradepromotion, click above to find out more.

The winner of the trade promotion will be drawn by an INDEPENDENT ADJUDICATOR on the evening of Thursday 31st August 2017.

(Permit Number LTPS/17/13039)

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1. Trade promotion

For 2-for-1 voucher, called Dog Tags – the latest form of our in-house group buying campaign “Doggy Dollars”. Trade Promotion due to being on the 5th April 2017

a. Each 2 for 1 voucher purchased is entitled to one entry in the draw for the prizeof bar and cash prize of $30,000. The total prize pool is worth approximate$150,000 including cash. Prize pool valued on comparable business sales.

2. Voucher Terms and Conditions

a. Vouchers “Dog tags” are $24.99 each.b. Dog tag purchasers are entitled to a one time purchase of a buy one meal get

one free. Free meal to be equal or lessor value to meal purchased. (Up to $90value).

c. Vouchers not valid in conjunction with any other offer,d. not redeemable for cash.e. Bookings essential in order to use the voucherf. Vouchers no valid for takeaway food.g. Vouchers are only valid until the 31st August 2017

3. Conditions Of Entry

a. Open to any members of the general public over the age of 18. Dog tagpurchaser must be over the age of 18 and Dog tag must be in the name ofsomeone over the age of 18.

4. The Competition duration and winner announcement

a. Opening Date: 5th April 2017b. CLOSING DATE AND TIME: 5.00pm on 31/8/17.c. The Competition will be drawn by an independent adjudicator at 8.00pm 31st

August 2017 at Das Hund Haus Hamilton, 54 Beaumont St, Hamilton. d. The winner does not need to be present to claim the prize. e. The winner will be notified by phone call, text, email and social media. f. Results to be published on social media and on http://dashundhaus.com.au

within 2 hours of the draw

5. The Prize: The BAR

a. The Prize is the Das Hund Haus Restaurant and Bar Hamilton. Das Hund Haus,Shop 6 54 Beaumont St Hamilton.

b. The prize is everything needed to continue running the bar prosperously or tobuild your own bar dream. This includes

WIN THIS BAR - DAS HUND HAUS COMPETITION INSTRUCTIONSTRADER PROMOTION LOTTERY ‐ PERMIT LTPS/17/13039 

WINNER DRAWN FROM LOTTERY 31ST AUGUST 2017

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I. The lease will be transferred to winner’s nominated entity. The leaseincluding outgoings is approximate $99,000 per annum. There will be 31months remaining on the lease on the 31st August 2017.

II. Inventory and Stock – The alcohol on hand will be less than 20 litres.The value of the stock on hand will be approximately $2000.

iii. Plant and equipment – includes all equipment present in the bar at thetime of the draw and required to operate the bar and restaurant as aGerman beer café. Please see separate listed plant and equipment atreplacement value.

iv. Bond – Rental Bond for this commercial property is $10,000.v. Legal fees on transfer of property completely unencumbered. Legal fees

approximate $2,000.00vi. The liquor licence will be transferred to the entity or individual

nominated by the winner of the draw provided they meet liquor licenseholder requirements

c. The $30,000 cash prize will be a bank cheque

d. The business/prize handover process will commence as soon as the new owneris announced.

e. The business and prize including cash transfer will occur within 5 days of thefinalisation of the business transfer.

f. The cash transfer will occur with the business transfer.

6. Method For Claiming Prize

a. The business sale transaction to be completed within 28 days of contacting the trade promotion winner. Business is being effectively sold to the victor already trading and unencumbered for $1, in order to quantitate the settlement statement

b. The venue will be operated and maintained until the winner is found.

c. All leases and handover of business will be ready for the victor from the 31st

August 2017.

d. There is no restrictions on the business winner nor do the promotors or business owners take any liability for the prize once in the victors possession.

e. If the winner of the draw does not wish to accept the prize for their personal reasons, they will be required to sign a statutory declaration declaring this. A 7 day cooling off period will be provided for the winner of the draw. Once the cooling off period is passed a redraw will occur on the 8th day after the winner has signed the declaration. This process will continue until a participant claims the prize.

WIN THIS BAR - DAS HUND HAUS COMPETITION INSTRUCTIONS- CONTINUED

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7. Second Chance Draw

a. The winner of the prize will have three months to claim the prize, we willconsistently contact them until found but should this not prevail and secondchance draw will occur 3 months later at 5pm on 30th November. The cashtransfer will occur with the business transfer.

8. The Promoter

James Sneddon ATF The James Richard Sneddon Family Trust the owner of this bar and a restaurant consultant will be the promotor.

a. PROMOTER: James Sneddonb. PO Box 3465 Merewether NSW 2291c. Telephone: 0412 948 347

9. Promotion

a. Entry into the draw comes with the purchase of 2 for 1 vouchers.

b. Promotion will be via our website, venue and social media and will all display license details and references to terms and conditions.

c. The 2-for-1 dog tags, just like their predecessors doggie dollars and dashiedollars are purchased via Sticky Tickets, this allows a detailed list of client data as well as us to “check off” when the voucher is used in store.

WIN THIS BAR - DAS HUND HAUS COMPETITION INSTRUCTIONS- CONTINUED

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Account 2017* 2016

Sales 507,439.72 597,657.53Total Trading Income 507,439.72 597,657.53

COGS 147,664.96 193,641.04Wages and Salaries 105,000.00 170,000.00Total Cost of Sales 252,664.96 363,641.04

Gross Profit 254,774.76 234,016.49

Government Grants 2,000.00 0.00Total Other Income 2,000.00 0.00

Advertising 10,000.00 15,000.00Consulting & Accounting 4,000.00 4,000.00Entertainment 2,884.03 6,000.00Enviroking 0.00 3,093.12Equipment Rental 22,600.00 8,907.62Initial Hygiene 800.00 900.00Insurance 6,307.48 8,000.00Kitchen Supplies 2,121.58 2,000.00Light, Power, Heating 11,175.72 10,471.65Printing & Stationery 103.95 325.00Rent 77,438.00 75,182.52Repairs and Maintenance 1,920.51 9,538.95Security 1,240.00 1,700.91Superannuation 9,712.50 15,725.00Telephone & Internet 1,308.00 1,308.00Training & Professional Development 1,813.59 1,506.00Waste Removal 1,641.58 12,043.16Total Operating Expenses 155,066.94 175,701.93

Net Profit 101,707.82 58,314.56

Addbacks:Manager Salaries 70,000.00 90,000.00Manager Superannuation 6,475.00 8,325.00Total Addbacks 76,475.00 98,325.00Less:Owners Compensation (Not taken)^ 26,500.00 0.00

Net Profit 151,682.82 156,639.56

*2017 has been Annualised and is not yet finalised.^Owner, James Sneddon began working back in the business full time in January 2017.

Operating Expenses

Cost of Sales

For the year ended 30 June 2017

Das Hund Haus Hamilton

Other Income

Profit and Loss

Trading Income

Key liquor licence details recorded as at 16 June 2016Licence number: LIQO660010430Licence name: Das Hund HausLicence type: Liquor - on-premises licenceBusiness type: RestaurantLicence status: CurrentDuration: Unlimited durationLicence start date: 16/07/2009Licence expiry date:

ManagerTitle: MrSurname: MurphyGiven name: ScottMiddle name: AndrewStart date: 03/06/2016

Contact PersonTitle: MrSurname: SneddonGiven name: JamesMiddle name: RichardPhone - daytime: 0412 948 347Mobile: 0412 948 347 Fax number:Email address [email protected] date: 03/06/2016

LicenseeOrganisation name: Das Hund Haus Bier Cafes Pty LtdABN: 65 608 287 458 ACN: 608 287 458Phone - daytime: 0412 948 347 Fax number:Email address:Website: www.dashunhaus.com.auBusiness address: 54 Beaumont Street HAMILTON NSW 2303Postal address: PO Box 3465 MEREWETHER NSW 2291Start date: 03/06/2016

Licence number: LIQO660010430 Date Printed: 16/06/2016 Page 1 of 3

Consumption on premisesDay Start Time End Time Start Date End DateMonday 10:00 AM - 12:00 midnight 16/07/2009Tuesday 10:00 AM - 12:00 midnight 16/07/2009Wednesday 10:00 AM - 12:00 midnight 16/07/2009Thursday 10:00 AM - 12:00 midnight 16/07/2009Friday 10:00 AM - 12:00 midnight 16/07/2009Saturday 10:00 AM - 12:00 midnight 16/07/2009Sunday 10:00 AM - 10:00 PM 16/07/2009

ConditionsLicence conditions imposed by the Liquor Act and Regulation apply. To view a copy of these conditions, go to www.olgr.nsw.gov.au.

Additional licence conditions.

Condition type: Condition Condition source: AuthorityReference: 50Condition: Section 11A of the Liquor Act 2007 applies to this licence. Liquor must not be sold by retail on the

licensed premises for a continuous period of 6 hours between 4:00am and 10:00am during each consecutive period of 24 hours. The licensee must comply with this 6-hour closure period along with any other limits specified in the trading hours for this licence.

Start date: 16/07/2009

Condition type: Condition Condition source: Liquor Act 2007Reference: 101Condition: Consumption on premises

Good Friday 12:00 noon - 10:00 PM (liquor can only be served with or ancillaryto a meal in a dining area)

Christmas Day 12:00 noon - 10:00 PM (liquor can only be served with or ancillaryto a meal in a dining area)

December 31st Normal opening time until normal closing time or 2:00 AM on New Year's Day, whichever is the later

Note: Trading is also allowed at other times on Good Friday and Christmas Day ifauthorised by an extended trading authorisation. Liquor can only be served with orancillary to a meal in a dining area after 5:00 AM on Good Friday and Christmas Day.

Start date: 28/10/2009

AuthorisationsName: Primary service authorisation Start date: 16/07/2009

PremisesAddress: Shop 6 54 Beaumont St HAMILTON NSW 2303Phone number: Fax number:Email address:Website:LGA: Newcastle City CouncilABS SLA:Start date: 16/07/2009

Trading Hours

Licence number: LIQO660010430 Date Printed: 16/06/2016 Page 2 of 3

Independent Liquor & Gaming Authority

Level 6, 323 Castlereagh Street, Haymarket NSW 2000 GPO Box 7060, Sydney NSW 2001

Tel: 02 9995 0666 ABN 11 005 693 553 www.olgr.nsw.gov.au

05/04/2017

Mr James Sneddon The Trustee for James Richard Sneddon Family Trust PO Box 3465 MEREWETHER NSW 2291

Trade promotion lottery permit

NSW permit number LTPS/17/13039

This document certifies that The Trustee for James Richard Sneddon Family Trust

ABN 44197936855

is authorised to conduct Win this bar and restaurant

for the amount $195,000

from 05/04/2017

until 02/12/2017

subject to the Lotteries and Art Unions Act 1901, Lotteries and Art Unions Regulations 2014 and the conditions attached in Annexure A. This permit is approved under delegation from the Minister administering the Lotteries and Art Unions Act 1901.

Important information

Please ensure you read the conditions attached as they may have changed since your last permit.

Fees apply to amend the approved terms and conditions of this permit. To apply for an amendment complete the amendment form available at www.olgr.nsw.gov.au and lodge via email.

It is recommended that you apply for permits online through www.onegov.nsw.gov.au/new/ to receive a faster service and discounted fees. Credit card payments are only accepted online.

Please contact us at [email protected] for further information.

Trade promotion lottery permit conditions Aug 2014 Page 1 of 4

ANNEXURE A

TRADE PROMOTION LOTTERY PERMIT CONDITIONS

Definitions

In these permit conditions:

advertisement means any advertisement, notice or information used in connection with the lottery. Without limiting the generality of the foregoing, advertisement includes the conditions of entry, entry forms, tickets or coupons, any electronic and/or print media advertisement (including on the outside or the inside of the product being promoted, or at the place where the product or service is sold or otherwise provided).

casino means the holder of a casino licence granted under the Casino Control Act 1992.

conditions of entry means the rules, terms and conditions upon which persons may participate in the lottery, and under which the promoter must conduct the lottery.

hotel means the holder of an hotelier’s licence under the Liquor Act 2007.

independent person means a person who:

(a) except for involvement with the scrutiny of the draw is not otherwise concerned with the management, conduct or promotion of the lottery for which this permit is issued; or is not a director, employee or otherwise employed by, or under contract to, the promoter, the promoter’s agent, or any associated companies, businesses or agencies, and

(b) does not have any interest or relationship, personal or commercial, with the promoter, or any person employed by that promoter which might be, or appear to be, incompatible with that person’s objectivity.

Office means the NSW Office of Liquor, Gaming and Racing.

official approval means approval in writing given by an authorised delegate of the Minister administering the Lotteries and Art Unions Act 1901.

lottery means a lottery or game of chance for the promotion of trade within the meaning of section 4B of the Lotteries and Art Unions Act 1901.

licensed premises means a premises holding a liquor licence under the Liquor Act 2007.

non-proprietary association means a corporation, club, or other unincorporated body of persons, formed for the purpose of promoting and conducting race meetings that is registered as a racing club.

promoter means the person(s) concerned with the management of the trade or business.

registered club means a club holding a club licence under the Liquor Act 2007.

rules means the rules formulated under condition 3.

trade or business means the sole proprietor, the partners in the partnership or the body corporate identified in the application for this permit as the benefiting trade or business for the purposes of section 4B of the Lotteries and Art Unions Act 1901.

Any duty imposed by these conditions:

(1) is imposed on the promoter,

(2) is imposed jointly and severally on each promoter, and

(3) may be performed by any one promoter.

1 Value of individual prizes for multiple lottery permits

(1) Type B multiple permit where total prizes during the period of the permit do not exceed $50,000 any one prize cannot exceed $250.

(2) Type C multiple permit where total prizes during the period of the permit do not exceed $100,000 any one prize cannot exceed $1000.

2 Changes to the conduct of the lottery

(1) For single lottery permits, the promoter must not change the method of conducting the lottery, including the rules, as particularised on or accompanying the application for this permit, unless the change is approved by the Office.

Trade promotion lottery permit conditions Aug 2014 Page 2 of 4

(2) The promoter must not terminate the lottery before the advertised closing date, unless approved by the Office.

(3) For single lottery permits, if a change is approved by the Office under condition 2(1) or 2(2), the promoter must make the change in accordance with any directions given by the Office.

3 Promoter to formulate lottery rules

(1) The promoter must formulate rules in accordance with this condition under which persons may participate in the lottery.

(2) The rules must provide for the following:

(a) the conditions of entry (including the minimum age of the participants)

(b) the closing date and time for the receipt of entries in the lottery

(c) details of the prizes and their value (including conditions, if any, relating to receiving, accepting or using the prizes)

(d) the place, time, date of the lottery

(e) the manner in which prizes are to be awarded

(f) the method for claiming prizes (including any requirement to be in attendance at the draw)

(g) the manner in which prize winners are to be notified

(h) details of how the results of the lottery will be published

(i) the name, address and telephone number of the promoter.

(3) These rules must be advertised and available to all entrants from the commencement of the lottery.

(4) The promoter must comply with such rules.

4 Promoter to supply information to potential lottery entrants

(1) The promoter must ensure that in any advertisement the following information is made available to persons who may want to participate in the lottery:

(a) the rules

(b) the permit number in the format “NSW Permit No. LTPS/__/_____” or “NSW Permit No. LTPM/__/_____”

(c) where it is likely that a prize will not be awarded because of the nature of the lottery, an indication of the chance of winning the prize in the format, “1 in ___ chance of winning _____” and

(d) if, following the determination of a winner, a subsequent lottery is used to determine the prize awarded, a statement must be made as to how the subsequent lottery is to take place and what the odds are of winning the major prize, as per (c) above.

(2) If, in fulfilling condition 4(1)(a), the promoter is constrained by the advertising medium to supply the rules because of time or space limitations, the advertisement must stipulate:

(a) where those rules may be found and

(b) any unusual or onerous rules unless they relate to compliance with condition 13 (such as a condition of entry, the closing date of the lottery, any time constraint on a tour or journey prize).

(3) The promoter must not represent that the lottery is conducted for, or in conjunction with an appeal for, a charitable purpose, unless approved by the Office.

5 Means of entry through telephone or MMS

(1) This condition applies to a lottery that involves a 190 premium service telephone, a Short Message Service (SMS) or a Multimedia Messaging Service (MMS), hereafter called a ‘telephone service’.

(2) The cost to an entrant or other person for calling or messaging a telephone service in order to enter the lottery must not exceed $0.50, plus the amount of GST payable in respect of the call, and the rules must include a reference to that cost.

(3) An entrant or other person must not incur any cost if the telephone service sends a message to that person’s mobile telephone in connection with the lottery.

(4) An entrant or other person must not be required to call or message a telephone service on more than one occasion to provide personal information or particulars, or to answer questions, or for any other reason, in order to obtain a right to a valid entry into the lottery.

(5) An entrant or other person must not be required to call or message a telephone service to obtain information or particulars about the lottery. Without limiting the generality of the foregoing, information or particulars includes details of the conditions of entry, and the provision of numbers or symbols which a person matches with other numbers or symbols hidden or displayed on a game card or in a publication.

(6) In this condition, GST has the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999 of the Commonwealth.

Trade promotion lottery permit conditions Aug 2014 Page 3 of 4

6 Instant win and scratch-type lotteries

(1) If the lottery is an instant win, scratch-type or pre-determined lottery, the rules of the lottery must include the following:

(a) a statement that all prizes from the advertised total prize pool will be distributed during, or after the completion of, the lottery, together with a statement that details how prizes are to be distributed after the completion the lottery, unless the Office waives this requirement.

(b) a statement that at the end of the lottery all existing claims to prizes and entitlements will be met notwithstanding the advertised prize pool has been exceeded, and

(c) a statement that printing errors or other quality control matters outside the control of individual players must not be used as the sole basis for refusing to award a prize.

(d) Condition 6(1)(a) does not apply if the prizes are perishable food or drink products.

(2) Security measures must be adopted to eliminate the potential for the manipulation of the distribution of winning tickets or other game material.

(3) All details of claims for prizes over $100 which are denied shall be retained. These details must include the name and address of the claimants and the reason why the claim was not met.

(4) A claimant must be promptly informed of the reasons for refusing to award a prize, unless forgery or similar tampering with the ticket, entry form, etc. is suspected.

7 General requirements for conducting the lottery

(1) All entries to the lottery must be treated equally.

(2) All entries must be included into the draw.

(3) No person is to receive an unfair advantage or unfair gain over another.

(4) The outcome of the lottery must not be determined on the basis of an unlawful game within the meaning of the Unlawful Gambling Act 1998.

(5) A lottery cannot be conducted that imposes a condition that places some participants at a disadvantage. A condition that requires a participant to claim a prize at a draw you must allow at least four minutes for them to do so. This requirement must be clearly stated in the rules of the lottery.

(6) The promoter must ensure that each and every draw is open for public scrutiny, and anyone must be afforded the opportunity to witness the draw.

(7) The determination of the winner, whether by draw or instant win must take place in Australia.

(8) If more than one prize is being offered, the major prize must be drawn first, and the other prizes then drawn in descending order of number and value. If the draw is to be conducted in other manner or method, the rules must describe the manner or method to be used to determine the winner of the lottery.

(9) Prizewinners should receive their prizes within a maximum period of six weeks after the draw of the prizes, unless otherwise stated in the rules of the lottery.

8 Scrutiny of draw and notification of prizewinners

(1) This condition applies if the total value of prizes in a draw is greater than $10,000 (unless all the prizes are determined by an instant win, scratch-type or bingo-style lottery, in which case this condition does not apply).

(2) The draw and the announcement of the prize winners must be scrutinised by an independent person, unless the Office waives this requirement.

(3) Any waiver given under condition 8(2) remains current until revoked, or the particulars upon which the waiver was granted have been modified without the prior approval of the Office, or the particulars upon which the waiver was granted are not being complied with by the promoter or the promoter’s agent.

9 Computerised systems for drawing prizewinners

Where a computerised system is used to determine the winner of a lottery, the promoter or the promoter’s agent must, prior to the draw, obtained signed appraisal and draw procedure reports from a suitably qualified independent person into the operation and integrity of the computerised draw system.

10 Announcement of prizewinners

(1) As far as practicable, the promoter must notify all prize winners within two days of the draw of the prizes.

(2) The prize winners must be personally notified (by face-to-face, telephone, mail, email or by other reasonable means).

(3) The promoter must ensure that the name of the winner of any prize exceeding $500 is announced in a newspaper generally circulating in the area where the lottery was conducted, or by radio or television generally received in the area where the lottery was conducted, or by the Internet, in accordance with the rules of the lottery.

Trade promotion lottery permit conditions Aug 2014 Page 4 of 4

11 Unclaimed prizes

(1) If within three months after the determination of the winner of the lottery, a prize (other than a prize consisting of perishable goods) has not been claimed by the winner, the promoter must take all reasonable steps to deliver the prize to the prize winner. At the conclusion of the three months, if the prize cannot be delivered, the promoter must notify the Office and, subject to the Office’s approval, re-determine the winner of the prize in accordance with any directions by the Office.

(2) If requesting approval under condition 11(1), the notification must set out the steps taken to deliver the unclaimed prize, and the last known address of the winner of the unclaimed prize.

(3) If the prize is perishable and is not claimed by its winner on the day of the determination of the winner, the promoter may dispose of the prize in any manner the promoter considers fit. However, if the promoter disposes of the prize by selling it, the proceeds of the sale must be held as if it was the prize.

12 Record keeping

(1) The records that relate to the lottery (e.g. ticket butts, entry forms and lists of entrants) must be kept for a period of at least three months after the date on which the winner is determined.

(2) Where a determination is made under condition 11, the records must be kept for at least a further three months after the last determination is made.

(3) A register detailing prizes and their values must be maintained for multiple lottery permits for a period of at least 12 months.

13 Lotteries conducted by wagering operators

A non-proprietary association or licensed wagering operator or their employee that conducts a lottery must not publish any advertising that offers any credit, voucher or reward as an inducement to participate, or to participate frequently, in any gambling activity including as an inducement to open a betting account.

14 Bingo style lotteries

Bingo style games other than instant win or scratch type lotteries must not be conducted on licensed premises as a trade promotion.

15 Cash prizes on gaming machine premises

If the lottery is conducted on the premises of a registered club, hotel (excluding general bar licences) or casino, cash prizes must not be offered between the hours of 10:00pm and 8:00am the following day. If a cheque is provided as a prize, the cheque must be made payable to the winner and cannot be cashed by the venue.

16 Electronic devices that resemble gaming machines

Where a device resembling a gaming machine is used to determine the winner of a lottery, the device must be situated in an area of a hotel or registered club premises where minors are not permitted.

Ground Level 18 Honeysuekle Clive Newcastle NSW 2300

10 May 2017 BEA054-SNEDJR01

PO Box845 Newcastle NSW 2300 www.colllers.com.au

James Sneddon TIA Das Hund Haus Attn: James Sneddon Shop 6, 54 Beaumont Street HAMIL TON NSW 2303

Email: [email protected]

Dear James,

MAIN +61 2 4926 4888 FAX +61 2 4926 4555 EMAIL [email protected]

RE: SHOP 6, 64 BEAUMONT ST, HAMIL TON PROPERlY OUTGOINGS BUDGET 2017/2018

Colliers ltiTEfW,o\TIO!lAL

We wish to advise that the budget of estimated recoverable expenses for the period 1 July 2017 to 30 June 2018 has now been completed as per the schedule below.

Total expenses for the property have been estimated at approx. $90,000.00 + GST. Under the provisions of your lease agreement your annual outgoings contribution for this period at 21.02% has been calculated at approx. $18,918.00 + GST.

Estimated Outgoings for the Period 1 July 2017 - 30 June 2018

Items Estimated Total Council Rates $ 15,900 Water Rates $ 25,000 Land Tax $ 5,900./ Building Insurance $ 11,000.1 Cleaning Expenses $ 10,500 Electricity Expenses $ 8,000 Mana ement Ex enses $ 13,700 TOTAL $ 90,000

Portion Applicable To Tenancy - 21.02% $ 18,918

Therefore your July Tax Invoice will reflect the monthly amount payable of $1,676.60 + GST.

Should you require any further information in relation to this matter, please do not hesitate to contact me at our office at any time.

Yours faithfully, COLLIERS INTERNATIONAL (NEWCASTLE) PlY LTD

MITCHELL BEATTY Property Manager

Colliers International (Newcastle) Pty Limited I ABN 43 079 237 415

Form: 07L Release: 4-4

LEAS E New South Wales

Real Property Act 1900

Leave this space clear. Affix additional pages to the top left-hand corner.

PRIVACY NOTE: Section 318 of the Real Property Act 1900 (RP Act) authorises the Registrar General to collect the information required by this form for the establishment and maintenance of the Real Property Act Register. Section 968 RP Act requires that the Register is made available to any person for search upon payment of a fee, if any.

STAMP DUTY Office of State Revenue use only

-(A) TORRENS TITLE Property leased

Part Lot 10 in Deposited Plan 1028613 being that PART known as Shop 6, Beaumont Street, Hamilton NSW

(B) LODGED BY Document Name, Address or DX, Telephone, and Customer Account Number if any CODE Collection Box

Reference: I (C) LESSOR

SANG THUAN KHUU

(D)

The lessor leases to the lessee the property refen-ed to above.

Encumbrances (if applicable):

(E) LESSEE JAMES RICHARD SNEDDON

(F) TENANCY:

(G) I. TERM Three (3) Years

2. COMMENCING DATE 1 June 2017

3. TERMINATING DATE 30 May 2020

4. With an OPTION TO RENEW for a period of N ·A .

set out in clause N. A. of N .A.

5. With an OPTION TO PURCHASE set out in clause N. A. of N.A.

6. Together with and reserving the RIGHTS set out inclause N . A . of N. A .

7. Incorporates the provisions or additional material set out in ANNEXURE(S) A & B

8. Incorporates the provisions set out in N. A.

No. N.A.

9. The RENT is set out in i tern No. 13 of Annexure A

ALL. HANDWRITING MUST BE IN BLOCK CAPITALS.

Page 1 of 19

L

hereto.

54

1309

DATE 1-1-

(H) I certify I am an eligible witness and that the lessor signed this dealing in my presence.

Certified correct for the purposes of the Real Pro ,orly Act

[See note* below).

Signature of witness:

Name of witness: Address of witness:

-· Joshua Jame.s Hay_· Solicitor . 60 Beaumont Street

Hamilton NSW 2303

1900 by the lessor.

Signature oflessor:

I certify I am an e ligib signed this dealing in [See note* below).

it.n ess and that the lessee Certified correct for the purposes of the Real Property Act 1900 by the lessee.

Signature of witness:

Name of witness: Address of witness :

(I) STATUTORY DECLARATION*

I SANG THUAN KHUU

solemnly and sincerely declare that-

! . The time for the exercise of option to renew in expired lease No. AI946247 has ended; and

2. The lessee under that lease has not exercised the option.

I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Oaths Act 1900.

Made and subscribed at 1-1 AM IL TON

in the presence of ..)o.JHv.t- J1fM.r -1

D Justice of the Peace (J .P. Number: .

D Other qualified witness [specify] .

in the State of New South Wales

) 0 Practising Solicitor

# who certifies the following matters concerning the making of this statutory declaration by the person who made it:

~ I. I saw the face of the person Oll I tlitl tlttt nee the Au1e !lf ll1 t1 tJen.u:1n aeeuuse lft~~~r4n~fa i>elii;i:ia64oo ~~A-k~jti~~~;and

2. I have known the person for at least 12 months g;1 I havl:l oo"4Wlm~d4h tJ@4'8<~Rl~~g-an-id0n~tl:ie

. IM~ daat1n1.e1.ll l rs li L /~11,,·1 !!JM);j

Signature of witness: Signature of applicant:

. ""*'

* As the services of a qualified witness cannot be provided at lodgment, the declaration should be signed and witnessed prior to lodgment. #If made outside NSW, cross out the witness certification. If made in NSW, cross out the text which does not apply.

** s l l 7 RP Act requires that you must have known the signato1y for more than J 2 months or have sighted ident(fj;ing documentation. ALL HANDWRITING MUST BE IN BLOCK CAPITALS Page 2 of 19 1309