Heatherbrae's Pies is for sale and the business could be set for a nation-wide expansion under the new owners.
For many Novocastrian drivers, planning their road trip north to the beaches of the North Coast or south to the Canberra ski fields starts with pencilling a pit stop and a pastry at the iconic business.
Established more than 20 years ago, the business has 130 staff across three cafes in Heatherbrae, Ourimbah and Sutton Forest, which turned over a combined $15 million last year.
Owners Russell and Amanda Cox have engaged Wyuna Partners to sell the business. The Newcastle Herald understands the pair, who are in their early 60s, have made the decision to spend more time with their family.
However, Wyuna Partners managing director Paul Veltman said Mr Cox was open to staying on in some capacity to help the new owner run the business.
The location of the cafes along highways between major destinations was a large contributor to the success of Heatherbrae's Pies. With 1.8 million customers - 90 per cent of which are repeat customers - Mr Veltman said the business model was primed to be rapidly expanded.
"If you're going past Heatherbrae, there's not another cafe or food precinct north of it for another 150km," Mr Veltman said.
"Russell has identified another 20 locations that have a similar footprint."
There's been a high level of interest, with more than a dozen parties making inquiries. Mr Veltman said the business was expected to go for "at least" four times its EBITDA (earnings before interest, taxes, depreciation, and amortization).
"It's a unique business in the sense that your typical quick-service restaurant would usually turnover around $1 million, yet these three cafes turn over $15 million combined and one of them [Ourimbah] is only 18-months old," Mr Veltman said.
Mr and Ms Cox would prefer to sell all three cafes as a package, but were open to selling just the business while leasing the land to the new owner.
Initial offers are due to be received by the end of the month.
