Market Thoughts with Mark Kitson
Market Thoughts with Mark Kitson
We caught up with Mark Kitson, a hospitality veteran with over 35 years of experience in Queensland and across Australia, to get his take on where the business sales market is heading in 2025.
Mark knows the industry inside out, not just from brokering deals, but from living it. As the owner of two successful cafes and someone who’s helped countless hospitality business owners navigate the sale process, he’s deeply in tune with what’s happening behind the scenes.
“We can work with them and help them through the selling journey because it’s a challenging sector.”
Mark’s experience also extends into the fitness world, specialising in gyms and wellness businesses. As an Australian representative triathlete who trains seven days a week, he understands the business opportunities within the sector.
So, what’s hot in the current market, and what’s not? Mark gave us a clear picture of which industries he believes are seeing buyer demand, and which ones are struggling to move.
Industries on The Rise
According to Mark, hospitality continues to shine, even with ongoing economic pressures.
“Cafes, restaurants, and bars are still selling well,” he said. “Despite all the noise around cost-of-living pressures, profitable businesses in this sector are in demand. It’s actually outperformed expectations since COVID.”
Franchise businesses are also generating strong interest, especially those in hospitality and fitness.
“Well-run franchises, particularly gyms and food outlets, are doing great,” he added. “They offer buyers systems, brand recognition, and often easier transitions. People feel more confident stepping into something established.”
And then there’s health and wellness, a sector that shows no signs of slowing down.
“Younger generations are prioritising their health more than ever. That demand is flowing through to business sales,” Mark said. “Everything from boutique fitness studios to wellness retreats is attracting serious buyers.”
Industries Facing Challenges
But not every sector is thriving. Hairdressing businesses, for instance, are struggling to gain traction with buyers.
“There’s an oversupply of salons on the market,” Mark explained. “When there are too many, it pushes prices down and a lot of them aren’t making enough profit to be attractive investments.”
The building and construction industry is in a bit of a neutral space, with shifting buyer demographics.
“What we’re seeing is younger tradies choosing to go out on their own rather than take on an existing business with staff and overheads,” Mark said. “The reward is often similar, but without the capital outlay or the headaches of managing a team.”
4 Tips for Buyers
- Sales matter, but expenses can break you. While strong revenue is important, it’s often the expenses that make or break a business. Look closely at the cost structure and consider how even small improvements, just 1% in key areas, can boost profitability. Small changes can have a big impact.
- Don’t expect to run it under management from day one. Many buyers go in thinking they can sit back while someone else handles the day-to-day. In reality, most businesses, especially small and medium-sized ones, need the owner to be actively involved, at least in the beginning.
- It’s not always easy being a business owner. Owning a business comes with pressure, responsibility, and a steep learning curve. It’s a big shift from being an employee or passive investor. Be prepared for long hours, tough decisions, and ongoing problem-solving.
- Australian businesses don’t always work the same as overseas ones. If you’re used to operating in another country, don’t assume the Australian market follows the same rules. From regulations and tax laws to customer habits and staffing norms, there can be major differences that impact how you run and grow the business.
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