Olinda’s iconic Cuckoo restaurant is close to being sold and will most likely reopen under new ownership as a Bavarian-themed restaurant according to the selling agent.
Hodges Real Estate Chelsea licensed agent and auctioneer Michael Hall said negotiations with a serious buyer were underway and the buyer’s intention was to run the business as a restaurant.
There has been a flurry of media reports in recent days heralding the demise of The Cuckoo.
The much loved restaurant, which seats 400 indoors, closed in 2020 when Covid restrictions decimated Melbourne’s hospitality industry.
It reopened briefly in mid 2020, but remains closed due to Covid seating restrictions and the retirement and ill health of the businesses founder Karin Koeppen.
Karin and husband Willi, a German born chef, opened The Cuckoo in 1958 as Australia’s first smorgasbord restaurant.
Since then hundreds of thousands of Australian and international tourists have enjoyed The Cuckoo’s hospitality. Prior to Covid, the Cuckoo hosted 60,000 visitors per year, of which more than 20,000 were international tourists.
Mr Hall said the Koeppen’s children had pursued different professional interests to their parents and had wanted to sell the restaurant for some time.
Karin and Willi’s son and Cuckoo’s Managing Director Andrei Koeppen told the Star Mail the business must sell in order to pay costs associated with his mothers aged care and health conditions.
“Buffets were prohibited with the Victorian Government restrictions, we did try to change to a different model briefly last year but it just wasn’t viable because we brought the smorgasboard concept to Melbourne, we are famous for it,” he said.
“It’s a bit sad, mum has run that place for so long and put her heart and soul into it, we’ve had over 10 million customers throughout our time,” he said.
Mr Koeppen said the restaurant had become an “institution”, seeing “14 busloads of tourists a day” before Covid-19 struck, as well as countless celebrities.
“We’ve had several prime ministers, Bob Hawke, Whitlam and Fraser, and various rockbands including the Rolling Stones, George Harrison. Kylie Minogue pulled up in a limo a few years back and my uncle said, sorry we are closed. She said, ‘can I just have a look around, I used to play here as a kid’. Her parents used to come up for Sunday lunch and she’d play out the back,” Mr Koeppen said.
Mr Koeppen said he would love for the restaurant to continue as an iconic Barvarian themed buffet.
“We would love to see somebody take it over, retain some of our staff, some have been there for over 20 years, and to see the brand continue into the future, but it all comes down to what is possible,” he said.
An online marketing campaign says The Cuckoo is “a proven success story“ guaranteed to provide an annual multimillion-dollar turnover of approximately $3 million per annum.
The business and freehold comprises approximately 10 acres (3.869 ha).
Mr Hall said the restaurant, which is set on a steep block of land, has little capacity to switch to outdoor dining and its redevelopment value did not match its value as a going business concern.
Mr Hall said he was “99 per cent sure“ the Cuckoo would reopen as restaurant once a sale was finalised.
“The family want the legacy to continue and the potential buyer we are negotiating with is keen to honour The Cuckoo’s history and tradition by making sure it reopens.“
