'Very profitable': Iconic tapas bar Udaberri for sale in Leigh Street laneway

It has been listed for private sale through McGees Property Adelaide for an undisclosed sum, offering investors a foothold in one of Adelaide’s most tightly held hospitality precincts.

“All the Spanish guys who are on the Tour Down Under every year in January go to Udaberri two or three times a week,” says Grant Clarke, director of hotels and hospitality at McGees Property Adelaide.

The offering is expected to appeal to owner-operators and investors seeking exposure to Adelaide’s evolving small-bar sector, underpinned by consistent trade and event-driven demand.

Clarke says the “easily operated and very profitable” Udaberri is “one of the very well-known bars in Adelaide for tourists, corporate and locals”.

Co-owners Rob Dinnen and Ben Walsh opened the 120-square-metre venue, licensed for up to 120 patrons, in 2012. It has since grown into one of the West End’s most recognisable nightlife venues in a city on rapid ascent.

Adelaide was recently named the “#1 Best Place to Travel in 2026” by Yahoo! Creators, beating destinations like Kyoto and the Dolomites. The city’s rise is being driven by a strong calendar of major events, expanded international air access and strong tourism growth, with South Australia’s visitor economy now worth $9.9 billion and hotel revenue up 15 per cent year-on-year.

This momentum is being supported by sustained investment in defence, space and advanced manufacturing, including naval shipbuilding, satellite production and high-precision engineering.

However, much of South Australia’s current wave of major investment was still years away when the bar opened.

After living in San Sebastian, Spain, in the early 2000s, Dinnen set out to recreate the city’s restaurant culture and share-style plates he missed upon returning to Australia.

“Working in the pintxos bars out in the Basque Country, I absolutely fell in love with the laid-back dining culture that serves excellent food in a fun, social environment,” he says. “When I returned to Adelaide, I really missed that style of dining, as there wasn’t anything like that here at the time.

“We saw a little place for rent on a laneway that reminded me of the old part of San Sebastian. We decided to give it a go, and it took off from there.”

Offering small tapas-style dishes to share over drinks, Udaberri’s menu has evolved over time, with classics like patatas bravas now joined by rib-eye steak, king prawns and kingfish, topped off by traditional Basque baked cheesecake.

Another part of the bar’s appeal is its flexible layout, which includes a mezzanine level and a popular outdoor dining area in the laneway.

The compact footprint, strong brand recognition, social media presence and diversified revenue streams position the venue as a turnkey operation.

“Our large outdoor dining space, laneway area and mezzanine also offer great versatility for functions and dining options in addition to the bar,” Dinnen says.

“We’ve catered for several weddings and a number of off-site festivals, which has been a great new way to expand the business.”

Over the years, the bar has built a loyal following among locals and visitors alike, drawing patrons for after-work drinks, dates and cocktails – with some returning for wedding photos after meeting at the bar.

Self-describing as “Spanish eats under exposed wooden beams in a mood-lit wine bar with a mezzanine and chic courtyard”, the bar has attracted a 4.6-star Google rating.

The once-quiet CBD laneway precinct, joined by neighbouring Peel Street, is now packed with bars, restaurants and late-night venues.

It’s positioned 800 metres from Adelaide Oval and 450 metres from the Adelaide Convention Centre, so event-driven foot traffic is a key driver of trade. The nearby North Terrace strip provides accommodation for visitors, keeping them local after the national conferences close for the day.

“What’s happening – now that Adelaide is becoming more popular corporate-wise – is that [Udaberri] picked up a lot of business from the corporate world,” Clarke says.

He points to the scale of the event industry, with 79 major conventions held annually at the Adelaide Convention Centre, alongside 64 major sporting and concert events at Adelaide Oval – including 29 AFL games each season. 

Events such as the AFL Gather Round, LIV Golf, Tour Down Under and Adelaide Fringe have put Adelaide on the map, with the city’s visitor economy achieving record-breaking success in 2025.

“Udaberri really shines during events … we always have a crowd looking for a good time,” Dinnen says.

However, back in 2012, Adelaide’s bar scene looked very different, still under strict laws that made it harder for smaller venues to open.

“We opened at a time when the licensing framework was very different to what it is currently,” Dinnen says. “We worked in conjunction with the state government and other venue owners to introduce the Small Venue Liquor Licence.”

Introduced in 2013, the licence removed barriers for boutique bars and helped spark a wave of venues that activated the CBD’s small-bar scene and reshaped the city’s nightlife.

“That was a game-changer in allowing smaller, niche venues to open up throughout the CBD,” Dinnen says. “The Adelaide bar scene has really grown up over the past 14 years as a result, and it has been amazing to be a part of that.”

After more than a decade behind the bar, Dinnen says the decision to sell marks the start of a new chapter.

“I met my wonderful wife here myself, and have just had so much fun working here over the years,” he says. “We’ve got a young daughter now, so after 14 years, I think it’s time to retire the waiter’s friend and move on to a new chapter.”

Meanwhile, Walsh remains at the helm, with the venue continuing to trade as usual while a new owner buys in.