Mudgee’s award-winning tourism status drives hospitality opportunity
Isabella’s Trattoria, the only Italian restaurant in Mudgee, is one of the NSW Central Tablelands’ longest-running hospitality businesses and is looking for “passionate” new owners.
The long-time leaseholders, husband-and-wife team John and Isabella, are moving on after 27 years and hope new tenants will bring fresh energy to their beloved local institution.
The hospitality opportunity is located at 52 Market Street, in a “prime and central” CBD position. Mudgee, a two-time winner of Australia’s top tourism town award, sits about three-and-a-half hours’ drive north-west of Sydney, over the Blue Mountains in the fertile valley of the Cudgegong River.
The Mudgee region is known for its gourmet experiences, with around 40 boutique wineries and heritage towns drawing visitors from Sydney and beyond, while the regional hub of Mudgee itself is recognised for its sophisticated country charm.
The 100-square-metre Isabella’s Trattoria comes with a fully equipped commercial kitchen, a liquor licence and all inventory included. It offers seating for 75 indoors and 60 outdoors.
The leasehold and business are on offer for $145,000 through McGrath Central Tablelands’ Adam Sutherland, who says very few leaseholds become available in this part of town.
The lease is in place until June 2026, with a three-year option to extend to 2029 – the perfect way to test the waters before committing.
Isabella’s is somewhat of an institution, nurturing locals with “pastas to die for across the board”, Sutherland says, including his own go-to order, the penne arrabbiata.
John and Isabella run the trattoria supported by their daughter and a small group of young local staff. It has a loyal customer base and a strong local reputation.
“They’ve been there just on 27 years,” Sutherland says. “You don’t stay in business for 27 years if it’s not fruitful.”
Despite this longevity, the restaurant now opens for dinner only four nights a week instead of six – a lifestyle decision, not a reflection of demand.
“These guys used to operate breakfast, lunch and dinner in their heyday,” Sutherland says.
“They’re looking to just slow down. There’s so much opportunity for someone who wants to expand.”
The venue also includes a largely underutilised rear courtyard, ideal for conversion into a pizzeria, al fresco bar or dedicated events space – particularly during Mudgee Wine & Food Month.
“There’s a beautiful courtyard out the back,” Sutherland says.
“They utilise it somewhat, but someone could really take advantage of it … put a pizza oven in or do something a bit different. There’s certainly scope for improvement.”
While the restaurant has always catered primarily to locals, Sutherland highlights significant untapped tourism potential.
“They don’t necessarily cater to tourists – they cater to the locals, and locals support it really well,” he says. “The tourist market is icing on the cake.”
With Mudgee being named Australia’s top tourism town twice by the Australian Tourism Industry Council, and the region continuing to boom as a wine destination, the visitor market offers substantial growth opportunities.
Sutherland stresses the business need not remain Italian, noting it could suit another cuisine or even a bar concept, and adding, “There are so many options.”
While the landlord is not currently looking to sell the freehold, Sutherland says the site remains a stable, long-term investment.
“I wouldn’t say never, but at this stage it’s a good piece of real estate for her,” he says.
For the right buyer, the listing represents a rare chance to step into a proven hospitality operation with a flexible floor plan suited to multiple business ventures.
“It’s a great opportunity for someone with passion,” Sutherland says. “Someone who will take it over and run with the passion John and Isabella have had for 27 years.”
The McGrath listing reads: “This presents an incredible opportunity in hospitality – continuing the current venture or creating your own.”
