So the Craft Beer movement has spread throughout the whole
country, and you are wondering what is next.
Well here is what my opinion is and why it is good for beer.
Looking at the current microbreweries that are in production
right now you have to think to yourself...”can they continue to grow at this
pace?” It seem like every major city in
America has at least 3+ commercial breweries all somewhat competing in their
respective markets. I know…I know they
are not competing against each other but the macro breweries such as InBev and
MillerCoors. With that being said it
comes down to the availability of taps at local restaurants and bars to accommodate
these beers. At some point in time there
just are not enough taps to go around, and the commercial craft beer breweries
will have to turn to heavy canning or bottling to organically grow, or accept
where they are at in the market right now, and enjoy making beer.
This is where some people see a stall in the craft beer boom
of the 1990’s to current day. I on the
other hand still see a huge opportunity for craft beer to continue to grow in a
different niche. THE BREWPUB! Think about all the new nano-breweries that
you are hearing about that are starting with brew houses less than 3 BBL. On the wholesale side of the business, keg
distribution to retail accounts, there is no money to brew at this level. Most are brewing small to show they have the
skills, and then look for investment to move to a 10BBL brew house. I see the 3BBL and under breweries as a
profitable business when you get a small, but high quality menu involved. Food will help bring customers in and help
your sell directly at retail pint prices to your customers. Just think if you are brewing 3BBL of beer a
week, but able to sell it at full retail price to your customers. This would be comparable to having a 10 BBL
brew house and selling wholesale.
So in this model you get a lower cost of entry with the 3
BBL brew house which equates to less financial risk on your part. Sure the cost of running a kitchen will
increase the startup cost, but remember you do not want to be a Greek restaurant
and offer 100 menu items. Limit it to
10-15 and make sure they are great items.
This will keep your kitchen small and manageable by one cook. Now if you are running your kitchen correctly
you will provide yourself with the income needed to support your brewery and
actually pay yourself some sort of an income.
Now I know you want specific numbers, but there are just too many
variables. You are smart people. Look at your beer production cost and revenue
of selling your beer for $4 or $5 per pint….that will be your beer profit. Then take the number of seat you plan on
having that the brewpub and multiply it by 2 (for turnover in seating per day). Then just look at your cost of food vs.
retail price….add it all together and boom there is your total revenue. Now subtract your monthly fixed cost such as
rent and utilities and payroll. You get
the idea. Your view of a good income may
be different from what others think.
Making $30K per year or $100K, just remember you are doing what you love
and getting paid for it.
I hope this article makes a case for why every down could
have multiple brewpubs just like it has restaurants. This will help continue the growth in craft
beer and give a lower entry point for more people that have the passion to
become professional brewers.
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