Need Advice on startup decision

[SharkTank]

I had completed all my research, business plan, quotes, everything..ready to go for a production facility with a 7 BBL system. I was approached to open a brewery in the middle of the historic downtown area. I would have to move to a 3 bbl system (due to space and other limitations). When I look at it, I have a lot of less start up and operational costs than a strictly production facility in an industrial park. The new location would be right on the street with a taproom for about 50 people. At $3.75 to 4.50 per beer (depending on style) on draft, I wouln't need to distribute. The area has 1.5 million visitors annually and is dead smack in the tourist area. It seems like a lot less work, overhead, etc without the need for the planned bottling and kegging line. I ran both numbers again. There's higher margin to selling direct to the customer in the taproom. It seems like a no brainer. Just not sure how many barrels I will be able to sell but even if I sold 12 bbls per month, things would work out. Plus initial capital investment cut in half.

Any advice or suggestions? Thanks.

[AlphaBrews]

Im doing the same thing. Opening a smaller brewery in a downtown area. The numbers just work better this way in my opinion. My bigger dream is to get the 3BBL brewery off the ground (we are opening in February). Then, when the beer takes off open a second location in an industrial part of town with a 20BBL system to pump out cases and kegs. Taproom vs Wholesale...

[nohandslance]

What will the downtown locations sq, footage for the brewery be, Floor space, ceiling height.

[SharkTank]

It would be about 1600 sq foot. Not sure on ceiling height. Lot of the buildings are very old so usually quite high.

[nohandslance]

We installed a 7bbl system, with mash/lauter Kettle/whirlpool, with 2 7bbl, 1 14 bbl fermenter, plus 8 serving tanks, Grain mill room and glycol cooling tank into 600 sq/ft. Most tanks were stacked. Had to move things outside during working hours. Could keep most things with in this sq/footage organized and not too cluttered. Maxed the system out @ 1100bbls/year.

Lance
Rebel Malting Co.
Reno, Nevada USA
ljergensen@rebelmalting.com
775.997.6411

[ChesterBrew]

Just a heads-up...

The TTB will want to know if the brewery building is over 50 years old or on the National Historic Register, and if so you need to coordinate with your state historic preservation office. May not matter either way for you, but when you said "historic downtown area" I figured I'd mention it.

Here's a link to the TTB web site info about this issue:
http://www.ttb.gov/applications/pdf/...vation_act.pdf

[YSBrewer]

GW Kent sells a pretty nice combi HLT/MT 7 BBL brewhouse that has a pretty small foot print. I'd opt to go bigger and squeeze it in to your small space. Best of both worlds. The pricing between 3 and 7 bbl isn't that different and it will pay off not having to bust your hump when all your beer is drank in a weekend. I know a nano that started out in a very small space next to a 7eleven and he now has a 7 bbl system crammed in. It's doable!

[SharkTank]

Yeah, some of the down falls of being downtown is that the only entrance is a normal door way...so I am limited on how big the equipment is.

[uptown brothers]

One thing to be sure about would be zoning. Your profile indicates a Vienna VA zip code, as you know Virginia only made the brewery/tap room combo (with no food sales required) a viable thing effective July 1 2012, Commonwealth-wide.

That doesn't mean local zoning ordinances have necessarily caught up with this, and a "brewery" might be only permitted as a use of right, without Special Exception or Special Permit, in a manufacturing or light industrial zone. Or it might not even be in the ordinance at all, as in my old home county, Fauquier...

If you don't mind sharing, PM me where you're thinking of going; I have plans possibly not too far away from where I'm thinking you might be, which I'll share w/ you.

[Fullcourt]

Another way to do it is to open your production brewery in an industrial area and have your tasting room in the historic downtown. Best of both worlds.
You will be hard pressed to succeed with a 3 BBL system and limited space in the historic area.