Monthly Sales and Profit

[Springhill]

Tirouj,
Sounds like you are really working hard on a solid plan before jumping in..... I think the one thing that makes your numbers look so unattractive is that you are estimating your expenses on 50 bbls a month production but only estimating sales/revenue on less than 20 bbls per month through the tap room.... With the extremely high estimates on your grain and hops, it really paints a bad scenario.... If you are going to produce 50 bbls a month, and plan on selling 17 to 20 bbls through the tap room, what are your plans for the other 30+ bbls? that's roughly 60 kegs that could be distributed to tap accounts, but in a town of 35,000 I am not sure that is feasible. If you dial your production numbers back to what you can actually sell in pints and growlers a month (20 bbls) it will make your numbers look much better.... It sounds as though you have no option but to hire a brewer. In a start up of this size that is a big hit to take, it's doable, but it's a big hit on the expense side. Are you planning on working 80+ hours a week in this establishment (LOL) or are you planning on keeping your day job? Considering you will be the only brewery in town, If you brew "Great Beer" you can sell 20+ bbls a month through the tap room.... Lacking food service will limit your sales and revenue, but the food truck service will help!

[Blu Dragonly]

Tirouj,

Thank you for expanding a bit on your location and the other variables. Being the only brewery in a town of 35,000, that gives you a really good undiluted market area for your tap room.

Have you come up with a formula for seat turns in the tap room or how many pints a guest might have? Do you have shift work in the area where you will actually have people dropping in for a beer or two after work in the middle of the day?

I'm not 100% certain it is law (naturally we will know before we open the doors) but it is customary in New Mexico for tap rooms to have a 3 drink limit. New Mexico has some of the toughest drunk driving laws and they have very specific laws spelling out the liability and penalties for serving intoxicated guests therefore a specific posted pint limit which I have observed in tap rooms. I've also seen 2 pint limits posted.

Cheers!
Colin

[vdeckard]

We have a 7 BBL. We have a Tavern that seats about 50, in addition to an outdoor seating area. We are located close to downtown but are still a bit difficult to find. I work hard at social media to get us found. We opened October 2017. I just ran some reports and saw that from January 20 to February 20 we sold a total of 5000 items in beer. Items can be: Flights, 1/2 pours, pints and growlers. I do have 16 taps and they are all rotating, which keeps people interested and coming back. We also offer a small but interesting food menu. This means people hang around longer. Depending on your concept, I think your numbers are doable as long as you brew good beer and provide a great atmosphere and get your name out there.


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[tirouj]

Springhill,
I am certainly trying. We'll see how it goes. I think you make a very good point regarding basing my revenue numbers on only 20bbl...I think we will have to find out a plan to sell all 50bbl every month...somehow...Maybe after the first month we will dial back our numbers but I think to keep customers interested we need a variety of beer, that's why I came up with 5 styles and having 5bbl of each available made sense initially. Maybe we won't need five bbl of each style moving forward.
Yes, I will definitely need an experienced brewer because I will work a second job until (hopefully) I can afford to be there full time.

Blu Dragonly,
I am not aware of any law that limits the number of pints anyone can have in MA during any particular time of day but it is worth doublechecking...good tide bit. I don't have a formula for the turn of seats (what do you use?) but I am projecting 1.5 to 2 pints per person.

vdeckard,
5000 items the whole year?! How are these numbers working for you? I know you mentioned you work hard on social media to be found... are you making a profit and meeting all your expenses with these numbers?

[vdeckard]

Springhill,
I am certainly trying. We'll see how it goes. I think you make a very good point regarding basing my revenue numbers on only 20bbl...I think we will have to find out a plan to sell all 50bbl every month...somehow...Maybe after the first month we will dial back our numbers but I think to keep customers interested we need a variety of beer, that's why I came up with 5 styles and having 5bbl of each available made sense initially. Maybe we won't need five bbl of each style moving forward.
Yes, I will definitely need an experienced brewer because I will work a second job until (hopefully) I can afford to be there full time.

Blu Dragonly,
I am not aware of any law that limits the number of pints anyone can have in MA during any particular time of day but it is worth doublechecking...good tide bit. I don't have a formula for the turn of seats (what do you use?) but I am projecting 1.5 to 2 pints per person.

vdeckard,
5000 items the whole year?! How are these numbers working for you? I know you mentioned you work hard on social media to be found... are you making a profit and meeting all your expenses with these numbers?

Sorry, you miss read. 5000 items in 4 weeks.



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[tirouj]

vdeckard,

Oh wow! my bad..that's quite a difference. That's pretty good, that gives me some comfort but then again San Anthonio is about 1.5 million strong. What's the name of your brewery?

[vdeckard]

vdeckard,

Oh wow! my bad..that's quite a difference. That's pretty good, that gives me some comfort but then again San Anthonio is about 1.5 million strong. What's the name of your brewery?

Künstler Brewing. And yes, we will probably self distribute a bit as well. It’ll help move beer so that we can keep rotating styles. I also look at it as advertising. My aim is to eventually serve everything out of the pub. But that’s a lofty goal.


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