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  • Leasing a kegorator to a restaurant...

    We have local restaurant that does not have any draught lines. They made the decision to only offer bottled/canned beer when they remodeled the building. It's in the same town as me and could be a potential big customer, but I only sell kegs.

    The proprietor just called and said 2 of his beer fridges were going out and he would like to offer my beer and my rootbeer. He would give me exclusive rights for draught beer (still keeping macro's in packaged form) but needed an under-counter kegorator or two to serve draft. He wanted to know if we could provide them for him.

    Anybody have any experience in this kind of set up? The Kegorators would be ours, but if the restaurant goes under, I don't need any kegorators sitting around.

    I'm not a business major and have never taken a class in the field. I don't know how to set up the contract of if this is even a good idea for my business.

    Any thoughts or help would be appreciated.

    Cheers!
    el

  • #2
    My initial thought is....Do you want to set a precedent? Do you want to start supplying bars with kegerators? People talk, before you know it people are wondering why you didn't supply them with a way to serve your beer on draft. The other thing to check is if it is even legal in your state to do that. If I am not mistaken, it is illegal to offer incentives like this in some states.

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    • #3
      Agreed. This will end up causing you more trouble than it's worth. Kegerators aren't cheap, but if this place is as busy as you suggest, they should be able to afford a $500-$1000 investment. Especially when you show them how much money than can make on draft beer.

      And keep in mind that if you buy it and lease it to them (if that's legal in your state) then you are responsible for cleaning and servicing the unit. Sounds like a pain in the a$$ to me.

      Maybe offer to help them find a unit and then help them install it? That way you can still build up a lot of good will with them without laying out the cash or taking on too much responsibility for the unit. They'll probably still end up being a good customer...
      Hutch Kugeman
      Head Brewer
      Brooklyn Brewery at the Culinary Institute of America
      Hyde Park, NY

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      • #4
        Supplying the draft beer coolers/dispensers is the only way we do business. Granted, it's not US. We offer free dispenser, CO2, and cleaning once a month. We get a $500 deposit. They buy glasses. We deliver beer. If you want to sell beer, you have to make it attractive to the business owner. Think he's going to buy a cooler and a draft system specifically to sell your beer exclusively? I think not. Easier to offer craft products in one-way containers. Good luck!
        Phillip Kelm--Palau Brewing Company Manager--

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        • #5
          Why not hand bottle and label a few cases of 22's for this customer? I has to be cheaper and less hassle than a kegerator. Just a thought.

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          • #6
            I'm not sure if this is legal in all states, or at all.

            Anyone want to chime in?

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            • #7
              Just got of the phone with the LCC and it is indeed illegal. Makes the decision easy.

              Thanks for all the feedback.

              Cheers

              el

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              • #8
                Hate to tell you this but just because it's illegal doesn't mean that distributors don't do this on a daily basis.

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