Buying a brewery for an existing restaurant: good idea?

[HogMountain]

Hello Lads,
I have had a conversation with a guy about adding a brewery to his restaurant. This particular restaurant has a space up front that always looked like it did not belong and only has a few video games for kids. It is up front and is actually surrounded by windows facing outside. I always thought it should have a brewery. After talking to the owner, he indicated that it was part of his plan to do that but he does not know anything about brewing. I don't know the restaurant business and honestly, I'm just a long time home brewer with no experience running a real brewery. But, I'm 52 yrs old working in high level sales and have made quite a nice living. I have the means to buy a brewing system and partner with someone. I just don't want to be tied to a restaurant 7-days a week. I have other priorities like a lake house and a wooden boat that I love and it is important to me to spend time there in the summer months.

Is it feasible for a guy like me to partner with an existing restaurant? I'd be the brewer...at least in the beginning and I would love to be the guy who talks about beer and gives brewery tours. I just don't want to spend $60-100K on a small brewery and only get pennies in return for my efforts (it has to be a fair deal). I guess I'm wondering if anyone here has done this or knows of anyone who has done something like this before. It is possible for me to visit someone who does this if that person exists. BTW, this would be in suburban Atlanta.

[nateo]

You have no professional brewing experience, you're at the top of your pay scale at your current job, and you have good personal reasons for not wanting to work all the time. I think you answered your own question. . .

[HogMountain]

You have no professional brewing experience, you're at the top of your pay scale at your current job, and you have good personal reasons for not wanting to work all the time. I think you answered your own question. . .

Yep, that is why I laid it all out there. I've always wanted to work for myself, but I also enjoy the money and benefits I now have. Even though it is sucking the life out me

[nateo]

Yep, that is why I laid it all out there. I've always wanted to work for myself, but I also enjoy the money and benefits I now have. Even though it is sucking the life out me

My advice: the specific arrangement with that restaurant doesn't sound like an amazing opportunity, certainly not good enough to bail on what you're doing now. If you know owning/running a brewery is something you want to do, start laying the groundwork now. Take some classes, read some books. The Brewer's guild has some online/distance learning classes for breweries-in-planning you should look into.

I'd also learn about managerial accounting for manufacturing, while you're at it. I'd look into the CMA, maybe not to take the actual test, but just to study the topics. It's sort of a "CFO" certification. It covers financial management and internal accounting. Shoot me a pm if you want to know more. I'll be taking the exam this fall, or next spring.

[HogMountain]

Nah, I would never quit my current job to buy a brewery for a restaurant and brew beer for them and only get a fraction of the dough! It was to be a side venture (I was not clear about that), but I think it would take up too much of my time with little payback and I just don't have any experience in running a real brewery. The accounting and management would not be a big learning curve. I run a segment of my company and my clients are the largest on the planet (worth many millions in revenue to us). I also have a law degree from the 80s which I do not use, but I am pretty good at reading through all that crap. I believe in 2014, GA will loosen their brewery restrictions a little more and allow on-site tasting rooms at regular breweries. The wineries up in N GA have done that for years. But the beer side is still deeply in the clutches of the 3-tiered satan.

My wife and I had dinner at this place last night and the area is all walled in and perfect for a small brewery. But, there is no floor drain and there is another business upstairs. I think the cost of adding floor drains along with gas and steam flues would be pretty pricey and if this guy goes under, I would be forced to take over his entire business or yank out my stuff and move on. Then someone else would have all those improvements.

Thanks for your input/experience.

[einhorn]

Interesting scenario. For me, a few question arise: how is the restaurant faring without the brewery? Who owns the building and how long is the current lease? Is he/she showing a profit after taking an owner's draw? Does the owner seem like the kind of person you could partner with?

I would definitely check out his financials and personal situation before even considering any further.

[nateo]

It was to be a side venture (I was not clear about that), but I think it would take up too much of my time with little payback and I just don't have any experience in running a real brewery.

There are some people out there who can run very small nanos on the weekends and after work. That would seriously cut into your lake time, and it doesn't sound like you really want to do that. If you have any friends or family you want to spend time with, get them to brew with you, otherwise you won't see them at all.

I personally can't do more than one thing well. Some people can. If you're one of those people, maybe you can pull it off. But, if you're half-assing the brewery, there's a good chance the beer will taste like it was half-assed. For most people, making good beer professionally requires their whole ass.

[HogMountain]

For most people, making good beer professionally requires their whole ass.

LOL, I have to agree with that one.