I have a question regarding the first year or two of opening a brewery.
I have been told by several different sources that breweries tend to operate at a loss for 12-24 months after opening, considering that the estimated salaries are about 10% of revenue.
For a small taproom, how does the ownership even get past that 12-24 period and begin to take profits, considering that you need to hire a small staff to keep everything running? Does it inevitably mean that you have to go to distribution at some point?
I know there should be a cash reserve in place, which should be substantial to pad the losses, so is that a matter of saving your own cash? Or has someone ever baked cash reserves into a loan of sorts? I know that's not an ideal situation, but curious to see what some have done in this scenario.
I have been told by several different sources that breweries tend to operate at a loss for 12-24 months after opening, considering that the estimated salaries are about 10% of revenue.
For a small taproom, how does the ownership even get past that 12-24 period and begin to take profits, considering that you need to hire a small staff to keep everything running? Does it inevitably mean that you have to go to distribution at some point?
I know there should be a cash reserve in place, which should be substantial to pad the losses, so is that a matter of saving your own cash? Or has someone ever baked cash reserves into a loan of sorts? I know that's not an ideal situation, but curious to see what some have done in this scenario.
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