20/07/2017 by andrew j.
You finally decided to start your own brewery. Apparently, you have experimented at home, invited your friends to taste-test your beer, and they gave you the green light to sell it. Before seeing yourself serving the craft beer, do some research and learn what are the costs to set up a brewpub.
How to set up your first brewpub
Maybe it will be only the first one before many others. Your brewpub does not come cheap – the initial costs can jump up to $1 million (if you’re thinking to open in the United States). You read that right! The massive investment can be estimated depending on several factors, such as the type of brewery business, the size, its location, the target market, and the current state of the economy. Paying the rent for 12 months can bring you somewhere near $50,000 or even more. For the remodeling of the facility, expect to pay approximately $10,000. As for registering the business and obtaining the permits and licenses, they will cost more than $3,000.
After that, you can say that you have purchased the first steps of setting your brewpub. You still have to pay for stuff! Hiring a consultant will charge you almost $2,500. You will spend the same amount for the utility deposits. Furthermore, in the first 3 months, you will have to pay $60,000 for payments of bills, salaries of employees, and other similar expenses.
Do you think that a brewpub is cheap? Only the start-up inventory will take $15-20,000 from your pocket. Plus, the brewing equipment isn’t more affordable. Some guys spent $18,000 for toasters, microwave, refrigerator, dishwasher, blenders, and others. Then, the countertops, ice machines, and sink increase the expenses with $10,000. The storage hardware – glasses case, utensil racks, bins, and shelves are $4,000.
What are the costs included?
How can you cover the initial investment of your brewpub? Expect to spend $5,000 for the opening party alone. You will also need flatware, glasses, office equipment, signage, security, cash register, ventilation, furniture and gadgets, marketing promotion expenses, and launching a website. Neither of them is for free! Based on the feasibility studies and market research, you need an estimate of $750,000 to set up your first brewpub. Do the math!
As for a medium scale brewing plant opened in the USA, expect to pay over than $1.5 million. In case you have in mind something big, well, a large-scale brewery plant demands to spend over $5 million for the start-up alone. Many entrepreneurs take a step back, knowing that money is the life line of any business. But after detailing your financial plan, you can raise your money for the start-up by applying for a loan from the bank, establishing partnerships with investors, using your personal savings, or requesting the help of donor organizations.
The costs to set up a brewpub include a lot more than money. You have to invest your time, effort, and passion for succeeding in the brewing business. If you really want to join one of the fastest growing industries, start crafting beer, and make your business dreams come true!