Last week I talked about some of the benefits of owning a brewpub. To make this dream of mine a reality I also need to address the drawbacks of a brewpub as well. Granted I am no expert in any of this, I am purely posting my thoughts and what I am able to see, so if you have more suggestions please let me know. There are a number of disadvantages to owning and operating a brewpub vs. a brewery. Some may seem small and insignificant but they all add up to something that matters.
The first disadvantage that I am able to find is that you have a much more limited audience. A brewpub can realistically pull people from a radius of about 20-30 miles at a maximum. While I have personally traveled much greater distances to get to a good brewpub, that is not what the average consumer will do. A brewery can distribute in a large area and be in many places at once whereas a brewpub can only be in one spot. The advertising, marketing, and branding have to be completely different in order to bring in a crowd. I also believe that a brewpub must advertise to help stay alive, while most craft breweries do little if any advertising.
Another disadvantage is that a brewpub cannot focus only on beer. While the beer provides a nice profit margin and an additional source of income, food is more important. Nobody goes to a restaurant that doesn’t have good food. The restaurant market is much larger than the brewpub market, therefore food has to be exceedingly important. Customers can go to a number of restaurants to get food (and a commercial beer) if that is what they are looking for. So everything from beer to food needs to be quality as consumers have a number of choices.
The third disadvantage is that you are not just running a brewery. There are a lot of other factors to think about and be worried about while running a brewpub. A whole extra list of expenses comes into the mix as well. No longer do you have to worry about brewery equipment, you also have kitchen, bar, and restaurant items that need to be addressed. A brewery has no need for a flat-top cooker or bar stools or booths, but a brewpub certainly does. The decorum also needs to be more dressed up than what a brewery has. A brewery, while magical to most of us, is an industrial facility that makes a product. A brewpub is a commercial product that makes a product(s) and delivers an experience. You also have additional staff that need to be qualified for the job and trained on beer knowledge, service, and a number of other things.
The final disadvantage does along with the theme of a brewery being industrial and a brewpub being commercial. Breweries can lease space in places that don’t get a lot of foot traffic because they are not looking for traffic, they are looking to produce and distribute beer. A brewpub has to lease in a place with high foot traffic, ample parking, and be in a desirable location. Needless to say, rent is much higher in a brewpub than what a brewery would ever be.
Let me know if I missed anything when analyzing the disadvantages of owning a brewpub in comparison with a brewery. Thanks for reading and I will be back soon with more ideas for my brewpub.