I’m here to share another call I had.
When I experience a call like this, it’s my moral duty for me to get it out there just to make sure we are all on the same page.
The background is:
Brewpub, located in a major market, currently generates $1.5m in revenue. To fill capacity and boost revenue they began self-distributing.
Here is where is gets juicy.
Owner thinks the pub has reached a revenue ceiling and the only room for growth is in self distribution.
They’ve fallen on financial hardship and the light at the end of the tunnel is to sell more beer in distribution.
Ouch.
I’ve got news for caller #9, he is only half the way there!
I believe that every brewpub, in America, has the potential to hit $3m in annual revenue.
In fact, most pubs make it to the $3m mark, before speaking to me. It’s only then they hit a wall and growth is painful and slow.
How? You ask.
In order to reach $3m a year in sales at your pub you need to follow this daily sales guide.
What could be preventing a pub from hitting these numbers? Most will say location. While location could be a factor, I think it’s the easiest scapegoat when a business is not doing well. So pushing location aside, I know of a quick test to uncover the deficiencies.
Food Revenue to Beer Revenue test. When a pub is able to knock out 50% food and 50% beer revenue, this tells me that hospitality is firing on all cylinders. Food service, ticket times, Food quality, portions, Beer quality is just working.
Most importantly this tells me that customers perceive VALUE.
Another reason these numbers may be beyond the realm of possibility is your hours of operation. When you switch over to a pub model, you become a restaurant that makes its own beer. Think about all the hours that your favorite restaurant operates.
So back to caller #9. Sammy Self-Distro has a ways to go before he gets any sympathy from me.
The future of craft for 90% of the breweries in existence today is retail.
Embrace it.
Stop resisting the fact that you may need to identify as a restaurant that makes its own beer….Its ok. Customers love this model.
If the numbers above seem daunting, it’s a momentum thing. Once the momentum starts, this is very achievable for most brewpubs out there. If you agree with me, disagree with me, or just wanna chat about it, use the link below to book a call.
I’ll leave you with a quote I heard back in 2014, from a wise young man.
“Everyone has to eat, no one has to drink” —cf
—cf