Welcome to the quarterly edition of Savory Suds and Spent Grains from Small Batch Standard. I thought this would be a fun way to highlight some “Wins” and expose some stink of the craft brewing industry.
Savory Suds go to Nancy P, Executive Director of GA brewers guild. This southern peach and their board used their sweet charm to persuade the ass backwards lawmakers in Georgia to allow taprooms. On September 1st, Georgia joined every other state in America in allowing breweries to serve a proper pint at the brewery. I predict sexy beers and new head-turning breweries coming out of this state in the near future. Cheers to you Nancy and the GA guild board!
Savory Suds go to Kary Shumway for posting this article on the importance of tax planning for breweries. It’s been awhile since I have written about taxes or tax planning, and this article got me fired up. Believe it or not, tax planning is a form of wealth management. A CPA who is familiar with breweries and manufacturing is worth their weight in gold. I definitely will be writing more about taxes in the near future. Our knowledge in federal and state taxes can certainly help you. Cheers to you Kary!
Savoy Suds go to Brewpub Owners. Which brewpub you ask? All of them. I thought running a production brewery was hard work. Balancing a brewery and kitchen is not for the faint of heart. When I think about the labor and food cost associated, I get the hibby jibies. Lucky for brewpub owners, in most cases they are selling their own beer so margin for error is wider than a regular restaurant. Typically, restaurants struggle to stay open for the first year, however the profits from the house made beers set up a cushion. With a full time, kitchen they have the opportunity to crush the incremental sale of an extra pint or two, which adds up over time. Cheers to you Brewpub owners!
Spent Grains go to Brewery Trivia Night. Are you noticing a dip in sales on trivia night? If you have not noticed, look a little closer. Also check out the past 5 trivia night winners….notice a pattern? You have heard it first folks…..Trivia Tuesday is officially dead. Trivia ringers run the local circuit, and trading their gift cards for a scrumptious TGIF suppers. Not to mention they don’t drink. Cut trivia, now. When I reopen my Brewery Business Blueprint online course, there are a few clever suggestions on some successful substitutes. Bake in the sun Trivia Night!
Spent Grains go to the Traditional Tour. True Story. I have been on 127 brewery tours. 126 of them sucked. The only one I vividly remember, and talk about, is the one I took at Coppertail Brewing in October 2016. Why does this one stick out? Because the tour guide, who will remain nameless, took us on a hilarious journey while staying close to the beer. He hammed it up. I talk about giving the customer a unforgettable experience at the brewery. With all the competition these days, customers can find a typical tour anywhere. Typical tours are forgettable. How can you bump your tour experience up to the next level? Reply and let me know. Bake in the sun Traditional Tour!
Spent Grains go to me. Yep, me. If you read my last article on FaceBook Ads you may have noticed a math error at the bottom. It was an example for Customer Acquisition Cost (CAC) Here is an excerpt:
The actual CAC for my example was 20¢ per customer. $200/1000. Given this information, I want to share with you a CAC benchmark for the Food and Beverage industry. 18¢-23¢ How does this translate to the craft beer industry? Given the steep food and labor cost of a restaurant, 18¢-23¢ can actually be expensive in some situations. Taprooms could adhere to this range but you guys have far more profit built into that beer than a restaurant does on food. So lets get dicy for a minute, Would you feel comfortable paying 27¢ per customers? What about 30¢? I think anything under 30¢ CAC is acceptable, the rest is up to you to convert them into a repeat customer. Bake in the sun me!
-cf
P.S. I will be moderating a panel at the Craft Beer Finance and Investment Conference October 26-27. Love it if you could join me. Oh yea, the topic, you know it, Increasing the Value of your Brewery!