Starting a brewpub can be an exciting and rewarding business venture, but it’s important to understand the costs associated with opening one. Out of all the brewery businesses you can start, brewpubs tend to have the highest startup costs. This is because they require a lot of specialized equipment, as well as a space for brewing and serving the beer. In this article, we’ll take a look at some of the expenses you can expect to incur when starting a brewpub.
Construction and Land Acquisition
The first cost you’ll need to consider is the cost of construction and land acquisition. If you’re building a new brewpub from the ground up, you’ll need to factor in the cost of land, as well as the cost of construction. If you’re renovating an existing space, you’ll need to factor in the cost of any renovations that need to be made. All of these are enormous expenses and you can expect to pay about $1 million for construction and land alone.
Overhead
After you’ve secured a space for your brewpub, you’ll need to start thinking about the costs of overhead. This includes the cost of utilities, rent, and any other monthly expenses you’ll need to pay. The typical costs associated with overhead can range from $2,000 to $5,000 per month.
Licenses and Permits
Another cost you’ll need to consider are the licenses and permits required to operate a brewpub. These can vary depending on your location, but they typically include a license to sell beer, as well as a permit to serve food. The typical costs associated with these licenses are:
- Food permit: $200-$300
- Beer license: $100-$500
- Business License: $50-$200
Insurance
Another important cost to consider is insurance. This is crucial for any business, but it’s especially important for a brewpub because of the potential liability associated with serving alcohol. The typical costs associated with insurance can range from $1,000 to $2,000 per year.
Interior Design
Another cost you’ll need to factor in is interior design. This includes the cost of furniture, decor, and any other items you’ll need to make your brewpub look inviting and comfortable for customers. The typical costs associated with interior design are:
- Furniture: $5,000-$10,000
- Decor: $1,000-$3,000
- Renovation: $5,000-$20,000
Equipment
Of course, one of the biggest costs associated with starting a brewpub is the cost of equipment. There is quite a bit of equipment required for brewing and serving beer, and it can be quite expensive. Below are some of the most common equipment and their associated costs:
- Beer Fermenter: $1,000-$5,000
- Draft System: $2,000-$5,000
- Brew Kettle: $500-$2,000
- Pumps And Hoses: $200-$800
- Glycol Chiller: $3,000-$5,000
- Filter: $1,000-$2,000
- Bottling/Canning Line: $10,000-$50,000
Initial Supplies and Inventory
Another cost you’ll need to factor in is the cost of initial supplies and inventory. This includes the cost of ingredients for brewing beer, as well as the cost of packaging. The typical costs associated with initial supplies and inventory are:
- Beer ingredients: $5,000-$10,000
- Packaging: $2,000-$5,000
- Dinnerware: $500-$1,000
- Glassware: $1,000-$2,500
- Food and cooking supplies: $1,000-$3,000
- Furniture: $5,000-$10,000
Labor
Another cost to consider is labor. This includes the cost of hiring brewers, servers, cooks, and any other staff you’ll need to operate your brewpub. The typical costs associated with labor are:
- Brewer: $30,000-$60,000 per year
- Server: $20,000-$30,000 per year
- Cook: $25,000-$40,000 per year
Marketing
Of course, you’ll also need to factor in the cost of marketing. This includes the cost of advertising, as well as the cost of promotions and events. The typical costs associated with marketing are:
- Social media advertising: $500-$1,000 per month
- Print advertising: $500-$2,000 per month
- Promotions and events: $1,000-$5,000 per month
- Email marketing: $500-$1,000 per month
Software and Website Design
Last, but not least, you’ll need to factor in the cost of software and website design. This includes the cost of any software you’ll need to run your brewpub, as well as the cost of designing and developing your website. The typical costs associated with software and website design are:
- POS system: $1,000-$3,000
- Inventory management software: $500-$1,000
- Domain name and hosting: $100-$200 per year
- Website design and development: $5,000-$10,000
Conclusion
As you can see, there are a lot of costs associated with starting a brewpub. However, if you’re prepared and have a solid business plan, you can successfully launch your own brewpub. Factor in all of the costs listed above so you can plan accordingly.