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Old 12-11-2012, 05:45 AM   #11
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From what I understand there are two basic brewery models. One is a production brewery and the other is a brewpub. What I would think would make sense is the latter. I haven't crunched numbers yet. I am just starting work on a business plan for a nano brewpub that may or may not ever actually open. Once I get a more concrete idea of what is viable or not I will decide. Of course just like all the other brewing "tire kickers" out there what appeals to me is the relatively small start-up cost of a nano brewpub. Just real simple calculations using the Worth Brewing Company as a model he says he produces 67 barrels per year. If all that were sold at his pub in pints at $4/pint that is $66,464 in beer sales. This is on a ten gallon Sabco. Even a one barrel brew house would triple the production so now we're talking about $198,000 in sales at $4/pint. He is open three nights a week but brews between 200-250 batches of beer per year, so that is a lot of brewing for one guy with a "real job" on the side. Not saying he has a real job on the side, but a lot of folks tend to remark that you can only do a nano if you actually have a real job on the side. I know there are expenses of course that need to be figured in so it's not all profit.

I could be see how a one man brewpub operation on a three-barrel system could be profitable or at least viable. We're talking close to $600,000 in beer sales at $4/pint. Not saying it wouldn't be hard work and that there are not a lot of other numbers to crunch, etc., but I could see my town really eating this up (drinking it up) if a nano brewpub were to open up especially in the right location.

For a more positive spin on nano viability check out http://www.homebrewtalk.com/f14/micr...ystems-350723/

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Old 12-11-2012, 03:21 PM   #12
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New; if you work that $600k out to pints per hour (350 days @ 12hr./day) it comes to 35 pints per hour. That is pushing a lot of beer through a brewpub. And you would be working 12 hours per day; oops, guess you have to hire a bar tender to cover while you are brewing. Also remember that your costs will be pretty high because of the small scale you will be buying ingredients at. Make sure to figure in your federal, state and local taxes and your dram shop insurance.

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Old 12-11-2012, 04:31 PM   #13
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Yeah I hear ya. I worked it out to 411 pints per day 365 days/year after my last post. That's a lot of serving, glass washing, etc. Just got a little excited there.

It would be cool to figure out how to make a nano pub work. I think I might be able to convince my wife to work for free. At least she is almost done with an education in accounting, so there's my (our) accountant, server, assistant manager, etc.

The kids - we'll just farm them out to every babysitter in town until they barely know who we are anymore.

Seriously though the cost of living here is super high compared to Iowa so the comparison to Worth is sort of apples to oranges. We'd have pay at least one of us fairly well to continue our less than extravagant lifestyle here.

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Old 12-12-2012, 11:46 PM   #14
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Quote:
Originally Posted by Cromwell View Post
There is a dealer who sells nano-brewery equipment - you can find them with just a little google searching. They have an interesting write-up about starting small. In a nutshell, they say they will sell you equipment that's smaller than 7 barrels, and it's less expensive to buy it used. Here's why - EVERY brewery that starts with less than 7 barrels either goes out of business and sells their equipment, or they upgrade quickly to something larger. Good food for thought.
Not going to get into the cost question, or a debate on nanos, but that guy clearly just wants to sell bigger systems because small one's aren't as profitable.

Nanos just haven't been around long enough for that many to have failed. In fact, I can't think of a single 3bbl brewer that has packed it up. People who upgrade typically keep their system for pilot or small-batch brewing.

On top of that, most of his assumptions about the Nano model are wrong. The nano has two big things going for it: low barrier to entry and the ability to sell 100% of your beer at retail thanks to tasting room laws. Selling 110 pints at $4 apiece is much better than selling your 1/2 bbls for $150.
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