Looking to open a retail craft beer store\bar

Brewer's Friend 728
Homebrew Talk - Beer, Wine, Mead, & Cider Brewing Discussion Forum

Help Support Homebrew Talk - Beer, Wine, Mead, & Cider Brewing Discussion Forum:

This site may earn a commission from merchant affiliate links, including eBay, Amazon, and others.
A

amcclai7

Well-Known Member
Joined
Aug 29, 2011
Messages
621
Reaction score
30
Location
Knoxville
(I'm not 100% sure this is the right forum but general beer discussion seemed right)

I am looking to open a retail beer store\bar in a highly trafficked and beer-starved area.

1. We would provide the largest and highest quality to-go beer selection in the entire area along with about ten hard to find amazing beers on tap.
2. We would allow EVERY beer to be bought as a single increasing the customer's choice and flexibilty
3. We would have no cooked food but would offer cured meats, aged cheeses, gourmet chocolates and artisan breads. We would also allow people to B.Y.O.F.
4. Finally, customers would be welcome to drink their selections at the store with no up-charge. The vibe of the place will be somewhere between a coffee shop and a bar. We will have club meetings, board games, community events and brewery events. (There is much more but I don't wanna bore you.)

Here is the main question: Can anyone direct me to some good resources about the business side of craft beer?

I am in the process of writing a business proposal and am finding certain information hard to come by. What are the startup costs for a place like this? What is the expected revenue? What are the operating costs? Where can I find a good industry market analysis? (and not just a, "Craft beer is booming!" article. I need real numbers) also, a real report of profits for draft and retail beer at a particular store would be a huge plus.

If anyone could help I would be very very grateful.
 
Can't help at all but I'd be glad to stop in when your open for business. Also just an FYI as for having the largest selection, Hop City in Atlanta has over 1900 beers and a lot of wine. Their Birmingham store has over 1100 and 5-600 different wines with 65 or 66 on tap. Just an FYI.
 
Invest in a forklift. For moving around pallets of paperwork :D

In all seriousness, sounds like a really sweet place. If my town had something like that, I would be a regular.
 
I have been researching a local pub concept as well... Definitely check out craftbeer.com and the brewer's association for industry analyses, market data, etc. Both sites have lots of great information for biz plan prep.
 
blakelyc said:
I have been researching a local pub concept as well... Definitely check out craftbeer.com and the brewer's association for industry analyses, market data, etc. Both sites have lots of great information for biz plan prep.
Click to expand...

This is what I'm looking for. Thanks!
 
jhoneycutt said:
Can't help at all but I'd be glad to stop in when your open for business. Also just an FYI as for having the largest selection, Hop City in Atlanta has over 1900 beers and a lot of wine. Their Birmingham store has over 1100 and 5-600 different wines with 65 or 66 on tap. Just an FYI.
Click to expand...

By, "the entire area" I meant East Tennessee. I should have been more specific.
 
Ive been contemplating something like this for a good while now. I live in Michigan and if anyone is serious about opening a craft beer bar/retailer PM me. I have some experience in sales and management and will be opening something similar to this within a few years.
 
Allowing people to bring their own food, buy a beer at bottle shop price and hang around drinking sounds more like a club or a non-profit organization than a money making bar. There's a reason why beer costs more in a bar than a store. You are providing an atmosphere (hopefully) along with service and because you have people drinking there special licensing and insurance (more expensive insurance) is required. This means your cost is higher and you need to charge a higher price. You don't have to gouge people but customers understand that alcoholic beverages served at a bar cost more than buying the equivalent amount of alcohol at a store. Think about expanding the food menu, simple pizza and a few sandwiches perhaps, to appeal to more folks and make yourself more money.

I think your general concept has possibilities but I'd consider separating the two sections into retail and bar/lounge/tavern. Personally when I'm in a bar one of the reasons I'm there is to separate myself from the rest of the world. A good bar IMO should provide a special area of comfort/friendliness/relaxation where one can enjoy quality products served by knowledgeable staff (very important and often overlooked) in the company of other patrons who are there for similar reasons.
 
BigEd said:
Allowing people to bring their own food, buy a beer at bottle shop price and hang around drinking sounds more like a club or a non-profit organization than a money making bar. There's a reason why beer costs more in a bar than a store. You are providing an atmosphere (hopefully) along with service and because you have people drinking there special licensing and insurance (more expensive insurance) is required. This means your cost is higher and you need to charge a higher price. You don't have to gouge people but customers understand that alcoholic beverages served at a bar cost more than buying the equivalent amount of alcohol at a store. Think about expanding the food menu, simple pizza and a few sandwiches perhaps, to appeal to more folks and make yourself more money.

I think your general concept has possibilities but I'd consider separating the two sections into retail and bar/lounge/tavern. Personally when I'm in a bar one of the reasons I'm there is to separate myself from the rest of the world. A good bar IMO should provide a special area of comfort/friendliness/relaxation where one can enjoy quality products served by knowledgeable staff (very important and often overlooked) in the company of other patrons who are there for similar reasons.
Click to expand...

Thanks for your concerns and advice. To answer a few of them, I have seen several places that have a very similar business model that do very well. The taps would provide a large profit margin as would the meat, cheeses and chocolates. We will probably offer cold sandwiches (looking to avoid a restaurant designation for the time being) at some point. Also, offering a unique and enjoyable beer shopping experience along with the great location we believe will allow us to do retail in great volume. I realize the profit margin on retail sales is much smaller than draft but the I believe the numbers work.
 
There is a really cool place right by my work that sounds somewhat similar to what you are envisioning. They have some snack foods and are conveniently located next to a pizza place. They have worked out a deal with the pizza place to offer small pizzas. Here is their site: http://www.beer-shop.org

Maybe call them up and see what they say as far as reference materials. Of course, this is California, so the redtape is bound to be much longer than TN.
 
ryno84 said:
There is a really cool place right by my work that sounds somewhat similar to what you are envisioning. They have some snack foods and are conveniently located next to a pizza place. They have worked out a deal with the pizza place to offer small pizzas. Here is their site: http://www.beer-shop.org

Maybe call them up and see what they say as far as reference materials. Of course, this is California, so the redtape is bound to be much longer than TN.
Click to expand...

Making a deal with a local pizza or sandwich place sounds like a good idea if you don't want to make your own food.
 
Sorry I can't help with the business planning, but I'm close to Knoxville so when you open I can certainly help drink the beer. It sounds like it will be a bit more upscale than Bearden Beer Market?

ryno84 said:
Of course, this is California, so the redtape is bound to be much longer than TN.
Click to expand...

I don't know -- it's the Bible belt … anything alcohol can have a lot of regulations. Dogfish Head pulled out of distributing in Tennessee a few years ago because they got tired of all the different licensing fees.
 
ryno84 said:
There is a really cool place right by my work that sounds somewhat similar to what you are envisioning. They have some snack foods and are conveniently located next to a pizza place. They have worked out a deal with the pizza place to offer small pizzas. Here is their site: http://www.beer-shop.org

Maybe call them up and see what they say as far as reference materials. Of course, this is California, so the redtape is bound to be much longer than TN.
Click to expand...

Looks like an awesome place. I'll call them up at a non busy hour and hopefully they can help out.
 
amcclai7 said:
Sylva is great. Have you been to Innovation yet?
Click to expand...


I haven't but I hear they have some tasty brews! I really like that the town has gained it's second brewery, if only the lhbs would step it's game up I would have to make trips to Asheville
 
I had the opportunity to visit a few places just like the one you're talking about, last time I was in Seattle. It was awesome!! Have a pint off of one of the many taps while browsing the selection, or bring in your bombers to be filled by one of the high tech co2 filling stations. You can also bring your own beers in to share, or buy out of the fridge and drink on premise. the atmosphere and vibe was something I've never witnessed in a drinking/pub setting. I even brought my 3 dogs in one of the places and everyone loved them. Never met people as chill and friendly in my entire life. Bottom line, DO IT MAN! It will be a hit!
 
GarageDweller said:
I had the opportunity to visit a few places just like the one you're talking about, last time I was in Seattle. It was awesome!! Have a pint off of one of the many taps while browsing the selection, or bring in your bombers to be filled by one of the high tech co2 filling stations. You can also bring your own beers in to share, or buy out of the fridge and drink on premise. the atmosphere and vibe was something I've never witnessed in a drinking/pub setting. I even brought my 3 dogs in one of the places and everyone loved them. Never met people as chill and friendly in my entire life. Bottom line, DO IT MAN! It will be a hit!
Click to expand...

Can I quote this in my business proposal? :)

In all seriousness you have described exactly what I'm going for.
 
Btw, if you remember the name of those places could you tell me? I've been calling a few places trying to get some info/advice.

Thanks!
 
amcclai7 said:
Btw, if you remember the name of those places could you tell me?
Click to expand...

Chuck's Hop Shop, Bottleworks, 99 Bottles, Special Brews, and Full Throttle Bottles are some of the well known Seattle area bottle shops. There's probably a few on the East Side of Lake Washington (Belleveue, Readmond, Kirkland, etc.) that I'm not listing.

Chuck's just opened a second location as is probably the place with the most unusual atmosphere since both kids and dogs are welcomed. There's a small collection of board games for guests. They have an ice cream cooler and usually supplement their meager menu with a rotating cast of food trucks at peak times.

They charge $2-$4 corkage depending on bottle size if you aren't drinking from the ~40 selections on tap, usually have several tasting flights offered, and are pretty generous with samples for the indecisive. They'll charge $4-$6 for local/common pints and the rare/exotic pints can get into the $10-$12 range. It's defiantly a beer-centric place but there are usually a few ciders on tap, there's a full reefer of bottled cider, a small wine selection, and a few meads kicking around too.
 
Thanks so much for the reply. I have been to Chuck's and loved it. My store would not be quite that...cluttered, but my concept is not that dissimilar. I still don't like the idea of a corkage fee but I may have to relent on that, idk.
 
Malt and Vine and Beer Authority were 2 of them, another one was in S. Seattle and had the coolest growler filling stations. I got to chat with the owner at Beer Authority since the girl I was kicking it with knew him. Changed my world-view a little bit coming from OK. Cool folks
 
Another business with the same concept as your talking about is a chain in the York area of PA called quick six. Pa has crazy alcohol laws where different stores must sell the different alcohol and sizes. The state runs liquor and wine, and private companies run case stores where you can only buy 18 packs and above and then little stores like quick six that sell 6 packs and craft singles.

Anyway this place is much like you describe but in the ghetto. You can sit down order a sandwich pick your beer from their cooler pay regular price and drink it there. Some of us would go after rugby practices grab a bite and some beers. Also build your own six packs of craft beer is a great service they have. It's a small business with no website maybe you could try giving them a call.
 
The real money in this might be if you come up with a model that works, sell franchises.

Become the Starbucks or Panera of beer!

I'd consider offering something more substantial than a salami & cheese tray. Maybe simple sandwich fare or even encourage people to order delivery to the bar. You'd probably get some interest from the local restaurants that offer delivery and you might even get some interest from those that do not.

Could you have a runner who went out and picked up an order for takeout for a small upcharge?
 
Rhumbline said:
The real money in this might be if you come up with a model that works, sell franchises.

Become the Starbucks or Panera of beer!

I'd consider offering something more substantial than a salami & cheese tray. Maybe simple sandwich fare or even encourage people to order delivery to the bar. You'd probably get some interest from the local restaurants that offer delivery and you might even get some interest from those that do not.

Could you have a runner who went out and picked up an order for takeout for a small upcharge?
Click to expand...

I have been toying around with the idea of offering cold cut sandwiches. (as soon as you heat something, even a grilled cheese, you are under a different building code and must have a ventilation system, etc.) There are dozens of restuarants within walking distance so working out a deal with some of them would be a good idea.
 
amcclai7 said:
(I'm not 100% sure this is the right forum but general beer discussion seemed right)

I am looking to open a retail beer store\bar in a highly trafficked and beer-starved area.

1. We would provide the largest and highest quality to-go beer selection in the entire area along with about ten hard to find amazing beers on tap.
2. We would allow EVERY beer to be bought as a single increasing the customer's choice and flexibilty
3. We would have no cooked food but would offer cured meats, aged cheeses, gourmet chocolates and artisan breads. We would also allow people to B.Y.O.F.
4. Finally, customers would be welcome to drink their selections at the store with no up-charge. The vibe of the place will be somewhere between a coffee shop and a bar. We will have club meetings, board games, community events and brewery events. (There is much more but I don't wanna bore you.)

Here is the main question: Can anyone direct me to some good resources about the business side of craft beer?

I am in the process of writing a business proposal and am finding certain information hard to come by. What are the startup costs for a place like this? What is the expected revenue? What are the operating costs? Where can I find a good industry market analysis? (and not just a, "Craft beer is booming!" article. I need real numbers) also, a real report of profits for draft and retail beer at a particular store would be a huge plus.

If anyone could help I would be very very grateful.
Click to expand...

well, if you ever do open up in Knoxville, post it. Give me someplace to go when I visit my father in Dandridge.
 
amcclai7 said:
The vibe of the place will be somewhere between a coffee shop and a bar. We will have club meetings, board games, community events
Click to expand...

If you envision a place where people can drop in and out quickly...I would suggest adding affordable growler fills to your marketing campaign.
I've been to a few places like that and they seem to draw a lot of water. Bring in a growler, have it filled while you enjoy a pint. Or get a few filled on the way to a party. The punch card thing keeps you coming back for fills.
It could increase your exposer, especially if you screen print some company growlers.
 
Totes said:
If you envision a place where people can drop in and out quickly...I would suggest adding affordable growler fills to your marketing campaign.
I've been to a few places like that and they seem to draw a lot of water. Bring in a growler, have it filled while you enjoy a pint. Or get a few filled on the way to a party. The punch card thing keeps you coming back for fills.
It could increase your exposer, especially if you screen print some company growlers.
Click to expand...

That is definitely part of the plan. However, the idea of a punch card or something like that sounds like a great idea.
 
I've explored the ideas for craft beer bar only, brewpub, brewery and now I am also thinking about something like this. I live in San Antonio and while there are good liquor stores and a few good growler to-go stores/bars, nothing quite like this. I was inspired when I went to San Francisco and hung out at City Bar. Really cool place. I haven't been yet but there is a similar place in Austin called Whip In where they also brew. Looks like a really quarky place. I'm also trying to figure out if this is a feasible business model here. Brewery is really expensive, I dont want to run a restaurant and I think craft beer bars alone are becoming somewhat saturated. I just feel that with all the new breweries opening up, it makes sense. All my numbers were around brewing stats and sales. I havent started to look up retail just yet. I will follow this thread. :mug:
 

Similar threads

S
New Homebrew Store in North Texas
Replies
15
Views
1K
day_trippr
day_trippr
B
Iowa Bottoms Up Beer Dispensers - Used, Untested - $100
Replies
3
Views
714
Bryce Brewer
B
christo65
Georgia 2023 Domras Cup Mead Competition - Savannah, GA - Feb 4
Replies
0
Views
559
christo65
christo65
christo65
2023 Domras Cup Mead Competition - Savannah, GA - Feb 4
Replies
0
Views
548
christo65
christo65
Clint Yeastwood
Rasputin Imperial Stout
Replies
10
Views
2K
Corwin1968
C
Williams Brewing 300

Latest posts

Back
Top