Possible LHBS startup

[Dfelix2918]

I’m considering opening up a lhbs shop in st. Robert Missouri. The closest shop is at least an hour drive in all directions. Along with the normal supplies, I would also be brewing on site and have a bar with around 8 beers on tap. Army base Fort Leonard Wood is right down the road, and there is a university in Rolla about 30 minutes east. We have some brewery’s about 30 minutes away but nothing local. I’m looking for opinions or recommendations for one, but also I’m curious if I’m the only home brewer in this area. Is anyone on here living in this area that could benefit having a lhbs here in town??

Also I already have a 1500 sq ft shop available, and have checked into appropriate licensing for selling/serving beer. Thanks for your help!

 

[CascadesBrewer]

Good luck man! I have a couple brew stores near me but this place (Kettles and Grains) is quite impressive. They have a good selection of homebrew items, a brew on prem setup that seems to get decent usage, a pub with some great beers on tap, and a good selection of bottles. http://www.kettlesandgrains.com/products.html

 

[Jag75]

Good luck man! I have a couple brew stores near me but this place (Kettles and Grains) is quite impressive. They have a good selection of homebrew items, a brew on prem setup that seems to get decent usage, a pub with some great beers on tap, and a good selection of bottles. http://www.kettlesandgrains.com/products.html

Whoa ! Now that's a SuperHBS

 

[matt_m]

My only concern would be whether you have enough density of the right demographic. College students and soldiers are transient and few, if any, are brewing in dorms and barracks. Nor are they drinking craft beer. They are looking for cases of cheap beer.

It seems like possibly you may be better off as a brewery that sells home brew supplies as a side thing, and it should be a lot easier to figure out if there’s a viable business plan around that and to fo marketing should you move forward since your audience is a much larger part of the general population.

 

[TechFanMD]

My only concern would be whether you have enough density of the right demographic. College students and soldiers are transient and few, if any, are brewing in dorms and barracks. Nor are they drinking craft beer. They are looking for cases of cheap beer. Also, college towns tend to have a lot of highly paid employees and many highly educated people with a lot of disposable income that like the finer things.

It seems like possibly you may be better off as a brewery that sells home brew supplies as a side thing, and it should be a lot easier to figure out if there’s a viable business plan around that and to fo marketing should you move forward since your audience is a much larger part of the general population.

I don't buy any argument that college kids just want cheap beer, and aren't drinking craft beer. That does not line up with what I see in breweries in any college town I go to. The real fact is, that college kids and twentysomethings are drinking less overall - and a trend seems to be that they drink pricier stuff.

IF the licensing would work, brew on site with classes would work well for people who cannot brew at home due to space/legal considerations.

My recommendations when someone wants to start a LHBS: Rent MUST be cheap, or you wont be able to sell product competitively enough to keep people from buying online (you don't have to be cheaper, but cannot be considerably more expensive). It sounds like you have this solved. Hours must be aligned with when people want to AND are able to visit. Being open 9-5 and closed Saturdays (like one of our LHBS) does not work well and people will buy online. With basically having a bar - you'll clearly be open reasonable hours.

Stick with basics and don't try to sell 10+ gallon ported brewkettles and other high price gadgetry or you just have inventory (aka cash) tied up on a shelf instead of being available to grow or buy high profit-fast moving product.

I think the hard part of a HBS is finding the right mix of product, and the right quantity to have on hand. Too much, and it gets old and stale and people won't come. Don't have the one specialty grain the guy needs...he'll buy the whole recipes worth online. This would be hard....though if you are brewing to serve, you could keep stock fresh by brewing with what isn't turning over.

 

[MaxStout]

You're roughly halfway between St. Louis and Springfield, and both of those cities are a fair distance away. So maybe your LHBS would fill a void, geographically. Leonard Wood and Missouri-Rolla are nearby, but what is the overall population within, say a 30-45 minute drive? If there are a couple hundred thousand within that area, you might have enough pop density to sustain it. Are you plugged in with the area homebrew scene? Any homebrew clubs nearby? You could pick the brains of those people and get a feel for things. Where do people go for supplies? Do they drive to Springfield or St. Louis if they're not buying online?

Stock the basics, things that homebrewers need again and again. Beer kits, the most popular malts and adjuncts, the most-used yeast strains, essential gear, and so forth. Small hardware items, tubing and fittings and such are good moneymakers, as you can mark those up nicely. You start stocking specialized items like Grainfathers and Brew Buckets and you'll have a buttload of $$$ tied up in inventory and you won't be able to compete with online anyway.

Do your market research carefully. You sound passionate, but don't let all the excitement cloud your vision. I hope you make a good go of it!

 

[matt_m]

I guess I should have said that particular college town. It’s a smaller engineering and science school, not a Big 10 university town. Plus he’s going to be a 60 mile round trip for them.

 

[mongoose33]

One thing I've seen many homebrew stores do is offer wine equipment and ingredients. My LHBS in Dubuque does that, and it's a way to expand the offerings to help generate traffic and of course revenue.

As for me, price is somewhat secondary to access. I need a local source of fresh yeast, an assortment of hops, various and sundry consumables like pH calibration solution, salts and acids for water modification, specialty grains, and additions like cocoa nibs, fruit puree, things like that.

I buy my base grains in bulk from Ritebrew, but most of the rest of my stuff I get from the LHBS.