Starting a tiny Brewpub/Craft Beer Bar

Discussion in 'Beer Talk' started by OldWade, Sep 25, 2013.

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  1. OldWade

    OldWade Initiate (0) Sep 24, 2013 Kentucky

    I first want to thank this forum for providing a wealth of knowledge. I've lurked forever and now want to ask a question hoping to get "some" feedback. Good or bad.

    I've got a 250 sq ft area that I will be obtaining a lease on. It was a former catering business and is already set up for plumbing. I have to build the bar out and create the atmosphere of the bar. (as a side note I work for a new home builder and have worked in construction for a solid 15 years, I know what I'm doing on this level). I will use a designer that I have worked with for several years in home remodeling. She has also done restaurant design. But let's get to the meat of this question. My bar can handle between 15-25 customers(we are awaiting fire marshal approval) based on layout. I am starting with 6 taps and migrating to 12 taps. (If I have cooler space for that many). I can only make this work with 1/6 barrels. I know the margins are slimmer here. My intent is to pour only craft beers that aren't easily found here. For example I will utilize a few of the counties over from me because you don't see it much around here. But trust me their stuff is good based on their tasting rooms on any given day. I may sell a limited amount of local beers but my thought is most of them can be gotten in the city already. However, due to the nature of the Historic area I am in, tourism could be big and they would want local.

    I have options on another 250 sq ft that I want to use as "overflow" and for special events. I also plan to use it as an artists venue and have shows in this space in time. Come spring I have an option on an outdoor space which I can really do a number on. I have a sub-specialty in landscape design and did it for 7 years. I can probably add about another 15-20 spaces depending on what I decide.

    We just had our locale craft beer week and there wasn't a place in this area that sells anything outside Sierra, Harp, Stella. I'm going local and regional with a dash of cool national.

    I've got a super low rent. I've got a fairly low level of competition for my product. I can get the licensing so that isn't an issue other than time. I'd really just love thought and opinion. I will begin to post pics of the space and include updates in real time. Unlike several other threads on here I will follow it through with updates until the launch. And the launch will happen good or bad because I sign the lease this weekend.

    Thanks for your assistance and criticism.
     
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  2. PapaGoose03

    PapaGoose03 Grand High Pooh-Bah (6,057) May 30, 2005 Michigan
    BA4LYFE Society Pooh-Bah

    I'm certainly no expert on this type of thing, but it seems to me that your space is very small so that your intended capacity for customer seating won't give you much of an income. Do you have a business plan to look at cash flow levels to determine if the income is acceptable for you? Even if you take the option on the other 250 sqft it is still a small space.
     
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  3. BBThunderbolt

    BBThunderbolt Grand High Pooh-Bah (7,846) Sep 24, 2007 Kiribati
    Pooh-Bah Trader

    Overhead. It'll be your enemy, even moreso than most small businesses. Once your built and open, you'll need to expect to work the majority of the "open" hours, in addition to all the hours of book-keeping, ordering, cleaning, maintenance, marketing, social media, ad buying, and general odds and ends. Maybe you'll be able to afford a couple part-timers to sling beer, but probably not. It can work, just be prepared to bust ass.
     
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  4. KS1297

    KS1297 Initiate (0) Apr 14, 2013 Wisconsin

    I just hope you are doing it with cash and not debt
     
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  5. bpasquini

    bpasquini Initiate (0) Feb 26, 2013 California

    I think you need to utilize that extra 250 sq feet for seating, but design a way to section it off for your special events when you have them, a wall of sliding doors, a craft place where I live did this with the outer wall for the outside patio, they can open the whole patio up on nice days and it's awesome
    I also think having some sort of food available will attract more people to your location, and people tend to stay at bars longer when they can eat, maybe a allow a food truck that makes good food to stay in the parking lot and have them pay you a little rent, just an idea here
    You definitely need more then 6 taps, if that's all you have space for get fridges and offer a bottle list, from what I've seen with people at craft places, (I'm guilty as well) people tend to be picky
     
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  6. nickfl

    nickfl Initiate (0) Mar 7, 2006 Florida

    Sounds interesting, and very small. I wouldn't bank on the tourists so much as the hipsters and young professionals. That's your real craft demographic and it sounds like the kind of place they would love. Tourists might think its cute but a lot of them may not want "fancy" beer.
     
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  7. e34john

    e34john Devotee (399) Jul 22, 2013 California

    Congrats. Put in the effort do some good research and you should be ok. But, Can you have some good food? I'm tired of this whole gastropub thing. A few things that go well with beer: french fries, sausages, pretzels, nachos and flatbreads are all that I need. Simple, fatty and salty. let the beer shine and the food be a bonus to keep me longer.

    Tired of paying 20 bucks for a fois gras bison burger or mussels cooked in white wine with a truffle oil pomme frites just because I want a snack with the beers. Cured meats, crackers and a nice Belgian will do me just fine.
     
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  8. SatlyMalty

    SatlyMalty Initiate (0) Sep 12, 2012 Washington

    I see a lot of construction/landscaping experience. Do you have any bar/restaurant experience?
     
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  9. e34john

    e34john Devotee (399) Jul 22, 2013 California


    Hey! Fancy beers is now I choose my travel destinations.
     
  10. GuinnessAtRogerWilco

    GuinnessAtRogerWilco Initiate (0) Mar 20, 2013 New Jersey

    With a small space like that, if you're doing food (which other have recommended and I agree) keep it simple. Solid common 'bar' food is good, especially foods with carbs as that's best to eat when drinking.
    8-12 taps would be ideal and a bottle list as well. With only up to 25 customers you're going to have to 1-get to know them more personally than a bigger establishment would and 2-know your beers since you'll have a more 'selective' client base. 25 customers at a time as opposed to 250, it's a more intimate venue, which is totally cool and I'd love a place like that in my backyard, but it means you'll be interacting with customers much more than you would at a larger bar.
    I think if you kept your draft rotation fresh (and with 1/6s you'll be able to) and kept you clientele informed of when you get new beers in that you'll do OK. Give them a reason to keep coming in, aside from creating a nice cozy relaxing atmosphere. As someone said above, utilize that extra 250sq/ft of space when you're not doing events and play up the outdoor space when the weather is nice for extra revenue.
    Oh, and agree with Salty, if you personally don't have any bar/restaurant experience then hire someone who does. I know at my store, it was built by 2 brothers, 1 was a contractor and the other a landscaper, and before I came in the only employees they had who worked in this biz before were 2 PT stock guys and 1 PT 'retired' supervisor. Nobody else had ever worked in the liquor industry before and the whole setup and computer system were a mess when I got there 8 months after opening. Don't make that same mistake, it compounds itself and takes geometric time to sort itself out.
     
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  11. nickfl

    nickfl Initiate (0) Mar 7, 2006 Florida

    Me too, but I think we may be the exception rather than the rule :wink:
     
  12. nc41

    nc41 Initiate (0) Sep 25, 2008 North Carolina
    Trader

    250 sq ft is really small, the size of maybe most living rooms..
     
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  13. jmw

    jmw Initiate (0) Feb 4, 2009 North Carolina

    This is an interesting concept: minipub.
    My advice is, with that small of a room, don't bring a TV anywhere near it.
     
  14. nc41

    nc41 Initiate (0) Sep 25, 2008 North Carolina
    Trader

    By the time you add a bar and seats coolers, space will really be at a premium.
     
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  15. yemenmocha

    yemenmocha Grand Pooh-Bah (4,116) Jun 18, 2002 Arizona
    Pooh-Bah

    make sure your pricing is right. Obviously you don't want to scare people away and fail to get a customer base at the beginning, but once you're rolling you might bump up against capacity and wish you had higher margins. Other places can just open another part of the restaurant or add a couple servers for a busy night, but you may not have that option.

    I would also be very selective in what signage you have. If you're sure that the demographic is tourists and/or hardcore locals, then something along the lines of "local beer here" would be nice.
     
  16. rgordon

    rgordon Pooh-Bah (2,701) Apr 26, 2012 North Carolina
    Pooh-Bah

    "The Tight Spot" (with a nod to George Clooney in Oh Brother Where Art Thou?", "The Beer Cave", or maybe some local historical reference. Where are you located?
     
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  17. Hdredfern

    Hdredfern Initiate (0) Feb 16, 2012 Texas

    EVERYBODY ON BA SHOULD GO ON OPENING NIGHT FREEEEEE OF CHARGE

    its a pretty small area man, but that's the type of bar i like more intimate with out a lot of blaring music and crap.
     
  18. RockAZ

    RockAZ Pundit (983) Jan 6, 2009 Arizona

    Good luck, it will be a lot of work but fun most days. That 1/6 bbl thing vs 1/2 bbl is really going to eat into any profit tho, they have to be something people will really want to drink. How decent are the distributors in your area about getting those "rare" kegs? I am continually frustrated here, but realize other places have it far far worse and have to settle for more "pedestrian" beers just to fill their taps some weeks.

    As for food, do you have an active culture of food truck service in your area that might be encouraged to park outside? I mean, the interesting eclectic kind of menu food trucks.
     
  19. OddNotion

    OddNotion Pooh-Bah (1,915) Nov 1, 2009 New Jersey
    Pooh-Bah

    For such a small operation I really hope you have run the numbers multiple times on the most conservative of assumptions. I really like the idea, but I am not too familiar with your area and the costs/benefits/opportunities associated with it. I just worry that the volume will not be enough to sustain your plan. Please keep us updated as you stated you would - I am very interested as I am sure others are too. Best of luck!
     
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  20. TommyLiam

    TommyLiam Initiate (0) Jun 10, 2013 Arizona

    If local competition is low turn the extra 250 sq feet into fridges and sell retail bottles, they have good margins and it'll help maximize the return on the small space you have. Also, I imagine you have a tourist season there so I'd adjust the ratio of local beer seasonally. Make sure you're working with your local chamber of commerce or tourism board to showcase your new place. Events and tastings with grilled food seems like a good use of the patio.

    Do you have a bathroom?
     
    Hdredfern likes this.
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