Mediocre local brewer opens 2nd location

Discussion in 'Beer Talk' started by bubseymour, Oct 25, 2019.

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  1. bubseymour

    bubseymour Grand Pooh-Bah (4,800) Oct 30, 2010 Maryland
    Pooh-Bah Trader

    THis is very baffling to me. My only conclusion is the owner has alot of money from other sources besides revenue from brewery #1 to expand to a 2nd location. Let me gives you some details:

    About 3-4 years ago a brewery opened in a small rural town around my area. No real "tourism" draw for this place, no food served, was opened in old building on main street of a typical "Mayberry" like town. Beer ratings on all sites are nothing noteworthy at all. 3-4 beers I've had are very mediocre. They've been canning their beers and putting in local stores. Zero buzz from bottle store employees...say this brewers beers don't move that great. All pedestrian "non-hyped" styles as well. No special releases with lines, none of that. American IPA, Hef, Amber Ales etc. So now the owner opened a 2nd brewery location in more "beer touristy" part of a larger city 20 miles away (mid sized city) that has 3 other breweries within walking distance. Obviously its to gain more foot traffic into the taproom and be more in a hub for craft beer drinking. I could see closing 1 location and opening the new one, but to expand to a 2nd location? Thoughts?
     
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  2. Prager62

    Prager62 Grand Pooh-Bah (4,292) May 7, 2010 Colorado
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    I'd wait and see if release lines form at the second location before I'd form my opinion. But that's just me.....:wink:
     
  3. joerooster

    joerooster Initiate (0) May 15, 2018 Virginia

    Is the older facility more of a production facility (you said no food) whereas the new facility will be a full service taproom?
     
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  4. JackHorzempa

    JackHorzempa Grand Pooh-Bah (3,375) Dec 15, 2005 Pennsylvania
    Society Pooh-Bah

    “So now the owner opened a 2nd brewery location in more "beer touristy" part of a larger city 20 miles away (mid sized city) that has 3 other breweries within walking distance.”

    It will be interesting to see how this second business operates. Will they have aspects that will attract customers (e.g., live entertainment on certain nights)? Will the beer be of comparable quality to those other three breweries (or perhaps even better quality)?

    I suppose we will learn more in the near future.

    For most people there is a finite limit to how much money they can pay for beer and eating out so this new location will need to be competitive to survive as a business.

    Cheers!
     
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  5. thewrongtone

    thewrongtone Zealot (743) Oct 15, 2006 Arkansas

    Same situation played out here recently. They had some kind of big money backing them, as their initial location was in a high rent, high traffic area. Beer was really bad (tons of off flavors etc), but the “drink local” market floated them for a couple years. They did a second location/expansion and were shuttered within a year.
     
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  6. Harrison8

    Harrison8 Grand High Pooh-Bah (6,285) Dec 6, 2015 Missouri
    Pooh-Bah Trader

    Mediocre beer doesn't mean a brewery can't remain open or even expand. Profitability is the driving factor.

    Unfortunately for people who seek out great beer, a mediocre brewery can survive through smart market decisions, tracking profits, and selecting a good location(s) to match consumer demand, among other things. For that matter, a brewery with great beer could shut down due to poor business decisions, planning, bad location, etc. etc..
     
  7. NeroFiddled

    NeroFiddled Grand High Pooh-Bah (7,276) Jul 8, 2002 Pennsylvania
    Pooh-Bah Trader

    You've got to spend some money to make some money. It seems to me that the new location will generate some cash flow (that may be badly needed). Location, location, location. I've seen BAD breweries make money that way.
     
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  8. IPAExpert69

    IPAExpert69 Savant (1,065) Aug 2, 2017 Pennsylvania

    Honestly it's probably an uber wealthy person's passion project, seems to me that's what half the breweries these days popping up all over the place tend to be. Not saying that's a bad thing, it's your life do with it what you want. Breweries are dope in my opinion, I'll try anything local.
     
  9. zid

    zid Grand Pooh-Bah (3,132) Feb 15, 2010 New York
    BA4LYFE Society Pooh-Bah Trader

    They might be exploring a satellite location as a solution to compensate for poor store sales. We'll probably see more and more of that. It's been the natural evolution of the taproom model of success... making things even worse for bar owners.
     
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  10. BBThunderbolt

    BBThunderbolt Grand High Pooh-Bah (7,846) Sep 24, 2007 Kiribati
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    The majority of craft beer drinkers are perfectly happy buying Sixers of an Amber, Hefe, or standard IPA. This breweries beer may not move at a beer nerd bottle shop, but might move well at minimarts and grocery stores.

    Just because they don't have beer nerd hype doesn't mean that folks don't enjoy their beers, or that the brewery isn't successful.
     
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  11. HouseofWortship

    HouseofWortship Pooh-Bah (2,735) May 3, 2016 Illinois
    Pooh-Bah Trader

    Based off the title I honestly thought I was opening a link to an Onion headline...The satire was too good to be true.
     
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  12. AZBeerDude72

    AZBeerDude72 Initiate (0) Jun 10, 2016 Arizona

    At the end of the day the owner can do what he wants to do its his money. If he is happy making what he does more power to him. I am thinking maybe they are testing out the new location to see if it is busier then close the first, etc. If the beer sucks just don't buy it.
    Cheers
     
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  13. unlikelyspiderperson

    unlikelyspiderperson Grand Pooh-Bah (3,966) Mar 12, 2013 California
    Pooh-Bah Trader

    Stellar beer is a not a prerequisite for brewery success and tap room profits can be quite nice. Most breweries that fail seem to do so on the weight of expanded packaging and distribution. Developing your brewery as a small chain of 'local drinking hole' type places seems like one of the smarter brewery structures these days. As long as you can make your location(s) pleasant places to gather for locals you can certainly keep the lights on without brewing world class beer
     
  14. woodchipper

    woodchipper Grand Pooh-Bah (3,735) Oct 25, 2005 Connecticut
    Society Pooh-Bah Trader

    It's both believable and ridiculous that people drink mediocre beer in 2019.
     
  15. ypsifly

    ypsifly Initiate (0) Sep 22, 2004 Michigan

    I thought this was going to be about Atwater (Detroit) opening yet another location.
     
  16. BBThunderbolt

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

    We don't know that the brewery in question makes mediocre beer, only that it doesn't get hype.

    One of the synonyms of mediocre is ordinary. In our current beer landscape, I find the ordinary beer to be quite good. Some things are below average, and somethings above. Most things, are, however, average, or ordinary.
     
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  17. brutalfarce

    brutalfarce Pooh-Bah (1,551) Mar 23, 2018 Connecticut
    Pooh-Bah Trader

    can we name the brewery for some context?
     
  18. brutalfarce

    brutalfarce Pooh-Bah (1,551) Mar 23, 2018 Connecticut
    Pooh-Bah Trader

    can't hurt them that much if they are in the position to open another taproom
     
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  19. HouseofWortship

    HouseofWortship Pooh-Bah (2,735) May 3, 2016 Illinois
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  20. brutalfarce

    brutalfarce Pooh-Bah (1,551) Mar 23, 2018 Connecticut
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    XsoldoutX likes this.
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