Craft Brewery Financial Training Podcast

Available Episodes

5 of 171

Engineering Your Menu for Maximum Profits: A Guide for Taprooms
Ready to stop guessing about your brewery's food profitability? Today's podcast reveals exactly how to transform your taproom food program from a necessary evil into a genuine profit center.Most brewery owners didn't get into the business to become restaurateurs, yet many find themselves reluctantly managing food programs because customers expect food options. The challenge? Food operations are notoriously complex both financially and operationally, leading many breweries to operate food programs that secretly drain profits rather than enhance them.The solution lies in understanding three critical financial practices and three operational strategies that eliminate the guesswork from food profitability. We explore how separating your food operations in your accounting system creates visibility, how tracking specific benchmarks reveals hidden problems, and how using contribution margin (not just percentages) shows where you're actually making money.You'll discover why successful food programs use narrow menu strategies with limited ingredients, platform approaches where common bases create variety, and menu engineering that categorizes items as stars, dogs, plow horses, or puzzles. This systematic approach helps you promote high-margin items customers love while eliminating profit-draining options that hurt your bottom line.The episode provides a clear five-step action plan: audit your current menu, identify margin drainers, reprice or remove problematic items, track costs regularly, and share metrics with your team. Plus, learn about technology solutions that can dramatically reduce the manual work while increasing visibility into your food program's performance.Whether you're running a full kitchen or just offering simple snacks, this episode delivers the framework you need to build a smart, sustainable, and profitable food program that enhances your core business rather than detracting from it. Download our free Brewery Profit Toolkit and transform your approach to taproom food today.Do this next:Sign up for the FREE brewery financial briefing. Weekly tips to drive margins and profits in your taproom.
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33:35
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33:35
Contract Brewing and Community Building: How Soul Mega Thrives Without a Taproom
What happens when you combine accounting expertise, homebrewing passion, and entrepreneurial spirit? For Elliott H. Johnson II, it was creating Soul Mega – a thriving beer brand that's challenging traditional craft brewery models.In this illuminating conversation, Elliott shares his journey from making "really bad" homebrew batches to building a recognized beer brand without a physical brewery. Soul Mega's contract brewing approach allowed them to enter the market with minimal capital investment, focusing instead on wholesale distribution and community building. When COVID-19 hit just six months after their launch, Elliott pivoted to become "basically an Uber Eats driver for a year," personally delivering beer to maintain customer relationships.What makes Soul Mega distinctive is their approach to creating taproom-like experiences without a physical space. Their signature event, Mega Fest, combines a beer festival with DJ performances and community celebration – perfectly embodying their mission to "promote creative culture and inspire folks to pursue their interests and passions." Strategic collaborations with established breweries like Stone, Port City, and Tröegs have expanded their reach, while partnerships with graffiti artists for label designs connect the brand to creative communities.Elliott's financial background shines through in his meticulous approach to business management. He maintains a 13-week cash flow forecast, uses CRM software to track account performance, and prioritizes in-person visits to high-performing retailers. His candid insights about navigating challenges – from finding a new contract brewer when their original partner suddenly closed to handling regulatory hurdles – provide valuable lessons for any entrepreneur.Whether you're considering alternative brewery business models, looking to strengthen your brand connection with customers, or seeking practical strategies for sales growth without a taproom, this episode delivers actionable wisdom from someone who's making it work against the odds.
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45:08
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45:08
Meet the Brewery That Hangs Its P&L on the Wall
Thor Cheston shares the remarkable journey of Right Proper Brewing Company, from its successful 2013 brew pub opening to the challenges of expansion and the transformative power of implementing open book management. His candid insights reveal how focusing on core products, financial transparency, and efficient operations turned their struggling production facility into a thriving business with healthy EBITDA.• Starting as a Georgetown student who fell in love with craft beer while working at a pizzeria• Opening Right Proper Brewing in 2013 as a neighborhood hub with immediate success• Expanding too quickly in 2015 with a production facility that struggled for years• Pivoting in 2019 from creative-driven to leadership-focused business model• Implementing open book management with full financial transparency• Reducing product line to focus on consistent, marketable core beers• Displaying financial statements on 8x16 foot whiteboards for all employees to see• Creating incentive programs where employees share in profits when goals are met• Understanding that profit enables purpose rather than being the purpose itself• Building a business model specific to Right Proper rather than copying other breweriesYou can reach Thor Cheston at Right Proper's Brookland facility at 202-247-6274. He welcomes text messages and is always happy to talk with fellow brewery professionals.
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1:11:19
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1:11:19
Beyond the Spreadsheet: Transforming Brewery Financial Planning
We dive into mastering your brewery budget with a practical three-step approach that transforms financial planning from overwhelming to achievable. This workshop provides tools and strategies to create a useful financial roadmap that aligns with business goals.• Begin with the end in mind – set one clear financial goal (typically 10-15% profit) before planning anything else• Know your stakeholders – identify requirements from banks, investors and others to incorporate into your plan• Set firm deadlines – create a budget preparation timeline with clear responsibilities and milestones• Use historical financial analysis to establish context for your projections• Break down planning by department and involve team members to create ownership• Consider balance sheet and cash flow implications, not just P&L• Implement weekly financial huddles to shift from lagging indicators to leading indicators• Use visualization tools like dashboards to make financial data more accessible• Remember that budgeting isn't just about spreadsheets but about creating a financial roadmapJoin the Beer Business Finance Association to access the complete Brewery Budget Course with all tools and templates discussed in this workshop.
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1:02:47
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1:02:47
When to DIY and When to Ask for Help: The Small Brewery Dilemma
Sara Watson and her husband Brent turned their dream into reality with Vacancy Brewing in Austin, Texas, combining his brewing expertise with her hospitality marketing background to create a community-focused taproom experience.• Building Vacancy Brewing after a six-month road trip across North America to find the perfect location• Hiring a taproom manager to allow the founders to focus on business development instead of daily operations• Implementing tighter beer loss and discount policies with transparent communication to improve margins• Tracking weekly taproom net sales compared to both prior year and budget to stay proactive• Creating the Vacancy Collective membership program to transform loyal customers into brand ambassadors• Balancing innovation with consistency by maintaining core beer styles while rotating specific recipes• Successfully navigating lease renewal challenges by gathering knowledge from multiple real estate professionals• Finding the sweet spot between doing tasks yourself and knowing when to bring in outside expertiseVisit Vacancy Brewing in South Austin, find them online at vacancybrewing.com or on social media @VacancyBrewing to learn about their events including karaoke, trivia, music bingo, and more.
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36:37
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36:37