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Brewpub: Our Business Plan

This article was written by our expert who is surveying the industry and constantly updating the business plan for a brewpub.

brewpub profitability

This practical guide explains “Brewpub: Our Business Plan” in a clear, step-by-step FAQ format.

Every answer is built for first-time brewpub founders and uses concrete figures, typical ranges, and actionable benchmarks that you can plug into your model today.

If you want to dig deeper and learn more, you can download our business plan for a brewpub. Also, before launching, get all the profit, revenue, and cost breakdowns you need for complete clarity with our brewpub financial forecast.

Summary

This brewpub plan targets urban Millennials and Gen Z with premium, house-brewed beer and a tight, complementary food program. The model assumes 2,500–4,000 sq ft, 100–140 seats, 500–1,500 BBL/year production, and a clear path to 10–18% revenue growth in year two.

Use the table below to align location, capacity, pricing, staffing, and funding into one consistent operating model before you commit to a lease.

Key Decision Target / Assumption Why It Matters
Core audience Ages 21–35, urban, middle–upper-middle income; women share rising; experience-seeking Drives product mix (seasonals, limited releases) and event programming
Site profile Dense, transit-served corridor; 10k–20k daily footfall; strong evening/weekend traffic Maximizes utilization of seats and on-premise beer sales
Space & seating 2,500–4,000 sq ft; 100–140 seats; flexible communal layout; event area Aligns dwell time, covers/hour, and private bookings with revenue targets
Startup budget $500k–$1.5M total; equipment $150k–$350k; build-out $200k–$500k Sets funding plan (equity + loans + crowdfunding) and burn-down schedule
Pricing & margins Beer $6–$9/pint (65–75% GM); food $12–$24/plate (55–65% GM) Ensures healthy blended margins to cover rent and labor
Production plan 500–1,500 BBL/year; 80–95% on-premise; selective local accounts Matches brewhouse capacity to realistic taproom demand
Labor model 12–25 staff; $15–$25/hr avg; labor at 22–32% of revenue Keeps quality high while protecting EBITDA
Marketing $2.5k–$10k/mo launch; $1k–$3k/mo steady; events + digital + loyalty Accelerates awareness, repeat visits, and membership conversions

Who wrote this content?

The Dojo Business Team

A team of financial experts, consultants, and writers
We're a team of finance experts, consultants, market analysts, and specialized writers dedicated to helping new entrepreneurs launch their businesses. We help you avoid costly mistakes by providing detailed business plans, accurate market studies, and reliable financial forecasts to maximize your chances of success from day one—especially in the brewpub market.

How we created this content 🔎📝

At Dojo Business, we know the brewpub market inside out—we track trends and market dynamics every single day. But we don't just rely on reports and analysis. We talk daily with local experts—entrepreneurs, investors, and key industry players. These direct conversations give us real insights into what's actually happening in the market.
To create this content, we started with our own conversations and observations. But we didn't stop there. To make sure our numbers and data are rock-solid, we also dug into reputable, recognized sources that you'll find listed at the bottom of this article.
You'll also see custom infographics that capture and visualize key trends, making complex information easier to understand and more impactful. We hope you find them helpful! All other illustrations were created in-house and added by hand.
If you think we missed something or could have gone deeper on certain points, let us know—we'll get back to you within 24 hours.

Who exactly is our target market, and how large is it in our city?

We target ages 21–35 in dense urban districts with middle to upper-middle incomes and strong social spending.

They value fresh, house-brewed beer, limited releases, and experiences like tap takeovers and food pairings. Women’s share is growing fast and should shape flavors, ABV ranges, and brand voice.

In October 2025, the global craft beer market remains large and expanding, with urban centers delivering the highest engagement and visit frequency. Within a 1-mile radius, aim for at least 15–25k residents or 40–60k daytime population to sustain weekday peaks. Budget for 1.2–1.8 average visits/month per active customer and a $22–$35 check.

You’ll find detailed market insights in our brewpub business plan, updated every quarter.

Translate those demographics into a CRM-ready audience with look-alike targeting before opening.

What does local competition look like, and how are they positioned?

Your competitors include neighborhood brewpubs, taprooms, beer-centric restaurants, and bars with strong rotating lists.

Expect premium pricing over macro lagers, with differentiation on freshness, seasonals, storytelling, and service rituals. Most top performers emphasize taproom vibe, rotating SKUs, merchandise, and recurring events like trivia or collabs.

Map competitors within a 2-mile radius, document their price bands ($6–$9 pints; $12–$24 food plates), and note keg turnaround and guest-tap strategy. Identify gaps: low-ABV options, gluten-reduced SKUs, or family-friendly brunch windows.

This is one of the strategies explained in our brewpub business plan.

Position your brewpub as the freshest and most community-embedded option with a simple, memorable menu.

Where should we locate, and how do lease costs and accessibility fit the target?

Choose a transit-served, high-footfall block with strong evening and weekend energy.

Location Factor Target Benchmark Implication for the Brewpub
Lease range Market-typical for Class B retail; budget 8–12% of revenue for base rent + NNN Keeps occupancy within healthy limits to protect cash flow
Foot traffic 10k–20k daily; weekend spikes + event calendars nearby Supports utilization of 100–140 seats and event nights
Transit & parking ≤5-minute walk to transit; 1–2 shared parking options Boosts weekday after-work visits and safe late-night exits
Co-tenancy Near restaurants, music venues, cinemas, and offices Shares demand and enables collab events and bundles
Zoning & permits Brewing + food service allowed; patio permitted if possible Increases seat count and seasonal throughput
Utilities & power Adequate three-phase power; floor drains; ventilation Reduces build-out cost and complexity
Delivery logistics Rear access for grain, CO₂, and off-prem shipments Prevents service disruptions and guest interference

What seating capacity and square footage do we need, and how should we design it?

Operate between 2,500 and 4,000 sq ft with 100–140 seats to balance intimacy with event potential.

Space Element Specification Revenue/Flow Impact
Dining/taproom 60–70% of floor; mix of communal tables, high-tops, rail seating Increases covers/hour and average dwell time
Brewhouse 10–20% with visible tanks and safe sightlines Boosts perceived freshness and storytelling
Event nook Flexible 15–25 seats; AV-ready Enables ticketed nights and private bookings
Patio (if allowed) 20–40 seasonal seats Adds warm-season capacity with minimal labor
Bar length 20–30 linear feet; 12–18 taps Supports service speed and SKU rotation
Kitchen 10–15% of floor; hot line + cold prep Delivers 200–400 meals/day at peak
Storage & keg Cold room sized for 2–3 weeks of peak volume Prevents stockouts and waste

How much will we invest upfront, and how will we finance it?

Total startup ranges from $500,000 to $1,500,000 for a mid-size urban brewpub.

Cost Bucket Typical Range (USD) Notes
Brewing equipment $150,000–$350,000 Brewhouse, fermenters, brite tanks, glycol, controls
Build-out & interiors $200,000–$500,000 MEP, drainage, venting, finishes, bar, cold room
Permits & licenses $30,000–$60,000 Brewing, alcohol, health, occupancy
Pre-opening payroll $75,000–$150,000 Training + soft-opening labor
Opening inventory $30,000–$70,000 Ingredients, food, disposables, merchandise
Working capital 3–6 months of fixed costs Rent, utilities, insurance buffer
Financing mix 40–60% equity; 40–60% loans/crowdfunding Balance debt service vs. dilution

What pricing will we use for beer and food, and what gross margins should we expect?

Set pints at $6–$9 and core plates at $12–$24 to hit strong category margins.

Target 65–75% gross margin on beer by managing grain/hops contracts and draft waste below 3%. Target 55–65% on food by menu engineering, prep overlap, and tight vendor SLAs.

Bundle high-margin snacks with limited-release flights to lift check averages by 8–12%. Use dynamic promotions midweek (e.g., flight + small plate) while protecting flagship pint pricing on weekends.

We cover this exact topic in the brewpub business plan.

Review prices quarterly against COGS and local competition to preserve blended margin.

business plan beer garden

What annual beer production capacity should we plan, and how does that meet sales?

Plan for 500–1,500 BBL/year focused on on-premise consumption.

Production Block Target Output Sales Allocation
Flagship ales/lager 60–70% of total BBL Core pints, pitchers, growlers
Seasonals/rotating 20–30% of total BBL Flights, limited cans, events
Experimental/sour 5–10% of total BBL Tasters, premium pricing
On-premise 80–95% of volume Highest margin channel
Off-premise 5–20% of volume Selective bars/retail only
Yield & loss Waste target <3% Monitor draft system and SOPs
Capacity growth +15–25% with extra FVs Scale once sell-through is proven

What is our food program, supplier plan, and kitchen capacity—and how will it pair with the beer?

Offer elevated pub fare and shareables designed around your flagship and seasonal beers.

Engineer a menu with 60–70% overlap in prep and ingredients to protect food margins and speed. Keep kitchen capacity at 200–400 meals/day with a hot line sized for peak two-hour windows.

Lock key suppliers with weekly deliveries and quality clauses; use local sourcing where it boosts brand story. Rotate beer-pairing features and prix-fixe nights to increase average checks by $3–$6.

It’s a key part of what we outline in the brewpub business plan.

Refresh pairings each season to keep regulars engaged and trialing new SKUs.

Which licenses and permits do we need, how much do they cost, and how long do they take?

  • Brewing license (federal/state or national/provincial): budget $5,000–$20,000 including filings and consulting; typical 3–6 months.
  • On-premise alcohol license (taproom/brewpub): fees vary widely; include local hearings and public notices.
  • Food service/health permits: plan inspections for kitchen, sanitation, and cold storage; include HACCP/SOP documentation.
  • Occupancy, signage, and patio permits: confirm zoning for brewing on site; patio adds seasonal seat capacity.
  • Distributor/wholesaler permissions (if off-prem sales): required for keg/can sales to third parties.

What staffing model will we use, what wages will we pay, and how do we train?

  • Team size: 12–25 employees across brewhouse, kitchen, front-of-house, and management.
  • Wages: $15–$25/hour average depending on role and market; salaried head brewer and GM.
  • Labor ratio: hold total labor at 22–32% of revenue with smart scheduling and cross-training.
  • Training: beer styles, draft system care, hospitality standards, and upselling flights/merch.
  • Incentives: tip-share (where legal), beer education stipends, and monthly KPI bonuses.
business plan brewpub

What is our monthly sales forecast for the first two years?

Build a monthly model with beer at 65–68% of sales, food at 25–30%, merchandise at 3–5%, and distribution at 2–5%.

Line Item Year 1 Monthly (Typical Range) Year 2 Monthly (Growth 10–18%)
Beer revenue $32,500–$102,000 $35,800–$120,400
Food revenue $12,500–$45,000 $13,800–$53,100
Merchandise $1,500–$5,000 $1,700–$5,900
Distribution (if any) $1,000–$7,500 $1,100–$8,900
Total monthly revenue $50,000–$150,000 $55,000–$177,000
Seasonality uplift +10–20% during festivals/holidays +10–25% with memberships/events
COGS (blended) 30–38% of revenue 29–36% with scale buying

What is the detailed pricing and margin playbook we will follow?

Use good-better-best tiers for pints and flights to steer choice and protect margins.

Anchor with a flagship pint, add a seasonal premium, and reserve small-batch taps for price elasticity testing. Engineer food with contribution margins in mind (e.g., fries, pretzels, dips) and bundle with flights.

Set “floor prices” you never discount below on weekends; deploy early-week bundles to smooth demand. Track pour cost weekly and enforce draft maintenance SOPs to reduce waste.

Get expert guidance and actionable steps inside our brewpub business plan.

Reprice quarterly or when hop/grain contracts move more than 7%.

What is our launch, marketing, and customer acquisition plan?

  • Launch: soft-open to members/press; grand opening with limited cans and a taproom-only release.
  • Digital: local SEO, targeted social ads, influencer collabs; track CAC and repeat rate in a CRM.
  • Community: tastings, trivia, live music, brewer talks; partner with nearby venues for cross-promos.
  • Retention: mug club/membership, birthday offers, early access drops, and SMS for release alerts.
  • Budget: $2.5k–$10k/month for first 3 months; $1k–$3k/month steady thereafter.
business plan brewpub

How does foot traffic convert to revenue, and what are our throughput targets?

Design for 1.2–1.6 turns on weekdays and 1.8–2.4 turns on weekends with a 60–90-minute dwell time.

Target 3.5–4.5 pints per party and a 25–40% attachment rate for food on weeknights and 45–60% on weekends. Keep table service friction low with QR-assisted ordering during peaks.

Staff for a peak of 8–12 orders/minute at the bar with “beer-only” and “food” lanes to reduce queue abandonment. Use a simple merch wall near checkout to lift attachment by 2–3 percentage points.

This is one of the many elements we break down in the brewpub business plan.

Weekly throughput reviews should adjust staff, SKUs, and prep by daypart.

How do we measure success in the first 180 days?

Focus on brewhouse yield, taproom sell-through, labor ratio, and review velocity.

Hit waste under 3%, blended gross margin above 60%, and labor ≤32% at steady state. Build 1,000–2,000 opted-in contacts via opening activations and nightly QR captures.

Reach 4.4+ average online ratings and secure 20+ new reviews/month to sustain discovery. Track membership (if offered) with 25–35% of regulars enrolled by month 6.

This is one of the strategies explained in our brewpub business plan.

Hold monthly P&L reviews and corrective sprints to keep KPIs on plan.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.

Sources

  1. Towards F&B – Craft Beer Market
  2. IMARC Group – Craft Beer Market
  3. Craft Brewing Business – 2025 Midyear Outlook
  4. DojoBusiness – Brewpub Business Plan Example
  5. Allied Market Research – Craft Beer Market
  6. Mordor Intelligence – Craft Beer
  7. Brewers Association – 2025 Midyear Report
  8. PacRim Distributors – Thailand 2025 Craft Beer
  9. Krungsri Research – Beverage Outlook 2025–2027
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