This article was written by our expert who is surveying the industry and constantly updating the business plan for a brewpub.
If you are planning to open a brewpub, you need clear revenue, profit, and margin benchmarks to size your opportunity.
The figures below consolidate current industry ranges so you can set realistic targets and avoid common financial pitfalls. Everything is explained in plain terms with concrete numbers, so you can translate the metrics into your own brewpub’s weekly plan.
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.
A well-run brewpub typically earns $0.5m–$2.0m in annual revenue at medium scale, targets 60–75% operating costs, and lands 8–15% net margins with EBITDA of 25–35% when execution is tight. In-house beer drives the strongest gross margin (often 70–80%), while labor usually absorbs 20–30% of revenue.
Break-even commonly sits around $40k–$60k in monthly sales; at an average check of $22–$30, that translates to roughly 55–90 covers per day. Location density, foot traffic, and disciplined labor scheduling make the biggest difference in moving from “surviving” to “consistently profitable.”
| Metric | Typical Range / Benchmark | Notes for a New Brewpub |
|---|---|---|
| Annual revenue (small / medium / large) | $60k–$600k / $500k–$2.0m / $2.0m–$10m+ | Scale reflects seat count, throughput, and distribution add-ons |
| EBITDA margin | 25–35% (top periods 40–45%) | Requires tight COGS, labor, and a strong beer mix |
| Net profit margin | 8–15% (efficient sites 15–18%) | After rent, interest, taxes, depreciation |
| Revenue mix (beer / food / other) | ~60% / 30–35% / 5–10% | Median is often 60:40 beer to food; adjust to your concept |
| Gross margin (in-house beer) | ~70–80% | Best margin driver; keep wastage & promos controlled |
| Operating cost ratio | 60–75% of revenue | Labor 20–30%; food COGS 25–35%; beer COGS 20–30% |
| Break-even revenue | $40k–$60k per month | Varies by rent, debt service, staffing model |
| Average check (per guest) | $18–$35 (often $22–$30) | Ticket rises with flights, pairings, and limited releases |
| Startup investment | $500k–$1.5m+ | Buildout + brewhouse + working capital |
| Time to profitability | 12–24 months | Faster with pre-opening marketing and tight cost control |
What is the typical annual revenue range for small, medium, and large brewpubs?
Small brewpubs usually generate $60,000–$600,000 per year; medium brewpubs reach $500,000–$2,000,000; large brewpubs can exceed $2,000,000 and reach $10,000,000+.
Small sites sit at the low end in rural or low-traffic areas with limited seating and short hours. Medium venues in stable neighborhoods commonly land near $1.0–$1.5 million when they pair strong beer programs with dependable food service.
Large, destination brewpubs in dense urban zones can surpass $4–$6 million, especially when packaged beer or distribution adds incremental revenue. Seasonal peaks (festivals, tourism) can temporarily push sales above the average run-rate.
Build your revenue plan by multiplying average check × daily covers × days open, and benchmark it against the bands above.
What average profit margin can a brewpub expect, and how do food and beer margins differ?
Well-run brewpubs typically post 25–35% EBITDA margins and 8–15% net margins, with the best sites reaching 15–18% net.
In-house beer carries the strongest gross margin (often 70–80%) because raw material cost per pint is low and pricing power is solid. Food gross margin is thinner because ingredients and kitchen labor drive food COGS toward 25–35%.
Beer-first models with disciplined labor scheduling convert gross margin to EBITDA more consistently than food-heavy concepts. Maintaining tight portion control and yield in the brewhouse further lifts realized gross margin.
Track beer and food profitability separately so you can push mix and pricing where margin is strongest.
How much revenue typically comes from in-house beer versus food and other beverages?
Most brewpubs see roughly 50–70% of revenue from in-house beer, 25–45% from food, and 5–15% from other items.
The median pattern is close to a 60:40 beer-to-food split, with higher beer share in taproom-focused venues and higher food share in tourist or family-heavy locations. Cocktails, wine, N/A beverages, events, and merchandise usually add 5–15%.
Shifting the mix even 5 points toward beer improves overall gross margin meaningfully. Rotating limited releases, flights, and pairing menus are proven levers to nudge mix toward higher-margin beer.
We cover this exact topic in the brewpub business plan.
What are average operating costs as a percentage of revenue, and which categories are largest?
Total operating costs typically land between 60% and 75% of revenue for a brewpub.
Labor usually runs 20–30% of revenue; beer COGS 20–30%; food COGS 25–35%; and occupancy, utilities, insurance, marketing, and misc. G&A fill the balance. Distribution adds logistics costs for larger operations that sell beyond the taproom.
Menu engineering, waste control, and preventive maintenance on brewhouse and kitchen equipment help pull costs down toward the low 60s. Weekly variance checks (actual vs. theoretical COGS and labor) keep drift in check.
You’ll find detailed market insights in our brewpub business plan, updated every quarter.
What gross margin should I expect on beer brewed and sold on-site versus guest taps or packaged products?
On-site brewed beer usually achieves ~70–80% gross margin; guest taps often sit ~40–50%; packaged or wholesale beer is commonly 25–40%.
House beer wins because you capture manufacturer, wholesaler, and retailer economics in one operation. Guest taps carry lower margin due to wholesale purchase price, and packaged beer absorbs materials, packaging, and distribution.
Focus your menu and promotions to feature high-margin house brews, and use guest taps strategically to broaden style coverage without diluting margin. Keep keg loss, line cleaning, and foam waste under tight control to protect realized margins.
This is one of the strategies explained in our brewpub business plan.
How much does labor represent, and how does staffing size affect profitability?
Labor typically represents 20–30% of revenue in a brewpub.
Lean service models, cross-training, and clear station design keep labor close to 22–25% in steady weeks. Over-staffing, split shifts, and schedule drift push labor above 30% and compress EBITDA quickly.
As volume grows, some scale benefits appear in BOH and brewhouse utilization, but FOH labor remains sensitive to covers per labor hour. Use demand-based scheduling and measure sales per labor hour daily.
Get expert guidance and actionable steps inside our brewpub business plan.
How do location and foot traffic influence average revenue levels for a brewpub?
High-traffic, centrally located brewpubs can double or triple revenue versus suburban or rural locations.
Proximity to offices, entertainment districts, transit, and residential density drives steady covers and stronger weekday sales. Destination venues tied to tourism or events often see higher per-guest spend from flights, pairings, and souvenir sales.
Before signing a lease, validate daytime, evening, and weekend footfall patterns and map competitor saturation within a 10–15 minute walk. Visibility, patio space, and parking access also impact conversion from passerby to guest.
This is one of the many elements we break down in the brewpub business plan.
What break-even revenue do most brewpubs need to cover fixed and variable costs?
Most brewpubs break even around $40,000–$60,000 in monthly revenue.
At an average check of $25, a $50,000 break-even implies roughly 2,000 covers per month (about 67 covers per day at 30 days open). Higher rent, debt service, or labor pushes the break-even toward the upper band.
Model several scenarios with rent 8–12% of sales, labor 22–30%, and COGS by category to stress-test resilience. Revisit break-even after your first 8–12 weeks as your operations stabilize.
It’s a key part of what we outline in the brewpub business plan.
What average revenue per customer visit can a brewpub expect, and how many covers per day are needed?
Expect $18–$35 per guest, with many brewpubs clustering around $22–$30 average check.
At a $26 average check, hitting $60,000 in monthly sales requires ~2,308 covers (about 77 per day at 30 days). Pairing menus, beer flights, and limited releases can lift the check by $3–$6 without hurting throughput.
Calibrate seat turns and dwell time: one extra turn on a 70-seat room at $25 per guest adds $1,750 per day. Use pre-batching and handhelds to speed ordering and increase nightly turns.
We cover this exact topic in the brewpub business plan.
What EBITDA margin range should a well-managed brewpub target in today’s market?
Target 25–35% EBITDA, with 40–45% achievable in peak periods for highly efficient brewpubs.
To stay in-range year-round, keep combined COGS under ~30–35% on beer and ~25–35% on food while holding labor under 28%. Negotiate merchant fees, utilities, and service contracts to trim non-product overhead.
Monitor weekly P&L flash reports and track sales per labor hour and theoretical vs. actual COGS variances. Rapid corrective action (menu price tune-ups, portion resets) protects margins during slower months.
This is one of the strategies explained in our brewpub business plan.
What startup investment is typical, and how long until profitability?
Most brewpubs require $500,000–$1,500,000+ in startup investment and reach profitability in 12–24 months.
Capital covers leasehold improvements, brewhouse equipment, kitchen fit-out, furniture, licensing, and opening inventory, plus 3–6 months of working capital. Costs vary widely by city, condition of the space, and venting or utility upgrades.
Pre-opening marketing, soft opens, and tight day-one scheduling shorten the ramp to breakeven. Favor scalable systems (draft maintenance, batch prep) to support volume without adding heavy labor.
Get expert guidance and actionable steps inside our brewpub business plan.
Which financial benchmarks (KPIs) do successful brewpubs track to protect margins?
Winning brewpubs track a focused KPI set weekly and act on variances immediately.
- Sales mix: beer vs. food vs. other (aim to keep beer near 55–65%).
- Gross margin by product line (house beer, guest taps, packaged, food, merchandise).
- Labor as % of sales and sales per labor hour by daypart.
- COGS % (beer and food separately) vs. theoretical; waste and yield metrics.
- Average check, covers, seat turns, and occupancy by service.
- EBITDA margin trend and 4-week rolling cash flow.
- Inventory turns (days on hand) for malt, hops, and perishables.
Can you summarize core brewpub financials in one comparison table?
Use this table to benchmark your brewpub’s size, mix, and margin drivers against common targets.
| Dimension | Typical Range | Operational Implications |
|---|---|---|
| Revenue scale | Small $60k–$600k; Medium $500k–$2.0m; Large $2.0m–$10m+ | Seat count, hours, and to-go/distribution set ceiling |
| Beer gross margin | House: 70–80%; Guest taps: 40–50%; Packaged: 25–40% | Prioritize house pours and flights to lift blended GM |
| Food COGS | 25–35% of food sales | Menu engineering and portion control are essential |
| Labor cost | 20–30% of revenue | Schedule to demand; measure sales per labor hour |
| Operating costs (total) | 60–75% of revenue | Keep rent ≤10–12% to preserve EBITDA |
| Average check | $18–$35 (often $22–$30) | Flights, pairings, and limited releases raise ticket |
| Break-even | $40k–$60k per month | Reassess after 8–12 weeks of operations |
What daily cover counts align with profitability at different average checks?
Profitability depends on hitting the cover count implied by your break-even and average check.
| Monthly Break-Even ($) | Average Check ($) | Covers / Day (30 days open) |
|---|---|---|
| $40,000 | $22 | ~61 covers/day |
| $40,000 | $26 | ~51 covers/day |
| $50,000 | $25 | ~67 covers/day |
| $50,000 | $30 | ~56 covers/day |
| $60,000 | $24 | ~83 covers/day |
| $60,000 | $28 | ~71 covers/day |
| $60,000 | $32 | ~63 covers/day |
Which expense categories usually consume the most cash, and how can a brewpub control them?
Labor, COGS (beer and food), and occupancy take the biggest share of brewpub cash.
- Labor: Cross-train, use demand curves, and enforce cut times.
- Beer COGS: Optimize batch size, contract hops/malt, reduce losses.
- Food COGS: Trim SKU count, standardize recipes, and monitor yields.
- Occupancy: Negotiate TI, step rents, and caps on CAM where possible.
- Utilities & Maintenance: Preventive maintenance and energy-efficient equipment.
How should a new brewpub set pricing to protect margins from day one?
Price beer and food from your target margins backward, not from competitor menus.
Start by locking a target pour cost (e.g., 22–28% for house beer) and a target food COGS (e.g., 28–32%). Set menu prices that deliver those percentages given your recipe costs and expected waste.
Run small, frequent price tests—$0.50 on high-velocity beers and $1–$2 on limited releases—then measure contribution margin and mix shifts. Keep a quarterly pricing cadence to offset ingredient volatility.
This is one of the strategies explained in our brewpub business 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.
If you are mapping out your brewpub, use these numbers to build a weekly sales and cost plan, then track variances tightly for the first 12 weeks.
The resources below will help you design a margin-first menu and protect cash flow on the road to profitability.
Sources
- DojoBusiness — Brewpub Business Plan
- DojoBusiness — Brewpub Business Plan (overview & metrics)
- DojoBusiness — Brewery Profit Margin
- Menubly — How Much Do Breweries Make?
- Micet Group — Profitability Analysis of a Small Brewery
- Ekos — The Economics of a Brewery
- The Mad Fermentationist — The Economics of Opening a Brewery
- GHJ Advisors — Craft Beer Metrics & KPIs
- BrewPlanner — Are Breweries Profitable?
- BizBuySell — Brewery Valuation Benchmarks
