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If you don’t plan and track your brewery budget properly, you're setting yourself up for failure.
When we developed our strategy pack for brewery owners, we saw a lot of brewery owners struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having substantial revenue.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your brewery's finances around and set you on the path to success!
Get the budget tracker tailored for breweries
Most brewery owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for breweries
Here is an example of a (very) detailed budget for a brewery, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for brewery space | $6,000 | $72,000 |
| Electricity | Power consumption for brewing equipment | $1,200 | $14,400 |
| Water | Water usage for brewing and cleaning | $500 | $6,000 |
| Gas | Gas for heating and brewing processes | $400 | $4,800 |
| Internet & Phone | Internet service and business phone | $150 | $1,800 |
| Waste Removal | Garbage and recycling services | $200 | $2,400 |
| Pest Control | Monthly pest control services | $50 | $600 |
| Insurance | Property and liability insurance | $600 | $7,200 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Head Brewer | 1 | $5,000 | $5,000 | $60,000 |
| Assistant Brewer | 2 | $3,000 | $6,000 | $72,000 |
| Cellar Worker | 1 | $2,500 | $2,500 | $30,000 |
| Packaging Staff | 2 | $2,000 | $4,000 | $48,000 |
| Taproom Staff | 3 | $2,000 | $6,000 | $72,000 |
| Manager | 1 | $4,000 | $4,000 | $48,000 |
3. Brewing & Packaging Costs
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Raw Materials | Grains, hops, yeast, etc. | $8,000 | $96,000 |
| Packaging Supplies | Bottles, cans, labels, etc. | $3,000 | $36,000 |
| Cleaning Supplies | Sanitizers, detergents, etc. | $300 | $3,600 |
| Maintenance Supplies | Tools, spare parts, etc. | $200 | $2,400 |
| Taproom Supplies | Glassware, coasters, etc. | $200 | $2,400 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $400 | $4,800 |
| Social Media Management | Managing social media accounts | $600 | $7,200 |
| Print Advertising | Flyers, posters, newspaper ads | $250 | $3,000 |
| Website Maintenance | Hosting, domain, updates | $150 | $1,800 |
| Email Marketing | Email campaigns and newsletters | $200 | $2,400 |
| Promotional Events | Special events and promotions | $300 | $3,600 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of brewing equipment | $600 | $7,200 |
| Uniforms | Staff uniforms and safety gear | $250 | $3,000 |
| Licenses & Permits | Brewing permits, liquor licenses, etc. | $150 | $1,800 |
| POS System | Point of Sale software and hardware | $200 | $2,400 |
| Contingency Fund | Emergency repairs and unexpected costs | $500 | $6,000 |
| Office Supplies | Stationery, pens, printer ink, etc. | $100 | $1,200 |
| Staff Training | Training programs and materials | $300 | $3,600 |
Some breweries make 5x more profit than you!
We have studied the strategies of the best breweries in the world. Replicate them now!
What are the biggest expenses for a brewery?
Be mindful of these financial pitfalls. Here are five major costs every brewery owner needs to consider, along with some tips on how to manage them effectively.
- Raw material costsIngredients like malt, hops, yeast, and water can take a significant portion of your budget. Prices can vary based on seasonality, supply chain disruptions, and quality. To keep these costs under control, focus on efficient inventory management, negotiate better prices with suppliers, and minimize waste. It's easy to overspend by buying too much or opting for premium ingredients that don’t significantly enhance your brews.
- Staff at your breweryYour team is essential, but wages, benefits, and training can be costly. This expense is always high because you need skilled employees to ensure quality production and excellent customer service. Optimize labor costs by scheduling efficiently, cross-training staff, and monitoring productivity. However, avoid underpaying or overworking your staff, as this can lead to high turnover and poor morale.
- Rent and utilities of your breweryPrime locations come with high rent, but they can attract more customers. Utilities like electricity, gas, and water are essential but can add up quickly. To optimize these costs, negotiate favorable lease terms and invest in energy-efficient brewing equipment and lighting. Overspending often occurs when you choose a location that's too large or too upscale for your needs.
- MarketingGetting the word out about your brewery is crucial, but advertising can be expensive, whether it's online ads, social media campaigns, or traditional media. Optimize this expense by focusing on cost-effective methods like the ones we provide in our pack. Overspending can happen if you invest in flashy campaigns without a clear return on investment.
- Brewing equipment and maintenance costsThis includes everything from brewing tanks to taproom furniture. These are expensive because quality equipment and regular maintenance are crucial for smooth operations and customer satisfaction. Optimize by investing in durable, energy-efficient equipment and maintaining it regularly to avoid costly breakdowns. You can overspend by going for the latest high-tech gadgets you don’t really need.
How to spend less with your brewery?
Here are practical tips to help you, as a brewery owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Raw Materials | Partner with local farmers for fresh, high-quality hops and grains at competitive prices. |
| Labor Costs | Implement a scheduling software to optimize staff hours and reduce overtime. |
| Utilities | Install energy-efficient brewing equipment and LED lighting to cut down on electricity costs. |
| Marketing | Run social media contests for your brewery and collaborate with local influencers for free exposure. |
| Cleaning Supplies | Train staff on efficient use of cleaning supplies to reduce waste and maintain hygiene standards. |
| Equipment Maintenance | Set up a maintenance log for regular equipment checks and servicing to avoid costly breakdowns. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider moving to a less expensive location. |
| Insurance | Regularly review insurance policies to ensure they meet current needs and compare rates annually. |
| Packaging | Use cost-effective, eco-friendly packaging and offer discounts for customers bringing their own growlers. |
| Glassware | Purchase high-quality, durable glassware that can withstand frequent use and washing. |
| POS System | Choose a POS system that offers essential features with low transaction fees and integrates with other systems. |
| Staff Training | Conduct regular in-house training sessions and use free online resources to keep staff knowledgeable about brewing processes and customer service. |
| Waste Management | Implement a waste tracking system to minimize waste and consider donating spent grains to local farmers. |
| Technology | Invest in multi-functional brewing equipment and utilize brewery management software for inventory and sales tracking. |
| Linen and Laundry | Partner with a cost-effective linen service and consider reusable cleaning cloths. |
| Menu Printing | Use digital menu boards or QR codes for menu access to reduce printing costs. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals. |
| Transportation | Plan delivery routes to maximize efficiency and reduce fuel costs. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital order systems. |
| Inventory Management | Use inventory management software to track stock levels and reduce spoilage. |
| Pest Control | Schedule monthly pest control services and maintain cleanliness standards to prevent infestations. |
| Music and Entertainment | Use a streaming service for background music and host local musicians during off-peak times. |
| Uniforms | Choose durable, easy-to-clean uniforms and offer staff a stipend for maintenance instead of using an external service. |
Copy the tactics of the best breweries in the world!
There are breweries that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a brewery
Yes, some expenses for your brewery are just useless. They don't contribute to increasing revenue or improving customer experience.
| Brewery Expense | Reason It's Useless |
|---|---|
| Expensive Taproom Decor | Overly lavish decorations don't necessarily attract more customers and can be a drain on the budget. |
| Premium Hops and Malts | Unless you are targeting a niche market, most customers are satisfied with high-quality but reasonably priced ingredients. |
| Excessive Beer Varieties | A large selection increases inventory costs and leads to more waste if certain beers don't sell well. |
| High-End Brewing Equipment | Top-of-the-line brewing equipment is not always necessary and can be cost-prohibitive. |
| Paper Advertising | Traditional paper ads often have a lower return on investment. Don’t include them in the marketing strategy of your brewery. |
| Multiple Uniform Styles | Having various uniform styles increases costs without adding significant value to the customer experience. |
| Excessive Staff | Overstaffing leads to higher labor costs without necessarily improving service quality. |
| Premium Subscription Services | Expensive subscriptions for music or magazines often go unnoticed by customers. |
| Exclusive Ingredients | Using rare ingredients can inflate costs and complicate supply chains. |
| Costly Furniture | High-end furniture is not always appreciated by customers and can be a significant expense. |
| Custom Printed Coasters | Personalized coasters are a minor detail that most customers overlook, and they can be expensive. |
| Unnecessary Software | Paying for software with features you don’t use is a waste of resources. |
| Premium Water Brands | Most customers are content with filtered tap water, making expensive bottled water unnecessary. |
| Extra Delivery Vehicles | Maintaining a larger fleet than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent Renovations | Constantly updating decor and layout can be costly and disrupt operations. |
| Expensive Table Centerpieces | Elaborate centerpieces are often ignored by customers and add to the cost. |
| High-End Glassware | Luxury glassware is prone to damage and expensive to replace, often going unnoticed by customers. |
| Excessive Staff Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Menu Designs | Frequently redesigning menus is costly and often unnecessary. |
| Unused Promotional Materials | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our marketing budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Catering Equipment | Specialized catering equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your brewery!
Managing a budget for a brewery when funds are tight can feel like a nightmare. It's like being in a jail where any unexpected expense can drown you.
This constant pressure makes it nearly impossible to invest in growth projects, leaving you always chasing after expenses. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, scraping together pennies and barely making ends meet. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your revenue. More income means more breathing room and more money to spend.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of breweries just like yours. Get them now!
Make your brewery more profitable
We have studied the strategies of the best breweries in the world. All their tactics are explained in our pack!
