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If you don’t plan and track your microbrewery budget properly, you're setting yourself up for failure.
When we developed our strategy pack for microbrewery 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 microbrewery's finances around and set you on the path to success!
Get the budget tracker tailored for microbreweries
Most microbrewery owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for microbreweries
Here is an example of a (very) detailed budget for a microbrewery, 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 | $3,500 | $7,000 | $84,000 |
| Cellar Worker | 1 | $3,000 | $3,000 | $36,000 |
| Taproom Manager | 1 | $3,500 | $3,500 | $42,000 |
| Taproom Staff | 4 | $2,500 | $10,000 | $120,000 |
| Sales & Distribution | 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 | 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 |
| Lab Testing | Quality control and testing | $500 | $6,000 |
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 | $300 | $3,600 |
| 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 | $200 | $2,400 |
| 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 |
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What are the biggest expenses for a microbrewery?
Be mindful of these critical expenses. Here are five major costs every microbrewery owner needs to consider, along with some tips on how to manage them effectively.
- Raw materials and ingredientsThese can consume a significant portion of your budget. You're dealing with perishable items like hops, malt, and yeast, and prices can vary based on seasonality, supply chain issues, and quality. To keep these costs in check, focus on precise recipe measurements, 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 add enough value.
- Your brewery staffYour team is your backbone, but paying for their wages, benefits, and training can be costly. This expense is always high because you need a skilled workforce to ensure quality production and smooth operations. You can optimize labor costs by scheduling efficiently, cross-training staff, and monitoring productivity. However, be careful not to underpay or overwork 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 happens when you choose a location that's too large or too upscale for your needs.
- MarketingYou need to get the word out about your microbrewery, 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 occur if you invest in flashy campaigns without a clear return on investment.
- Brewing equipment and maintenance costsThis includes everything from fermenters to kegs and taps. These are expensive because quality equipment and regular maintenance are crucial for smooth operations and product quality. 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 microbrewery?
Here are practical tips to help you, as a microbrewery owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Raw Materials | Partner with local farmers and suppliers for fresh, high-quality ingredients at lower prices. |
| Labor Costs | Implement a scheduling software to optimize staff hours and reduce overtime. |
| Utilities | Install energy-efficient brewing equipment and LED lighting to reduce energy consumption. |
| Marketing | Run social media contests for your microbrewery 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 repairs. |
| 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 grain 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. |
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Expenses that are just useless for a microbrewery
Yes, some expenses for your microbrewery are just unnecessary. They don't contribute to increasing revenue or enhancing the customer experience.
| Microbrewery Expense | Reason It's Useless |
|---|---|
| Overly Fancy Tap Handles | While unique tap handles can be eye-catching, overly elaborate designs don't necessarily attract more customers and can be a budget drain. |
| 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 | Offering too many beer options can increase inventory costs and lead to more waste. |
| High-End Brewing Equipment | Top-of-the-line brewing equipment is not always necessary and can be cost-prohibitive. |
| Traditional Paper Advertising | Paper ads often have a lower return on investment. Focus on digital marketing instead. |
| 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. |
| 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 microbrewery!
Managing a budget for a microbrewery 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 microbreweries just like yours. Get them now!
Make your microbrewery more profitable
We have studied the strategies of the best microbreweries in the world. All their tactics are explained in our pack!
