Forecasting the True Cost of a Lease: Rent Escalation Modeling for Breweries
Rent that increases at a compounding rate can quietly add thousands of dollars to your total out-of-pocket cost over the course of a lease. That’s why it’s critical to forecast how your rent will grow when evaluating lease options.
Auditing Your Brewery’s Hidden Lease Costs
Triple-net expenses like taxes, insurance, and maintenance can easily equal 30% to 50% of your rent. Perhaps even more. Asking your landlord for an itemized breakdown (from the past couple of years or so) is a smart move. Take a few minutes to scan the details and look for anything that stands out - big year-over-year jumps or pass-through costs that don’t make sense.
Not Every Beer That’s A Hit Is Worth Repeating
Beers that customers love aren’t always profitable. Don’t rely solely on customer feedback to decide whether a one-off, small-batch beer deserves a comeback. Use hard data to check your emotions (and your customers’) before committing valuable resources to experimental brews.