Is Your Lease Eating Your Profits? Benchmarking Occupancy Costs in a Small Brewery
Occupancy cost for your brewery consists of base rent and any NNN (triple-net) charges. Comparing these numbers to your annual revenue gives you your occupancy percentage of revenue - a valuable measuring stick for benchmarking. The generally recommended upper limit is around 10%. Anything above that can be a red flag, especially if your revenue has been volatile.
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.
The $200 Mistake You Make With Every Small Batch of Beer
Overhead is the forgotten cost in brewery economics—especially with experimental or small-batch beers. Because there’s both art and science to allocating overhead, many brewers skip it entirely or under-allocate it.