
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.