Fact: If anyone knows breweries, it has to be Australia and New Zealand. The total number of breweries in Australia now stands at 800 and growing, while New Zealand boasts its own list of over 200. The true definition of a brewery in our books includes (but is not limited to) low carb and double strength options, unique flavours, various profiles, award-winning beers with a sprinkling of bespoke socials, cool merch and a perfect storm for an outside beer garden.
The likes of Ale trails are proof that breweries thrive down under – following the perfectly positioned maps on the streets and hopping from one brewery to the next. Throughout the Inner West Ale Trail, there are 13 stops for breweries, plenty of food trucks, and live music – you can certainly make a day of it. It’s a true adventure, and if you consider yourself an aficionado, level up to the South Coast Ale Trial in NSW with 27 craft breweries, 200 different beers (at least 15 of them award winners!) across the span of 370 km – this is more of a weekend activity with a designated driver. Then there’s the New Zealand Ale Trail covering all regions, where drinking beer is less of an adventure and more of an elite sport!
Managing a brewery or beer bar is no small feat. When it comes to the operational side of things, there’s plenty in the barrel to consider – think staffing, financials, systems, logistics, training, OH&S, quality and much more.
Whether you’re an aspiring brewer or a seasoned bar operator, understanding the intricacies of managing a successful beer venue can give you a strong start. This blog looks to crack open questions surrounding brewery and bar operations.
Drink up!
What are the operational activities in a brewery or beer room?
There’s a lot that goes on behind the barrel. From producing and delivering high quality brews to working with the kitchen for grub to go with it. A checklist might look like this:
- Batch planning and scheduling
- Recipe development and menu planning
- Sourcing ingredients
- Brewing and packaging
- Quality control and tasting
- Cleaning and equipment maintenance
- Inventory management
- Compliance and record keeping
- Distribution, sales and marketing
- Staff management and training
- Table and floor plan management
- Customer engagement
- Budgeting, cost control and financial reporting
What roles and responsibilities would a Brewery Manager have?
A brewery manager’s duties often involve all of the above – recipe development and tastings, working with production teams, managing rosters and staff, training, finances and providing great guest experiences.
Are there any must-haves for brewery management?
Brewery management requires a blend of passion (have you ever met a brewer who isn’t wildly passionate?), strategic planning, and efficient execution. Experience in the hospitality or production industry is always a plus, in addition to management skills. But as we like to say in hospo, all you need is heart!
Are breweries profitable?
Like wineries, breweries see several ways to generate revenue. The two main paths would be B2B (Business to Business) and D2C (Direct to Consumer), while other areas include food, events and merchandise. All areas require operational factors, system usage, revenue percentage variables, logistics but profit is on the cards if you decide to venture down each area.
Here’s the breakdown –
B2B Brewery Revenue
This is when a brewery sells directly to a business like a pub, restaurant, bottle shop, and venues. Typically, this comes with a lower revenue percentage due to membership pricing, bulk and wholesale options. Nonetheless, this holds a steady revenue portion as repeat orders are highly likely with businesses.
D2C Brewery Revenue
When beer is sold directly to the customer, whether it’s through a tasting room, online channels, markets, or member programmes, that’s your D2C revenue. When marketing your venue, promoting the idea of larger groups or parties would help drive direct revenue. Offering home delivery for purchased goods is a great idea, as nobody wants to carry heaps of beer around all day. Let’s not forget about merchandise! Breweries are widely known and loved for cool merch, and people love supporting local businesses especially when it comes with a nice tote bag or a beer mug – it’s a win-win.
What licenses are required to operate a brewery in Australia and New Zealand?
Operating a brewery in Australia and New Zealand requires specific licenses and permits.
Australia
Liquor license: Issued by state or territory liquor licensing authorities. Requirements vary by region, so check your state website.
Food business license: If your brewery serves food, this license is also necessary.
Health and safety permits: Compliance with local health regulations is a must!
New Zealand
On-license: Allows the sale of alcohol for consumption on the premises.
Off-license: Permits the sale of alcohol for off-premises consumption.
Food control plan: Required if you’re serving food.
Tips to managing a successful brewery
1. Build a dream team
A well-rounded team is the backbone of a successful brewery. The right mix of skills, experience, and enthusiasm can drive innovation, ensure quality, and foster a positive workplace culture.
When hiring a team look for a variety of skill sets as it’s likely employees will wear multiple hats as you transition through the early stages. Passion, culture and those with craft beer experience is a great starting point.
2. Implement an online reservation system
An online reservation system can streamline your brewery operations and improve customer satisfaction. Since breweries typically have larger spaces and multiple sections – outdoor beer garden, bar or private rooms -, smart table management is key. Choose a system that integrates well with your existing operations and provides features like real-time availability, automated confirmations, and waitlist management.
Your team should be your guidepost for success so ensure the system is user-friendly for them and makes it easy for customers to book. A platform that provides you with customer booking data is also critical and we’ll get into why!
3. Drive repeat visits with booking insights
Booking data is key, because as a brewery, you’ll need it to analyse peak times, customer preferences, and trends. This information can help in planning staffing levels, optimising your layout, and improving customer experience.
There’s no one more important to a brewery than its regulars. For long-term success, leverage insights from guest reservations to create personalised experiences. If you’re able to track that a customer frequently orders a specific type of beer, send them an email or SMS notify them about new releases or similar options.
4. Have fun with marketing
Creative and engaging marketing can differentiate your brewery from competitors. After all, people come to a brewery to let loose!
Don’t be afraid to use humour, storytelling, or unique themes to capture attention and make your brewery’s brand memorable. Wellington’s Fortune Favours uses mystical characters to describe their beers, and who can ever forget the adorable faces of Tasmania-based Spotty Dog Brewer’s… spotty dogs!
Hosting special events, such as trivia nights, beer tastings or brewery tours, are great for getting new customers in the door. We’ve also mentioned branded merchandise, which not only generates additional revenue but also helps in promoting your brewery.
What are some common challenges in managing a brewery?
While all hospitality venues deal with challenges of their own, there are some that are more common to brewery management.
- Supply chain disruptions: As breweries rely on batch production, low supply of critical ingredients such as malt and yeast can get you off track. Maintain multiple suppliers for critical ingredients to mitigate risks.
- Regulatory compliance: Stay updated with local regulations as things often change when it comes to producing and serving liquor.
- Maintaining consistency: With fermentation processes, there are many ways things can go wrong with a bad batch. Implement strict quality control measures and invest in reliable equipment for beer production.
How to start and successfully manage a brewery
Lastly, it’s all about doing what you love – let your blend of malt and hops lead the way and stick to the SOP to produce quality beers and operate seamlessly. Managing a brewery is a rewarding gig with a bubbling community at the heart of it – just ask anyone about their local watering hole! Paired with the right venue management systems, you’ll be knocking back a celebratory beer in no time.
Looking to manage your own brewery with success? Request a demo of Now Book It today.
