Brewery Startup Cost Calculator

Note: Pricing is in USD (Click here for CAD exchange rate or use currency converter on the internet.)

When planning a brewery, you will be asking many questions such as 'How much does it cost to start a brewery?', 'How much do brewery owners make?' and 'What is the brewery profit margin?'. The idea of crafting unique, delicious beers and sharing them with the world is exciting. The above small brewery startup cost calculator shown above will enable you to get some concrete answers to these questions as well as helping to provide you with a roadmap to your business success. An overview of the main calculator sections is as follows.

Equipment Costs

One of the major decisions when starting a brewery is what equipment to purchase. While brewery owners have many choices, minimizing capital outlay is important to keeping financial viability. Many brewery startups have failed because they borrowed more money up front than was sustainable. From brewing kettles and fermenters to kegs and cooling systems, the cost of purchasing or leasing brewing equipment can add up quickly. But it's essential to invest in high-quality equipment to ensure the quality of your beer. BREWHA Equipment Co is here to help you brew your best beer, while keeping your capital costs low. Click here to see some of the many benefits of the BREWHA brewing system.

Construction Costs

Choosing the right location for your brewery is crucial. Consider factors like foot traffic, visibility, and proximity to suppliers when selecting a location; this article describes what several brewery owners see as secrets to brewery success. If possible, finding a good existing building that was previously a brewery or at least food service establishment will minimize your overall expenses and hasten your development schedule. The cost of leasing or purchasing a space, renovating it to meet brewing regulations, and obtaining necessary permits can be significant. If a building is zoned for brewery, and already had food service in it, the approval from the city will come much quicker, and many of the services you need in the building will already be in place or can be easily reworked, saving you money. If you have the perfect building, in the perfect location, but it wasn't previously used for food service, then it might be worthwhile going through the bureaucratic hurdles, but know that it will take longer and cost more money.

Connected with what equipment to purchase, and what size of building is best, is how large should one go for my taproom. Of course there are many variables here, but as far as size of taproom goes (how many seats you want), it is a good idea to visit taprooms in nearby communities and see how they are doing with the size they have. Visit during quiet periods as well as busy times to see how they fill the space they have. For some businesses Google also displays how busy they are throughout the day and week, and this can be extrapolated based on their size to know how well the community fills their space. If they are doing things week, and are often full, you might want to go a little larger, if they aren't full, ask yourself how you will be different. As far as equipment size, for taprooms a general rule is to have capacity to produce between 1000 and 1500 pints/seat/year. On the lower side for less busy venues, on the upper side for busy venues. Plus additional capacity if one will also be producing for off-sales or distribution.

Licensing and Permits

Starting a brewery requires obtaining various licenses and permits, including federal, state, and local permits. The cost of these licenses can vary depending on your location and the size of your brewery. It's essential to budget for these expenses and ensure compliance with all regulations. You will also likely want insurance (banks will often require it) during the construction phase.

Ingredients and Packaging

The main reason of having a brewery is to sell beer. But while the cost of ingredients like malt, hops, yeast, and other brewing supplies do add up (our calculator uses a high average of $1/pint, not including labor), they won't be the primary expenses in your brewery, which are almost always labor. Therefore before generous with employees while minimizing the amount of labor is critical. BREWHA's all in one system is designed to minimize labor when brewing so only one brewer is needed. And when serving direct from the fermenter using our dispenser systems, it will minimize the amount of help needed for cleaning and filling kegs. If you will be distributing your beer outside of the brewery, you'll need to budget for packaging materials such as bottles, cans, labels, and packaging design (if for 'Serving Method' in the calculator above you chose kegging, then the cost of 80 or so 0.5BBL/58L kegs is included already). These costs can fluctuate based on the type and quantity of beer you plan to produce but a good single can seamer (with which one person can fill and seam about 1 can/minute) will cost about $6000-$9000 and can be kept on the bar for filling take-out beer. A multi head filler/seamer for distribution will cost about $20000 for 4 cans/minute and a 12 can/minute filler seamer will cost about $50,000.

Marketing and Branding

Building a strong brand and marketing your brewery is essential for attracting customers and standing out in a competitive market. Marketing expenses can quickly add up so it is important to find marketing opportunities that offer a great ROI (Return On Investment). Budget for expenses like website development, social media marketing, merchandise, and events to promote your brewery and connect with beer enthusiasts.

Staffing and Operational Costs

Running a brewery requires a team of skilled people, including brewers, sales/serving staff, and administrative personnel, and this will be a major line item on your financial spreadsheet. Finding the right people is therefore critical to your success. While you are probably starting a brewery because you want to be involved, it is worth emphasizing that small businesses are most likely to succeed where the owner is involved. The 'Staff Salaries' in the calculator should include salaries, benefits, and training costs. 

Starting a brewery is a rewarding and challenging endeavor, but with careful planning and budgeting, you can turn your dream into a successful reality. By understanding the costs involved in starting a brewery, you can make informed decisions and set yourself up for success in the exciting world of craft beer.