Wednesday, December 13, 2023 5:04:14 PM
I think I recall the price of a pint at the taproom was going to be $7 (I'm pretty sure) and of that it would not be unreasonable to have a gross profit margin of $5. Looking at several scenarios, lets say a member came in for the free weekly pint, then ordered another pint after that. Those pints might cost $2 each so the company would get $3 of gross profits.
Alternatively, based on the Instagram site, the tap room will be open 58 hours per week. During the 5 tourist months, lets say they had a mere 20 customers per hour throughout the day, a quite low number, considering they can seat 90 indoors and out. If each customer only had 1 pint, plus a pretzel, or a sausage, I'll guess $5 gross profits for the pint and $3 gross profit for the food. That's $8 gross profit per person, per hour, times 20 customers per hour, is $160, times 58 hours for the week, equals $9,280 in gross profits for the week. Call it just 4 weeks for the month because of holidays and we get $37,120 in gross profits for the month.
Since we already deducted the food and beer cost, I'll deduct $20,000 for salaries, $5,000 for the monthly lease, $1000 for electricity, etc. and maybe they end up with $10,000 in net profits per month, minus $700 of course for the promissory note holders who get their cut of course. $9300 per month would not be bad, and even if they only had 10 customers per hour (a table of 4, and 3 table of 2) then it looks like they still could make some money.
But the tourist months can get packed during the summer, even 6 days per week when they're open. $20,000 per month in net profits wouldn't surprise me during those months, or maybe $100,000 for the summer months. While that's not a ton of money, it's far better than borrowing $20,000 a month to sustain the brewery until it's much bigger.
Plus, the BrewHaus will get a lot of visibility from visitors from all around the state, making the BrewBilt Brewery and the BrewBilt BrewHaus brand much better known going forward, likely helping to add incremental sales for BrewBilt's wholesale accounts to stores, bars and restaurants.
A lot of very successful breweries made great strides by starting with and taproom so this puts further on track to becoming a much more successful business down the road, IMO.
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