Why starting a craft brewery is a bad idea

Starting a craft brewery is all the rage right now. But is it a good idea? A group of business students debate whether it really makes good business sense.

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[krizm]

The teacher owns 4 breweries and doesn’t want any competition

[jamiea]

These people don't have a clue. People start breweries for passion.

[TheShaftOfMinecraft]

So with this logic, should people open new restaurants or is the market already saturated?

[ninjanerdstudent]

I think _YouTube_ recommended this to me today because I watched a home brew beer video yesterday.

[dahosereh]

Now, ask them, "who here would go to a microbrewery?" ... watch all of them raise their hands,

[themusic]

The one student nailed it about finding a location where the market isn’t saturated. I live in southwestern Ontario and my city just got its first brewery about 2 years ago and these guys are just killing it. Now on tap at multiple restaurants in 4 different city’s, being sold in both the LCBO and Beer Store. But they were the first, you factor in the amount of people who were frequently having to go out of town to go to a brewery it’s not rocket science that if someone finally opens up a local one it’s going to do well.

[afout]

its more about the passion of doing like he said. most people that start a craft brewery either worked in another one or have been home brewing for years and just really love the craft. it's not about making tons and tons of money but sharing something you love with other people

[matichopfarm]

The statement that the market is saturated is completely untrue! In fact is very unsaturated, there are now slightly more breweries than there were before the prohibition. This might scare some people but you have to understand that the population of America in between the 1920 prohibition and 2018 has tripled, so in theory we should have at least 3x more breweries than in 1920.

[nBasedAce]

I live in Massachusetts and the brewery we have in town does massive amounts of business. It's packed every night it's open.

[currumbinvalleybeer]

Great video. I run a brewery from my farm in Australia. It is just my business partner and I, we can’t afford staff yet as there are restrictions imposed by local councils that stifle retail margin into our business and thereby inhibit cash flow to support others. We have made a name for ourselves regardless. Kicked off online sales. Always good beer at the end of a hard day’s work. We’re authentic. Never going to be wealthy from it. It is a honest day’s work, generally 12-16hrs 5 days and maybe 3-5 each on the weekend. If you can support local small business, remembering it is the dreams and passions of the founders. Please do.

[ninjanerdstudent]

They will all be unemployed after graduation. Mark my words.

[kevingouldrup]

I do think opening a brewery is a great idea as long as you fit it into the correct location/city.

[NoLeadsEnt]

the real question is:
who here would start a buisness they have no idea's about.
making beer.
meanwhile craft brewery's in canada have sold to huge companies for mega profits.
so brain washing aside.
do what you're good at.

[crmc]

I like what he says at the end but to be honest a Nano brewery "smaller than a micro brewery" is like a pizza place at this point every small town will have several eventually. The owners won't get rich but they can make a decent living. Probably a way better living than if they worked for the man!

[j.k.w]

in small suburban/semi-rural communities here in the U.S., a brewery that does a good job of mirroring the identity & history of the area they reside in really does have any opportunity to build a string local customer base that is loyal. Yeah they could go grab a beer anywhere, but the people who go to breweries aren't going there to drink Labatt Blue. If a brewery is done right, it has an atmosphere that you can't get at your local Applebees.

[santoshukarde]

Many people here don't want to open a brewery, so I will....Less competition 👍

[ChadEAult]

Well, they didn’t discuss so many other aspects of this type of business; event space, food, music, distribution, merchandise….
Their are thousands of bakeries, restaurants, coffee shops ect. Not all your revenue comes from the beer. The state I live in you have to serve food if you serve alcohol. So there is that additional revenue (and expense). The small town I live in farmed out the food aspect to another company, but you could also have several food trucks.
The biggest thing here are: location, location, location, and a quality product.
To generate more business, on off days. They have Bingo night, open mic night, and live music. The place is making a killing!!!!
They have merchandise, they have growlers, they have an event space, they cater. They have their beer on tap in other bars. They other HUGE THING WITH ANY BUSINESS LIKE THUS IS SPACE. Indoor/outdoor space, event space and most importantly PARKING!
It really doesn’t matter how many breweries there are, just like coffee, bakeries, or restaurants. If you do it right, you’ll do fine. And maybe you get bought out or like any other business you can sell it.

You would still make more than taking a job, and as a business owner you have write offs you don’t get as an employee.

[portwolf]

One keen rule of business is diversify.
You can open a brewery but that doesn't mean you need to be only selling beer.

When you walk into a 7-Eleven they don't just sell gas.

One should always step back and view everything from the outside with a 3rd person point of view.

[tiantaibrewingequipment]

Every one needs a job, a craft brewery can encourage local business etc. There will always be market demand.

[VanKlaunch]

This video is a lot more optimistic than the title suggests, especially the end.