Based on a story in the Wall Street Journal, February 6, 1996, By Michael Selz


Amid Brewpub Binge, Sobering Tales

This story begins by saying: "Eager entrepreneurs are pouring into the booming brewpub business--and some have wound up with hangovers.

It reports that brewpubs "can produce a glass of beer for less than 30 cents and sell it for up to $5. "

It goes on to say that " The numbers don't add up quite so neatly for Dave Richards, co-owner of Rio Bravo Brewpub, Inc." Mr. Richards had a highly successful brewpub in Albuquerque N.M. and so he and his sister decided to open one in Santa Barbara, Calif, the next year. According to the story, "In California though, business went flat." The cost of brewing equipment was $20,000 higher than expected, so that the break-even point in Santa Barbara was sales of $2,000 per day. Flooding early in the year chased away tourists and on many days the brewpub brought in as little as $700 per day.

According to the story, 190 new brewpubs opened in the U.S. in 1995. This was nearly as many as the total number that had opened in the previous 3 years. But, it says, dozens of others are closing and many others are struggling.