Using Your Brewery as an Event Space
To say craft beer is just about the beer is a huge understatement in today’s competitive market. Craft beer is about engagement, education, and expanding your audience. The value of your brewery lies much deeper than just the beer you are producing. A great part of your value is in the space you occupy. Taprooms are social gathering places where every minute left empty can reduce your bottom line. You’ve got the space, utilize it. As a brewery owner or manager, create a plan to entertain and impress your guests with a unique variety of events.
We will cover a checklist of the types of events you can host, the planning behind them, and how to use them as a tool to grow your brand. We define an “event” as any planned social occasion that happens at your taproom. This could be anything from trivia to live music to a seasonal craft fair to a wedding. It is something unique to your normal operation. However, before your brewery becomes an event mecca, you must create the desire for groups and parties to hold events at your space. Just as you aim to stand out by the beer you produce, differentiate in the memorable experience you create.
Why would anyone want to hold an event at your brewery? Not every venue is right for every type of an event. A dingy, dark taproom with pentagrams all over the walls may not be ideal for a wedding, but could work great for local metal bands every Friday. Whereas a picturesque farmhouse in the mountains may be the perfect venue for a destination wedding. It is your job to find what works best at your brewery. Before even hosting an event, consider the audience and type of event you want to cater to. It should be your goal to “wow” that audience and demonstrate why your brewery is worthy of their special occasion or night out. Events give you a captive audience at your disposal. The ball is in your court to impress.
Equally as important, why should you hold events? Mike Walker, the lead for on-site business development of Lakefront Brewery in Milwaukee, Wisconsin states, “We find that hosting events in our taproom is integral to its success. Craft beer fans are looking for more than just beer, they're looking for an experience, something to entertain them beyond the beer. With the amount of breweries opening up these days, taproom attendance is much more competitive than it was 5 years ago.” Events will help your brewery stand out in a crowded market.
Let’s first start off with the two basic types of events you can host, private and public. Private events are events that require you to restrict access to your taproom in some way outside of those included. Public events are events where anyone can attend. Both have their benefits which we will now dive into.
Why should you host private events at your brewery? First, your brewery is an event space not just a brewery that makes beer. Second, how many times have you hypothetically complained about how slow your Tuesday nights are? Your local rotary club is looking for a place to host their holiday party and as chance has it, would love to hold it on that odd Tuesday in December. Should you turn down their offer in favor of allowing a handful of regulars to visits? Here are options to weigh when considering hosting a private event.
1. Should you stray from routine? – If your taproom is a local watering hole with a captive audience of regulars, you will want to consider whether the financial gain from hosting a private event outweighs the possibility of upsetting your regular guests. It is much easier to host a private event on off days, as opposed to shutting down the brewery on Saturday for a wedding. However, a brewery is a business and the decision that amounts in the most overall good is the decision that should be made.
2. How much should your charge to rent your space? There is no correct answer to this. It depends on your location, the number of other nearby events spaces, the local population, to name just a few factors that will dictate a fair going rate. Research what other area venues are charging to host everything from weddings to banquets to corporate parties. This will give you a ballpark range you can consider along with your perceived value of the brewery. Breweries are unconventional and socially cool places. This gives you a little potential edge to consider your place in demand, once you sell it as that. While charging nice sums to rent your brewery can be motivating, sharing your space with the community at an affordable rate is also a fantastic way to build goodwill towards your brewery. Build a strong connection with your community through your support and this relationship will benefit all parties involved.
3. What’s your profit? – Selling to your regulars on a slow Monday will definitely mean good times, but how about a 100 person company party that pays X number of dollars to host a private event? How much staff will it take to accommodate? Any other special requirements other than just offering your space? Be sure to dictate what’s included in the rental. Consider how much you would do on that specific non-event day and look at the pros and cons of holding a special event. The Brewers Association recently released a great guide on creating a Venue Rental Agreement that works for you.
4. Will it attract a new audience? – Regulars are great, private events bring guaranteed money, but the true value in using your brewery as a venue is the new audience it potentially brings. When the local Chamber of Commerce or a large company hosts a private event at your space, it brings in an audience that may not have visited otherwise. Additionally, private events often also have more thought put into them. Someone is paying to use your space because they believe it is the right atmosphere to “wow” their guests. The company/person renting your space is doing you a favor by helping your brewery look extra good. This is mutually beneficial. Assuming these guests have a positive first experience, they are more likely to return/recommend your brewery.
The value in a private event isn’t just the profit it generates, but the overall positive light your brewery casts on all attendees. Kristin Hanna, Brewery Experience Director at Flying Dog Brewery in Frederick, Maryland, shares, “Our number one priority is to get more guests through the doors to fall in love with the brand; our secondary goal is to do that in a way that makes a little bit of money – we’re not in it for the profit though, we’re in it for the people.”
With that said, you are a business, and making money is a necessary goal for long term success. Use the below formula when considering the decision to host, or continue hosting, a special event.
Event Value = Rental Fee + Projected Beer Sales + Projected Food Sales + Goodwill of Guests – Lost Regular Sales – Added Operational Costs
Determining the goodwill of guests for future visits is impossible. Subjectivity plays in your decision as the happiness of these guests can dictate how likely they may be to return in the future. The future value of a holding your local kickball team’s championship celebration may hold a tad more future sales value than a presentation by the local university on climate change. Find the events that work best for your space. If you do choose to host private events, be sure to have information on your website and at your brewery to direct any interested party to the proper person to contact.
Why should your brewery host public events? The answer is simple: differentiation. How many days a week can you post “Come try our newest beer” on Facebook. How many times can you share a picture of your tap list on Instagram or Twitter? People get bored (sometimes) with just drinking and it’s through well thought out events that you can continue to stay fresh, keep your current fans coming, and attract new guests. Here are questions that must be answered when planning a public event.
1. Who’s hosting? Will you be organizing all aspects of the event or will the event be run by an outside company? I’ve seen many breweries host live music. However, there could be value in working with an established local promoter who could not only attract higher quality talent, but also have a built in audience that frequents their shows. The answer may be to work alongside a local expert to produce a quality event. Consider the scope of each event and make the decision that works best for your team and brewery.
2. Are you being inclusive? Will your event only appeal to a narrow demographic or will it appeal to the masses? This decision should be cautiously made. To my knowledge, Dungeons and Dragons players aren’t your average brewery goer, thus a uniquely niche event should be tested on a slower day rather than the marquee event of the season. On the other hand, a generic Fall festival with “fill in the blank” generic XYZ vendors may appeal to a larger audience and provide a neutral experience to any unassuming guest who guest happens upon your brewery that day. When you first launched your brewery, you mapped out your target demographic. Perhaps this has evolved over time. In the current state of the industry, it should be your goal to not limit your audience and to build relationships around community, conversation, and craft beer while maintaining your integrity.
3. Is there a cost? This is a touchy subject. A private event is an event where only invited guests can attend. An event with a cover charge or required ticket (i.e. a concert) is open to anyone willing to pay the entry fee. Having to pay just to get in could be a deterrent to many. However, if a fee is charged, it should be your goal to provide your guests an extra value of experience that exceeds their cost. Create a distinct experience worth the money!
4. Why would someone want to attend? I constantly encourage breweries to try anything once, but any idea for an event should properly be vetted. Consider who your target audience is and if the event makes sense. Does your brewery want to be associated with a specific political party? Would an alumni event for a college 2000 miles away actually bring people? Don’t just host an event to host an event. Host an event that is well planned with a purpose. If a well-planned event fails, so be it. If you just slam a sticker on an odd Wednesday, don’t get your hopes up.
5. Is the event one-time or reoccurring? A weekly event, such as trivia night, may bring a solid crowd; however, one-time events often pack that extra punch that draws extra guests. It is typically the mix of reoccurring promotions mixed with unique one-offs that help create a balanced schedule. Find events and causes that people are passionate about. Give them another reason to get excited to visit your brewery.
6. Is there anything to lose? There is minimal negative to hosting a public event on a typically slow night. These are the shifts you should take the “try anything once” approach. Worst case, it’s a complete failure and you don’t see any uptick in sales or traffic. Best case, you have created a successful, new event that results in a better than usual slow night.
Another option to consider is to use a specific private section of your brewery for special events. This allows you to still open to the public, but also host private events simultaneously. If your brewery offers a private event space, make sure it is separate enough from the general public that both groups are able to fully enjoy their experiences.
Often there are large groups that merely want a space where everyone can fit, even if it’s amongst the general public. Imagine a holiday party of 50 office workers showing up unexpectedly on a Thursday night. While this would generate a nice bump to sales, you may be understaffed and under-prepared compared to a typical shift. This could cause frustration to both your staff and the large party. Make it your policy to encourage large parties to RSVP that way you can be properly prepared.
Whether you are hosting a public or private event, it is important to make potential patrons aware on both social media and at the brewery. Advertise in advance so that a guest does not show up surprised. That Tuesday regular may not stay a regular if they show up to a sign reading “Taproom closed for a private party.” Do your best to spread the word.
Scott Hunter, of Urban Artifact in Cincinnati, Ohio, stresses, “Never rent out your primary taproom for private events unless you fully understand you will likely lose customer permanently who try to visit you but were not aware a private event is happening. Communication is never perfect and it will just frustrate folks that your normal space isn't open as listed.” However, if they were made aware via social media or during their prior weekly visit, they will be much more understanding. Encourage them to buy some beer to go in preparation for their “day off.”
It needs to be reinforced that your brewery should not take on larger events than you are prepared to handle. The larger the event, the larger the number of new guests visiting. Take the time to create a checklist for your brewery to ensure you can accommodate for specials events, whether private or public. If you are unable to meet the criteria needed to make an event run successfully, pass on the event and brainstorm if and how your brewery can prepare for such events in the future.
Events are an added revenue source for your brewery. When you charge a fee for the renting party, this is guaranteed revenue. Depending on your arrangement, this may only be for the space, or may also include a set amount of alcohol. If you plan to grow your brewery as an event space, have a dedicated staff member to be the face and contact for all event planning. This will streamline your event planning operation internally and make communication with those looking to host events much easier. The behind the scenes work is part of the event experience. You can please the attendees, but if the one paying for the private event isn’t satisfied, don’t expect them to return.
And the million dollar question, do breweries that host private events see more new customers? The answer is yes. Targeted events help reach specific demographics that not only appeal to a portion of your current fan base, but also a new sect of potential guests interested in the events you are hosting. Blow your first-time guests’ minds. Give them a reason to come back for more unique experiences.
Lakefront Brewery hosts a monthly Drag Queen Bingo that continues to draw strong crowds. The brewery works with Drag Queen, Ester Flonaze, who turns the place into a party. Walker states, “The party aspect is what brings people back, they laugh, cheer, and have a genuine good time with us. While the people that attend may have been by us before, we have found a way to bring them back when they otherwise weren't planning to.” This has been one of their many formulas for event success.
Find what works best for your brewery through research, trial and error, talking with your guests, and from daring to be different. The true benefit of a special event is transforming a regular day at the brewery into a new memory for your guests and into a boost to your bottom line. Be more than a brewery.
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