Packed Taprooms: The More, The Merrier, The More Money
No one likes drinking alone. And the busier your taproom, the more each guest will spend.
We analyzed 8606 unique taprooms visits from 2017 to 2022, excluding 2020, to see how the perceived level of busyness correlates to how much guests spend. Respondents categorized the level of busyness, upon arrival on each visit, as empty, half full, one quarter full, three quarters full, or packed. Each visit represents an average of 2 guests and the total tab includes tip and tax.
From 2017 to 2022, 16.1% of visits were perceived as packed. Homing in on 2021 and 2022, 10.7% of visits were noted as packed. While not the focus of this article, the general decline in busyness may reflect the array of challenges breweries are facing.
Next, we look at the relationship between how the busyness of a brewery impacts how much a guest spends. Guests spent 38% more in packed taprooms compared to empty taprooms from 2017 to 2022. Looking just at 2021 and 2022, packed vs empty taprooms see tabs 21% higher.
It’s worth noting that we must also consider additional economic factors that have contributed to the increase in spending from 2017 to 2022 (i.e. higher costs of ingredients, inflation, rising taproom prices).
The 2017-2022 number really jumped out at me. I was expecting to see higher tabs for more crowded taprooms, but nearly 40% higher tabs is more than I anticipated. However, it makes sense - people spend more in lively taprooms. Have you ever walked in somewhere and immediately turned around because it was too quiet or oddly empty? I know I have. Most of your guests are visiting taprooms for social occasions, and the lack of guests isn’t helping create the vibe.
We have ourselves a chicken and egg situation. You need crowds to get people spending more and you need something to attract people at a greater level to get crowds.
So, how to get larger crowds? That’s the magic question.
At one point, it was simply about the beer. Then the word 'experience' crept in. 'Experience' refers to every little aspect that contributes to a guest having a more memorable time. Their experience could be enhanced by something as basic as the music playing or something as extravagant as a decked-out anniversary celebration.
As experience grows in importance for breweries, events can play a big role in attracting more guests. A lonely Wednesday with nothing going on might draw a smattering of fans. A promoted Wednesday with an in-demand local market? I'm bringing the family and friends. Give people an occasion to attend. The greater these occasions appeal to a broader audience, the more potential attendees.
On packed visits, the data shows that people are coming in larger groups. The average empty taproom party includes 2.2 guests. The average packed taproom party includes 3.2 guests. A nearly 50% larger party, spending more money.
As an owner or manager striving to increase profits, you obviously want more butts in seats. However, while tabs are higher in more crowded taprooms, the average spend is still highest when a guest receives a high level of engagement. From a data set of 2,244 unique visits from 2021 and 2022, when a guest receives high engagement, they spend $53.60. The $53.60 does not take into consideration how busy the taproom is; it only looks at overall spend and engagement. For comparison, the average tab of a packed taproom in 2021 and 2022 is $49.38.
From the 2021-2022 data set, we now examine all visits categorized as high engagement. High engagement/empty taproom experiences result in average tabs of $45.50. High engagement/packed taproom experiences generate $60.87, 34% higher than the former amount.
High Engagement + Packed Taproom = Maximum Spend
With higher engagement comes higher tips, 2021 and 2022 data show an average tip of 27.1% on high engagement visits vs 23.5% for low engagement encounters. Better paid staff results in happier staff. This energy then radiates across the bar to your guests, resulting in more good times for everyone (and less time that you’ll spend hiring).
In less crowded taprooms, it is typically easier for staff to provide greater engagement. Guests are likely to receive a high level of engagement in empty taprooms nearly 50% of the time, compared to only 34% in packed taprooms.
It's crucial to maintain a high level of engagement even when your taproom is busy. While this may result in shorter guest interactions, your team can still engage effectively. Our 30-Second Conversation strategy offers a way for your team to build meaningful connections during brief encounters.
Here’s the formula (and more if you’re looking for a deeper dive).
1. Welcome your guest.
2. Be likable and offer friendly conversation.
3. Offer direction in helping your guest pick the right flight or beer.
4. Let the guest know what they’re drinking as you serve it to them.
5. Leave your guest feeling appreciated.
6. Repeat these 5 steps to build relationships with guests both new and old.
The human aspect is vital, but your space must also be conducive to guests easily ordering. Imagine 1 point of sale trying to serve 500 guests on a Saturday. Frustrating for both staff and guests. Think about the lines. No one likes waiting in them. Often, people may perceive a line as too long and have the next drink at the other brewery nearby. How are you reducing the wait time? More locations to order from, QR codes, servers in some locations. These are just a few potential solutions to create optimal experiences.
Ideal taproom experiences exist at the intersection of delicious beer, a memorable atmosphere, and engaging staff. When you can consistently facilitate and deliver these wow moments, you will see a busier taproom with higher tabs and more smiles.
Questions to consider:
Are you giving people reasons to visit other than beer? Events are a key driver of larger crowds and create an occasion for people to come together.
Does your taproom make it easy for guests to spend when it’s packed? Consider more points of sale.
Is your team able to have meaningful interactions even during busy times?