[NAME OF BREWPUB]

BUSINESS PLAN
[date business plan issued]

Contact: [name], CEO [or President]

[address]
[phone no. & fax no.]
[email]
[web site]

The information contained in this business plan is confidential and proprietary to [NAME OF BREWPUB]
(the “Brewpub”) and is intended only for the persons to whom it is transmitted by the Brewpub or its
representatives. Any reproduction of this document, in whole or in part, or the divulgence of any of its
contents without the prior written consent of the Brewpub, is prohibited.

This is a business plan. It does not imply and shall not be construed as an offering of securities. Persons
interested in pursuing an investment should contact their professional advisors.

Business Plan Copy No. _______

 Confidentiality Agreement
The undersigned reader acknowledges that the information provided by [NAME OF
BREWPUB] in this business plan is confidential. Therefore, the undersigned reader
agrees not to disclose any of such information without the express written permission
of [NAME OF BREWPUB].

It is hereby acknowledged by the undersigned that the information to be furnished in

this business plan is in all respects confidential in nature (other than such information
which is already in the public domain through other means) and that any disclosure or
use of same by the undersigned may cause serious harm or damage to [NAME OF
BREWPUB].

Upon request, this document is to be immediately returned to [NAME OF BREWPUB].

Signature

Print Name

Date
 - ii -

TABLE OF CONTENTS
Confidentiality Agreement ............................................................................................................................................. i
EXECUTIVE SUMMARY ............................................................................................................................................... 1
I. INTRODUCTION TO BREWPUBS ............................................................................................................. 2
1.1 Definitions ............................................................................................................................................. 2
1.2 History & Development of Brewpubs............................................................................................. 2
II. THE BREWING PROCESS ............................................................................................................................. 4
2.1 History of Brewing .............................................................................................................................. 4
2.2 Ingredients of Beer............................................................................................................................... 4
2.3 The Brewpub’s System ....................................................................................................................... 5
III. BUSINESS STRUCTURE & OBJECTIVES ................................................................................................ 6
3.1 Corporate Structure............................................................................................................................. 6
3.2 Goals & Objectives............................................................................................................................... 6
3.3 Mission Statement ............................................................................................................................... 6
3.4 Factors for Success ............................................................................................................................... 6
3.5 Risk Factors ........................................................................................................................................... 6
IV. DESCRIPTION OF PRODUCTS & SERVICES ........................................................................................ 8
4.1 Beers and Ales ...................................................................................................................................... 8
4.2 Food Service .......................................................................................................................................... 8
4.3 Location.................................................................................................................................................. 9
4.4 Atmosphere and Layout of Brewpub.............................................................................................. 9
4.5 Future Plans .......................................................................................................................................... 9
V. MARKET ANALYSIS & MARKETING PLAN....................................................................................... 10
5.1 Industry Analysis............................................................................................................................... 10
5.2 Target Market ..................................................................................................................................... 12
5.3 Competitors......................................................................................................................................... 12
5.4 Marketing Objectives ........................................................................................................................ 14
5.5 Marketing Strategy ............................................................................................................................ 14
5.6 Sales Strategy ...................................................................................................................................... 15
5.7 Pricing Strategy .................................................................................................................................. 15
VI. MANAGEMENT & ORGANIZATION .................................................................................................... 17
6.1 Management Team ............................................................................................................................ 17
6.2 Personnel Plan .................................................................................................................................... 17
6.3 Professional Advisors ....................................................................................................................... 17
6.4 Outside Consultants.......................................................................................................................... 18
VII. FINANCIAL PLAN ......................................................................................................................................... 19
7.1 Important Assumptions ................................................................................................................... 19
7.2 Sales Forecast ...................................................................................................................................... 19
7.3 Projected Profit and Loss ................................................................................................................. 20
7.4 Projected Cash Flow.......................................................................................................................... 21
7.5 Projected Start-up Costs ................................................................................................................... 22
7.6 Projected Balance Sheet .................................................................................................................... 23
APPENDIX [support documents]............................................................................................................................... 26
 [NAME OF BREWPUB]
BUSINESS PLAN

EXECUTIVE SUMMARY
(NOTE: The Executive Summary is the section of the business plan in which you give an overview of the business, its
present status and future direction, and highlight the key points and the purpose of your business plan. This section
should be written after the rest of the business plan, and should not exceed 3 pages in length - that’s why it’s called a
“summary”.)

[NAME OF BREWPUB] (the “Brewpub”) is a proposed brewpub (microbrewery and onsite pub) to be
located at __________________ in ______________ [name of city]. The Brewpub will feature numerous
types of beers brewed onsite to suit the tastes of all our customers. Its atmosphere will be designed to
give patrons a warm, cozy “neighborhood pub” feel.

The business will be formed as a limited liability company. Its location will be at ________________ in the
City of _________, close to _____________. The CEO and brewmaster will be _________________. S/He
has received his/her brewing certification and has ______ years experience as a brewer. The rest of the
management team will consist of a general manager and a kitchen manager / head chef. Aiding the
management team are professional advisors who have restaurant and business experience.

The microbrewed beer industry has shown growth every year for the past ____ years. Average beer sales
at brewpubs last year were $______________. Assuming an alcohol to food sales ratio of _________ [give
current figures], it is estimated that average food sales were around $__________ for the same time period.
Brewpubs have advantages over microbreweries (which generally are not integrated with a distribution
channel), and over regular taverns (which do not produce their own products), and should therefore be
more profitable than a brewery or tavern of the same size.

There are ______ licensed hospitality establishments within a _____-mile radius of the proposed location
for the Brewpub. Of these, _____ are direct competitors for the target market that the Brewpub will be
catering to. The Brewpub will distinguish itself by presenting a distinctive public image, which combines
a comfortable, attractive and appealing interior with a moderately priced menu and high quality, fresh
microbrewed beer.

After meeting all requirements in a site assessment survey, the location of the Brewpub should provide a
great marketing opportunity. Also, there are many attractions close to the Brewpub’s location which
should help to draw the target customers the Brewpub seeks to attract.

The marketing strategy of the Brewpub is a combination of billboard advertisements, mailouts,

newspaper ads, kiosks, and promotions at local events. The Brewpub will use the services of
_______________ [name of marketing firm] to help with the marketing campaign. In addition, the Brewpub
will use advertisements, specials, happy hour pricing, group events, chauffered pub crawls, brewpub
tours, and sponsorships to get customers in the door and keep them coming back. Pricing will be based
on competition, cost and demand.

The Brewpub is seeking start-up funds in the amount of $_____________. The funds will be used to
develop the site, purchase and install brewery and restaurant equipment, furnishings, fittings, and
supplies, and pay for all start-up expenses.
 -2-

I. INTRODUCTION TO BREWPUBS
[Use industry and government sources to find up-to-date figures where specific information and statistics are
indicated, e.g. hospitality industry statistics, national and local business publications, magazine articles, research
publications, etc.]

1.1 Microbreweries vs. Brewpubs

A microbrewery is a small-scale brewery that produces and packages its beer in kegs, bottles or cans for
off-premises sales and consumption. All brewpubs are microbreweries in that they are small-scale
breweries, but not all microbreweries are brewpubs – only if they have a tavern or pub on the premises
do they qualify as a brewpub.

A “small-scale” brewery is one that produces between 3,000 and 50,000 bbls. of beer per year. The
production capacity of a brewery is more a function of the number of fermentation and conditioning
tanks than the size of the brewhouse vessels. In determining the adequate equipment configuration for a
new brewery, the most important factor to consider is what is the desired annual volume of production,
not how much beer it can brew on a daily basis.

A brewpub is a microbrewery that operates in conjunction with a retail pub / restaurant, which derives a
substantial portion of its revenues from retail sales of beer directly to end use customers for on-premises
consumption. A brewpub may or may not also have wider off-premises wholesale distribution of its
products, but always sells most of its products directly to retail consumers. As of ________ [date], there
were _______ brewpubs and _____ wholesale microbreweries in ____________ [country]. According to
______ [quote your source], new small-scale breweries are opening nationally at the rate of _____ per
month.

A typical brewpub derives ____% of its revenues from food and other non-beer items, but these items
make up a much smaller percentage of the brewpub’s profits. Thus, a brewpub has some of the
characteristics of a restaurant as well as those of a tavern. However, since some successful brewpubs rely
almost exclusively on beer sales, these characteristics are not essential for success.

A brewpub’s primary distinguishing feature is that it is also a brewery. The on-site brewery and fresh
microbrewed beer is what sets a brewpub apart from all other taverns and restaurants, and is what
marketers refer to as a “sustainable competitive advantage”.

Brewpub patrons are typically between 21 and 45 years of age, with at least two years of college-level
education, and have more disposable income and lead a more active social life than the average beer
drinker. They appreciate and are willing to pay a premium for pub-brewed beer. Although students tend
to have relatively low incomes, they also spend a higher percentage of their incomes on social activities
than other market segments.

1.2 History & Development of Brewpubs

Brewpubs are not a new concept in the hospitality industry. For centuries before there were commercial
breweries, many taverns and inns in Europe and Asia brewed their own beer to serve their patrons. In
ancient Egypt, inns commonly operated combination breweries / bakeries. In medieval England, it was
expected that each inn would brew its own beer, and the brewing was generally done by the innkeeper’s
wife or by other women in his employ. In Europe, especially in England, Germany and Bohemia, a
number of these breweries dating back to the Middle Ages are still in operation today. Others, such as the
renowned Hofbrau Haus in Munich, have evolved into regular commercial breweries.

In recent years, hundreds of new brewpubs have sprung up in Europe to cater to the increasing public
demand for alternatives to the standard commercially available brands of beer. It is estimated that, in the
United Kingdom alone, there are currently about ________ brewpubs.

Brewpubs existed widely throughout the United States before the advent of Prohibition in 1920. With
thousands of breweries in operation across the country supplying each region with its own distinctive
 -3-

style, almost every town had a beer of its own. Unfortunately for American beer drinkers, the only
breweries to survive Prohibition were the large commercial breweries that could convert their existing
operations to the production of non-alcoholic malt products. When they resumed brewery operations in
1933, they went in search of a single beer style that was cheap to produce, easy to drink, and appealed to
the widest possible tastes. The variety, character, and perhaps even the quality was gone from the
American beer market.

This all began to change in 1979 when a law was passed that legalized the home brewing of beer. Then in
1983, California passed a law permitting breweries to brew and sell beer directly to the customer (without
going through a distributor). These laws paved the way for a renaissance in brewpubs. Since then, home
brewers, microbreweries and brewpubs have been reintroducing a wide variety of styles and flavors
available through the small scale production of high quality, hand-crafted beers, brewed naturally, and
served fresh.

The first modern brewpub in North America opened in 1983 in the small town of Horseshoe Bay, British
Columbia. Its immediate success attracted wide attention on both sides of the Canada-USA border and
set off a trend among brewers across the country. The first brewpub in the USA began operations the
following year. Over the next few years, new brewpubs opened at the rate of 20 or so each year. In 1995,
that number jumped to 152, and the growth rate is still accelerating.

[Discuss the growth of brewpubs in your local area. Use sources such as the Chamber of Commerce and local
business directories, as well as brewer associations for your information.]

The future holds a great deal of potential for well-managed brewpubs. As any tavern owner knows, the
most profitable item to sell in a pub is draft beer - this is the primary sale item for a brewpub and the
reason for its existence.
 -4-

II. THE BREWING PROCESS

2.1 Historical Overview of Brewing

Beer is a low-alcohol beverage produced from the fermentation of sugars and starch from malted grain
and water. Commercial brewing has been around for at least 5,000 years, dating back to ancient Egypt
and Sumeria. A tablet dating to 1800 BC is inscribed with a hymn dedicated to Ninkasi, the goddess of
brewing. It describes how Sumerian bread is mixed with “aromatics” to ferment in a big vat – the oldest
known recipe for beer in existence.

The techniques of brewing have been refined over the millennia, but the basic process has changed
relatively little. Sprouted and dried grain (“malted” grain) is ground and mixed with hot water to extract
the sugars and flavor elements from the grain mash. This liquid extract is called “wort”. It is boiled
(“brewed”) with the addition of flavoring agents, such as hops. The wort is then cooled, yeast is added,
and it is allowed to ferment for a period of time ranging from one week to three months.

Beer is classified as a food. A brewing manual from the 1600s once very aptly described beer as “liquid
bread”. A well-made good quality beer contains carbohydrates, minerals and vitamins, particularly from
the B Complex group.

2.2 Ingredients of Beer

The four basic ingredients of beer are:

1. Malt. Grain that has been allowed to start sprouting, which converts the starch in the kernel into
fermentable sugars. The grain is then quickly dried to stop root growth. Roasting the dried malt
in a manner similar to roasting coffee creates different colored malts. Barley and (to a lesser
extent) wheat malt are the only two malted grain types used in modern beer.

2. Water. The purity and trace minerals in brewing water influence the final taste of the beer.

3. Hops. Dried pine cone-shaped flowers from the hop vine. Bitter oils in the hop blossom contribute
the “bite” and balance the taste of the beer against the sweetness of the malt sugars.

4. Yeast. A single-celled plant that feeds on the malt sugars during fermentation and converts them
into alcohol and carbon dioxide.

In some European countries like Germany and Norway, brewers are mandated by law to use only these
ingredients. The Bavarian Beer Purity Law of 1516 is the oldest pure food law in the world still in force
today.

In most countries, including the United States, brewers often cut corners to speed up production and
reduce costs. Cheaper unmalted grains, such as corn and rice, and straight sugars such as dextrose and
sucrose (“adjuncts”) are substituted for a percentage of the malted barley. Hop blossoms are replaced
with processed hop extracts. An assortment of additives and preservatives are used to give the beer
product a longer shelf life or other desired characteristics.

Small-scale microbrewers, such as brewpubs, generally reject these shortcuts and refuse to compromise
the quality of their product. Most microbreweries in the USA and Canada brew only “all-malt” beers that
are free of additives. The cost differential between an all-malt beer and an “adjunct” beer is minor and is
not a significant consideration at the production level of a brewpub. The proposed Brewpub will follow
the strict quality standards of the Bavarian Beer Purity Law.

Typical Brewpub Annual Beer Production

Month Year 1 Year 2 Year 3
Jan Low Med High Low Med High Low Med High
Feb
Mar
Apr
 -5-

May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
TOTAL PRODUCTION

2.3 The Brewpub’s System

[Give a brief description of the brewing equipment which will be purchased and installed in the brewpub.]
The Brewpub will use a ______ bbl. system, which comes from __________ and is made of _________. The
cost of this system is approximately US $________________. The Brewpub will be designed so that the
system is visible to customers in the tavern and restaurant, so that they can appreciate the look of it and
see where the beer they are drinking is made.

THIS IS A 29-PAGE DOCUMENT.