Dreaming of opening a microbrewery in Ontario? There’s a lot you’ll need to know before you jump in.
Here are a few steps to help you get started.
Microbreweries & Brewpubs – What’s the Difference?
If you’re looking to get into craft brewing, you’ll need to be aware of the distinctions between different brewing and business models.
A Microbrewery is a craft brewery that produces less than 15,000 barrels of beer per year and sells more than 75% of their product off-site. While some microbreweries will have small tap rooms for visiting customers, a high percentage of day-to-day business involves working with distributors and retailers.
Brewpubs are different. Rather than exclusively brew and distribute beer, brewpubs host customers on-site, serving a variety of food and drinks. In other words, brewpubs are a cross between a brewery and a restaurant. While they may work with a few retailers, most of the beer brewed on-site is served there.
Dreaming of opening a brewpub? Click here for 4 things you’ll need to know before setting up shop.
Build Your Skill Set
Beyond the day-to-day operations of a business, craft brewing is a highly-specialized trade. Opening a microbrewery is a massive commitment both financially and personally. Even if you intend to hire a professional brewmaster to look after the production of your product, it makes a huge difference to know the ins and outs of how beer is made before you get into the industry.
In response to the growing popularity of microbreweries around the province, the Ministry of Agriculture, Food and Rural Affairs published a Guide to Starting a Craft Brewery in Ontario. For potential brewers looking to get into the industry, it’s a wise place to start.
There are also some formal education programs you can take to further elevate your knowledge. You’ll find a handful of courses offered either in person or online that cover a lot of essential information such as the brewing process, business development and operations, and regulatory basics.
Searching for business start-up tips focused on the food and beverage industry? We’ve got you covered. Check out a few of our market-specialized blogs below.
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Find the Perfect Spot
Like any business, finding the right property to host your microbrewery will be a big part of its success. Don’t be fooled by the ‘micro’ part of the term microbrewery. When it comes down to brewing, bottling, and distribution, you’re going to need a fair bit of space. Not only should your microbrewery be sizeable enough for everyday operations, but you’ll also want to consider your goals for growth and increasing scale down the line.
If you plan to have a taproom, your brewery’s physical location will also be important. Attracting customers to your business means making it easy for them to get there. If you plan on serving customers on-site, you’ll want to focus your search on areas with high foot traffic or an existing restaurant scene.
When the time comes to find the ideal space for your microbrewery, seek the help of a restaurant broker. Commercial real estate is highly-specialized, that’s why you’ll want to work with an expert who has the niche insights to guide you through the process. Even after you’ve found the perfect spot, a restaurant real estate agent has unique tools to help you get your microbrewery started on the right foot.
Understand Start-Up Costs
Starting a microbrewery isn’t cheap, and there’s a lot of infrastructure that you’re going to need. While not a complete list, here are a few of the major assets your budget should account for.
- Kegs
- Kettles
- Boilers
- Fermentation tanks
- Glycol chiller
- Ingredients
- Packaging and labelling supplies
There are a lot of costs involved in launching a microbrewery. When the time comes to start sourcing appliances, assets, and key materials, be as thorough as possible with your research. Remember, as a microbrewery, you’ll be producing beer at a specific volume – your equipment should reflect that.
If you want to open a microbrewery you’ll need to have a strong financial plan. Check out these helpful blog posts for helpful tips on financing your business.
- A Guide to Vetting Investors For Your Business
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Be Ready For the Red Tape
As you may expect, opening a microbrewery in Ontario comes with a lot of red tape. This process is pretty involved, and it can definitely be frustrating at times so it helps to know what you can expect from this step.
First and foremost, you’ll need to get a Manufacturer’s License if you wish to sell beer. Be aware – this license alone can take up to 3 months to obtain. Then, if you wish to have a public taproom, you’ll also need a Liquor Sales License and a By-the-Glass Endorsement. On top of licensing, there are also specialized taxes that may apply to you, as well as local community regulations.
Getting through the red tape can seem daunting, but with enough patience (and diligence with the paperwork) you’ll get through it.
Ready to find the perfect space for your microbrewery? As commercial real estate experts, we’ve got the tools and know-how to help you be successful. Click here to send us an email.
