Monday, November 25, 2013

BrewPub vs Tasting Room

Recently, I visited Legend Brewing Company in Richmond. Legend is on the opposite side of the city for me, so I rarely go there.While I was enjoying some great beers of their's (Pilsner, Tripel, and Oktoberfest come to mind) I started thinking about the the pros and cons of brewpubs vs tasting rooms. Each model plays a key role in the craft beer community.

Virginia State Bill 604 (SB04), a law passed last year, basically allowed craft breweries to sell pints and pitchers without having to sell food. Traditionally, before that law, you had to have a restaurant with your brewery in order to sell beer by the glass. If you look at some the older breweries around Virginia, you can see this trend (i.e., Blue Mountain, Legend, Extra Billy's). However, many in the brewing community opposed this rule, and for good reason.

One of the main reasons probably centers around business and money. It is much easier to grow your brewing business if you do not have to worry about running a restaurant. Before SB604, if you did not want to open a restaurant with your brewery, then you were limited to small tastings at the brewery, growler fills, and keg/bottle distribution. Having the extra power to sell pints at your brewery, makes for a much easier sell for your beer. People are much more likely to purchase bottles from you after having a few (I know I've been there). Money for the pints and money for the additional bottles/growlers.

A smaller benefit, but still important, could be space. Brewpubs have to dedicate space and tables for restaurant seating. Unless they have unlimited money, it is hard to have areas that are solely dedicated to just enjoying the beer. Obviously, there would be a bar, but without a restaurant, you dedicate the entire space for enjoying the beer. This also free people to roam around more, meet people, and take their beers with them.

SB604 has also been great for another key small business, food trucks. I would guess that running a food truck is a lot about finding places where many people congregate. What better place than a brewery with some tipsy, hungry people? It seems that the tasting room breweries have a food truck at least once a week. Hardywood Park even hosts frequent events dedicated to food trucks. Of course, I have not looked up statistics about food truck popularity in Virginia, but I bet that it has risen after SB604.

No doubt SB604 has done a lot for craft breweries in Virginia, but the brewpub model still plays an important role in craft beer. Most of the differences in the two models comes down to ambiance or atmosphere. In a brewpub, customers have the option to sit down for dinner. Like all restaurants, there is a server, and customers can enjoy a pint while eating. They do not have to order food from another company. Seems like small difference, but if the goal is to go out with a few friends or family, then people do not want to run back and forth for food. They get to sit, relax, and have someone else bring you beer and food.

The brewpub will always have food. However, the tasting room might not. People feel a lot more tipsy with four beers on an empty stomach than on afull stomach. This also helps business because people probably stay longer if they have food. I volunteer at Midnight Brewery in Goochland, and I can guarantee that people stay longer when there is a food truck. If you have a restaurant, then your costumers can always order food. You also get that additional income on your food, the added benefit of people who are not drinking beer, but still getting food.

While each model has its own benefits, they are both unique and serve a key purpose in the growing craft beer market in VA. If I want a few beers, maybe some food, and plan to walk around and meet people, I'll find a  tasting room brewery. If I want to go somewhere, sit down and have everything brought to me, then I'll go to the brewpub. All comes down to preference.

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