Pennies per Pint
Beer is not expensive. The journey the beer takes from the fermentation tank to the pint glass at your village pub is where it becomes expensive. The three-tiered distribution system ensures that the cost of the beer increases 400% or more than it costs to produce it, just to get it to the restaurant or bar. It is produced for, say $0.40/pint and is sold to the establishment at a wholesale price of $1.80/pint. No need to worry… the establishment marks it up again to the consumer to cover their overhead and create reasonable margins for the beer to say, $6.00. One could say “I am still grossing $4.20/beer, and it works.”
We recently met up with restaurant owner considering adding an EZBREW already successful and popular establishment. They serve an average of about 2,000 beers per week. Looking at the cost of cutting out everyone not involved with making the beer, a EZBREW beer grosses $5.60 in gross revenue and a traditional delivered pint delivers $4.20 in gross revenue. Big deal, right?
$5.60-$4.20 = $1.40 which is essentially the opportunity cost of not usine EZBREW. Extrapolate that over:
1/4 of their total beer sales/year = $36,400 in missed revenue with no additional beer sales
1/2 of their total beer sales/year = $72,800 in missed revenue with no additional beer sales
All of their beer sales/year = $145,600 in missed revenue with no additional beer sales
If you would like to make $1.40 – $1.60 MORE on every beer you sell, we’d love the opportunity to speak with you!