Should your brewery start serving food?

Thinking about adding food to your brewery? It’s a big decision, and let’s face it—there’s a lot to chew on (pun totally intended). Sure, it’s an exciting way to level up the customer experience, boost your revenue, and attract new folks who might not just be in it for the beer. 

But it’s not all sunshine and perfectly paired snacks. There are some real challenges that come with it, particularly when it comes to managing food costs (which are - you guessed it - different from managing beer costs).

If you're stuck wondering whether adding food is the right move, don’t worry—you’re not alone. Plenty of brewery owners are sitting in the same boat, sipping that same pint, and asking the same question. So, let’s break it down. We’ll tackle the benefits of adding food to your brewery and give you some solid, no-BS solutions to help you manage food costs if that’s what your brewery needs.

Why food can boost your brewery’s bottom line

Before we dive into the tricky stuff, let’s talk about why adding food could be the right move for your business.

Making the customer experience even better

When people come to your brewery, they aren’t just there for great beer (though obviously, that’s kind of the main event). They’re there for the vibe, the experience, and maybe a little escape from the chaos of life. Adding food to the mix? That’s like giving them the full package. And while bar nuts and pretzels have worked well in the past, in a post-COVID, germ-conscious world, communal nibble bowls aren't as appetizing.

Bringing food to your brewery is the difference between someone staying for one pint or sticking around for two (or three) because, hey, they’re happily munching on nachos or digging into a killer burger. Food = happy customers. It's science.

More revenue, same space

Beer is awesome, but why stop there? Adding food is a smart way to bring in some extra cash without completely reinventing the wheel. Whether it's a small, thoughtful menu or one signature dish that people can’t stop talking about, food can help smooth out the bumps of seasonal slow periods like Dry January. Think of it as a side hustle for your brewery, but way tastier.

Bringing in new faces

Let’s be real—not everyone’s a beer person. (Shocking, I know.) But that doesn’t mean they won’t show up at your brewery when you’ve got something for them, too. A solid food menu can draw in non-beer drinkers, families, or groups looking for a place to eat, drink, and hang out together. Plus, it’s a great way to connect with your local community and become more than just the place with amazing beer—you’ll be the spot everyone loves.

Potential downsides

On the challenges side of the coin, you'll face increased costs both upfront and ongoing, and you'll need to navigate the maze of licensing and legal requirements. There's also the operational complexities of running a kitchen and hiring staff to consider. Perhaps most importantly, you'll need to maintain your brewery's unique identity as you introduce a food menu. Weighing these factors carefully is crucial to deciding if offering food aligns with your brewery's strategic goals.

Why tracking food costs matters for breweries

Effective food cost tracking is the foundation for keeping your brewery profitable while selling food. It helps you identify waste, control expenses, and price menu items competitively. Here are some key reasons why it’s a crucial part of running your business:

• Maximized profits: Knowing your food costs allows you to price your menu items for profitability.
• Reduced waste: Identifying patterns can help reduce spoilage and overordering.
• Better decision-making: Real-time data gives you insights into areas needing adjustment.

Without tracking, you’re throwing away dollars for every unsold nacho plate or uneaten pretzel.

Steps and best practices to track brewery food costs 

Adding food can feel like you're venturing out into the wild, wild west: nervous, stressed and confused as to how Will Smith stayed in a full black suit all day without passing out from heat stroke. But it doesn’t have to be that way. With the right game plan, most breweries can easily manage food costs for their brewery. Here’s how:

1. Implement a centralized cost-tracking system 

A centralized system simplifies your operations by recording all your purchasing, inventory, and usage data in one place. Tools like Point of Sale (POS) systems integrated with a Restaurant Management System (RMS) can consolidate information and give you a holistic view of your costs. 

Look for an RMS that lets you upload invoices and pay bills automatically, so you’re not drowning in mountains of paperwork at the end of the month. 

Gather Brewing Co. in Universal City, Texas was able to lower their food costs by 10% thanks to implementing an end-to-end restaurant management system at their brewery.

✨ Pro Tip: Choose software that automatically categorizes your expenses (like grouping all beer-battered onion rings in the “appetizer” category) to save you hours of manual data entry. 

2. Forecast sales for smarter ordering 

Too much food in inventory? You’re at risk of spoilage. Too little? You could run out during peak hours. Sales forecasting tools can help you find the sweet spot. 

By analyzing historical sales data, you can tackle strategic questions like:

• How many plates of nachos do you sell on game nights?
• Do guests like pairing your IPA flight with small bites and should you make that a bundled special to optimize margins?

Accurate sales forecasting improves inventory management so you’re always prepared without overstocking. 

Pro Tip: Combine your forecasting data with seasonal trends so you’re always prepped for game-day upsells or Oktoberfest beer pairings! 

3. Streamline recipe management 

Every menu item should have a standardized recipe with exact portions, ingredients, and costs assigned to it. This ensures consistency in quality and cost control.

Digital recipe management tools allow you to store all recipes in one place, make adjustments on the fly, and distribute updates to your staff automatically. Look for a tool that has a kitchen display system so your prep and line cooks can easily make recipes accurately, and no one has to deal with a sticky, bulky recipe binder ever again!

✨ Pro Tip: If the price of avocados skyrockets, tweak your recipe to feature a less costly green option or adjust the selling price accordingly. 

4. Monitor vendor pricing 

Vendor prices fluctuate, and if you’re not monitoring them closely, you might be losing on unbalanced margins. Track ingredient costs regularly and consider negotiating with your suppliers if prices climb too high. 

Combine invoice automation tools with an RMS to spot trends in rising prices instantly. That way, when the cost of avocados jumps overnight, you’ll spot it before guacamole starts draining your profits. 

5. Automate purchase categorization 

If you’re manually categorizing every jalapeño invoice every time you order or switch vendors, it’s time to upgrade. Automation tools will assign purchases to predefined categories, no matter the vendor, streamlining your bookkeeping. 

This makes it much easier to monitor spending by category. Whether you’re buying wings for Wing Wednesday or hops for your latest IPA, no dollar will go untracked. 

6. Speed up vendor statement reconciliation 

Reconciling vendor statements doesn’t have to be a week-long ordeal. Automating parts of this process can ensure you’re not overpaying and that missing credits don’t slip through the cracks. 

Advanced bill payment solutions can alert you to discrepancies, flagging duplicates or uncredited vendor returns. This efficiency not only saves time but also keeps your vendor relationships smooth. 

✨ Pro Tip: Review vendor pricing every quarter to renegotiate contracts if necessary. 

7. Compare performance across multiple locations 

Own a brewery chain? Comparing performance between locations is key. Maybe your downtown pub excels in nacho sales while your suburban spot struggles. By analyzing costs and menu performance across locations, you can make informed decisions about pricing, promotions, and product availability. 

Regular comparisons also help identify what’s working at successful locations that could be replicated elsewhere.

The bottom line

Mastering food cost tracking isn’t just about saving money; it’s about running a brewery that’s efficient, sustainable, and ultimately profitable. By adopting centralized tracking tools, monitoring vendor prices, forecasting sales, and automating tedious processes, you’ll set yourself up for financial success.