Business Overview

The Company is a well-established neighborhood destination brewpub offering their own on-site freshly crafted, high quality beers paired with their own kitchen. Located in Houston, TX, they draw a loyal following from Houston, Spring, The Woodlands, Conroe and the surrounding communities. A wide variety of beer styles are produced for exclusive consumption at the adjoining taproom, plus wholesale distribution. On-premises and to-go beer is available, with a rotating variety of cans, bottles, growlers, and crowlers. The brewery owns its canning line. This brewpub offers 15+ rotating craft beer varieties all in a comfortable taproom and shaded patio with ample parking. Their location is on a busy road with easy access to the interstate and local neighborhoods.
The business is well-established with a loyal following built over the past several years. The company has a history of making a wide variety of beer styles, helping customers broaden their tastes and return to try new things on a regular basis. The brewery has over 70 approved distribution labels, and many more taproom-only recipes.
Though the greater Houston area has over 70 breweries and brewpubs, this brewery is regularly mentioned in lists of Houston’s best breweries. Overall sales are APPROXIMATELY 35% Taproom beer, 31% food, 16% packaged/beer to go, 12% Self-distribution Kegs and 4% other/merchandise. The seller states that the business has excellent matching books & records and that they can prove all sales, expenses and income.
The brewery equipment was manufactured by one of the top producers in the brewery industry and includes a 3.5 BBL brewhouse plus 11 unitank fermenters totaling approximately 84 BBLs. Current lead time for this equipment is approximately 12-18 months. The equipment was designed to provide maximum versatility; the Brewhouse and every tank were designed for space and flexibility, taking advantage of the brewhouse layout. The business has plenty of capacity to produce draft beer in kegs sold to restaurants & bars plus canned beer for retail sales.
The craft brewpub offers quality beers in a relaxing, spacious environment. The American beer lover craves variety and novel beer experiences, and this brewery has the distinct advantage of offering an exclusive experience that both beer lovers and non-beer lovers seek. Their customers are primarily local patrons looking for a unique, one-of-a-kind experience.
The business operates with well-trained, satisfied, motivated employees, plus a part-time owner overseeing the business. A trained brewer manager can operate most aspects of the business. Employees enjoy working at the brewery and handle 95% of the business operations. The owner believes that the managers, brewers and staff are willing to stay.
Although the industry is very competitive, the business has superior beer, excellent customer service, a destination venue with many growth opportunities, and is recession-resistant. The brewery is operating at about 66% capacity, allowing substantial growth with little to no incremental investment. There are many opportunities to increase sales and profits. Annual capacity can be increased by adding fermentation tanks, varying production methods, beer selection and production scheduling. As this craft brewer continues to grow its loyal fanbase, there is an IMMEDIATE opportunity to further expand sales and distribution through the Houston region.
The asking price for the assets of the business is $330,000 ALL CASH or $450,000 with $150,000 down and $300,000 seller financing to a qualified buyer (approved by the Seller) for 5 years at 8% (monthly payments of approximately $6,083/mo). All financing is to be personally guaranteed. SELLER PREFERS TO SELL FOR ALL-CASH. Purchaser will need to assume 1) keg deposits of $1,240 and 2) Gift Cards of $846 (valued at ~80% of outstanding $1,057 balance). The assets include inventory of $54,000, TTB/TABC approved labels valued at $8,100, Accounts Receivables of $0 (no billed accounts) and FFEV (Furniture, Fixtures, Equipment and Vehicle) valued at $293,000. Inventory including raw materials, merchandise, WIP (Work in Process) and finished goods will be valued at cost. The price will be adjusted for actual inventory, work in process (WIP), outstanding gift cards and accounts receivables as of the sale date.
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KEYWORDS: beer brewery brewpub hops malt yeast ale lager pilsner bock draft public house taproom alehouse tavern sell my craft brewpub business for sale

Financial

  • Asking Price: $330,000
  • Cash Flow: $12,914
  • Gross Revenue: $496,219
  • EBITDA: $12,914
  • FF&E: $293,000
  • Inventory: $54,000
  • Inventory Included: Yes
  • Established: 2018

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:3,150
  • Lot Size:N/A
  • Total Number of Employees:8
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The business occupies approximately 3,150+/- SF (plus 1,000+/- SF patio) leased at approximately $6,678/mo including NNN. The lease term expires ~5/31/2025 with small annual rent increases and two 5-year options. Utilities average approximately $1,500+/- monthly and the security deposit is approximately $5,890.50

Is Support & Training Included:

Seller will train buyer for 2 weeks included with the purchase price. Seller is willing to provide additional training at mutually agreeable fixed compensation to assist with general management functions for a finite period.

Purpose For Selling:

Owner has successfully created and grown their business. The owner plans to ret

Pros and Cons:

The craft beer industry is very competitive. The business attracts customers from the local neighborhood and major metro areas in north Houston, Texas. Though the greater Houston area has over 70 breweries and brewpubs, this brewery is regularly mentioned as one of Houston’s best breweries. Despite the presence of competitors, the business has quickly developed a loyal following and has substantial growth opportunities.

Opportunities and Growth:

Beer is sold primarily via a) on-site sales (taproom and “To Go”) and b) off-site account sales. The brewery operates at approximately 66% capacity. There is plenty of existing capacity that can be sold at high margin. A new, energetic owner can further increase sales & profits in many ways: 1) Increase outside sales, 2) Increase production and distribution, 3) Increase productivity, 4) More detailed actions are described in the Confidential Business Profile.

Additional Info

The business was founded in 2018, making the business 4 years old.
The sale shall include inventory valued at $54,000, which is included in the asking price.

The business has 8 employees and is located in a building with disclosed square footage of 3,150 sq ft.
The building is leased by the business for $6,678 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons people decide to sell companies. However, the true factor vs the one they say to you may be 2 totally different things. For instance, they may say "I have a lot of other commitments" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these may just be justifications to attempt to conceal the reality of transforming demographics, increased competition, recent reduction in earnings, or a range of other factors. This is why it is very vital that you not rely entirely on a vendor's word, however instead, utilize the vendor's answer in conjunction with your total due diligence. This will paint a much more sensible image of the business's current situation.

Existing Debts and Future Obligations

If the current entity is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous operating businesses borrow money so as to cover things such as stock, payroll, accounts payable, etc. Bear in mind that occasionally this can indicate that revenue margins are too tight. Numerous companies come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to think about. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with suppliers that have to be satisfied or may cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the area attract brand-new customers? Often times, businesses have repeat clients, which form the core of their day-to-day revenues. Certain elements such as brand-new competition growing up around the area, roadway building, and staff turn over can influence repeat clients as well as negatively affect future earnings. One vital thing to take into consideration is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more individuals that see the business regularly, the higher the opportunity to build a returning customer base. A last idea is the general location demographics. Is the business located in a densely populated city, or is it situated on the edge of town? Just how might the local typical household income effect future revenue potential?