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How to Start a Beer Garden Business

A beer garden business is a small, informal bar or restaurant where craft beer, foods, and light refreshments such as light snacks, sandwiches, muffins, fruit, or pastries are served to customers. It is also a place where craft beer lovers meet to network and socialize.

It is important to note that beer gardens were originally an addition to the brewery. Breweries began to ferment and sell their beers in the cellars.

Breweries would erect long tables and seats in this area and refer to it as the “beer garden” of the brewery., the Beer segment in the United States of America will generate US$111.50 billion in revenue. The market is anticipated to expand by 9.38 percent yearly between CAGR 2022 and 2025.

Steps on How to Start a Beer Garden Business

  1. Conduct Market Research

Conducting market research is essential to the success of any business. It offers essential information about your industry and competitive environment. It will also inform you of how the target customers and prospects you want to reach feel about your company.

Through research, you can figure out who and where your consumers are, as well as those who are likely to buy from you. In addition, market research will enable you to understand the mind of your target market, and adjust to their needs in order to win their loyalty and also win them over to your brand.

a. Who is the Target Market for Beer Garden Business?

It consists of business leaders, socialites, migrants, students, entrepreneurs, public figures, athletes, members of the armed forces, tourists, and any adult in the area where the beer garden would be located.

b. Is Beer Garden a Profitable Business?

Yes, the beer garden is a profitable business., the beer segment in the United States will generate US$111.50 billion in revenue. The market is anticipated to expand by 9.38 percent yearly between CAGR 2022 and 2025.

c. Are There Existing Niches in the Industry?

No, there are no existing niches when it comes to the beer garden business.

d. Who are the Major Competitors?
  • Bayou Beer Garden
  • Estabrook Beer Garden
  • Lowry Beer Garden
  • Raleigh Beer Garden
  • Charlotte Beer Garden
  • Zeppelin Hall Beer Garden
  • Loreley Beer Garden
  • Bill’s Beer Garden
  • Biergarten Haus
  • Wunder Garten
  • South Austin Beer Garden
  • Steins Beer Garden & Restaurant
  • The Standard Biergarten
  • Dacha Beer Garden (Shaw)
  • Dacha Beer Garden (Navy Yard)
  • Independence Beer Garden
  • Edgewater Beer Garden
  • Burleson Yard Beer Garden
  • Bohemian Hall
  • Anheuser-Busch Biergarten.
e. Are There County or State Regulations or Zoning Laws for Beer Garden Businesses in the United States?

Yes, there are county and state regulations and zoning laws for beer gardens in the United States. FDA and the Tax and Trade Bureau of the Treasury Department have regulatory responsibilities for the sector. The FDA must register every alcohol-serving business and brewery, so all breweries are open to arbitrary, ad hoc inspections by the agency.

As an illustration, setting up a craft beer brewery in Rhode Island necessitates dealing with three different regulatory agencies which include; local municipalities that issue building, zoning, and other local permits, as well as retail liquor licenses; the federal Alcohol and Tobacco Tax Trade Bureau (“TTB”) issues the federal brewery “basic permit,” and the Rhode Island Department of Business Regulation (“DBR”), issues manufacturer’s licenses.

f. Is There a Franchise for Beer Garden Business?

Yes, there are franchise opportunities for the beer garden business, and here are some of them;

  • Dacha Beer Garden
  • Playboy Beer Garden
  • Biergarten Haus
g. What Do You Need to Start a Beer Garden Business?
  • A feasibility report
  • Business and marketing plans
  • Business licenses and permits
  • A good bar facility
  • EIN (Employer Identification Number)/Federal Tax ID Number
  • A corporate bank account
  • Equipment
  • Supplies
  • Employees
  • Startup capital
  1. Choose a Memorable Business Name

When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.

Some of the catchy business name ideas suitable for a beer garden business are;

Creative Beer Garden Business Name ideas
  • Santiago Williams© Beer Garden and Restaurant, Inc.
  • Craft Connect® Beer Garden and Restaurant, LLC
  • Morris Jackson© Beer Garden, Inc.
  • Revamp Cups® Beer Garden, Inc.
  • Mason Gray™ Beer Garden, Inc.
  • Brescia Buddies™ Beer Garden and Restaurant, LLC.
  • Brown Derricks© Beer Garden, LLC
  • Jonny Moore® Beer Garden, Inc.
  • Conner Blocks© Beer Garden, Inc.
  • Candice Brown© Beer Garden, Inc.
  • Ruther Austin and Sons® Beer Garden, LLC
  • Cally Benton® Beer Garden, LLC
  • Emily Elton™ Beer Garden and Restaurant, LLC
  • Tyler Benston© Beer Garden, Inc.
  • Theo Tyson® Beer Garden, Inc.
  • Blue November™ Beer Garden, Inc.
  • Golden Cups™ Beer Garden, Inc.
  • Jolly Zone© Beer Garden, Inc.
  • One Stop® Beer Garden, LLC
  • Fritz Greene™ Beer Garden, Inc.
  1. Register Your Business

a. What Type of Structure is Best for the Beer Garden Business?

There are several options for a business structure for a beer garden, but the one most players in this line of business considered best is an LLC. The reason is that it is the norm for business owners to protect themselves from any form of lawsuits.

b. Steps to Form an LLC
  • Choose a name for your LLC
  • File articles of organization
  • Choose a registered agent
  • Decide on member vs. manager management
  • Create an LLC operating agreement
  • Comply with other tax and regulatory requirements
  • File annual reports.
c. What Type of License is Needed to Open a Beer Garden Business?
  • General Business License
  • Health and Safety Permit
  • Food and Drinks Handlers’ License (A Liquor License)
  • Zonal Permits
  • Signage Permit
  • Operational State Facility Inspections
  • A music license if you want to play live, recorded, or streaming music in your bar or restaurant
  • A dumpster placement permit that specifies where you can put refuse outside your bar or restaurant
  • A valet parking permit if you plan to create parking space for customers
  • Sidewalk permits if you plan to offer outside seating.
d. What Type of Certification is Needed to Open a Beer Garden Business?

You don’t need any certifications to open a beer garden business, it is a business that is open to all and sundry.

e. What Documents are Needed to Open a Beer Garden Business?

These are legal documents that are required if you want to legally run a beer garden in the United States;

  • DBA
  • EIN
  • Business and liability insurance
  • Federal Tax Payer’s ID
  • State Permit and Building Approval
  • Certificate of Incorporation
  • Health and Safety Permit
  • Food and Drinks Handlers’ License (A Liquor License)
  • Business License
  • Business Plan
  • Employment Agreement (offer letters)
  • Operating Agreement for LLCs
  • Insurance Policy
  • Online Terms of Use
  • Online Privacy Policy Document
  • Contract Document
  • Company Bylaws
  • Memorandum of Understanding (MoU)
f. Do You Need a Trademark, Copyright, or Patent?

There may not be a need to register for trademark or intellectual property protection if you are starting a beer garden business. The nature of the business allows you to run the business without having any reason to sue anyone for using your intellectual property unlawfully.

  1. Cost Analysis and Budgeting

a. How Much Does It Cost to Start a Beer Garden Business?

Data shows that the costs of a small to medium restaurant can range from $50,000 to over $250,000.

b. What are the Costs Involved in Starting a Beer Garden Business?
  • The cost of registering the business in the United States of America – $750
  • Legal expenses for obtaining licenses and permits, as well as the accounting services totaling – $1,200
  • Marketing promotion expenses (2,000 flyers at $0.04 per copy) for a total amount of $80
  • The cost of hiring a business consultant (writing of business plans inclusive) – $2,500
  • Insurance (general liability, workers’ compensation, and property casualty) coverage at a total premium – $2,400
  • The cost of accounting software, CRM software, and payroll software – $1,500
  • The cost of facility remodeling – $25,000
  • Other start-up expenses including stationery – $500
  • Utility deposits will cost – $2,500
  • The cost of start-up inventory – $16,027
  • Storage hardware (bins, utensil rack, shelves, glasses case) – $3,720
  • The cost of counter equipment (countertop, sink, ice machine, etc.) – $6,000
  • The cost of store equipment (cash register, security, ventilation, signage) – $3,150
  • The cost of the purchase of office furniture and gadgets (Telephones, TVs, Sound Systems, Tables and Chairs et al) – $8,000
  • The cost of launching an official website – $600
  • The cost of a grand opening party – $3,000
  • Miscellaneous – $2,500.
c. What Factors Determine the Costs of Opening a Beer Garden Business?
  • The size of the beer garden
  • The choice of location
  • The required licenses and permits
  • The type of facility
  • The type of craft beer, food, and related products retailed in the beer garden, and additional services offerings
  • The cost of hiring and paying a business consultant
  • The cost of branding, promotion, and marketing of the beer garden business
  • The cost of furnishing and equipping the beer garden business – facility
  • The cost insurance policy covers
  • The cost of registering the business
  • Source of supplies and ongoing expenses
  • The cost of the purchase and customizing of uniforms, shoes, and caps for the employees
  • The cost of the grand opening of the beer garden business.
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

Building a new facility is not necessary for a beer garden business, but it will help you if you have the funding. The purpose is to construct a facility that will fit into your business goals and vision.

e. What are the Ongoing Expenses of a Beer Garden Business?
  • Supplies (inventory expenses)
  • Utility bills (internet subscriptions, phone bills, signage and software renewal fees et al)
  • Salaries of employees
f. What is the Average Salary of your Staff?
  • Bar Manager (Owner) – $45,000
  • Accountant – $30,630,000
  • Chefs (Cooks) – $30,000
  • Waiters/Waitress – $26,000
  • Cleaners – $25,000
  • Security Guard -$24,000 Per year.
g. How Do You Get Funding to Start a Beer Garden Business?
  • Raising money from personal savings
  • Raising money from investors and business partners
  • Sell shares to interested investors
  • Applying for a loan from your bank
  • Source for soft loans from your family members and friends.
  1. Write a Business Plan

a. Executive Summary

Santiago Williams© Beer Garden and Restaurant, Inc. is an American-based, licensed, specialty bar and restaurant business that specializes in making and selling various kinds of craft beers, as well as other foods with seating outside and a music atmosphere.

In the center of New York City, our beer garden and restaurant will be situated in a decorated convenient location and facility. At Santiago Williams© Beer Garden and Restaurant, Inc., we always use the freshest ingredients while making our craft beers.

b. Service

We serve the following items;

  • Craft beers
  • Foods and snacks
  • Drinks and water.
c. Mission Statement

Our mission is to establish a beer garden that will make different kinds of craft beers in the United States and other parts of the world, at every given time to our customers and a place where people can freely network and socialize.

Vision Statement

Our vision is to establish a beer garden business in New York City, which will be the melting pot of lovers of craft beer in the city.

d. Goals and Objectives

The goals and objectives of a beer garden business are to provide a retail outlet where patrons can go to buy and drink craft beer, and also network and socialize.

e. Organizational Structure
  • Shop Manager (Owner)
  • Accountant
  • Chefs (Cooks)
  • Waiters/Waitress
  • Cleaners
  • Security Guard.

Marketing Plan

a. SWOT Analysis
  • Ideal location for a beer garden business
  • Experienced and qualified employees and management
  • Access to finance from business partners
  • Availability of varieties of craft beers
  • A reliable method of preparing craft beer.
  • Financial constraints may restrict the publicity and branding of the business
  • A new business that will be competing with well-established beer gardens and restaurant franchises in the city
  • Inability to retain our experienced and qualified employees longer than desired.
  • High increase number of craft beer lovers within our market space
  • Online market, services, technologies, and the opening of new markets.
  • The arrival of a new beer garden business within our market space
  • Economic uncertainty
  • Liability problems
  • The U.S. Food and Drug Administration (FDA) could change its regulatory status and decide to enforce strict laws that can strangulate new businesses of this kind.
b. How Do Beer Gardens Make Money?

Beer gardens make money by selling the following products;

  • Craft beers
  • Foods and snacks
  • Drinks and water.
c. Payment Options
  • Payment via bank transfer
  • Payment with cash
  • Payment via credit cards/Point of Sale Machines (POS)
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
d. Sales and Advertising Strategies
  • Introduce your beer garden business by sending introductory letters alongside your brochure to corporate organizations, car owners, transport companies, households, sports organizations, schools, socialites, celebrities, and other key stakeholders around the city where your business is located.
  • Advertise on the internet, blogs, and forums, and also on social media like Twitter, Facebook, and LinkedIn to get your message across, so that those on the social media or folks who read blogs will know where to go when they need to purchase craft beer and foods within your location.
  • Create a website for your business, so as to give your business an online presence
  • Directly market your products
  • Advertise your business in community-based newspapers, local tv and radio stations
  • List your business on yellow pages ads (local directories)
  • Encourage the use of word-of-mouth marketing (referrals).

Financial Projection

a. How Much Should You Charge for your Product/Service?

We sell our craft beer for $8 per six-pack, and our food services will depend on the customer’s request.

b. How Much Profit Do Beer Garden Business Owners Make a Year?

The report shows that on average, a small to medium-sized beer garden business owner can earn anywhere from $60,000 to $160,000.

c. What Factors Determine the Amount of Profit to Be Made?
  • The capacity of the beer garden
  • The types of craft beer and other products retailed in the shop
  • The location beer garden is covering
  • The management style of the beer garden
  • The business approach of the beer garden
  • The advertising and marketing strategies adopted by the beer garden
  • The number of years the beer garden is in business.
d. What is the Profit Margin of a Beer Garden Product/Service?

The profit margin of a beer garden is not usually fixed. It could range from 5 percent to 25 percent.

e. What is the Sales Forecast?
  • First Fiscal Year: $320,000
  • Second Fiscal Year: $450,000
  • Third Fiscal Year: $540,000.
  1. Set Up your Shop/Office

a. How Do You Choose a Perfect Location for Beer Garden Business?
  • The demography of the location, as it relates to people that drink craft beer on a regular basis
  • The demand for craft beer and related products offered by beer gardens in the location
  • The purchasing power of businesses and the residents of the location
  • Accessibility of the location
  • The number of beer gardens, and restaurants that serves craft beers and foods in the location
  • The local laws and regulations in the community/state
  • Traffic, parking, and security et al.
b. What State and City are Best to Open a Beer Garden Business?
  • Las Vegas, Nevada
  • Los Angeles, California
  • Brattleboro, Vermont
  • Tucson, Arizona
  • Silver Spring, Maryland
  • Boston, Massachusetts
  • Rowland Heights, California
  • Portland, Oregon
  • Chicago, Illinois
  • Richmond, Virginia
  • Green Bay, Wisconsin
  • New York City, New York
c. What Equipment is Needed to Operate a Beer Garden?

You should buy chairs and dining tables, POS machines, storage hardware (bins, racks, shelves, food case), counter equipment (countertop, sink, ice machine, etc.), (Flat screen TVs, sound system, DVD players, gas cooker, fryers, deep freezers, fridge, blenders, store equipment (cash register, security, ventilation, signage), serving utensils (plates, ashtrays, glasses, flatware) and fancy lightening amongst others.

  1. Hire Employees

When hiring employees for a beer garden, you should hire a competent shop manager (you can occupy this position), account clerk, chef (cook), waiters and waitresses, cleaners, and security guard.

  1. Launch the Business Proper

No beer garden opens without first planning an opening party to formally open the business. If you have a limited budget, you may want to host a soft opening party. If not, you may want to host a grand opening party for everyone at the location where your beer garden will be. With proper launching, you will officially notify the residents of your city that your beer garden is open for services.

a. What Makes a Beer Garden Business Successful?
  • Choose a good location and facility to launch the business
  • Make sure your beer garden is well stocked with varieties of craft beers and foods (give your customers options)
  • Throw an open house grand party before officially opening the beer garden business
  • Be deliberate with your marketing sales approach
  • Encourage the use of word of mouth to promote your business
  • Leverage all available online and offline platforms to promote your business.
b. What Happens During a Typical Day at a Beer Garden?
  • The facility is open for the day’s work
  • The serving areas, chairs, and tables are properly arranged
  • Walk-in customers are attended to
  • Deliveries of orders are made
  • Stocks are taken, and reports are written and submitted to superior officers
  • The business is closed for the day.
c. What Skills and Experience Do You Need to Build a Beer Garden Business?
  • Excellent customer services skills
  • Interpersonal skill
  • Accounting and bookkeeping skills
  • Business management skills
  • Bargaining skill
  • Work experience in a restaurant or bar environment
  • Experience in managing people
  • Experience in business administration
  • Experience in identifying varieties of craft beers
  • Experience in handling different kinds of craft beers making machines.