How to Start a Beer Garden Business

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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

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

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.

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.

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.

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

Strength:

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.

Weakness:

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.

Opportunities:

High increase number of craft beer lovers within our market space
Online market, services, technologies, and the opening of new markets.

Threat:

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.

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.

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.

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.