{"id":1788,"date":"2018-11-24T10:57:17","date_gmt":"2018-11-24T15:57:17","guid":{"rendered":"http:\/\/199.250.223.35\/~craftbrewery\/?p=1788"},"modified":"2019-12-26T14:33:28","modified_gmt":"2019-12-26T19:33:28","slug":"what-are-average-taproom-net-profits","status":"publish","type":"post","link":"https:\/\/craftbreweryfinance.com\/oldversion\/what-are-average-taproom-net-profits\/","title":{"rendered":"What are Average Taproom Net Profits?"},"content":{"rendered":"

This question came up recently:\u00a0What are average taproom net profits?<\/strong>
\n<\/span><\/p>\n

The un-satisfying answer is that it depends on a lot of different factors.<\/span><\/p>\n

However, i<\/span>n this post, we’ll review\u00a0taproom key metrics<\/strong>\u00a0so that you have a ballpark look at average taproom net profits.<\/span><\/p>\n

We’ll also\u00a0<\/span>provide you with tools and resources so that you can measure and improve taproom profits in your brewery.<\/span><\/p>\n

To begin, t<\/span>aproom net profits are calculated by subtracting total operating costs from taproom margins.<\/span><\/p>\n

Sales – Cost of beer = Gross Margin<\/em><\/span><\/p>\n

Gross Margin – Operating Expenses = Net Profit<\/em><\/span><\/p>\n

The Net Profit dollars are then divided by Sales dollars to arrive at a percentage Net Profit. This is an\u00a0easy way to compare profitability of one taproom to another<\/strong>, or to compare your expected profit to your plan.<\/span><\/p>\n

Let’s look at an example…<\/span><\/p>\n

Your taproom purchases beer from your brewery at $150 per 1\/2 barrel.<\/span><\/p>\n

The 1\/2 barrel will yield about 100 16oz pints, and you sell each pint for $6. Total sales on a 1\/2 barrel calculate to $600.<\/span><\/p>\n

$600 Sales – $150 Cost of Sales = $450 Gross Margin per 1\/2 barrel<\/span><\/p>\n

To get to Net Profit, deduct operating expenses from the gross margin.<\/span><\/p>\n

Operating expenses are the day-to-day costs to run your taproom. These include lease costs, wages, taxes, utilities and so on.<\/span><\/p>\n

Costs will vary greatly from one taproom to another, but for our example we’ll assume operating costs of 30% of sales<\/span><\/p>\n

30% x $600 Sales = $180 Operating Expenses per 1\/2 barrel<\/span><\/p>\n

So, after all of these numbers, we’ve arrived at an average taproom net profit:<\/strong><\/span><\/p>\n

$450 Margin – $180 Operating Expenses = $270 Net Profit per 1\/2 barrel<\/span><\/p>\n

The $270 Net Profit divided by $600 in Sales gives us a 45% Net Profit percentage.<\/span><\/p>\n

Average Net Profit for a Taproom will depend on a number of factors. Sales, Margins and Operating Expenses are the ingredients that make up Net Profit, and each will influence the bottom line.<\/span><\/p>\n

For more numbers and metrics, check out this\u00a0post<\/a>\u00a0<\/strong>on taproom profits.<\/span><\/p>\n

If you want to increase Sales and Net Profits in your Taproom, check out the Online Course:\u00a0<\/span>How to Boost Taproom Profits<\/a><\/strong>.<\/strong> The course is yours free with your\u00a0<\/span>annual subscription<\/a>.\u00a0<\/span><\/p>\n

Already an Annual Subscriber? Head over to the Online Courses section for unlimited access to all the Craft Brewery Financial Training resources.<\/p>\n

Yours in Taproom Profits,
\n<\/span><\/p>\n

Kary<\/span><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

This question came up recently:\u00a0What are average taproom net profits? The un-satisfying answer is that it depends on a lot of different factors. However, in this post, we’ll review\u00a0taproom key metrics\u00a0so that you have a ballpark look at average taproom net profits. We’ll also\u00a0provide you with tools and resources so that you can measure and […]<\/p>\n","protected":false},"author":1,"featured_media":1789,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"pgc_meta":"","_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"footnotes":""},"categories":[66,76,69],"tags":[],"class_list":["post-1788","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-taproom","category-taproom-newsletters","category-taproom-resources"],"_links":{"self":[{"href":"https:\/\/craftbreweryfinance.com\/oldversion\/wp-json\/wp\/v2\/posts\/1788"}],"collection":[{"href":"https:\/\/craftbreweryfinance.com\/oldversion\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/craftbreweryfinance.com\/oldversion\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/craftbreweryfinance.com\/oldversion\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/craftbreweryfinance.com\/oldversion\/wp-json\/wp\/v2\/comments?post=1788"}],"version-history":[{"count":0,"href":"https:\/\/craftbreweryfinance.com\/oldversion\/wp-json\/wp\/v2\/posts\/1788\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/craftbreweryfinance.com\/oldversion\/wp-json\/wp\/v2\/media\/1789"}],"wp:attachment":[{"href":"https:\/\/craftbreweryfinance.com\/oldversion\/wp-json\/wp\/v2\/media?parent=1788"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/craftbreweryfinance.com\/oldversion\/wp-json\/wp\/v2\/categories?post=1788"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/craftbreweryfinance.com\/oldversion\/wp-json\/wp\/v2\/tags?post=1788"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}