5 Financial Pitfalls Breweries Can't Afford to Ignore

Avoid These 5 Costly Financial Pitfalls in Your Brewery

What are the common financial pitfalls in the brewing industry? 

Brewing great beer is only half the battle; running a successful brewery is also part of the craft. Here are five common pitfalls I see breweries run into repeatedly. 

1. Over-Reliance on Distribution Can Cut Your Profit Margins

Margins are much tighter when you go through distributors. Your taproom is where the real profit lives—don't neglect direct-to-consumer sales.

2. Poor Cost Control Leads to Hidden Profit Loss

If you're not tracking your labor efficiency and overhead, profits can vanish faster than a pint on a hot day.

3. Taproom Layout & Space Utilization Matter More Than You Think

Every seat in your taproom should earn its keep. If seats (or square feet) aren't generating strong sales, it's time to re-evaluate the layout or strategy. You can analyze this in your PoS system, especially in Toast, by laying out service areas. 

4. Cash Flow Planning Is Essential for Seasonal Stability

A profitable month doesn't mean you're in the clear. Seasonal dips, surprise repairs, and payroll crunches can hit hard. Cash flow planning is your safety net.

5. Financial Tracking Is Your Brewery’s Survival Tool

Without clear, consistent data, you're flying blind. This is no longer a sustainable tactic for our industry. Start Small and be consistent.

Final Thoughts: Use Data & Strategy to Strengthen Your Brewery’s Finances

The good news is that these pitfalls can be fixed with the right strategies and systems. 

Rethinking Financial Strategy: Don’t Let Tax Season Be Your Only Business Review

Is tax season the most time you spend looking at your numbers?

You’re not alone—I work with smart CPAs who focus on tax accounting, but their strategies are much different from the strategies that will help you sustain profits. 

When your financial review is focused around April 15th, you lose sight of what’s happening inside your business. Weekly labor creep, monthly food cost swings, or poor inventory controls all hide in plain sight… until they hit your bottom line.

Here’s the rhythm I recommend:

• Prime costs weekly (Hourly Wages and Purchases)

• P&L KPIs monthly

• Forecast Trends quarterly

No surprises. Just clarity.

Start with just 30 minutes per week. That’s it. Review one number. Questions will come. Conversations will grow. Insights will follow. 

Whether you build this rhythm with us or your in-house team, consistency is the key. 

How to Improve Cash Flow & Prepare for Leaner Months

Understanding Cash Flow Management During Slow Seasons

We’ve all felt the pinch of a slow month; Even profitable businesses can struggle with cash flow management from time to time—especially seasonal businesses and production breweries.. So, how do you improve your cash flow and ensure your business has enough to cover expenses?

I have two powerful strategies to get you started: 

Strategy 1: Plan Ahead for Seasonal Cash Flow Fluctuations

A starting point is to take a look at your past years’ cash flow statements during your slow season. What was your negative operating cash flow during the slow period? Use this insight to plan. During high-revenue months, build a financial cushion to cover leaner times. This proactive financial planning can reduce reliance on your Line of Credit and preserve long-term stability. This proactive move can save you from incurring interest by financing cash and, more importantly, sleepless nights. This tactic can be very difficult for a production brewery, so if you must take from your Line of Credit, make a plan to pay it back and stick to it by cutting costs elsewhere.

Strategy 2: Negotiate Vendor Payment Terms to Strengthen Cash Flow

Talk to your vendors, suppliers, and even your landlord. If you are not hearing “No”, then you are not asking for enough. Many vendors are open to negotiating payment terms to support seasonal businesses through slower cycles if it helps build a long-term relationship. Aim to shift larger payments to months when your cash flow is more substantial.

Final Thoughts: Combine Smart Planning and Communication for Stability

You can achieve a healthier bottom line when you combine thoughtful planning with open communication.