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.