As the craft brewing industry continues to experience exponential growth, many craft breweries are starting to feel the effects of inflation. With the cost of ingredients and labor on the rise, craft breweries are looking for new and innovative ways to save money and stay afloat in these turbulent economic times. This article will provide 20 cost-saving strategies that craft breweries can employ to help them survive inflation in 2023. Each of these strategies has proven to be effective in helping craft breweries cut costs, increase efficiency, and remain profitable.
- Utilize a Just-in-Time Inventory System – A just-in-time inventory system allows a craft brewery to only order enough ingredients to meet the demand of their customers. This helps reduce the risk of stock spoilage and allows the brewery to avoid paying for excess inventory.
- Leverage Technology – Technology can be a great way to reduce operational costs. For example, using brewery management software can reduce the number of employees needed to manage inventory, billing, and accounting.
- Negotiate Supplier Contracts – Negotiating for lower prices on ingredients or other supplies can help reduce operational costs.
- Take Advantage of Tax Breaks – Many states offer tax incentives for craft breweries, so be sure to research the tax breaks available in your area.
- Automate Processes – Automating processes can help save money in labor costs by reducing the amount of time needed to complete certain tasks.
- Utilize Energy-Efficient Equipment – Investing in energy-efficient equipment can help reduce energy costs and also increase production efficiency.
- Cut Output – If demand for certain products is low, consider cutting production of those items to reduce costs.
- Outsource Non-Core Services – Outsource non-essential services like accounting, marketing, and web design to save on labor costs.
- Reduce Waste – Reducing waste in the production process can help reduce operational costs.
- Reduce Labor Costs – Consider using part-time or seasonal employees to reduce labor costs.
- Negotiate with Vendors – Negotiating with vendors for better prices can help reduce operational costs.
- Focus on Quality Control – Ensuring that the product is of the highest quality can help reduce returns and boost customer loyalty.
- Take Advantage of Bulk Purchasing – Buying ingredients or other supplies in bulk can help reduce costs.
- Invest in Maintenance – Investing in regular maintenance for equipment can help reduce costs in the long run.
- Invest in Training – Investing in staff training can help reduce mistakes and increase efficiency.
- Utilize Economies of Scale – Taking advantage of economies of scale can help reduce costs by producing more beer at a lower cost.
- Implement an Online Ordering System – Implementing an online ordering system can help reduce labor costs and increase efficiency.
- Offer Discounts and Loyalty Programs – Offering discounts and loyalty programs can help boost sales and reduce operational costs.
- Streamline Processes – Streamlining processes can help reduce labor costs and increase efficiency.
- Reduce Overhead Costs – Reducing overhead costs like rent, utilities, and insurance can help reduce operational costs.
Overall, craft breweries in 2023 will face the challenge of inflation and its effects on their bottom line. However, by adopting the 20 cost-saving strategies outlined in this article, craft breweries can increase their chances of surviving this difficult commercial period and continue to serve their customers with the same quality products that they are accustomed to. By carefully managing costs, craft breweries will have more of a chance to be able to stay competitive in the market and remain profitable.
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