Tag Archives: financials

37 Days Out …. Tasting Room Details

With the changes to tied-house and the ability to have a tasting room and retail area within the brewery, there has been a paradigm shift in the way breweries in BC construct their operations. For a long time, many spaces just took a little retail area, cobbled together a small bar and sold their beer.  However, led by Main Street Brewing, Brassneck and 33 Acres, there is a new breed of tasting rooms that have fundamentally altered the model we are all following.

We have benefited from starting our brewery at a time when these tasting room areas are now allowed in Vancouver by-laws, and as such, we have focused a lot of resources and energy on building and designing this space.  We hope to make it everything we would want in a tasting room.  We have learned a few lessons along the way and it seems right to pass them along.  I have written posts in the past that relate to the tasting room, but this has the best nuggets of information in one place.

Some random thoughts on designing and building your tasting room:

  • Keep the cooler close to the bar, so your beer doesn’t have to travel a long distance to get to the tap.  Pretty self explanatory here.
  • Balance the area between tasting room and retail area.  We have a little retail area on both halves of the tasting room, which means our space seems a little bigger than it is in reality.  This might be a good thing some days and a bad thing on others.
  • Make sure your retail area and tasting room is a reflection of yourself.  Iain and I had a tough time with this, as we see things through pretty different lenses.  I am more modern and Iain is more traditional.  Our space, like our brand and everything else we do, is a amalgamation of both our opinions and preferences.
  • Plan out the flow of people.  Nothing worse than having a space that is hard to move around in when you are busy.  Think about bathroom locations, and also the layout of the retail area, and how it interacts with the bar.
  • Location, separation and number of tap handles for pouring the beer is super important.  We have gone with 2 sets, that Iain can tell you all the specifics on.  Essentially we had Bamford bar service install the lines and taps, and we followed much of their guidance on this.
  • Plan to spend a bunch of money in the tasting room.  The best way to save cash in this area is to do a lot of the work yourself and also to keep it simple.  We will end saving a lot of money, as we found salvaged wood from a few different places, and used materials from our job site in the construction of different parts of the tasting room.
  • Take your time planning the bar.  We went through this over and over on how to layout the bar.  Go see what others are doing, think about all the things you will need in a bar, and also how your space will function, down the to the last detail.  I am talking cash drawer, POS, line-ups, etc. etc.
  • Get a metal fabricator for stainless that is CSA approved.  We used a metal fabricator that is not, which is fine, except when it comes to putting in your sink, which you will need to find a metal fabricator to do that is CSA approved.

I am sure I could find a lot of other things that may or may not be worthy of putting onto this list, but this seems pretty good for now.  I am pretty tired, so need to get some sleep.  We are looking at a crew of about 3 guys 8-10 weeks to finish our tasting room.  That is a lot of work, time and energy they have expended, which also means it is expensive, so try to get everything right you can the first time.

38 Days Out … Boiler Installation and Inspection

Don’t drop the ball on this!  There are a lot of details and a lot that has to go right.  Most importantly, don’t overlook the cost on this.  When you look to purchase a boiler, expect a good chunk of change.  I believe our boiler cost about $13,500 which is only part of the cost.  Installation of the boiler can be almost double the cost of the boiler.  A few best practices that may or may not help you:

  • Get the right size boiler for your operations:  Anything too small or too big will give you headaches, additional cost, take up too much room, not have enough/too much power, etc.  This takes some planning, projecting and ultimately guessing at the end of the day.  We ended up getting a bigger space, so we figured we needed a bit bigger of a boiler to handle future production (we hope!).
  • Put it close to where you need the water:  At first I didn’t understand why Iain wanted to put our boiler so close to the brewhouse, as it was in an awkward spot.  Having seen all the pipes and connections a boiler has, and the incredibly thick gauge of pipe connected to it, put the boiler as close to the brewhouse as you can.  The further away you put it, the dollars and cents will quickly add up.
  • Pre-Inspections are important:  We had a company come in and do a pre inspection to make sure we were putting it the correct distances away from other objects, it was positioned right, and we would be able to get our eventual inspection passed.  This was money well spent as they gave us some good advice that helped us down the road.  On their advice, we ended up rotating the boiler 180 degrees and thank god we had them tell us this, as otherwise, we would have failed our inspection and re-connect all the pipping at a huge time and financial cost
  • Inspection required before you fire it up:  Before you can’t start using your boiler, and that means start cleaning and sanitizing your equipment, until you pass your inspection.  Period. So make sure your boiler is ordered, delivered and installed well ahead of time.  If not, you will be leaving no margin of error

So that is my little advice on a boiler.  Our mechanical contractor Nathan Pulice was incredible throughout this process, but especially for us during the boiler install.  I would highly recommend for anyone who needs any mechanical, plumbing, HVAC, etc to contact him … especially if you are starting a brewery in Vancouver as he has superior knowledge about everything.  Nathan can be called reached at (778) 227 8219 or visit his website here http://www.meridianplumbing.ca.

Tomorrow I will talk about finishing of the front of house.  There is a lot of navigation required for this, and a few best practices to share.

39 days out …. The beginning of the home stretch

Its about time we can say this:  We are now in the home stretch!  Man-o-man that feels good, as this process has really dragged on  …  What I have come to realize is there are many challenges to opening a larger than average brewery, and while it will work out for us in the long term, it has made both Iain and I much more grey!  We also understand that bigger breweries are usually the domains of big companies and investment groups, as cash gets sucked up pretty quickly on a million and one things.

So we are about 39 days from opening, and the list of things to do is immense, not the least of which is blogging to help everyone prepare for this step in their process.  Trust me, you will be tired, tired or being tired, broke, tired of being broke, looking at a to do list about 100 things long, anxious about the beer you will make and if everyone will like your brand, hopeful that you get good reviews, and most importantly enjoying the most amazing ride of your life.  Both Iain and I find that we don’t celebrate our little victories enough, and it is something I would suggest you do at every stage of the process.  There are many milestones in the road to starting a brewery, and take each one in stride.

From here on out, I am going to try and write a blog post every day, so I can highlight some of the details in the home stretch and what that means to you.  There are a lot of details to come together in the very end, and hopefully by sharing these bits of information, you can prepare for the end of the job, which is the most important part of things.  Getting sloppy here can give you bad beer, poor marketing, less than ideal staff, and a host of other issues you never thought possible.  But have no fear, there is no rocket science involved in things … just hard work and strategic decision making.

 

Hammering out the Electrical Details … its sometimes a 4 letter word!

Actual Conversation that took place at 9am Friday morning:

Matt: What about the following Electrical items:

8.1c-3, 4.32b-1, 8.0a-9

Iain: Where is that in the plans?

Matt: I can’t find them, do they even exist?

Iain: Here they are. A 5 horse power pump 3 phase 220 volt and 2 outlets

Matt: Those outlets and pump aren’t in my plans

Iain:  They are in my plans, but they are in the wrong spot

Matt: Where is the number for the engineer, I need to call him.

Get used to hearing these kinds of things when it comes to putting electrical infrastructure into your building. The work requires continuous attention to detail, and meetings between your electrician, electrical engineer, general contractor and the end-users (us)! There are lots of false starts and errors, so prepare mentally for this. Getting as much correct as you can early in the process will mean fewer change orders, which ends up saving you a lot of cash.

One of the biggest challenges we have had around the electrical work is the process. It is an inexact science and one that is full of frustration and teeth grinding. The process kind of goes like this:

  1. Pick your equipment and finalize this before anything else can start.
  2. Determine the power needs of that equipment.
  3. This is a chicken or egg thing. On much equipment, you can choose what kind of power it will take, which means you need to know what kind of power you have available. For much of your equipment you can have it made to the power you want to provide.
  4. Convey this information to the architect and electrical engineer who produce drawings for your electrician.
  5. Determining the exact location of the equipment on the floor plan. You need to have this buttoned down, so that all the information can go back up the line to everyone that needs it
  6. Make sure that all this stuff meshes with the latest version of your layout. Sometimes you electrician is working with non-current plans, which means that different tables and arrangements will result in different locations for power needs
  7. Making sure that the workers who are going to do the work know what is going on.
  8. Check back with everyone to make sure that all is ok.

Clearly, this is an inexact process. It is one that seems easy at first, but when you really look at it during the process, it is really hard. Trying to coordinate all of this is so difficult. We have had meetings where people literally leave steaming mad because they have been given the wrong information, or their workers haven’t followed the changes … there is a lot of coordinate.  Moreover, if you get anything wrong in that process you literally need to spend an hour push up and down the line to everyone else, explaining what happened and what the new plan is.

It is also important to get equipment using 600V where possible. In short, using a higher voltage makes electric motors more efficient, as there is less current needed. We are lucky in the sense that we have the power available to do this, after we are spending a bunch of money to upgrade the service from the street.

There is always going to be the stuff that people have overlooked. For instance our electrical engineer missed a couple pumps in our layout, so it was never discussed again until we found this out. When this happens, everyone scrambles to find these on the plans, and when you don’t you start to question what has happened and what you can do.

To help make this process easier, you should always try and work with professionals and engineers who are supreme communicators. You will need to be in constant contact to ensure that everyone is on the same page and everyone within their teams are also on the same page. It also helps that the electricians who are doing the work are committed to the job. If they can’t have someone at the brewery all day 4 days a week, you should look elsewhere.

Don’t forget to plan for power outages, and share the plan for renovations with everyone and every sub-trade. People need to know when power is going to be cut, when deliveries are being made and when floors are being coated. If you don’t coordinate this information, others will waste time and become increasingly frustrated with your job, potentially leading to bad outcomes down the road.

It becomes so apparent through this process that things like the electrical upgrade, floor issues, seismic needs, and sprinkler additions/installation are huge costs and enormous burdens to have to deal with. It is one of the reasons I have always told people who are interested in starting a brewery to make sure you find a space that has some of these things done. You may not be lucky enough to find one with everything completed, but the more of these major items completed, the quicker and cheaper your retrofit will be.

 

 

Best Practices 1st 1/2 of Mechanical

Having just got through the Mechanical portion of the construction of our warehouse, I feel like there is a lot of information that is crucial and really important for future reference.  In all, this is probably the part of the job that is filled with the most grunt work.  It is messy and for the most part thankless work that requires lots of lower back strength and willpower.  There are times that I wanted to quit for the day, but what served the process really well was to persevere and make it to the end of the day.

Like every major step of this process, I have learned much about this portion of the construction process, and I have completed a chart below that helps to summarize the key learnings.

  1. Pick the Right Mechanical Contractor:  This is likely the most obvious item on this list, but the one that needs the most time and attention before things start.  Make sure you work with a mechanical contractor that is willing to work with you throughout the process.  Things like are they going to dedicate their time to the job, are they using 1 man or a 3 man crew, or even how many days of work do they expect the sections to take.  Knowing some of the details, will help your expectations be in line with reality
  2. Make sure you look for ways to cut costs, and make sure to negotiate these reduction in fees can go into your pocket and not your mechanical contractor:  By this I mean, if you want to change something, like a trade waste interceptor or location of a drain, the expectation is that they will not overcharge you for this.  You will need to talk about items that could change down the road.  We have changed a lot of stuff.  Hot water tank, locations of drains, flow meter, trade waste interceptor, and a bunch of other small stuff.  What is important is that we talked about this early on in the process, and we have hammered out a good deal with these kinds of things.
  3. Get ready to dig:  You can hire someone to dig, and the cheapest we could find labour through someone else is $25 per hour all in.  If you want to hire someone off the street, they are not going to be covered by WCB, which is a big no-no, and more importantly if something happens, you are screwed.  So this means that to save money you are going to be working that shovel.  Between Iain and I, we spent over 150 hours combined on the shovel, which by my quick math has saved us about $4,000.  It doesn’t seem like a lot, but in the grand scheme of things, that is $4,000 more we have for something else.
  4. Get the right size trade waste interceptor:  Getting a TWI too big or too small will mean trouble no matter how you cut it.  If you get one too large, you won’t have to clean it out very often, but it will be a pain in the ass to install into your floor.  A TWI that we looked at was over 11,000 lbs, which had a list of issues when you were trying to install.  If you get a TWI that is too small, it might be a lot easier to install, but you will be calling every month to get it cleaned out.
  5. Use a plastic trade waste interceptor:  We ended up going with a plastic TWI which solved all our problems.  It was less expensive that a traditional TWI and it was a lot lighter than a normal TWI, at only 350 lbs.  In fact, it only took of us to lift it in the hole.  Make sure you make the decision on this early in the process.  You don’t want to hold up the process with fretting about a decision.
  6. Get drawings from your Structural engineer early on in the process:  I have written a full post about our issues around a structural engineer, so if you follow my blog you know well our issues with this area.  In short, get your structural engineer on board early, and make sure you agree to a timeline of what needs to be completed and when.  If your expectations are met, you are golden.  If your expectations aren’t met, then you need to take action.  At the end of the day, it is your ass on the line.
  7. Get lots of quotes:  There is more to this aspect of the process than just the mechanical work.  There is laying out of the floor plan, concrete cutting, concrete removal, digging, grading. forming for concrete, installation of rebar, drilling of holes for rebar, packing holes, filling with dirt, compacting, and likely more and more digging.  You can choose to do some of this on your own or you can pay someone to do it all.  Our advice, save some money and do it yourself.
  8. Don’t forget about the flow meter:  I can’t say that I know too much about this, but definitely the city of Vancouver requires a flow meter, located after the TWI, to measure the amount of effluent you pass into city sanitary sewers.  Make sure you include this in your plans when you dig, so that you aren’t left doing additional digging afterwards like we did.
  9. Upgrade the water line:  We didn’t need to put an upgraded water line in, but you will likely be doing this through this part of the process.  I can’t say I know anything about this, but I have heard it costs about $10,000 and up depending on how far the line needs to go.  I am sure its no harder than any of the other digging that happens, it just adds to the amount you are doing.
  10. Tamp the ground excessively:  It is better to tamp the ground more than less, so that you have less movement of the substrate down the road.  This is pretty simple, but it is easy to overlook as the whole process is so grinding.  Just do one extra pass to make sure all goes in well.
  11. Cover up areas near the concrete pour with plastic:  Pouring concrete is a dirty, messy job and the guys that do it, don’t really care about anything other than getting the job done.  We were given the advice to cover areas around the concrete pour with plastic, so that the spray of the pouring wouldn’t get everywhere else.  We are really glad we did this, and it saved us a lot of headaches.  The few areas we didn’t cover we wish we did, as they are sprayed with concrete and we can’t get it off.