Difference between revisions of "Beer Cost"

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(Created page with "To evaluate an employee wage for the brewers consider the following: :- Per 1.5 bbl batch (~45 gals) is equal to ~360 - 16 oz pours at 90% pour efficiency = 324 pints total....")
 
 
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To evaluate an employee wage for the brewers consider the following:
 
To evaluate an employee wage for the brewers consider the following:
:- Per 1.5 bbl batch (~45 gals) is equal to ~360 - 16 oz pours at 90% pour efficiency = 324 pints total.
 
  
Ingredients
+
==Production Quantity==
 +
Per 1.5 bbl batch (~45 gals) is equal to ~360 - 16 oz pours at 90%/80% pour efficiency = 324 /288 pints total.
  
 +
==Ingredients==
 
:- Grain - ~ 120# at ~$0.80/# = $96
 
:- Grain - ~ 120# at ~$0.80/# = $96
 
:- Hops - ~ 2# at ~$10/# = $20
 
:- Hops - ~ 2# at ~$10/# = $20
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:- CO2 ~ 1/2 tank at $24 = $12
 
:- CO2 ~ 1/2 tank at $24 = $12
 
:- Cleaning supplies ...minimal
 
:- Cleaning supplies ...minimal
'''TOTAL material cost $140'''
+
TOTAL material cost $140
 +
:- $140/324 pints = $0.43 per pint ...not including labor or utilities (electricity, water, HVAC, insurance, etc).
  
'''$140/324 pints = $0.43 per pint ...not including labor or utilities (electricity, water, HVAC, insurance, etc).'''
+
==Labor==
 +
It takes ~ 9 hr/1.5 bbl batch (6 hr brew day, 3 hr cleaning, kegging, carbonating, etc).
 +
:- at $10/hr labor cost --> $90 per batch.
 +
:- at $12/hr labor cost --> $108 per batch
 +
:- at $15/hr labor cost --> $135 per batch
  
Labor
+
==Total Cost (materials + labor)==
 +
:- at $10/hr labor, total production cost $230 ($140 + $90)...or $230/324 pints (90%) = $0.71 per pint.
 +
:- at $12/hr labor, total production cost $248 ($140 + $108)...or $248/324 pints (90%) = $0.77 per pint
 +
:- at $15/hr labor, total production cost $275 ($140 + $135)...or $275/324 pints (90%) = $0.85 per pint
  
It takes ~ 9 hr/1.5 bbl batch (6 hr brew day, 3 hr cleaning, kegging, carbonating, etc). At an hourly wage of $10/hour, then this would be an additional $90 per batch expense...making the total cost of a batch (1.5 bbl) $230...or 230/324 = $0.71 per pint.
+
==Summary/Conclusion==
:- at $12/hr labor cost --> $0.77 per pint
+
:- Independent of labor cost the markup on draft beer is >80%.
:- at $13/hr labor cost --> $0.79 per pint
+
:- At 80% pour efficiency and $15/hour wage, cost is $0.95 per pint.
:- at $14/hr labor cost --> $0.82 per pint
+
:- Currently we are brewing ~once per week (3-4 per month), making a monthly expense of ~($140 x 4) + ($135 x 4) = $1,100 expense. This should generate (4 x 45 gal x 128 oz/gal / 16 oz/pint x $5/pint x 90% efficiency) $6,480 in revenue. Brewing 3 times a month, expense of ~($140 x 3) + ($135 x 3) = $825 expense. This should generate (3 x 45 gal x 128 oz/gal / 16 oz/pint x $5/pint x 90% efficiency) $4,860 in revenue.
:- at $15/hr labor cost --> $0.85 per pint
 
 
 
Independent of labor cost the markup on draft beer is >80%.
 
 
 
At 80% pour efficiency and $15/hour wage, cost is $0.95 per pint.
 

Latest revision as of 11:57, 18 September 2021

To evaluate an employee wage for the brewers consider the following:

Production Quantity

Per 1.5 bbl batch (~45 gals) is equal to ~360 - 16 oz pours at 90%/80% pour efficiency = 324 /288 pints total.

Ingredients

- Grain - ~ 120# at ~$0.80/# = $96
- Hops - ~ 2# at ~$10/# = $20
- Yeast - 100g at $60/500g = ~$12
- CO2 ~ 1/2 tank at $24 = $12
- Cleaning supplies ...minimal

TOTAL material cost $140

- $140/324 pints = $0.43 per pint ...not including labor or utilities (electricity, water, HVAC, insurance, etc).

Labor

It takes ~ 9 hr/1.5 bbl batch (6 hr brew day, 3 hr cleaning, kegging, carbonating, etc).

- at $10/hr labor cost --> $90 per batch.
- at $12/hr labor cost --> $108 per batch
- at $15/hr labor cost --> $135 per batch

Total Cost (materials + labor)

- at $10/hr labor, total production cost $230 ($140 + $90)...or $230/324 pints (90%) = $0.71 per pint.
- at $12/hr labor, total production cost $248 ($140 + $108)...or $248/324 pints (90%) = $0.77 per pint
- at $15/hr labor, total production cost $275 ($140 + $135)...or $275/324 pints (90%) = $0.85 per pint

Summary/Conclusion

- Independent of labor cost the markup on draft beer is >80%.
- At 80% pour efficiency and $15/hour wage, cost is $0.95 per pint.
- Currently we are brewing ~once per week (3-4 per month), making a monthly expense of ~($140 x 4) + ($135 x 4) = $1,100 expense. This should generate (4 x 45 gal x 128 oz/gal / 16 oz/pint x $5/pint x 90% efficiency) $6,480 in revenue. Brewing 3 times a month, expense of ~($140 x 3) + ($135 x 3) = $825 expense. This should generate (3 x 45 gal x 128 oz/gal / 16 oz/pint x $5/pint x 90% efficiency) $4,860 in revenue.