How to Build and Design a Brewery: Guide to Brewery Construction

While building and opening a brewery can certainly be a passion project, it can also be a strategic move to tap into a growing market. According to the Brewers Association, while overall beer volume declined, independent breweries experienced increased onsite sales and job growth in 2023. Bart Watson, chief economist of the Brewers Association, said:

“2023 was another competitive and challenging year for small and independent brewers… Nevertheless, even as growth has downshifted, small brewers have proved quite resilient, as seen in the increase in number of breweries, relatively low closing rates, and gains in onsite sales and jobs.”

However, to take advantage of on-site sales trends and set your business up for long-term success, it’s essential to create an efficient taproom that provides customers with a memorable experience. To build a space that accomplishes both of these things, read on to discover the essential steps of brewery construction.

Key takeaways

• Proper planning is crucial to address challenges like zoning restrictions, permitting hurdles, and structural issues early, preventing expensive delays and disruptions.

• Brewery construction requires significant investment in specialized infrastructure, utilities, and equipment. Allocate a contingency fund of 10-15% to cover unexpected expenses.

• Evaluate foot traffic, proximity to suppliers, and local demographics to ensure the space supports your current needs and future growth potential.

• Collaborate with architects, contractors, and consultants experienced in brewery projects to optimize your layout, meet regulatory standards, and design a functional yet inviting space.

• Navigating permits and adhering to health, safety, and alcohol production regulations are critical for avoiding fines, delays, and operational risks. Start early and maintain meticulous documentation.

Why is proper planning essential for brewery construction

Building a brewery is no ordinary construction project—it’s a blend of art, science, and logistics that demands careful planning. Skipping over the details can lead to costly mistakes, delays, or even regulatory penalties, all of which can derail your vision.

However, proper planning isn’t just about avoiding mistakes; it’s about building a brewery that aligns with your vision and operates efficiently from day one. Investing the time and resources upfront will save you stress, money, and headaches later.

1. Anticipating challenges to avoid delays

The complexity of brewery construction means you’re likely to encounter challenges like zoning restrictions, permitting hurdles, or unexpected structural issues. Proper planning enables you to identify these potential roadblocks early, giving you the opportunity to address them before they disrupt your timeline or budget. 

For example, confirming that your chosen location meets zoning requirements for alcohol production can save months of delays down the road.

2. Addressing brewery-specific requirements

Breweries require specialized infrastructure, such as heavy-duty drainage systems, fire-rated walls, and reinforced flooring to support brewing equipment. Beyond the physical build, compliance with health, safety, and alcohol production laws adds another layer of complexity. 

By tackling these considerations early—through detailed architectural plans and consultation with experts—you can prevent costly last-minute changes during construction.

3. Streamlining the construction process

Effective planning sets the foundation for a smooth construction process. By breaking the project into phases and creating a clear timeline, you’ll keep your team aligned and your project on track. 

Ultimately, a well-organized plan helps you make informed decisions, reduces the risk of surprises, and ensures you’re ready to welcome customers on your target opening date.

How to create your bar construction plan

Building a brewery requires more than just basic construction know-how, as beer production involves handling large volumes of liquids, steam, and chemicals. This means you’ll need to comply with more stringent health and safety codes than typical retail or dining spaces.

By creating a construction plan, you’ll be better prepared to build a brewery that meets your operational needs, regulatory requirements, and budget constraints.

1. Budgeting and financial planning

Brewery startup costs usually range from several hundreds of thousands to $1.5 million or more, making detailed financial planning a must. From specialized equipment to essential utilities, it’s crucial to manage your expenses carefully.

Brewery construction expenses

Unlike standard commercial spaces, breweries have specific construction needs that can drive up costs. Brewery-specific expenses will likely include:

• Permits and inspections: Licenses for alcohol production, fire safety approvals, and health department permits.

• Labor and materials: Construction of fire-rated walls, heavy-duty drainage, and reinforced flooring to support brewing equipment.

• Specialized utilities: Custom plumbing, HVAC systems for ventilation, and upgraded electrical work to handle brewing machinery.

• Equipment: Investment in fermenters, kettles, refrigeration units, and automation tools.

To avoid budget overruns, allocate a contingency fund of 10-15% of your total budget. This buffer will help cover unanticipated expenses, such as structural repairs that may arise during construction.

Funding and cash flow

Given the high upfront costs of brewery construction, securing financing may be a critical step. Consider funding options such as:

• SBA loans

• Private investors

• Crowdfunding

• Grants

For example, Lake Effect Brewing in Chicago successfully raised $115,000 from 132 private investors in their community to start construction on their taproom and beer garden. Investors will receive regular profit distributions once the taproom is open and profitable.

Additionally, to ensure smooth progress, maintain tight control over cash flow during construction. Use budgeting tools or work with a financial advisor to track expenses in real time and ensure funds are allocated appropriately throughout the project.

2. Finding the perfect location

Finding a space that aligns with your needs requires balancing logistical considerations, local demographics, and future growth potential.

Selecting a space that fits your needs

Choosing a location isn’t just about picking a popular area—it’s about finding a space that supports your brewing operations while attracting customers. As you conduct market research, be sure to consider key factors like:

• Foot traffic and visibility: High-traffic areas, such as downtown districts or popular neighborhoods, can increase customer visits. Visibility from major roads or walkways is also important for attracting casual visitors.

• Proximity to suppliers: Being near suppliers can reduce shipping costs and streamline deliveries of raw materials like malt, hops, and kegs.

• Demographics: Understand the local customer base. Is the area populated with craft beer enthusiasts, families, or professionals? Tailor your location to your target audience.

Evaluating the infrastructure

Before signing a lease or purchasing property, it’s critical to assess the existing infrastructure to ensure it can handle the technical requirements of a brewery. Key things to review include:

• Utility systems: Breweries need robust water, electrical, and HVAC systems. Older buildings may require significant upgrades to meet these demands.

• Structural integrity: Ensure the flooring can support the weight of heavy brewing tanks and equipment. Reinforcement may be necessary for certain spaces.

• Wastewater management: Brewing produces large amounts of wastewater. Verify that the building’s drainage systems can handle the volume or budget for system upgrades.

• Zoning and permits: Check local zoning laws to confirm the property is approved for alcohol production and taproom operations.

Finding a space that supports your growth

While it’s essential to find a location that fits your current needs, don’t overlook the future. Look for spaces with room to expand, whether it’s adding more brewing equipment or increasing seating in your taproom.

For example, Mastry's Brewery in Florida planned to start building a 5,000 square foot brewery by the end of 2024. Once complete, they’ll begin construction on a 36,000 square foot indoor food hall and market. Founder and CEO Matthew Dahm said:

“Once we get the main brewery building underway, construction will start on the marketplace. We are phasing this strategically. It’s going to take some time to buildout the brewery and make our beers, spirits, and other beverages and ready to go when the marketplace comes online.”

3. Building your brewery construction team

Constructing a brewery isn’t a solo project—it’s a collaborative effort that requires input from experts across multiple disciplines. From designing an efficient layout to ensuring compliance with health and safety regulations, the right team can make or break your project.

Assembling the right experts

Building a brewery involves technical, operational, and aesthetic considerations. To ensure success, include these key professionals in your construction team:

• Architects and engineers: Choose specialists who understand the needs of breweries, including layout optimization, utility requirements, and safety standards. They’ll help you design a functional space that meets both operational and regulatory demands.

• Contractors: Work with contractors who have experience in food and beverage projects. They’re better equipped to handle the challenges specific to breweries.

• Kitchen and brewing equipment consultants: These experts can guide you in selecting and installing brewing equipment, refrigeration systems, and taproom infrastructure.

• Interior designers: Elevate your customer experience by working with professionals to create a space that reflects your brand identity and encourages customers to linger.

Remember, effective communication among your team members is crucial to keep the project on track. Regular check-ins and collaborative planning sessions can prevent missteps and ensure everyone is aligned.

4. Navigating permits and regulations

The permitting process is one of the most intricate and time-consuming steps in brewery construction. From health department approvals to alcohol production licenses, managing these requirements is critical to staying on schedule and within budget.

For example, June Zeringue, co-owner of Louisiana-based German Coast Beer Co., said:

“It was astronomical the hoops we had to go through.. We are basically licensed for everything right now, and there were these delays that were completely out of our control. But we would just work toward the next step. And now the next step is to open the doors, and it feels really wild.”

Tips for securing required permits

Breweries face unique regulatory challenges that require meticulous planning and organization. By addressing these steps proactively, you’ll minimize the risk of project delays due to compliance issues.

To navigate this process effectively, use these strategies:

• Start the process early: Securing permits can take months. Begin the application process as soon as you finalize your location to avoid unnecessary delays.

• Hire a project manager with brewery experience: An experienced project manager can liaise with regulatory authorities, ensure all documentation is complete, and oversee inspections.

• Build relationships with regulators: Establish rapport with local inspectors and officials early in the process. Positive relationships can lead to quicker approvals and smoother resolutions of unforeseen issues.

• Prepare comprehensive documentation: Regulatory agencies require detailed records, including architectural plans, equipment layouts, and safety protocols. Submit clear and organized documentation to expedite approvals.

Ensuring compliance

Brewery construction must adhere to strict building codes and safety standards to protect both your business and your patrons. However, compliance isn’t just a box to check—it’s an ongoing effort that requires collaboration across your team. 

Architects, engineers, and contractors must align their designs and processes with local regulations to prevent last-minute changes that can derail your timeline. Some common compliance challenges include but aren’t limited to:

• Ventilation requirements: Proper ventilation is essential for managing brewing fumes and maintaining air quality.

• Wastewater management: Breweries produce wastewater, so ensure your drainage systems meet local environmental standards.

• Fire-resistant materials: Brewing involves heat and chemicals, increasing the risk of fire.

Failing to comply with these standards can lead to fines, forced closures, or costly renovations. Be sure to work with contractors and architects who specialize in brewery projects to ensure your space meets all regulatory requirements from the start.

5. Reviewing and finalizing your lease or purchase

While leasing your property provides flexibility, purchasing gives you complete control over renovations and modifications. Be sure to carefully evaluate the location, infrastructure, and long-term financial implications of your decision.

Negotiating a strong lease agreement

Leasing a property for your brewery can be advantageous, but it requires careful negotiation to ensure the terms align with your needs. Key considerations include:

• Utility upgrades: Confirm the lease allows for necessary modifications, such as plumbing and electrical upgrades to accommodate brewing equipment.

• Tenant improvement allowances: Negotiate for financial contributions from the landlord to cover renovation costs.

• Lease outline drawings (LOD): Ensure the lease includes detailed plans that outline any agreed-upon construction and modifications.

• Rent abatement during construction: Request a rent-free period while the brewery is being built to conserve cash flow.

• Flexible renewal options: Negotiate options for lease extensions or expansions to accommodate business growth.

A real estate lawyer can help you navigate these negotiations, ensuring the lease supports both your short-term needs and long-term goals.

Making a smart property purchase

A property purchase offers long-term stability and control, but it also involves significant upfront costs and responsibilities. Here’s how to protect your investment:

• Due diligence: Conduct thorough inspections to identify any structural or zoning issues that could impact brewery operations. This includes verifying that the property meets local regulations for alcohol production and commercial use.

• Utility and infrastructure assessment: Ensure the property can handle the utility demands of a brewery, including water supply, drainage systems, and electrical capacity.

• Future growth potential: Consider the long-term suitability of the property. Is there enough space for expansion, such as adding more brewing equipment or taproom seating?

• Purchase agreement negotiations: Hire a real estate lawyer to review the purchase agreement.

Purchasing property may require a larger initial investment, but the stability and control it offers can provide a solid foundation for your brewery’s growth.

6. Designing your brewery

A well-designed brewery is more than just a place to make and serve beer; it's an experience. By carefully planning the layout and incorporating thoughtful design elements, you can create a space that's both efficient and inviting.

For example, Katherine May, architect for Wisconsin-based New Glarus Brewing, emphasized both customer experience and improved workflows when speaking about the brewery’s approach to design:

"It was important when we laid out the spaces that it felt like visitors were taking a journey and flowing through the space… We're improving inefficiencies that happened as we grew quickly over a short period of time… The new kettles will allow us to avoid ramping up the mill as often, and avoids things like having to work weekends or third shifts.”

Creating a functional brewery layout

Work with architects and consultants to design a brewery layout that optimizes your workflow and minimizes unnecessary movement. Key considerations include:

• Equipment & utility placement: Strategically position brewing equipment to streamline the brewing process while considering future expansion possibilities. Plan the placement of utilities, such as water, gas, and electrical lines, to minimize disruptions.

• Material flow: Ensure a smooth flow of ingredients and finished beer throughout the brewery.

• Storage and refrigeration: Design adequate storage space for raw materials, finished products, and other operational supplies.

• Technology integration: Strategically place your point-of-sale system terminals to maintain efficient workflows and quick payment processing. Also, use your POS system to manage your inventory, staff scheduling, online ordering, and much more.

Balancing aesthetics and functionality

While efficiency is crucial, don't overlook the importance of aesthetics. After all, effective brewery design ideas can enhance the customer experience and reinforce your brand identity. Be sure to think about:

• Taproom layout: Create a welcoming and inviting taproom that encourages social interaction.

• Visual appeal: Use high-quality finishes, lighting, and artwork to create a visually appealing space. Incorporate elements that help you stand out and reflect your brewery's brand story and local culture.

• Sensory experience: Pay attention to the sensory details, such as brewing aromas and interior acoustics.
  
  

7. Managing the construction timeline

Developing a timeline is crucial for keeping your project on track and avoiding delays. One of the best strategies for managing your brewery construction timeline is breaking down the project into distinct phases, such as:

• Permitting and planning: Secure necessary permits and finalize architectural and engineering plans.

• Site preparation: Prepare the space for construction, including demolition of existing structures and site clean-up.

• Foundation and structural work: Build the foundation and frame the structure.

• Utility installation: Install plumbing, electrical, and HVAC systems.

• Interior build-out: Complete interior finishes, including walls, flooring, and ceilings.

• Equipment installation: Install brewing equipment, refrigeration units, and other machinery.

• Final inspections and licensing: Obtain final inspections and licenses to ensure compliance with regulations.

Here are some other great strategies to help you maintain momentum and avoid delays:

1. Set clear deadlines: Assign specific deadlines to each phase, setting a clear timeline for the entire project.

2. Maintain open communication: Foster regular communication with your team. Weekly meetings can help identify potential issues early on and ensure everyone is aligned on the project's progress.

3. Build in contingency time: Account for unexpected challenges and potential delays by including a buffer period in your timeline.

4. Monitor progress regularly: Conduct regular site visits and progress reviews to ensure the project is on track.

5. Address issues promptly: If issues arise, address them immediately to avoid delays.

Laying the foundation for a successful brewery

Building a brewery is a complex endeavor that requires close attention to detail and a strong commitment to quality. However, by creating a detailed plan for your construction process, you can build a brewery that aligns with your vision and delivers an incredible experience for your customers.

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