Ok, so I got sidetracked on the brewery situation. Admittedly things have been a little crazy in my life for the past year. One thing has stayed constant in my conversations with people though; Grand Marais needs a microbrewery!
When I was putting together the idea for the brewery I got some really great support from some statewide organizations who offer investments to rural businesses so that the communities they exist in can benefit. This rolled out to mean that I could find funding for the brewing equipment, which was not a small amount of money, but I couldn't find $1.00 to help with the costs of finding/buying/leasing a LOCATION. for the brewery. Given, real estate in Grand Marais is neither cheap nor plentiful, but there are a few locations that would be ideal. No dice. Soooo, when a new piece of property came up for sale my interest was piqued yet again. I started up the conversation with a few fellow beer aficionados again and got a rough idea put together. Bear with me, but I think that you will like this!
The idea:
Grand Marais lacks a micro-brewery to serve as the area's hub for local flavors and beer snobs alike. The night life in town is wildly underserved not by the fault of any of the area businesses, they are actually doing a lot and are doing it well, but because there just aren't that many venues, nor are there venues that are open late enough for the local folks to use them. Now, with that said, there has to be some market research done here to make sure that what I am saying is completely true! Everyone that I have talked to about it agrees though: Grand Marais needs a casual, affordable, comfortable night spot.
The property:
8 Broadway. This building is a historic "downtown" building that needs some love, but that has quietly hosted an art gallery for several years. The first floor of the building is one large, open room with a low ceiling and a loose herringbone wooden floor. With that right encouragement and handy people, this first floor could become something beautiful, dark wood on the walls, classy light fixtures to promote a shaded yet bright environment. There are several little nooks on the first floor right now, which would be great to build into seating areas or just to give you a little privacy in an otherwise completely open room. On one side you have the bar, at the back corner you have a stage for performers. It would be beautiful and awesome. Total seating? I would guess about 30 people.
Upstairs there are currently two apartments. Good income potential there as well, but I think it would be awesome to convert one of them into the "Scotch Room," a nicely done conference room that could be rented out for everything from weddings to local meetings to even fantasy football players wanting to watch games and the other could be an apartment, a vacation rental, an office, you name it...
In the back of the building there are a few studio spaces that could easily be converted into the kitchen and brewery area for the business. This would allow for some major publicity as people would love to walk in the back door from the East Bay Suites to get a beer and a sandwich... which gets me to the next item!
The Menu:
So, what do people want? A nice place, a decent price. What else have people wanted in this community for some time?
1. A bakery--I have talked to AT LEAST 50 people who want a bread bakery in town. The coop wants this too.
2. A sausage maker-- The grocery stores have picked up the slack with this, but there was once "The Sausage Guy" in Shroeder who did tremendous business providing gourmet brats and sausages to the restaurants on the North Shore... Time to start it up!
*So, we do this: A simple menu, some appetizers, nice sandwiches on fresh baked bread, designer brats and sausages along with delicious locally brewed beers. Sounds pretty good, huh?
The Price:
Well, again, as with any good idea there is a catch. The building is worth about $300,000 at the absolute max, probably more like $250,000, but it is listed for almost $600,000. That is the first hurdle. Second hurdle would be getting the spaces ready to be used for the restaurant and brewery. We are talking maybe $50,000 for that too. Brewing and baking equipment: another $250,000+. This all crunched out means that we would have to earn about $7000/month in order to service the loan on the building, not to mention operating capital and payroll. So, we would need to roll about $120,000/year minimum to make it fly. Can we do that? I think so. One of the other night spots in town turned almost $2,000,000 in revenues last year, I think that we could get some of that, especially if our products were good.
Who is involved:
Well, at this point no one is really involved because this is a bit of a pipe dream! I spoke with a fellow beer lover who has a background in financial planning who said that we would need to either find some kind of an angel investor or we would have to organize a consortium of investors who would be interested in taking responsibility for part of the overall debt, kind of like a co-signer on a mortgage. Any ideas guys? Any takers??
The bottom line:
I see this as an amazing opportunity and a great idea. Time to get some numbers and maybe do some surveying to find out if people really want/need something like this in town. It doesn't have to be in the Broadway building, but I think it would be a good fit.
As always, if you have any ideas about this, drop me a line or a comment. I am always open to conversation, whether it be over a Scotch or not...
This Stuff is Expensive! |
The idea:
Grand Marais lacks a micro-brewery to serve as the area's hub for local flavors and beer snobs alike. The night life in town is wildly underserved not by the fault of any of the area businesses, they are actually doing a lot and are doing it well, but because there just aren't that many venues, nor are there venues that are open late enough for the local folks to use them. Now, with that said, there has to be some market research done here to make sure that what I am saying is completely true! Everyone that I have talked to about it agrees though: Grand Marais needs a casual, affordable, comfortable night spot.
The property:
Needs some TLC; use your imagination! |
Yes, I'll take a Scotch... |
In the back of the building there are a few studio spaces that could easily be converted into the kitchen and brewery area for the business. This would allow for some major publicity as people would love to walk in the back door from the East Bay Suites to get a beer and a sandwich... which gets me to the next item!
The Menu:
So, what do people want? A nice place, a decent price. What else have people wanted in this community for some time?
1. A bakery--I have talked to AT LEAST 50 people who want a bread bakery in town. The coop wants this too.
2. A sausage maker-- The grocery stores have picked up the slack with this, but there was once "The Sausage Guy" in Shroeder who did tremendous business providing gourmet brats and sausages to the restaurants on the North Shore... Time to start it up!
*So, we do this: A simple menu, some appetizers, nice sandwiches on fresh baked bread, designer brats and sausages along with delicious locally brewed beers. Sounds pretty good, huh?
The Price:
Well, again, as with any good idea there is a catch. The building is worth about $300,000 at the absolute max, probably more like $250,000, but it is listed for almost $600,000. That is the first hurdle. Second hurdle would be getting the spaces ready to be used for the restaurant and brewery. We are talking maybe $50,000 for that too. Brewing and baking equipment: another $250,000+. This all crunched out means that we would have to earn about $7000/month in order to service the loan on the building, not to mention operating capital and payroll. So, we would need to roll about $120,000/year minimum to make it fly. Can we do that? I think so. One of the other night spots in town turned almost $2,000,000 in revenues last year, I think that we could get some of that, especially if our products were good.
Who is involved:
Well, at this point no one is really involved because this is a bit of a pipe dream! I spoke with a fellow beer lover who has a background in financial planning who said that we would need to either find some kind of an angel investor or we would have to organize a consortium of investors who would be interested in taking responsibility for part of the overall debt, kind of like a co-signer on a mortgage. Any ideas guys? Any takers??
The bottom line:
I see this as an amazing opportunity and a great idea. Time to get some numbers and maybe do some surveying to find out if people really want/need something like this in town. It doesn't have to be in the Broadway building, but I think it would be a good fit.
As always, if you have any ideas about this, drop me a line or a comment. I am always open to conversation, whether it be over a Scotch or not...