Voodoo Brewing Co. Thrives During Economic Uncertainty
With all the recent talk of recession, it might seem like you should wait to open your brewery franchise. But we’re here to show you that despite the economic picture, now may be the best time to make your dream of owning your own business a reality.
Here’s what you need to know:
The economy falls, and alcohol sales rise.
Let’s step back to April 2020 — the early days of the pandemic — when everyone was forced to hang out at home all day, and the unemployment rate soared from 4.4% to 14.7% practically overnight. Alcohol sales, however, increased by 19% over the same time period.
The craft beer drinker loves a good brew, no matter how troubled the economy. In fact, during the banking and mortgage crisis of 2008, small independent craft brewery sales increased by 5.8% by volume and 10.5% in sales year over year. Conversely, other imported beer brands were down by -4% from 2007.
Voodoo Brewing Co. offers customers not only beer but also great food and an inviting, comfortable experience. A place where friends and family gather to connect after a long day, opening a Voodoo in your town brings people together in both good and bad, ultimately cultivating a stronger sense of community.
Beer never goes out of style.
Alcohol has long been considered recession resistant. Indeed, the craft beer industry is worth $26.8 billion and witnessed a 21% sales increase in 2021. People will always love their favorite craft brews regardless of their employment status or bank account value. That’s mainly because craft beer is a low-cost luxury that almost anyone can indulge in compared to other high-dollar personal expenses like electronics, new cars, or vacations.
Always mindful of expenses, our Voodoo franchise business model helps you keep costs right where they need to be. Many of our craft beers are created by “Mad Scientist” Curt and professionally designed, so all you have to do is sell them. To make it even easier, our corporate team serves as a resource to help with hiring, staff management, setting up your reps, and helping place your orders.
It’s the perfect time to start a business.
Did you know Airbnb was founded in 2007 during The Great Recession? Their team came together to defy the odds and start their dream business. And by 2021, Airbnb was a $113-billion-dollar company.
We know you’re looking to sell beer, not to build a short-term rental empire, but we’re sharing this anecdote to inspire you as we move closer to an inevitable economic downturn. It may seem counterintuitive, but a recession is an ideal time to embrace your dreams and start your own business.
Few brewery franchise competitors compare with our industry support: With lower-than-average financial requirements, minimal equipment requirements, and an all-inclusive financial investment, Voodoo allows you to open a pub pouring craft beer on tap for 75% less than a competing brewing franchise.
Build a lean, trustworthy team: People learn how to do more with less during recessions, and applies to restaurants and breweries. Yet, unlike most of these establishments, the Voodoo Brewing Co. business model is structured like European-style beer halls, which operate with teams of six or fewer employees.
Simplified operations: We’ve made all of our standard procedures as streamlined and efficient as possible to ensure you become as profitable as you’d like. So, in addition to your lean operations team, you only need two suppliers: One for food and another for beer.
Cheaper credit opportunities: Things typically cost less during a recession, and interest rates also begin to drop. That means loans and credit cards are more accessible for businesses to get their hands on.
Less expensive real estate: In 2008, more than 4,000 restaurants closed in 12 months. But these closings also create lower-cost building rental opportunities for new Franchise Owners to move in and capitalize on second-generation real estate.
Now that you know there’s nothing to fear about starting your own business during a recession, it’s time to talk about the Voodoo Brewing Co. difference.
Low upfront costs, high rewards
We get it. Planning for a recession is seldom easy, especially if you’re looking to make a financial investment or start your own business.
Our team has spent years developing (and perfecting) the Voodoo franchise business model, transforming it into a cost-effective, all-inclusive investment. With a Voodoo Franchise, aspiring entrepreneurs can expect to pay $1 million less than the average microbrewery investment.
The financial investment costs
You can expect your initial financial investment to be anywhere from $331,750 –$762,500*. This may seem like a lot at first blush; however, this is an all-inclusive cost, so the initial investment provides you with everything you need to succeed with your Voodoo Brew Pub Franchise. And to put things into perspective, the average initial restaurant financial investment is more than $1 million ($1,047,500).
So wouldn’t you rather own a kick-ass brewery instead?
We brew it; you sell it.
Brewmaster and “Mad Scientist,” Curt is behind the scenes crafting all the beer for Voodoo Franchise Owners. Not only does this mean you’ll need minimal equipment in your location, but you don’t need to worry about mastering the brewing process on your own. We brew it and ship it to you, so you can bring your community some of the most reputable beers without brewing a single keg yourself.
Less equipment, less cost
Contemplating all the hidden fees associated with owning your restaurant or brewery can make you hesitant to chase your dream. And one significant expense is the equipment you must invest in just to start.
To operate an average microbrewery, you’ll need everything from kegs, kettles, boilers, and canning lines to storage tanks, brite tanks, pumps, and more. If that sounds like a lot, that’s because it is.
But Voodoo is anything but average. Franchise Owners never need to worry about the nitty-gritty equipment associated with brewing beer. With our “we brew it, you sell it” business setup, we’ll take care of all that for you. (You can thank us later.)
Did you know that some restaurants and microbreweries require individuals to have at least $1 million in net worth per location? That’s not always easy, whether you’re just starting to test the franchising waters or starting your own business during a recession.
With Voodoo, the required net worth is only $450,000, and you’ll receive all the support you need to stay ahead of your goals.
We keep things streamlined.
Once a Franchise Owner is set up and ready to go with Voodoo, we do whatever we can to help. We ensure they have a consistent line of support via site visits, operational support, vendor management, culinary reviews, and vendor supply chain management. We look for existing connections in the area and assist Franchise Owners with everything from gas and plumbing to beer and tap lines. We take these additional steps to ensure our Franchise Owners’ costs are as low as possible.
It’s simple: You invest in us, so we invest in you.
Our lean European beer hall setup
Our locations mimic a European beer hall design, so counter service is crucial. Customers ordering and picking up from a counter eliminates the need for traditional servers and minimizes employee requirements.
This efficient business model allows Franchise Owners to run a brewpub with a staff of roughly six employees. Lower labor expenses, limited overhead, and the Owner support provided by our experienced brew team all add to a fun, fulfilling, and profitable business.
Recession-proof your revenue streams
When you start hearing conversations about recessions and economic downturns, you also hear about the importance of diversifying your revenue streams.
With Voodoo Brewing Co., you don’t need to worry about low cash flow due to minimal revenue streams. Instead, you can take on the workday confidently, knowing that several different revenue streams are built into the franchise business model.
Blow your competition away with YOUR local menu
On average, 25%–35% of our sales come from food. And with our tasty fare, you don’t need deep fryers or large, expensive restaurant equipment. In addition to a partnership with Sysco, our corporate team works to lower your costs and deliver high-quality ingredients by locally sourcing the food for you.
The Voodoo swag
You can expect around 3%–5% of your overall sales from retail merchandise. But after you’ve staked your claim in your community and have left a favorable impression on enough beer lovers, your retail merchandise profits will increase with time.
The thing to remember is that beer is a largely recession-resistant commodity. Even if your pub food and retail sales aren’t exactly where you want them to be, you can count on your beer sales to keep you afloat during the tough times.
We get it; our brews aren’t for everyone. We also sell non-alcoholic drinks like nitro coffee and teas for guests who prefer not to imbibe.
Since we accommodate everyone from beer drinkers to cocktail sippers to teetotallers, we’re a top choice when a group of friends is looking for a happy hour after a long workday.
Making a switch to home delivery
During the COVID-19 pandemic, certain states like New York, Texas, and the District of Columbia (D.C.) responded to the pandemic by allowing restaurants to serve alcohol in to-go containers. Many of these establishments are still allowed to deliver alcohol to their consumers, which adds an extra revenue stream from which your future franchise can benefit.
In the post-pandemic world, alcohol delivery will still be an ample opportunity. A recent industry research report showed us that 44% of U.S. consumers only started buying alcohol online in 2020. The demand will continue to rise over the years and remain a prevalent profit stream for breweries and restaurants. With home delivery, individuals can have their favorite craft brews on-demand, stock up their fridge, gift them to a friend, and enjoy instant gratification.
With almost endless at-home marketing opportunities for Franchise Owners, the Voodoo Brewing Co. team helps with the operational components so you can work on the marketing initiatives you need to increase demand.
Start your next journey with Voodoo Brewing today.
Every moment comes with its challenges, setbacks, and opportunities; there’s no reason to put off opening your brewery because of the economy.
A recession has nothing on Voodoo Brewing Co.!
We developed our business model so Franchise Owners could find a low-cost investment that yields high results. The Voodoo Brewing team understands the ins and outs of the entire business, and since we want to see you succeed, we’ll give you all the resources you need to do just that. We have your back every step of the way!
If you’re serious about taking the plunge, let’s do it. There’s no better time than now!
Request more information today to see if Voodoo’s a good fit for you.