How can your business cope with COVID-19?
Trying to understand the financial impact of COVID-19 on your business? The "Finance During a Crisis” webinar is for you. Chris Farmand from Small Batch Standards explores both short-term and long-term opportunities for shoring up weaknesses and rebuilding the P&L for profitability in a post-lockdown world. Get a recap of the session and watch the recording below!
Everyone is wondering when things are going to “get back to normal” — but what is normal? And will things ever get back to the way they were before? Chris Farmand thinks they probably won’t, and that craft beverage companies should be focusing on changing their business strategies to adapt.
While states are beginning to reopen, and taprooms will be allowed to open soon enough in many places, it’s unlikely that taproom traffic will be what it was pre-crisis any time soon, if ever. Many states will continue to enforce social distancing measures for businesses even when they can open dining areas and taprooms, and many patrons are likely hesitant to gather in large groups.
So, what’s a brewery owner to do? Presenter Chris Farmand suggests a complete rethinking of the retail experience. While draft sales provided the highest margins pre-crisis, cans and bottles may bring in more revenue for the foreseeable future. So, breweries should consider how to “package” the taproom experience in a to-go format.
In this section, Chris Farmand moves through the most important financial factors you should look at now and after the crisis, including cash flow, labor, profit and loss metrics, and profit per SKU. Learn how to make sure you have enough cash for the “Big 5” essential expenses for breweries: payroll, rent, raw materials, packaging, and yeast.