UPDATE: Breweries in Boulder are urgently seeking solutions to draw customers back to taprooms as industry leaders confront a significant decline in patronage. During the BizWest CEO Roundtable on October 10, 2023, executives highlighted a troubling trend: fewer people are going out, impacting the entire brewing industry.
Jeffrey Green, co-owner of Very Nice Brewing Co., noted a broader cultural shift, stating, “The general going-out culture has been set back.” This challenge is compounded by rising rents and ingredient costs, with many breweries reporting declines in sales. Green’s insights come after his brewery lost an establishment to a fire on October 8, but he remains committed to revitalizing customer interest.
Breweries like Busey Brews Smokehouse and Liquid Mechanics Brewing Co. are witnessing profound changes in consumer behavior, particularly among younger demographics. Steve Conrad, head brewer at Busey Brews, remarked, “The younger generation doesn’t seem to be engaging in the craft-beer world as much.” This shift is echoed by Davin Helden of Liquid Mechanics, who explained that health-conscious choices are leading to decreased alcohol consumption among regulars.
Despite the industry’s struggles, there is a glimmer of hope. Green and Helden believe that experiences, such as trivia nights and family-friendly events, will help attract patrons back. “People’s habits have changed,” said Matt Wiggins of the Boulder Chamber. He emphasized the importance of creating inviting atmospheres to encourage social outings.
Current data reveals that breweries are down nearly 5% compared to last year, with some establishments reporting staggering declines of 40%-50%. Helden stated, “We’ve seen a lot of closures, and that’s just the tip of the iceberg.” The lingering effects of the COVID-19 pandemic have led many to prefer socialization at home over outings.
The economic landscape has shifted, leading to heightened caution among consumers. Green indicates that prices may need to decrease to entice customers back to taprooms. “People are choosing to stay home,” he said, noting that many would rather watch Netflix than spend $9 or $10 on a pint.
A notable trend is the generational gap in drinking habits. Helden shared that younger individuals are less inclined to engage in traditional drinking culture, leading to a significant impact on sales. “The generation that helped craft beer get cool are boomers now,” he stated, emphasizing that younger patrons are less frequent visitors.
To counteract these trends, breweries are adapting their business models. Bob Baile, owner of Twisted Pine Brewing, has transformed his facility to focus on events and gatherings, converting packaging areas into event spaces. This strategy aims to attract families and larger parties, increasing foot traffic.
Visibility and marketing are also crucial in this recovery phase. Kyle Busey, founder of Busey Brews, is exploring innovative marketing strategies that extend beyond traditional social media. He noted the importance of drawing in customers through unique experiences rather than relying solely on digital platforms.
As breweries navigate these challenges, they remain hopeful for a resurgence in interest. “I think it will come back around with craft beer,” Green stated, envisioning a future where social outings become more common again. Helden echoed this optimism, suggesting that a shift in cultural habits could rekindle enthusiasm for in-person socializing.
The brewing community is resilient, and as they adapt to evolving consumer preferences, the future of taprooms may hinge on their ability to create memorable experiences that draw patrons back in. The industry is at a crossroads, and immediate action is needed to ensure its survival and growth.
