Reopening a closed brewpub site under new owners
Taking over a shut brewpub can save a year of fit-out. It can also hand you someone else's problems. The work is to find out why it closed, test what is left and price a proper restart before you sign.
Start with why it closed
Everything else depends on this. A brewpub can close because of the location, the rent, a partner dispute, a licence problem, a bad product or plain under-capitalisation. Some of those are fixed by new owners. Others are not.
Ask the landlord, the previous staff, suppliers and neighbours. Look at sales if the owners will share them. If the site had no footfall in the good months, a better beer list will not change the road outside. Our guide to parking and access planning for a brewpub site lists the questions that a customer's journey raises.
Do your sums on your own forecast, not theirs. A sensible start is forecasting beer volumes for a new brewpub before it opens.
Licences do not simply pass to you
In India the alcohol licence is issued under state rules, usually to a named entity at a named place. A new owner generally cannot assume the old licence. Whether it can be transferred, must be surrendered and reissued or has lapsed depends on the state and the licence type. Rules vary and change, so speak to a licensing adviser and the excise office before you commit any money.
The same goes for other approvals. Check the validity of the fire clearance and building approvals in the building's name. Check any pollution or food licence too. Our guide to fire safety NOC and building approvals for a new brewpub sets out what to look for. Make the deal conditional on a clear licence position.
The lease and the landlord
Read the lease for term, rent increases, assignment, permitted use and any clause about alcohol. A brewpub's heavy equipment and fit-out cannot easily be moved, so a short lease puts your investment at risk. If the landlord is owed rent by the previous operator, find out whether you inherit that. Get it in writing.
Also confirm who owns the equipment. Equipment may be leased, financed or the property of a lender. Ask for invoices and any hire purchase papers.
Inspect idle kit properly
Stainless steel stands idle well. Everything attached to it does not. Check the following with a specialist, not only with your eyes:
- Vessels. Look for pitting, weld cracks and damaged cooling jackets. Test the jackets for leaks under pressure.
- Gaskets and seals. Rubber and silicone harden and crack with age. Budget to replace them all.
- Glycol system. Chiller, pump and lines. Check the coolant and the controller. Confirm that the system holds temperature in summer.
- CO2 and gas lines. Leak test them and check regulators and alarms.
- Draught lines. Old beer lines grow mould and biofilm. Replace them, rather than hope a clean will fix it.
- Boiler or heating. Check registration and test certificates, as covered in our guide to registering a steam boiler for a brewhouse in India.
Water, drains and pests
A site that sat empty through a monsoon can have damp, mould and pests. Check drains for blockages and the floor for cracks. Test the water for what the brewery needs, not only for what is safe to drink. Tanks and pipes that sat with stagnant water need cleaning and disinfection.
Treat any pest signs before you bring in malt. Malt attracts weevils and rodents very quickly. Ask a pest control firm for a written inspection, since insurers and food officers may ask for it later.
Build the restart budget in layers
Price the restart in three layers:
- Must do before opening: licences, safety work, new seals and lines, deep cleaning, a leak and pressure test. Then buy the first stock.
- Should do soon: repairs to the cold room, better lighting or a new tap board.
- Nice to have: décor and new branding.
Keep a reserve for what the inspection missed. Most hidden problems come out in the first month of running.
Recommission slowly and brew a test batch first
Clean, sanitise and fill every vessel with water before any wort goes near it. Run each pump, valve and chiller. Brew a small test batch that you could afford to lose. Watch it through to a finished beer. Taste it with your brewer. If something is wrong, it will show up there.
Only then plan the opening beers and the reopening date. Reopen with a short, solid list rather than a full tap board. The old name may carry baggage, so decide whether to keep it. Customers who remember a bad experience will notice a change of owner only if you tell them what has changed.
Common questions
Can I take over the licence of a closed brewpub?
Often not directly. Whether a licence can be transferred, reissued or has lapsed depends on the state and the licence type. Ask a licensing adviser and the excise office first.
What should I inspect first in a closed brewery?
Vessels and cooling jackets, glycol and gas systems, draught lines and the boiler. Idle seals and beer lines usually need replacing.
How do I find out why a brewpub closed?
Ask the landlord, former staff and suppliers. Look at sales and the lease. Decide whether the cause is something you can fix.
Should I keep the old brand name?
Weigh the goodwill against the baggage. Many reopeners keep the site but change the name, or tell customers clearly what is new.
