Microbrewery Startup Costs: $12M, $730K CAPEX

You’re planning a small brewery before the first pint is sold, so the real budget is bigger than the tanks This microbrewery cost breakdown uses researched planning assumptions for the first operating year, including $730,000 in CAPEX, $1199 million in minimum cash need, and a modeled Month 2 breakeven These ranges exclude debt service, owner salary after launch, and long-term expansion capital unless noted

Estimate Startup Costs with Calculator

Startup CAPEX Calculator

Estimates the capitalized startup assets needed to open a microbrewery, not working capital or operating runway.

CAPEX only Excludes inventory, payroll runway, deposits, debt service, working capital, financing costs, and operating expenses. Compare total CAPEX and contingency to the $1,199,000 minimum cash need.

What does the Microbrewery model screenshot show?

See Microbrewery Financial Model Template: model tab for CAPEX, startup expense schedule, cost amounts, launch timing, and depreciation/amortization. Review assumptions.

Key screenshot highlights

$730k base CAPEX
Month 1 cash need
Fixed overhead $16k
Staffing ramp timing
Year 1 EBITDA $64k
Month 2 breakeven

Microbrewery Financial Model capex inputs detailing capital expenditures, equipment and startup investments, and timing so users can customize costs, depreciation and funding needs for scenario-ready forecasts.

How should a microbrewery funding plan connect to financial projections?

A Microbrewery funding plan should turn startup costs into a clear use-of-funds story: $730,000 CAPEX, launch expenses, inventory, payroll runway, fixed overhead, and contingency, all tied to a minimum cash need of $1.199 million. That cash has to bridge to Month 2 breakeven, then to $64,000 Year 1 EBITDA and $289,000 Year 5 EBITDA. Lenders and investors will want the monthly timing, plus the sales volume, unit pricing, COGS, staffing, taproom ramp, and depreciation and amortization behind the model.

Use of funds

$730,000 CAPEX
Launch expenses and inventory
Payroll runway and overhead
Contingency and month-by-month timing

Model bridge

$1.199 million minimum cash
Month 2 breakeven target
$64,000 Year 1 EBITDA
$289,000 Year 5 EBITDA

How do brewhouse size and capacity change microbrewery equipment cost?

Microbrewery equipment cost rises with brewhouse size and tank capacity, and the base plan already totals about $405,000 for a $150,000 brewhouse, $80,000 in fermentation tanks, $40,000 in brite tanks, $35,000 in glycol cooling, and $100,000 for kegging or canning. Here’s the quick math: if Year 1 sales are 600 Hoppy IPA units, 500 Crisp Lager units, 300 Dark Stout units, and 250 keg sales, you size to that volume, not a generic rule. Buy too small and you force early expansion; buy too big and you trap cash in idle tanks.

Cost drivers

Brewhouse size sets the core spend.
Fermentation capacity adds tanks fast.
Packaging can add $100,000.
Used gear lowers the cash outlay.

Capacity risk

Size to 1,650 Year 1 units.
That's 600, 500, 300, and 250.
Too small means early expansion.
Too big leaves tanks idle.

How much money do you need to open a microbrewery?

You need about $1.199 million in Month 1 to open a Microbrewery, not just the $730,000 equipment and buildout budget; the $469,000 gap funds startup costs, payroll runway, licenses, insurance, launch marketing, inventory, and delayed-opening risk. Before you lock funding, tie the cash plan to guest experience metrics like What Is The Current Customer Satisfaction Level For Microbrewery?, because launch traffic only helps if customers come back.

Funding Need

$1.199 million minimum Month 1 cash
$730,000 CAPEX for buildout and equipment
$469,000 non-CAPEX startup gap
$16,000/month fixed expenses from Month 1

Cash Covers

Pay licenses, insurance, launch marketing
Fund inventory and opening delays
Staff manager, brewers, taproom, sales
Exclude debt service and owner salary

Calculate Fuding Needs

Startup cost summary

This table summarizes the main brewery startup assets and the separate launch cash need excluded from CAPEX.

Highlighted CAPEX$590,000Base planning example

Excluded cash needs$1,199,000Outside CAPEX total

Funding need$1,789,000CAPEX + excluded cash needs

Cost Category	Base Estimate	Main Cost Driver	CAPEX Calculator
Brewhouse System	$150,000	Brew capacity, controls, and installation scope	Yes
Taproom Build-Out	$200,000	Tenant improvements, plumbing, and finish quality	Yes
Fermentation Tanks	$80,000	Tank count, size, and stainless grade	Yes
Kegging or Canning Line	$100,000	Packaging format, automation, and throughput	Yes
Cold Room Construction	$60,000	Storage size, insulation, and refrigeration load	Yes
Opening Cash Buffer	$1,199,000	Launch runway before fixed overhead and payroll are covered	No

Microbrewery Core Five Startup Costs

Brewing Equipment Startup Expense

Core package

The base production set totals $305,000: $150,000 brewhouse, $80,000 fermentation tanks, $40,000 brite tanks, and $35,000 glycol chiller, plus pumps, hoses, controls, lab basics, and install gear. In the model, this runs from Month 1 to Month 3 before packaging and taproom spend.

Quote inputs

Ask for quotes by barrel size, tank count, utility load, and delivery lead time. New gear usually costs more but lowers install risk; used gear can save cash, but fit and controls need extra checks. One line: the quote is only real when it includes freight, hookup, and commissioning.

Confirm power, gas, and water needs
Separate freight and install
Check refurb and warranty terms

Spend control

Keep the buy tied to the first Month 1 to Month 3 recipe mix and production plan. If the launch is taproom-led, do not overbuy tanks for beers you will not sell right away. The cleanest savings come from avoiding idle capacity, not from cutting core equipment that protects quality and consistency.

Buy for launch volume first
Defer extra tanks
Match gear to recipes

Capacity check

Capacity should match tank turns, not hope. A tighter recipe mix needs less stainless now; a broader seasonal mix or packaging plan may push more downstream equipment later. If a tank sits empty, you paid for metal twice: once in cash and again in lost output.

Facility And Utility Buildout Startup Expense

Buildout split

The buildout is not one bucket. Separate production area, customer area, cold storage, and utility upgrades so you can see what the landlord covers versus tenant-funded leasehold improvements. Base plan: $200,000 taproom build-out from Month 2 to Month 6 plus $60,000 cold room construction from Month 2 to Month 4.

Production shell

Price the production shell for floor drains, water, gas, electrical, ventilation, wastewater handling, and fire code work. Ask whether slab trenching, grease or solids handling, sprinkler work, HVAC, restrooms, and electrical service upgrades sit inside the landlord package or your leasehold improvements.

Taproom scope

The taproom line belongs in the customer area, not the brewing equipment budget. Use the $200,000 base plan for finishes, bar-side work, and customer-facing build items from Month 2 to Month 6. Confirm what the landlord provides, because included restrooms or HVAC can move the budget fast.

Cold room

Cold storage is its own line item. The base plan sets $60,000 for cold room construction from Month 2 to Month 4, so price it by room size, insulation, refrigeration load, and install lead time. Keep utility upgrades separate so you can track power, water, and wastewater work cleanly.

Taproom Setup Startup Expense

Taproom Core

A taproom is your on-site sales engine. This model puts $200,000 into taproom build-out, $50,000 into furniture and fixtures, and $15,000 into POS hardware, then adds $600 per month for POS software from Month 1. That covers the bar, draft service, glassware, seating, signs, restrooms, and opening supplies.

Estimate Inputs

Price this from quotes for bar length, tap lines, glass count, seat count, signage, and restroom fixtures. Keep food service and kitchen costs separate unless they are part of the concept. Here’s the quick math: must-have items drive opening readiness, while optional upgrades add cost without changing first pours.

Count seats and bar stools.
Quote draft system and glassware.
Exclude kitchen gear here.

Lean Build

Start with the items that let you pour and take payment on day one: bar build-out, POS, draft system, seating, and opening supplies. Push back on optional upgrades like extra décor, TVs, patio add-ons, or premium fixtures until sales are steady. If the landlord covers any finishes, separate those from tenant-funded costs.

Price Fit

Year 1 pint pricing of $8 for Hoppy IPA, $7 for Crisp Lager, and $8 for Dark Stout means taproom volume matters as much as price. The POS has to track each pour cleanly by SKU, so you can see which beer pays back the build-out fastest.

Licensing And Compliance Startup Expense

License stack

A microbrewery needs federal, state, and local approvals before the first pour: TTB brewer’s notice, state alcohol control license, local zoning approval, building permits, fire inspection, and any health approvals if the taproom serves food. The model sets aside $400 per month for licenses, permits, and compliance filings plus $800 per month for legal setup and accounting from Month 1.

Budget inputs

Timing and cost vary by state, municipality, ownership structure, and whether the taproom sells on-site. Estimate with the filing count, quote-based legal help, and months of coverage. One-location math is simple: $1,200 per month in fixed compliance cost, but the approval path can stretch that cash need before revenue starts.

Trim the burn

File early, and push parallel work where the rules allow. The cheapest mistake is waiting while rent, insurance, utilities, and payroll start before opening revenue. Keep renewals tight, use counsel only for filings that need it, and check whether local zoning or fire review can move while the state file is still open.

Delay cash gap

A permit delay changes the cash need more than the fee line. If opening slips, the business still carries lease, insurance, utilities, and payroll, so the pre-opening reserve should cover those months until the first pour. That reserve matters most when approvals depend on local zoning and inspection timing.

Inventory, Payroll, And Working Capital Startup Expense

Launch Stock

Initial inventory covers malt, hops, yeast, water treatment, cans, keg shell deposits, keg cleaning, tap handles, fuel, chemicals, uniforms, training, launch marketing, deposits, and cash. Model it from units sold times unit COGS: $0.76 Hoppy IPA, $0.64 Crisp Lager, $0.80 Dark Stout, $18.90 keg sale, and $2.76 merch unit.

Payroll Runway

First-year wages are about $361,500 before taxes and benefits, or roughly $30,125 per month. That is pre-opening payroll plus staffing once sales start. Build it from headcount, hours, start dates, and training time, then keep the wage plan separate from ingredient stock and other one-time launch buys.

Use start dates, not guesses.
Include training time in cash.
Track taxes and benefits separately.

Working Capital

Recurring operating cash has to cover $16,000 per month of fixed overhead plus payroll until sales catch up. One-time launch stock should buy the opening run; working capital should keep the doors open after day one. If opening slips, cash burn rises fast, so keep a separate runway line for rent, utilities, and staffing.

Cash Discipline

Keep launch inventory, pre-opening payroll, and monthly burn in three buckets. The clean model is simple: product COGS for beer and merch, a $361,500 wage plan, and $16,000 a month of overhead. That makes it easy to see what is spent once, what repeats every month, and what runway the brewery still needs.

Compare 3 Startup Cost Scenarios

Startup cost scenarios

Microbrewery startup cost swings with brewhouse size, taproom scope, packaging, and working cash. Lean trims spend, Base matches the model, and Full adds capacity and buildout.

Lean, Base, and Full launch cost comparison
Scenario	Lean LaunchLower cash risk	Base LaunchBalanced launch	Full LaunchGrowth-ready
Launch model	Launch on a smaller brewhouse with a tight taproom and lower upfront cash needs.	Launch at the model's planned scale with standard production, a full taproom, and normal working capital.	Launch larger with more tanks, broader packaging, and more working cash to support growth.
Typical setup	Leased space, some used equipment, limited cans, and a small front-of-house area.	Leased space with the model's $730,000 CAPEX, a full taproom, and standard packaging.	Leased space with a bigger brewhouse, a larger taproom, more tanks, and broader packaging.
Cost drivers	Smaller brewhouse used equipment tighter taproom limited packaging lower fixtures	Brewhouse system taproom build-out kegging or canning line cold room working cash	Larger brewhouse more tanks broader packaging bigger cold room higher contingency
Planning rangeCAPEX only	Below base caseCash-light build	$730,000 CAPEX + $1.199M cashModel base case	Above base caseScale-up build
Best fit	Best for founders with leased space already lined up and a tight opening budget.	Best for a standard first site that needs a balanced build and a clear cash buffer.	Best for operators who want room to grow and can fund a heavier opening.

Planning note: These scenario ranges are researched planning assumptions, not exact vendor quotes or final build bids.