Newb Dispenser

[ChillyKen]

Hi guys. I am opening an art gallery with a twist. We're gonna serve beer and wine to our customers; and make the gallery feel like a relaxing "good" times place with music and "topical" video. (ie. hiking; skiing; snowmobiling, mountain biking, kayaking, etc.) Our business is in Bend Oregon (the NW capitol of craft beer in my opinion) and we are experiencing a huge BOOM in craft beer! I didn't want to miss out in the wave of breweries and pubs opening; so I figured if you can't compete for tourism attractions, then join what others are doing. The trouble is that I don't have any prior experience in the beer service industry. I know what I like to drink; but thats about as much experience as i can stand (no pun intended.....hiccup!) So..... I'm researcing the internet to learn some basic beer service knowledge. I'm lookin at new (2 or 3 keg) keggerators. Lines and air bottles, glasses, mugs, and oh yeah.........since practically EVERYBODY has gone crazy with their "Walls of Beer" and dozens of breweries; I figured I'd offer maybe 3 local craft drafts; and a few "domestic" cans or bottles. But in trying not to jump in and put the cart before the horse; I gotta do first things first. (Licensing, City system developement charges; equipment; and then finally inventory. Although I haven't yet talked with any of our local distributers; how does one get an idea what he will be paying for domestic beer and wine? I could go the Costco route; but at some point; I might need bigger quantities (After all; it is an art gallery first and a drinkery second) I have talked with one of our local brewers who told me if my orders weren't too big; I could just deal directly through them for a couple of kegs a week or so.
Any advise would be appreciated. Sorry that the topic is so "newbish" but I'd really like to take advantage of this huge beer wave we are experiencing in the Northwest.
-Ken

[Sketch]

Call up Columbia Distributing - I'm sure they have a Bend location. They will be your primary beer source along with Mellitas for the smaller guys like Ninkasi and Caldera. They should give you pricing - You will be surprised to see that a 6 pack of beer from the distributor is not a lot cheaper than buying it off the store shelves - grocery outlets rely on high volume and low margins, while bars and entertainment venues rely on charging a whole lot more per unit due to the associated value of buying beer outside of the home.

In my opinion you need to really know what you are doing before you invest in a 3 tap commercial system. With all the avenues for delicious craft beer in this area, you need something to set yourself apart from the rest. Obviously you are an art gallery so you have that going - but I know personally, if I want a beer, I'm going to go to the most comfortable place with the best beers on tap.

You obviously have Deschutes with easy access, but at this point that's a dime a dozen and their beer is ok. Some better than others. I don't know if 10 barrel does kegs but they have outstanding beers and you don't see it a lot of places, although I presume you do in Bend.

Also, with the way OLCC works - if you are only serving alcohol and not food your establishment will be 21 and over only - but I am sure you already know that.

[ChillyKen]

Thanks Sketch. Actually Iwasn't aware that if we don't serve food; it would require us to keep it over 21. That is a HUGE consideration. We are contacting the OLCC tomorrow to see what the stipulations are for serving "food". Pretzles? Beer nuts? Thanks so much for the insight on the matter. Thertes a whole buch of stuff I wasn't aware of. We were going to consult the small business developement center at COCC but the holidays kinda pushed us back. We don't want to put the cart before the horse!

[Sketch]

I don't know all the ins and outs - but I do know that food sales are required for all age access. There's lots of grey area and lots of different types of licenses. I give beer away at my business - as long as I am not charging, the OLCC has no jurisdiction, but it sounds like that isn't your end game.


Food is defined as "A hearty Meal" and I believe you are required to offer at least 2. I have heard of businesses keeping a microwave and can of wolf chili on hand. They price it at $50 so no one ever purchases it, but as far as the law is concerened - it's there.

I would consult someone up to speed on theses sorts of issues, for I am certainly no expert.

[ChillyKen]

"Wolf Chili" Hahahaha! Yeah; there must be a way around it. One of the biggest surprises I have come across is the City's "System Developement Charges". We are awaiting the outcome of their study (which costs $82.08) to figure out our impact on the area evidently. Our building was a Hair Salon in it's past life; so it doesn't equate to "Even Steven".
We have an "Art Walk" the first Friday of every month in which you can give away beer and wine as long as there is no transferrance of cash. Hey, we should have a beer sometime if you get over to to my area! I sure appreciate your advice!

[KillianBoy]

ChillyKen,
I agree with Sketch, I think legal aspects of what you want to do should be left to an attorney, find one who specializes in liquor establishments. I would think bar with art gallery instead of art gallery that serves alcohol, you will have more legal problems with bar section than you will with art section. Consult with the attorney regarding whether giving away bottled beer is the same as serving free draft beer.
About what do when you are finished with legal end, unless you are truly passionate about draft beer (aspects of how to balance, importance of temperature and cleaning of the gear) I wouldn't do it, just hire an installer and pay for monthly/weekly cleaning.
And about what system to get, if it was just 1 day a week, maybe a jockey box might be better for you, cheaper and simpler. If you plan on giving away beer everyday, you might be better off with a walk-in cooler, you can store the extra kegs and change out way easier. If somewhere in the middle then the unit you referenced in other post, might be fine.
KB

[djc]

From 30,000 ft, if being a bar isn't the primary goal, having draft beer is just going to be a drain on the gallery. The reason to have draft beer would be to bring in a crowd that would hopefully buy art. Based on everyone I've ever known, the draft beer crowd isn't the art gallery crowd. You might get people who want to have a beer amongst the art, and you may get art buyers who want to have a beer, but they are really two different crowds. If the money is in the art, then go with wine and focus on the art product.

[ChillyKen]

Thanks guys. Some good input there! As far as the gallery is concerned; we would be the ONLY Art/wine retailer in the area. We do have monthly "artwalks" where we would give away wine (2 buck chuck) but this gallery is something completely different than I'm sure just about anyone has seen before. We've considered for over a year, and tossed back and forth whether this woulbe a good venture or not; but we didn't have the details figured yet. We've now been able to comply with the OLCC; the city requirements; and the building requirements. We have let the local retailers know that our intension is not to "compete" with other brew houses or food establishments. Still awaiting the verdict on the city system developement charges regarding the impact to the surrounding establishments and city maintenence. We'll start with using plastic cups; 2 draft brews, and a few "domestic" beers for those who don't like "craft" beers (like my in-laws from Vegas) We probably will just hire an installer to keep us clean and running smoothly (Nuthin worse than ruining craft beer with a party pump. Yuk) Our vendor is 1/2 a block from us so I can literally pick up an occasional keg with a hand truck. I realize the risk is high; but whats happening to our little piece of paradise is too good of an opportunity to pass up. Again; thanks for the info!