tag:blogger.com,1999:blog-2107798798756662782024-02-20T10:51:23.422-06:00RePublic BrewpubMadison, WIAdminhttp://www.blogger.com/profile/11995262623167377232noreply@blogger.comBlogger116125tag:blogger.com,1999:blog-210779879875666278.post-9906792504097736252009-11-21T01:12:00.002-06:002012-11-25T20:02:34.381-06:00Business Hours are Over! Baby!If you scan the last year of posts on this weblog, you won't find many progress updates. That's because all Jane and I have done since January, aside from finding a location, is try to raise money. So far, we've only been able to raise about 10% of our project cost via investment capital - including our own contributions - and were rejected by eleven lenders (not counting the ones who ignored us). We considered some alternative business plans...<br />
<br />
-Reducing the structural changes to the ACME building and replacing the full kitchen with cold appetizers to reduce the total project cost.<br />
-Relocating to the former Blue Lagoon building to reduce the total project cost, allow us to have a full kitchen and provide an incentive for the Bank of Sun Prairie to loan us money (they own the building, which is now completely vacant).<br />
-Relocating to Sauk Prairie, where there may have been additional investment capital.<br />
<br />
...but my need to find a job and stabilize my family's finances hasn't allowed me to really follow through on them. Being burnt out hasn't helped either. After two years of working full-time to get this project off the ground, every option seemed like a futile postponement of my brewing career.<br />
<br />
The point I'm slowly making is that I'm cutting my losses and walking away from RePublic. Earlier today, I accepted a job offer for a full-time brewing position at <a href="http://www.supplerestaurantgroup.com/fratellos/default.html">Fratello's</a> in Oshkosh and Appleton. I'll be working for Kevin Bowen, a classmate of mine from Siebel, and I'm pretty damn excited about it. Jane is hoping to find a job in a brewery as well; probably in sales and/or marketing. This industry is simply too much fun to walk away from willingly.<br />
<br />
Unless I think of some wise things to say over the next few days, this will probably be the last time I post here. Jane and I are going to leave the site online so future brewery owners can benefit from our experience, and I plan to continue updating the <a href="http://sites.google.com/site/republicbrewpub/">File Cabinet</a> independently. Thanks for reading!<br />
<br />
Update: I'm currently the QA Manager at <a href="http://aleasylum.com/">Ale Asylum</a> and write the <a href="http://www.madisonbeerreview.com/search/label/five%20gallons">Five Gallons At A Time</a> feature at <a href="http://www.madisonbeerreview.com/">Madison Beer Review</a>. In between, I wrote a few articles for <a href="http://oshkoshbeer.blogspot.com/">Oshkosh Beer</a> that you can find by searching for my name on the website. Jane, aka Robyn Klinge, left her job at Epic Systems to bartend, manage off-premise tap accounts, train employees about beer and host beer dinners at <a href="http://vintagebrewingcompany.com/">Vintage Brewing Company</a>.Joe Waltshttp://www.blogger.com/profile/18115431808379517101noreply@blogger.com12tag:blogger.com,1999:blog-210779879875666278.post-15168944934033002392009-11-07T14:51:00.006-06:002012-06-29T17:57:15.089-05:00Return to GeekeryAbout two weeks ago, my Vermonting friend <a href="http://squarebay.blogspot.com/">Shane</a> asked me a question that I thought would be pretty easy to answer: about how much alcohol is present in a batch of cider when honey is added after the original gravity measurement? Estimating the sugar increase is a pretty easy process. Figuring out the change in volume, which affects the density that affects the alcohol content, is the tough part. Thankfully, my recipe spreadsheets are capable of doing that. Unfortunately, the numbers they returned didn't agree with a simple sanity check I performed to make sure I was doing things correctly. The problem, I eventually learned, was caused by several errors:<br />
<br />
1. The formula I'd been using to calculate extract, aka the weight of dissolved sugar, didn't agree with the definition of degrees Plato (extract as a percentage of total solution mass). I'm bummed out by this because the formula's source is the wonderful book "Brewing" by Michael Lewis and Tom Young. If you're dying to find a practical use for an outdated formula, the calculation is Extract = (258.7+degrees Plato)*degrees Plato*barrels/100. If you've wiped your nose with this stuff before, you may have noticed that 258.7 is the density of water, in lbs/barrel, at 39.2 degf. The American Society of Brewing Chemists (ASBC) defines degrees Plato at 68 degf. Reaching for that low-lying fruit by changing the value in the formula was one of the first things I tried. It didn't work.<br />
<br />
2. Homebrewers typically measure gravity in Specific Gravity instead of degrees Plato. Additionally, disowning the degrees Plato -> Extract formula requires you to know specific gravity to determine extract. My prior conversions between degrees Plato and specific gravity were third-order polynomials fitted to an ASBC table, but the table is only valid for specific gravities of 1.083 (20.007 degrees Plato) and lower. Not terribly helpful when you're brewing a barleywine, and downright inaccurate when you're trying to determine how adjuncts like honey (gravity of 82.1 degrees Plato for the Wikipedian varietal) affect final liquid properties.<br />
<br />
3. I was calculating all of my adjunct additions based on a parameter called "total wort volume", which was essentially the post-boil volume plus the volumes of any adjuncts added afterward (i.e. a yeast starter). Another way of thinking about it is that total wort volume = initial fermentation volume plus kettle wort losses. It's a made-up variable that never physically exists, but I thought it was a clever way to manage the interactions of several adjuncts. The problem? When you add an adjunct to the boil kettle, you lose some of it. When you add it directly to the fermenter, you don't. Since I typically specify adjunct additions as percentages of total extract, equating them to percentages of total wort volume is invalid.<br />
<br />
I solved issues #1 and #3 by calculating the degrees Plato, specific gravity, volume, mass and extract for every stage of the brewing process and using those values where applicable instead of using total wort volume everywhere. To do so, I needed to "fix" problem #2 by adding an endpoint to the ASBC table. Since sucrose has a density of 1.587 g/mL and water has a density of 0.9982 g/mL at the ASBC reference temperature of 20 degc, the specific gravity of sucrose is 1.587 / 0.9982 = 1.589. Since degrees Plato is defined as % sucrose by weight, 100 degrees Plato should equal 1.589. One of the curve fits is shown below:<br />
<br />
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgZl3nD4IX18rGjih7uQjfIib1v4y83mINeIz4ixU-j0dU9VdD2TTzGaxGBTB95b3BkioKguKFSU3DphBowiNejXY7AmtlwMS9WWEPkXn2iWyUvEB3qEaUuNgPvEuuWXChR4lQGH8Y9oJo0/s1600-h/Gravity.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgZl3nD4IX18rGjih7uQjfIib1v4y83mINeIz4ixU-j0dU9VdD2TTzGaxGBTB95b3BkioKguKFSU3DphBowiNejXY7AmtlwMS9WWEPkXn2iWyUvEB3qEaUuNgPvEuuWXChR4lQGH8Y9oJo0/s320/Gravity.jpg" /></a><br />
I say "fix" because I don't actually know what the data looks like between 20 degrees Plato and 100 degrees Plato. At least the curve converges on a reasonable endpoint, which is good enough for government work. Here's how the process works for Shane's cider example (5.0 gallons of cider at 1.052, 4.8 lbs of honey with an assumed gravity of 82.1 degrees Plato, final gravity of 1.004):<br />
<br />
1. Water density at 68 degf = 0.9982 kg/L = 8.3316 lbs/gal.<br />
2. Initial cider mass = density*volume = (SG*Dwater)*volume = (1.052*8.3316)*5 = 43.8 lbs. Leave me alone about using lbs as a unit of mass; it's a lot easier than slugs.<br />
3. Initial cider gravity = ((116.716*SG-569.851)*SG+1048.046)*SG-594.914 = 12.9 degrees Plato.<br />
4. Initial cider extract = (degrees Plato/100)*mass = (12.9/100)*43.8 = 5.6 lbs.<br />
5. Honey extract = (82.1/100)*4.8 = 3.9 lbs.<br />
6. Total mass = cider mass + honey mass = 43.8 + 4.8 = 48.6 lbs.<br />
7. Total extract = cider extract + honey extract = 5.6 + 3.9 = 9.6 lbs (5.64 + 3.94 = 9.58, which gets rounded up).<br />
8. Original gravity = 100*extract/mass = 100*9.6/48.6 = 19.7 degrees Plato.<br />
9. Final gravity = ((116.716*SG-569.851)*SG+1048.046)*SG-594.914 = 1.0 degrees plato.<br />
10. Alcohol by volume = 0.516*(original gravity - final gravity) = 0.516*(19.7-1.0) = 9.6%. It should be noted that calculating alcohol content is always approximate; to determine the exact value, you need to perform a distillation test on a physical sample.<br />
<br />
Thanks for the mental workout, Shane. Updated recipe and brewlog spreadsheets can be found in <a href="http://sites.google.com/site/republicbrewpub/">the file cabinet</a>.Joe Waltshttp://www.blogger.com/profile/18115431808379517101noreply@blogger.com1tag:blogger.com,1999:blog-210779879875666278.post-978411976346491932009-11-04T19:11:00.001-06:002009-11-04T19:39:13.870-06:00I Need a JobSince the time when Rachel's maternity leave kicked into unpaid mode (mid-July), my checkbook has lost about 42% of its value. To continue working on RePublic, I need to find a job. Otherwise, I'll need to quit and find a job. I contacted most of the breweries within an hour and a half drive of my house, but nobody's hiring right now. It's too bad that J.T. Whitney's doing its best business in the winter was an anomaly in the local brewing industry. Look for me the next time you're ordering fast food.Joe Waltshttp://www.blogger.com/profile/18115431808379517101noreply@blogger.com6tag:blogger.com,1999:blog-210779879875666278.post-82335347975522104182009-10-26T15:08:00.002-05:002009-10-26T15:10:32.898-05:00Beat to the Brewpub BillAfter a year and ten months of working full-time to open a brewpub, I'm a little jealous that the owners of <a href="http://www.vintagemadison.com/">Vintage</a> were able to snap their fingers and start renovating the old J.T. Whitney's building. It's not a vindictive jealousy, though - I wish them the best and plan on checking the place out once it opens. I'll also say "you're welcome" for turning down a venture capitalist who wanted to do the same thing back in April (I'm friends with the Whitney's folks and didn't want to prevent them from renegotiating their lease).<br />
<br />
What's interesting to me is finding out how Wisconsin's ill-conceived brewpub law will apply to them. From what I can gather, a brewpub owner can't own - directly or indirectly - any non-brewpub establishments with Class B liquor licenses. I don't think a restaurant actually has to brew beer to be a brewpub, though, so the Vintage owners could probably just apply for a second brewpub permit to cover their downtown location. If a brewing operation does need to exist, a "brewpub group" probably only needs to brew at one location (see <a href="http://www.dor.state.wi.us/forms/excise/at-113.pdf">this</a> Department of Revenue form). I'm sort of glad that RePublic won't be setting the precedent on how the law is enforced.<cite></cite>Joe Waltshttp://www.blogger.com/profile/18115431808379517101noreply@blogger.com0tag:blogger.com,1999:blog-210779879875666278.post-12795321767746411332009-10-20T18:11:00.000-05:002009-10-20T18:11:53.084-05:00UnderqualifiedDespite having never worked in a commercial kitchen, I'm now a state-certified food manager. I love bureaucracy. My certification expires in September of 2014, so I have plenty of time to reinvent myself as the guy who fires you for doing lines on the prep table.Joe Waltshttp://www.blogger.com/profile/18115431808379517101noreply@blogger.com2tag:blogger.com,1999:blog-210779879875666278.post-2432729244016382662009-10-19T21:04:00.000-05:002009-10-19T21:04:15.705-05:00Lager HouseI don't brew many lagers. It's a matter of logistics, not preference: I use the same fridge for lagering and serving, and beer doesn't have much flavor at the near-freezing temperatures necessary for lager maturation. I have the lager bug right now, though, so I'm going to go without for a while and brew a Munich Dunkel. Here's the plan:<br />
<br />
-Make a huge yeast starter. I'm talking two steps with a cumulative volume of 1.6 gallons for a 5-gallon batch of beer. Since I don't want to dump that much oxidized starter beer into my delicate lager, I needed to adjust my recipe calculations to decant most of it before pitching (I typically pitch everything because having a lot of healthy yeast usually trumps the drawbacks). You can download the updated recipe spreadsheets at the <a href="http://sites.google.com/site/republicbrewpub/">File Cabinet</a>.<br />
-Mash at 145 degf to create a lot of fermentable sugars, then pull a decoction to raise the temp to 158 degf. My procedure will be similar to the Hochkurz process described near the bottom of <a href="http://braukaiser.com/wiki/index.php?title=Decoction_Mashing">Brukaiser's decoction mashing website</a>. I'm leaving out the protein rest and mashout, though, because modern malts eliminate the need for a protein rest and my homebrew system works fine without mashouts (as did every commercial brewhouse I've worked on). I'm not convinced that decoction mashing is necessary either, but it'll introduce less oxygen than performing a step mash on my stove and pouring the contents into my lautering vessel.<br />
-Ferment as close to 48 degf as possible. I'll do so by pitching my yeast at 46 degf (I hope it's cold outside) and setting the fridge to 44 degf. If the beer gets hotter than 48 degf but stays below 52, it's no big deal.<br />
<br />
That's my story and I'm sticking to it.Joe Waltshttp://www.blogger.com/profile/18115431808379517101noreply@blogger.com2tag:blogger.com,1999:blog-210779879875666278.post-52989673707505916572009-10-13T19:25:00.001-05:002009-10-14T08:07:06.978-05:00Assembly Hearing = MehToday's hearing on AB287 pretty much went like this:<br />
<br />
-Proponents: alcohol abuse, drunk driving and underage drinking cause a lot of problems in Wisconsin. We support a beer tax increase so law enforcement and treatment projects can be better-funded.<br />
-Opponents: raising the beer tax will result in job losses, and potential business closures, in the brewing and related retail industries which are vital to Wisconsin's economic health.<br />
<br />
I was disappointed that the debate centered around preventing alcohol abuse vs. saving jobs, as though the two are mutually exclusive, instead of focusing on who should pay for the high costs of alcohol abuse. I was at the hearing for over four hours, but my name hadn't been called by the time I needed to leave. The point I was planning to make was "my opposition to this tax doesn't mean that I'm against reducing drunk driving or alcohol abuse, or that I'm against using taxpayer money to do so. The issue for me is where the money comes from. If issuing fines to problem drinkers only pays for a fraction of the costs they create, you need somebody else to foot the rest of the bill. AB287 places that burden on responsible drinkers, even though they contribute no more to the problem - nor benefit any more from the solution - than non-drinkers. If a tax increase is absolutely necessary, then raise the general sales tax (by 0.05%) or income tax (all brackets by 0.03%) so the tax hike doesn't reflect a moral judgment against responsible drinkers."Joe Waltshttp://www.blogger.com/profile/18115431808379517101noreply@blogger.com2tag:blogger.com,1999:blog-210779879875666278.post-20321095619958904912009-10-08T15:22:00.003-05:002009-10-08T16:05:31.853-05:00Refuting Beer TaxesThe rationale behind Terese Berceau's proposed beer tax increase is outlined on the following website:<br />
<br />
<a href="http://www.legis.state.wi.us/assembly/asm76/news/How%20low%20is%20the%20Wisconsin%20beer%20tax.htm">How ridiculously low is the Wisconsin beer tax</a><br />
<br />
Below are my responses to some of her claims.<br />
<br />
<b>Berceau</b>: the Wisconsin beer tax was created in 1933 (at $1 a barrel).<br />
<b>RePublic</b>: in 1933, Wisconsin implemented a regressive tax that increased at each stage of the state-mandated three-tier supply chain. The tax itself was subject to sales tax.<br />
<br />
<b>Berceau</b>: it has only been raised once ― to $2.00 a barrel in 1969 (36 years later).<br />
<b>RePublic</b>: Wisconsin has a pretty good track record of supporting an industry that creates a lot of jobs.<br />
<br />
<br />
<b>Berceau</b>: if increased to inflation from 1933, it would be $16.12 a barrel.<br />
<b>RePublic</b>: if you believe this number, a six-pack of Spotted Cow would cost you $8.44 per 6-pack before sales tax. Here's the math: $7.99 (current price) + [$16.12 per barrel - $1.33 per barrel (the current average beer tax that New Glarus probably pays)] * 1.3 (distributor markup) * 1.3 (retail markup) / 31 gallons per barrel / 128 oz per gallon * 12 oz per bottle * 6 bottles per 6-pack = $8.44.<br />
<br />
<b>Berceau</b>: if increased by inflation from 1969, it would be $10.85 a barrel.<br />
<b>RePublic</b>: Inflation is already included in the cost of beer via ingredient expenses, labor expenses, utility expenses, occupancy expenses, marketing expenses and many other expenses. If we use inflation to justify raising the beer tax this year, will we keep doing it in subsequent years?<br />
<br />
<br />
<b>Berceau</b>: the Berceau proposal is $10 a barrel.<br />
<b>RePublic</b>: will you continue to support New Glarus when Spotted Cow costs $8.29 per 6-pack or will you downgrade to something cheaper and much less Wisconsin?<br />
<br />
<b>Berceau</b>: it has been 38 years since the last increase!<br />
<b>RePublic</b>: would you elect a president who campaigns to raise taxes because it hasn't been done a long time?<br />
<br />
<b>Berceau</b>: Wisconsin’s beer tax has lost 83% of its value due to inflation since 1969.<br />
<b>RePublic</b>: this is a good thing. Beer tax = a large number of responsible drinkers pay to reduce problems caused by a small number of irresponsible drinkers, which helps the general public. No beer tax = the general public pays to help the general public. If raising taxes during a recession is really the best way to combat drunk driving, raise a tax that affects the entire population fairly.<br />
<br />
<b>Berceau</b>: Wisconsin has the third lowest beer tax in the nation (6.5¢ per gallon)(3.6¢ a six-pack) (0.6¢ a 12-ounce bottle).<br />
-Second lowest: Missouri (6¢ per gallon) (headquarters of Anheuser-Busch)<br />
-Lowest: Wyoming (1.9¢ per gallon).<br />
Our neighboring states charge two to three times more.<br />
- Illinois: 19¢ per gallon<br />
-Minnesota: 15¢<br />
-Indiana: 12¢<br />
-Michigan: 20¢ <br />
<b>RePublic</b>: my mom used to ask me "if everyone else jumped off a bridge, would you do the same?"<br />
<br />
<b>Berceau</b>: the great majority of <st1:place w:st="on">Wisconsin</st1:place> beer producers pay very little in state beer tax.<br />
<b>RePublic</b>: that's sort of true because the beer tax is really paid by consumers. Brewers, distributors and retailers can deflect tax increases by raising their prices. If they didn't, they'd go out of business. Unfortunately, most consumers can't just raise their incomes.<br />
<br />
<b>Berceau</b>: 79% of all beer producers in <st1:state w:st="on"><st1:place w:st="on">Wisconsin</st1:place></st1:state> pay between $0 and $5,000 annually in state beer tax.<br />
<b>RePublic</b>: 79% of all beer producers in Wisconsin are very small companies.<br />
<br />
<b>Berceau</b>: 64% of <st1:place w:st="on">Wisconsin</st1:place> beer producers pay less than $1,000 annually in state beer tax.<br />
<b>RePublic</b>: 64% of Wisconsin beer producers are extremely small companies.<br />
<br />
<b>Berceau</b>: only 4 out of 66 beer producers in <st1:state w:st="on"><st1:place w:st="on">Wisconsin</st1:place></st1:state> pay more than $100,000 in annual state beer taxes. (Miller alone pays over a $1 million).<br />
<b>RePublic</b>: as a startup brewery, RePublic be lucky to sell $400,000 of beer. The business shouldn't be paying anywhere near $100,000 in taxes.<br />
<br />
<b>Berceau</b>: over 92% of all beer producers in <st1:state w:st="on">Wisconsin</st1:state> pay only half ($1.00 a barrel) of the <st1:place w:st="on"><st1:state w:st="on">Wisconsin</st1:state></st1:place> beer tax (because they produce less than 50,000 barrels a year). Only Miller is taxed entirely at the full $2.00 a barrel tax. Leinenkugel, Pabst, New Glarus and Mike’s Lemonade are taxes at a combination of the 50% and 100% rate.<br />
<b>RePublic</b>: wow, reducing taxes to small businesses encourages... small business! Small breweries tend to produce flavorful beer, which discourages binge drinking. When was the last time you saw somebody pound a case of Lake Louie Porter or stagger down the street with a bottle of Sprecher Barleywine in a paper bag?<br />
<br />
<b>Berceau</b>: only 31% of all beer produced in <st1:state w:st="on"><st1:place w:st="on">Wisconsin</st1:place></st1:state> is taxed at all! 69% is exported <st1:place w:st="on">Wisconsin</st1:place> tax free (5.9 million barrels exported of 8.5 million barrels produced).<br />
<b>RePublic</b>: not true! All breweries pay taxes to the states they export beer to. If you start charging taxes for beer that isn't sold in the state, the double taxation will render Wisconsin's breweries unable to compete in out-of-state markets.<br />
<br />
<b>Berceau</b>: Miller, alone, generated 77% of all of our beer tax revenue from in-state producers. The top four, Leinenkugel, Miller, Pabst and Mike’s Lemonade account for 95% of all of our revenue from in-state producers.<br />
<b>RePublic</b>: a single Miller brewery - they have several - brews more beer in one day than J.T. Whitney's brewed in its entire fifteen-year existence. This is like saying "a person who makes $200K/yr pays a lot more income tax than somebody who makes $50Kyr."<br />
<br />
<b>Berceau</b>: the Berceau proposal is to raise the state beer tax from $2.00 a barrel to $10 a barrel. Or, from the current 0.6¢ a 12-ounce bottle, to 3¢ a bottle. It would raise the state tax from the current, 3.6¢ a six-pack to 18¢ a six pack.<br />
<b>RePublic</b>: these numbers are what the brewers will pay, not what the consumers will pay. To figure out the consumer cost increase, multiply all of these numbers by 1.3 twice.<br />
<br />
<b>Berceau</b>: the Berceau proposal would raise our revenue to approximately $50 million.<br />
<b>RePublic</b>: if you assume that every brewery except Miller currently pays $1/barrel in beer tax and that the consumption of Wisconsin-made beer won't change after the new tax, then the increase in revenue will be about $50 million. Those are a couple of huge ifs, though.<br />
<br />
<b>Berceau</b>: the average drinker will not even feel the effect of an increase.<br />
<b>RePublic</b>: as long as they're earning the same job compensation as a congresswoman.<br />
<br />
<b>Berceau</b>: beer producers are not concerned about the “average” drinker. They know that most of their revenue comes from price-insensitive heavy drinkers.<br />
<b>RePublic</b>: state representatives are not concerned about the "average" constituent. They know that most of their votes come from campaign spending, which is funded by special-interest groups. Seriously, though, who wants their brewpub to be known as the place where drunk patrons get into fights? Who wants their brewery's name associated with fatal car crashes? Who wants to contribute to the alcoholism that tears up families? Not only is promoting heavy drinking an abhorrent character accusation, but it's simply bad business.<br />
<br />
<b>Berceau</b>: 10% of all drinkers consumer 43% of all beer. 20% of all drinker consumer 85% of all beer.<br />
<b>RePublic</b>: what constitutes a drinker? Somebody who's admitted to having a drink in their lifetime?<br />
<br />
<b>Berceau</b>: even for a heavy drinker who consumes a six pack a day, the Berceau increase would only cost you an additional $1 a week.<br />
<b>RePublic</b>: Nope, it would cost an additional $1.72 per week ($89.30 per year) after distributor and retailer markups of 30% each. That's a lot, considering we're talking about a tax on a product instead of the product itself.<br />
<br />
<b>Berceau</b>: heavy and addicted drinkers who account for most of the beer consumption in the <st1:country-region w:st="on"><st1:place w:st="on">U.S.</st1:place></st1:country-region> rightly pay the most in beer taxes, since their drinking imposes the greatest cost on society.<br />
<b>RePublic</b>: again, how is the claim (heavy drinkers account for most of the beer consumption in the U.S.) substantiated? Is it because people who drink two beers a day are considered a heavy and/or addicted drinkers? If this is really about sticking heavy drinkers with the bill, they should literally bill heavy drinkers when they cause problems and leave the rest of us alone.<br />
<br />
<b>Berceau</b>: if a 3¢ per bottle tax causes you a financial burden, you have greater problems to worry about than the beer tax.<br />
<b>RePublic</b>: yes, poor people, the discussion regarding this 5¢ per bottle tax increase is above you. You can add it to your list of problems, but you have no business worrying about it.<br />
<br />
<b>Berceau</b>: the moderate-drinking majority of drinkers consume relatively little alcohol and pay a negligible amount of alcohol taxes.<br />
<b>RePublic</b>: moderate drinkers would still be taxed more than non-drinkers to fix a problem that neither of them cause, which isn't right. Even if the proposed tax increase was $0.0000001 per barrel, the principle of it would still be wrong (and a waste of the government's time).<br />
<br />
<b>Berceau</b>: alcoholic beverages are cheaper (25% less after adjusting for inflation) today than they were in the 1960s and 1970s. (Institute of Medicine, National Research Council)<br />
<b>RePublic</b>: Finally, a source! Too bad the statistic is meaningless in terms of justifying a tax hike, unless increasing the cost of living is a good thing.<br />
<br />
<b>Berceau</b>: the alcohol industry is financially dependent upon underage and pathological drinking.<br />
<b>RePublic</b>: in my year and a half at J.T. Whitney's, I saw exactly one instance of knowingly serving an underage patron - an 18-year old who was with his parents. However, I'll admit that an underage drinking problem exists. It doesn't have much to do with the price of beer, though, and I'd wager that the majority of underage drinkers - like I did when I was underage - consume the cheapest alcohol they can get their hands on. With bottom-shelf vodka already being cheaper than beer on a per-volume of ethanol basis, this tax isn't going to do much to prevent underage drinking.<br />
<br />
<b>Berceau</b>: nationwide, 37.6% of alcohol (by cost) was misused or illegally consumed ($48.3 billion). Another study put it as high as 48.8%.<br />
<b>RePublic</b>: these are difficult statistics to track. Can we see who conducted the studies, please?<br />
<br />
<b>Berceau</b>: Wisconsin ranks 4<sup>th</sup> highest per capita for alcohol consumption from beer (<st1:state w:st="on">Nevada</st1:state>, <st1:state w:st="on">New Hampshire</st1:state> and <st1:state w:st="on"><st1:place w:st="on">Montana</st1:place></st1:state> rank higher).<br />
<b>RePublic</b>: let's stick to beer here. According to a 2007 article in TIME Magazine, Wisconsinites drank an average of 28 gallons per year. That's 0.8 12-oz bottles per day, folks. Per-capita alcohol consumption isn't the problem.<br />
<br />
<b>Berceau</b>: <st1:place w:st="on"><st1:state w:st="on">Wisconsin</st1:state></st1:place> is listed among the “Fatal Fifteen” states for the highest underage drinking deaths by the National Safety Board. Over 60,000 <st1:place w:st="on">Wisconsin</st1:place> residents receive publicly funded alcohol treatment. <span style="font-family: Symbol;"><span style="font-family: "Times New Roman"; font-size-adjust: none; font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"></span></span>Over 44,000 OWIs and PACs (prohibited alcohol content) violations in <st1:place w:st="on"><st1:state w:st="on">Wisconsin</st1:state></st1:place> in 2006. 6,000 alcohol-related driving injuries in <st1:place w:st="on"><st1:state w:st="on">Wisconsin</st1:state></st1:place> in 2005. <span style="font-family: Symbol;"><span style="font-family: "Times New Roman"; font-size-adjust: none; font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span>369 alcohol-related driving fatalities in <st1:place w:st="on"><st1:state w:st="on">Wisconsin</st1:state></st1:place> in 2005. Alcohol is related to the crimes of about half of <st1:place w:st="on"><st1:state w:st="on">Wisconsin</st1:state></st1:place>’s 22,000 prisoners. 70% of our 22,000 prisoners require alcohol or substance abuse treatment.<br />
<b>RePublic</b>: now we're getting to the real problem - our drunk driving laws are a joke. Apparently we're giving plenty of citations, but they're not helping much. It sounds like an increased beer tax would just fund more of the same (if we assume that our legislators are remotely capable of following through on a proposed earmark).<br />
<br />
<b>Berceau</b>: the $9.7 million raised by the state beer tax last year covered only a fraction of treatment costs. That doesn’t even include the $825 million in annual alcohol-related heath care costs that get passed along to <st1:place w:st="on">Wisconsin</st1:place> taxpayers. It doesn’t count the estimated $2.7 billion in state:<br />
-Policing and court costs<br />
-Incarceration costs<br />
-Traffic crash costs<br />
-<span style="font-family: "Courier New";"><span style="font-family: "Times New Roman"; font-size-adjust: none; font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> </span></span>Lost productivity costs<br />
-Academic failure costs<br />
-Premature death costs <br />
<b>RePublic</b>: beer tax shouldn't cover the whole treatment cost because every person benefits from it regardless of the amount of alcohol they consume.<br />
<br />
<b>Berceau</b>: each <st1:place w:st="on">Wisconsin</st1:place> resident pays only $1.82 a year in beer taxes.<br />
<b>RePublic</b>: each Wisconsin resident should pay $0.00 a year in beer taxes. <br />
<br />
<b>Berceau</b>: but also $18.64 in alcohol treatment costs<o:p></o:p> …and $154 in alcohol-related healthcare costs<o:p></o:p> $500 in alcohol-related criminal justice and societal costs. Alcohol abuse and addiction cost the nation an estimated $220 billion in 2005. …more than cancer ($196 billion) …and more than obesity ($133 billion). …and<br />
<b>RePublic</b>: regardless of the integrity of these statistics, it's common sense that a small number of problem drinkers can add up to big money. Why are we trying to match the costs with unfair taxes instead of doing things that could reduce them?<br />
<br />
If you'd like to weigh in on the official debate, go to the State Capitol, Room 417 North (GAR), on 10/13 at 10am.Joe Waltshttp://www.blogger.com/profile/18115431808379517101noreply@blogger.com9tag:blogger.com,1999:blog-210779879875666278.post-24506507420705477612009-10-05T14:43:00.003-05:002009-10-05T18:16:22.283-05:00Big Bad SummaryIt's been a couple of weeks since I've written anything here. What can I say? Raising money is boring. In an effort to balance the homebrewing content, here's a timeline of our startup process:<br />
<br />
-Summer 2006: loved my job at J.T. Whitney's, but the pay was lousy. Reasoned that if I wanted to earn a decent living, be in charge of a brewing operation and stay in Madison, I'd need to open my own business. Decided it would be a distributing brewery so I wouldn't have to mess around with food service.<br />
-Late 2006 or early 2007: asked Jane to be my business partner. I'd brew the beer while she marketed and sold it.<br />
-February 2007: Moved to Vermont for a 10-month job at <a href="http://ottercreekbrewing.com/">Otter Creek Brewing</a> so I could familiarize myself with bottling.<br />
-Sometime in 2007: Vermont was beautiful, my co-workers were great and the pay was good, but the nature of brewpub work was a lot more fun. Jane and I decided the business would be a pub.<br />
-December 2008: contract at Otter Creek ended. Moved back to WI and stupidly decided not to get a job so I could open the business faster.<br />
-January 2008: began researching information and writing a business plan.<br />
-February 2008: decided to call the business RePublic Brewpub.<br />
-May 2008: met with <a href="http://idunconsulting.com/">a lawyer</a> about business structure and hired him to write an operating agreement (the LLC equivalent of corporate by-laws).<br />
-July 2008: began looking for locations in Madison. Reviewed projections with <a href="http://www.wegnercpas.com/about/ruef.htm">an accountant</a>. Started writing a Private Placement Memorandum (PPM), aka a formal investment offering. Registered the business as an LLC.<br />
-August 2008: received our initial operating agreement. Obtained an Employer ID number from the IRS.<br />
-October 2008: Finished the initial business plan. Began meeting with securities lawyers to discuss investor solicitation strategies and ensure that our PPM complied with securities laws.<br />
-November 2008: Started working with <a href="http://www.lee-associates.com/global/people-detail.php?location=0&industry=0&hidNumTries=0&id=1018">a commercial realtor</a>.<br />
-December 2008: retained <a href="http://www.foley.com/people/bio.aspx?employeeid=14768&&practiceID=&industryID=&genPageID=&serviceID=">a securities lawyer</a> to review our PPM. Started working with <a href="http://www.destreearchitects.com/">an architect</a>.<br />
-January 2009: hired <a href="http://www.sonrisacreative.com/">a graphic artist</a> and <a href="http://www.megancoleman.com/">a web designer</a>. Opened a money market account to deposit investor checks. Finished the initial PPM and started looking for investors.<br />
-April 2009: began talking with bankers about loans.<br />
-May 2009: began looking for locations in Sun Prairie.<br />
-June 2009: chose <a href="http://maps.google.com/maps?f=q&source=s_q&hl=en&geocode=&q=117+Columbus+St,+Sun+Prairie,+WI+53590&sll=43.062071,-89.400846&sspn=0.317559,0.653687&ie=UTF8&hq=&hnear=117+Columbus+St,+Sun+Prairie,+Wisconsin+53590&z=16">a location</a> and began negotiating our occupancy.<br />
-July 2009: began working with <a href="http://www.harmonyconstructionmgmt.com/">a construction manager</a> and received our initial construction estimate.<br />
-August 2009: secured the location. Registered as a future payer of Wisconsin business taxes. Received our initial floor plan.<br />
-September 2009: registered our investment offering with the Securities and Exchange Commission as exempt under Regulation A, Rule 504. Wisconsin's "25 or fewer non-accredited investors" exemption didn't require registration. Took a food safety course to comply with state regulations (the business needs a certified food manager. It'll eventually be Jane, but she won't be able to take the course for a while and we didn't want that to slow us down).<br />
<br />
Throughout this process, Jane and I gathered knowledge to refine our business plan. Understanding what we're trying to do has definitely been the most time-consuming aspect of this project, and it's become obvious to us how the owners of brewpub chains are able to open their subsequent locations much quicker than their initial locations.Joe Waltshttp://www.blogger.com/profile/18115431808379517101noreply@blogger.com2tag:blogger.com,1999:blog-210779879875666278.post-21653621526789945282009-09-24T14:31:00.006-05:002009-09-24T16:09:05.430-05:00BritishnessI'm no expert on British ales, but I can't think of any American versions that recreate a fundamental character shared by beers like Fuller's ESB, Samuel Smith Oatmeal Stout and Old Peculier. Oxidation of the British beers is definitely a contributing factor, but it doesn't tell the whole story. Thanks to Ron Pattinson, who shares his research of European brewery logs online, I've learned that a lot of British beers are made with inverted sugar at various stages of refinement. In one of today's posts, he <a href="http://barclayperkins.blogspot.com/2009/09/use-of-sugar-in-brewing.html">calls out American brewers</a> for applying an all-malt philosophy to British beer recipes.<br /><br />Not knowing where to buy British brewing sugars, I've been using <a href="http://darkcandi.com/d.html">Belgian Dark Candi Syrup</a> as an alternative. So far, the results have been promising. My latest Old Ale was a step in the right direction, and I brewed a mild last week that I'm pretty excited about. Unfortunately, I won't have anything to compare the mild with because British session beers are too fragile to sell in the states. Maybe I'll be able to visit England in ten years or so, when I've recovered from the financial trauma of trying to open a brewery.Joe Waltshttp://www.blogger.com/profile/18115431808379517101noreply@blogger.com5tag:blogger.com,1999:blog-210779879875666278.post-33600715855588742912009-09-20T15:40:00.004-05:002009-09-20T16:24:44.989-05:00Brewing with FoodMy first attempt at brewing with cherries - a 5-gallon batch of cherry porter - was slightly disappointing. Here's what I did:<br /><br />-Fermented the base beer for four days.<br />-Mixed 10 lbs of cherries with enough water to cover the fruit.<br />-Mashed the cherries with a giant perforated spoon.<br />-Pasteurized the mixture at 140 degf for 5 minutes.<br />-Cooled the fruit and added it to the beer.<br />-Fermented the beer for another ten days.<br />-Transferred the beer into a keg, leaving the cherries behind.<br /><br />The finished beer wasn't bad, but the cherry contribution was pathetic. It should come as no surprise that the spent cherries were largely whole when I removed them from the fermenter. Next time, I'll either need to mash the cherries before adding water - both so they don't "swim" away from the spoon and so I can watch my progress - or let the beer age on them for months.<br /><br />The next beer I brewed was a Belgian "Pumpkin" Ale. Spiced beers require fresh spices, so I bought new cinnamon and ginger the previous day. As a firm believer that pumpkin doesn't contribute any flavor to beer, I used butternut squash instead (credit for the idea goes to Mike Ball, a gifted Madison-area homebrewer). Butternut squash is a joy to work with: just cut it into cross-sections, cut off the peels, grate the meat with a cheese grater and add it to the mash. No seeds, no guts, no hassle. I chose not to roast the squash because I don't think it accomplishes anything. The beer is still fermenting, so the final outcome is unknown.Joe Waltshttp://www.blogger.com/profile/18115431808379517101noreply@blogger.com1tag:blogger.com,1999:blog-210779879875666278.post-52039313906313048072009-09-16T14:00:00.004-05:002009-09-16T14:17:01.431-05:00Electronic FilingTo the Securities and Exchange Commission:<br /><br />-If your software is only compatible with Internet Explorer and Netscape, your electronic filing system shouldn't be mandatory.<br />-If you require duplicate paper files with notarized signatures, your electronic filing system shouldn't be mandatory.<br />-If you accept faxes and uploaded PDFs but not emailed PDFs, your electronic filing system shouldn't be mandatory.<br />-If your software doesn't recognize file paths on Macs, your electronic filing system shouldn't be mandatory.<br />-If your tech support person says "this happened yesterday" but doesn't even pretend to care about knowing how to fix it, your electronic filing system shouldn't be mandatory.<br />-If your signature page doesn't contain space for a notary's information... well, that doesn't really have anything to do with electronic filing.<br /><br />Hopefully Jane will be able to upload the required file from her PC.Joe Waltshttp://www.blogger.com/profile/18115431808379517101noreply@blogger.com1tag:blogger.com,1999:blog-210779879875666278.post-72990904248953695572009-09-14T10:42:00.003-05:002009-11-04T18:23:39.431-06:00Work/Life BalanceI take care of Mia, my 3-month old daughter, on Mondays. Today, while holding her on my shoulder after a feeding, I had a phone conversation with a banker. It went something like this:<br /><br />Banker: Thanks for calling me back. Unfortunately, we're not going to be able to...<br />Mia: BAAARRRRRFFFFFFF!!!<br />Banker: give you a loan due to your equity...<br />Mia: BAAARRRRRFFFFFFF!!!<br />Banker: situation and the...<br />Dog: lick, lick, lick, etc.<br />Banker: state of the economy.<br /><br />Thanks for telling the banker what I was really thinking, Mia.Joe Waltshttp://www.blogger.com/profile/18115431808379517101noreply@blogger.com1tag:blogger.com,1999:blog-210779879875666278.post-64316696484229738212009-09-14T05:17:00.002-05:002009-09-14T05:28:29.366-05:00Swimming in MoneyWell, not really. We did receive some funding last week, though. The city's Community Development Authority approved our application for a facade design assistance grant. Once we renovate the building, the city will give us some money to offset the costs of designing the facade (50% of the design cost or $5,000, whichever is less). We also deposited our first investor check*. Woooo!<br /><br />*I need to submit a Form D to the Securities and Exchange Commission this week.Joe Waltshttp://www.blogger.com/profile/18115431808379517101noreply@blogger.com0tag:blogger.com,1999:blog-210779879875666278.post-75723720232992008792009-09-07T09:37:00.003-05:002009-09-07T09:56:39.663-05:00That Time of YearRachel and I celebrated our 5th wedding anniversary on Saturday. After a great dinner at <a href="http://www.sardinemadison.com/">Sardine</a>, we drank our 4th bottle of <a href="http://republicbrewpub.blogspot.com/2008/09/anniversary-beer.html">anniversary beer</a> while the baby slept. Once again, the beer had improved after a year of aging. The fruit flavor had subsided to the point that it tasted like part of the ester profile, and the color looked more like a beer than a wine. Our first glasses were remarkably clear, but our second servings were hazy with yeast. Operator error!Joe Waltshttp://www.blogger.com/profile/18115431808379517101noreply@blogger.com1tag:blogger.com,1999:blog-210779879875666278.post-88062292627944206812009-08-31T13:37:00.002-05:002009-08-31T13:41:30.575-05:00AirtimeI'll be on <a href="http://beertalktoday.blogspot.com/">Beer Talk Today</a> tomorrow. The station is 91.7 FM, aka WSUM, and the show starts at 9pm. I'm looking forward to finding out if my voice still sounds like Mickey Mouse.Joe Waltshttp://www.blogger.com/profile/18115431808379517101noreply@blogger.com3tag:blogger.com,1999:blog-210779879875666278.post-56446227223944967622009-08-29T14:04:00.004-05:002009-11-04T18:23:39.431-06:00LendersThanks to a new Sun Prairie connection, I was recently able to talk with a woman who works at the Small Business Administration. She was surprised that my latest loan application was rejected without being submitted to the SBA. When I told her the bank's primary concern was a lack of collateral, she basically told me that was crap because the SBA isn't a collateral lender. The SBA is currently guarantying 90% of each loan they approve, and they've waived their guaranty fees until at least the end of the year. What that means (I think) is if a bank loans RePublic $850K and the business fails, the SBA will give the bank $765K. The $85K in bank losses could easily be recovered by selling the brewing equipment, which is in high demand these days, and the building. Buzzards will take the restaurant equipment.<br /><br />Following the advice of a banker, I went on a lender-contacting bender last week. I'll be meeting with two of them next week, another two are reviewing my business plan, and I'm waiting to hear back from a bunch more. I need to be careful, though, because the SBA will automatically reject multiple applications for the same business. Hopefully I'll have to sign some government documents to authorize any applications to the SBA. Too many banks wanting to work with me would be a funny way to fail.Joe Waltshttp://www.blogger.com/profile/18115431808379517101noreply@blogger.com3tag:blogger.com,1999:blog-210779879875666278.post-29069367339376162652009-08-25T19:12:00.003-05:002009-11-04T18:23:39.431-06:00Positive Legislative ExperienceIt's been a busy couple of weeks for team RePublic. Between design meetings, filling out applications, meeting city officials, a fast-approaching investor commitment deadline and needing to find a new lender (boo to rejection), I haven't had much time for day-to-day tasks such as sleeping or responding to friends' emails. Yet here I am. It's a good thing that very few of my friends read this weblog.<br /><br />Yesterday morning, I received a notice about a public hearing about Assembly Bill 67 that was scheduled for this morning. The bill would revoke establishments' liquor licenses if their licensed bartenders or liquor agents are caught three times with blood alcohol levels above 0.0 while working. The bill is bad news for several reasons:<br /><br />-The beers sold at brewpubs and specialty beer bars are available at very few places. As such, employees need to taste the beer to be able to describe it to customers and make educated recommendations.<br />-I could lose my liquor license if an employee consumes one drink (or some cold medicine) before coming to work.<br />-As an owner, I'm always considered "at work". If I can't have a drink at my own pub, what's the point?<br /><br />So I went down to the capitol and testified against the bill. Thankfully the bill's sponsor, <a href="http://www.legis.state.wi.us/w3asp/contact/legislatorpages.aspx?house=Assembly&district=9">Josh Zepnick</a>, intends to revise the bill to better accomplish its intent: punish irresponsible tavern owners who allow their staff to drink excessively, therefore reducing their ability to reduce over-consumption and prevent intoxicated patrons from driving drunk. In fact, he was surprised by the last-minute call for a public hearing and admitted that the bill wasn't anywhere close to being ready. He hopes to gather a lot more feedback before trying to push anything through.<br /><br />Thank you, Wisconsin legislature, for proving my cynicism wrong on this occasion.Joe Waltshttp://www.blogger.com/profile/18115431808379517101noreply@blogger.com4tag:blogger.com,1999:blog-210779879875666278.post-38767647037006966372009-08-17T11:26:00.004-05:002009-11-04T18:23:39.431-06:00What's Next?To-do list:<br /><br />-Apply for a liquor license. The $10K price tag is pretty hefty, but the business will probably get $9,500 back after a 30-day trial period. The good news is that the money won't be due until the business is ready to receive the license.<br /><br />-Apply for a conditional use permit. The building is in a commercial zoning district, but restaurants and taverns require special approval. The permit will remain in effect even if RePublic fails, so Jane and I will need to write in some provisions that protect nearby residents from future bar owners who may not be as respectful as us.<br /><br />-Talk with the city's building inspector, police chief and fire chief. The liquor license application will automatically trigger their involvement, but I'd like to meet everyone beforehand. Ditto for the county health inspector and city wastewater treatment superintendent.<br /><br />-Raise money. Tons and tons of money. This is still our biggest obstacle.Joe Waltshttp://www.blogger.com/profile/18115431808379517101noreply@blogger.com0tag:blogger.com,1999:blog-210779879875666278.post-16438799018135157082009-08-08T08:12:00.002-05:002009-08-08T09:24:33.955-05:00The LocationRemember all that nonsense about how Jane and I would walk away from RePublic if we couldn't raise enough equity capital by May 29th? Here's what happened.<br /><br />Jane and I originally wanted to locate our pub on Atwood Ave. The smaller of the two Atwood Community Center buildings would have been perfect in terms of geography, but receiving deliveries would've been a nightmare. Aside from ACC and the old Bunky's building, which the landlord wouldn't even let us look at because we weren't fully funded, there wasn't anything available. So we branched out and shifted our focus to the areas near Sherman Ave and Northport. We liked Northgate enough to make it our fallback spot, but it still didn't have the neighborhood accessibility we were looking for. Meanwhile, our May deadline was approaching and we hadn't raised anywhere near the amount of equity capital needed for banks to take us seriously (at least 25% of the total project cost).<br /><br />Things changed when I received an email from Neil Stechschulte, the Economic Development Coordinator of Sun Prairie. The city's been trying to get a brewpub for years, and it's willing to provide financial incentives to make it happen. After touring some downtown locations with Neil and learning all about <a href="http://en.wikipedia.org/wiki/Tax_increment_financing">tax increment financing</a> and <a href="http://en.wikipedia.org/wiki/Revolving_Loan_Fund">revolving loan funds</a>, Jane and I were sold. After all, our options at that point were (a) give up because we couldn't raise enough capital or (b) hope the money from Sun Prairie would make up the difference. The big surprise was how much better downtown Sun Prairie fit with our concept than any of the non-Atwood places we found in Madison.<br /><br />After considering a few spots, we ultimately decided on <a href="http://www.loopnet.com/property/15212378/117-Columbus-Street/">the former ACME Automotive building</a> at 117 Columbus Street. Those garage doors would make an excellent spillway to an outdoor seating area, wouldn't they? Anyway, we hadn't been able to talk about it until now for two reasons:<br /><br />-We didn't want to motivate anybody else to buy the building.<br />-We wanted the neighbors to be the first to know about the project.<br /><br />We were initially going to try and lease the space, but the owner preferred to sell. Assuming we could raise the extra money needed for a down payment, it made a lot more financial sense to buy the place. We'd been negotiating the purchase terms over the last three weeks and finally reached an agreement last Tuesday. Jane and I now have 60 days (from 8/4) to raise about 80% of our required startup capital. During that time, the building owner can't accept another offer. If we're unable to raise the money in time, which is expected (our original offer gave us 90 days), we'll have the option of "buying" another 60 days by making our <a href="http://en.wikipedia.org/wiki/Earnest_payment">earnest payment</a> non-refundable. Or we can just walk away and make another offer once we have the money, effectively gambling on the owner not being able to sell the building during that time.<br /><br />On the neighborhood front, I sent letters to the owners of nearby houses and adjacent businesses. The few responses we've received have been a mix of enthusiasm and concern. Hopefully Jane and I will be able to spread the word about how well-behaved craft beer consumers tend to be, how our atmosphere and pricing will keep out the "pound twelve Budweisers" crowd, and how our business will have a much smaller impact than a giant establishment such as Great Dane.Joe Waltshttp://www.blogger.com/profile/18115431808379517101noreply@blogger.com8tag:blogger.com,1999:blog-210779879875666278.post-17180507460296435152009-08-01T06:58:00.002-05:002009-08-01T07:45:37.644-05:00Construction EstimatesA few weeks ago, I met with Paul from <a href="http://www.harmonyconstructionmgmt.com/">Harmony Construction Management</a> to get the lowdown on estimating construction costs. To my surprise, he told me he could make a couple of trips to the site and prepare an estimate in less than two weeks - free of charge. The budget he created was downright eerie: it only differed from my prior estimate ($100 per square foot) by $3,000. His projected schedule was pretty close to my expectations as well.<br /><br />Paul was a recommended to me and Jane by <a href="http://www.destreearchitects.com/">Melissa</a>. As usual, her advice was good. Paul has built a lot of restaurants, including the Great Dane in Fitchburg, and he's been very straightforward in educating us about the build-out process. Unlike most general contractors (so I've heard), he shares his itemized expenses with clients and pays himself a fixed percentage of the final cost. That means a few things:<br /><br />-He can't exploit his clients' ignorance to pad his bottom line.<br />-Change orders don't allow him to grossly violate his estimates.<br />-His clients have a healthy amount of control over the final cost.<br /><br />Jane and I were very impressed with Paul and we're looking forward to working with him as our project progresses.Joe Waltshttp://www.blogger.com/profile/18115431808379517101noreply@blogger.com0tag:blogger.com,1999:blog-210779879875666278.post-17854982215695965242009-07-22T23:09:00.016-05:002009-07-28T12:02:44.293-05:00Session Beers Are Only Part of the PlanBetween many meetings and occupancy negotiations, I was able to sneak in a brewday last week. The beer - a massively strong blond farmhouse ale for my brother's wedding anniversary - is still fermenting at a moderate pace. If the beer turns out to my liking, i.e. dry as hell with subtle saison-like flavors, I may use it as the base of my <a href="http://republicbrewpub.blogspot.com/2008/09/anniversary-beer.html">Grand Cru</a>. Here are some pictures of the brewing process.<br /><br />A 1.1-gallon yeast starter:<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjZm56V46GL4KwxQiwhGo0heKL1To77QOPh0nZq4NbDxYu7ulazI4j9AW26bTAhrdvTUBaw8mRSiY_WjwegqVU8hw6C0hkicAUmUlZxks0hkV52sf1LpViOu_jcK5PxOnQDrgvXTiQr0JCG/s1600-h/Starter.JPG"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 300px; height: 400px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjZm56V46GL4KwxQiwhGo0heKL1To77QOPh0nZq4NbDxYu7ulazI4j9AW26bTAhrdvTUBaw8mRSiY_WjwegqVU8hw6C0hkicAUmUlZxks0hkV52sf1LpViOu_jcK5PxOnQDrgvXTiQr0JCG/s400/Starter.JPG" border="0" alt=""id="BLOGGER_PHOTO_ID_5361505564907054082" /></a><br />My mash tun capacity limited the total batch size to 4.5 gallons:<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjyVF8SIZoVQwJulxs_EuMwJeGSDmzyFou_Qx-tccto3cY-xFmiyDZud6qDSkPsiJ6-I33aRBWci-jwsBEXhEipfu4HOgII3Alt8W1phdWwKt1HRlH291HAt6RAw0E4bK26nmfLBex2jzM-/s1600-h/Mash.JPG"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 400px; height: 300px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjyVF8SIZoVQwJulxs_EuMwJeGSDmzyFou_Qx-tccto3cY-xFmiyDZud6qDSkPsiJ6-I33aRBWci-jwsBEXhEipfu4HOgII3Alt8W1phdWwKt1HRlH291HAt6RAw0E4bK26nmfLBex2jzM-/s400/Mash.JPG" border="0" alt=""id="BLOGGER_PHOTO_ID_5361506448853429458" /></a><br />First wort hops:<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjORoq4uqLN2KnlBV5YqkYHqH6kAEUfi7rNq_d9mihMqUe6OOOSa8YJo5MRzYa45_-VOJwfNH9weqLlwcdi3P-OKjWyAeX-K0pu4sL834mZyiggoldohPZ9BGoqrO9Q3igGgluDeBQM-lcb/s1600-h/Hops.JPG"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 400px; height: 300px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjORoq4uqLN2KnlBV5YqkYHqH6kAEUfi7rNq_d9mihMqUe6OOOSa8YJo5MRzYa45_-VOJwfNH9weqLlwcdi3P-OKjWyAeX-K0pu4sL834mZyiggoldohPZ9BGoqrO9Q3igGgluDeBQM-lcb/s400/Hops.JPG" border="0" alt=""id="BLOGGER_PHOTO_ID_5363550981285331906" /></a><br />An unreadable pre-boil gravity of 1.091 (after temperature correction):<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjoPxv3z1wFIA0DFkbX7WYQM7PvbbNaIokvqk-q-uHdtAs_Kyb-l-oH2H2iuqVacVsKsxp8AX1MNWaF83CsgHavRSx6guAXUzjGOc7I9OUXt1fOrfXehOSUAFGRWaSEN73Z97QkcT2yR9Ef/s1600-h/Gravity.JPG"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 400px; height: 300px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjoPxv3z1wFIA0DFkbX7WYQM7PvbbNaIokvqk-q-uHdtAs_Kyb-l-oH2H2iuqVacVsKsxp8AX1MNWaF83CsgHavRSx6guAXUzjGOc7I9OUXt1fOrfXehOSUAFGRWaSEN73Z97QkcT2yR9Ef/s400/Gravity.JPG" border="0" alt=""id="BLOGGER_PHOTO_ID_5363551475509856834" /></a><br />It was only 0.003 below my target, which is pretty close for such a strong beer. It means the <a href="http://republicbrewpub.blogspot.com/2009/04/lautering-efficiency.html">lautering efficiency curve</a> in my recipe spreadsheet is valid near the upper end.Joe Waltshttp://www.blogger.com/profile/18115431808379517101noreply@blogger.com2tag:blogger.com,1999:blog-210779879875666278.post-4136987935398566732009-07-20T18:55:00.003-05:002009-07-20T19:40:28.150-05:00Yeast vs. pHI bottled my sour red ale last month. Forgetting that low pH inhibits most brewers' yeasts, I pitched some into the year-old beer beforehand. Two weeks later, the beer was tasty but dead flat. Hopefully the souring microorganisms will consume the aftermath of the impending yeast <a href="http://en.wikipedia.org/wiki/Autolysis">autolysis</a>, benefiting from the extra nutrition as they carbonate the beer at a leisurely pace. I plan to crack open the next bottle in about five months.Joe Waltshttp://www.blogger.com/profile/18115431808379517101noreply@blogger.com0tag:blogger.com,1999:blog-210779879875666278.post-55618061648301638992009-07-15T11:24:00.005-05:002009-11-04T18:23:39.431-06:00Vague Good NewsJane and I have found a bank that's willing to apply for an <a href="http://www.sba.gov/">SBA</a> guaranty on our behalf. Before we can submit the application, we'll probably need to provide the following information:<br /><br />-Location. We've chosen a space and are in the process of negotiating our occupancy, but securing a building with financing contingencies is tricky business.<br />-Detailed estimates of construction costs. We're currently using a ballpark dollar per square foot number, but the SBA will likely want to see an itemized list based on a specific location. I recently met with a construction manager and learned that it can be done much faster than I expected.<br />-Accountant's contact info. I figured we'd retain an accountant when we're ready to select the pub's bookkeeping and point of sale systems, but we may have to do it sooner. I know who I'd like to hire, but I need to make sure that Jane agrees.<br />-Insurance (physical damage and fire) on loan collateral. Hopefully some of the pub's assets will suffice for collateral. After all, the SBA could provide a guaranty for up to 90% of the loan's value. The potential problem is that the pub won't have any assets until we receive a loan. Will an insurance estimate on future assets suffice? We hope so!<br /><br />There's a lot more, but we already know most of it. Our past diligence is paying off.Joe Waltshttp://www.blogger.com/profile/18115431808379517101noreply@blogger.com0tag:blogger.com,1999:blog-210779879875666278.post-46144044519648588952009-06-29T13:53:00.006-05:002009-06-29T15:45:48.043-05:00The Restaurant BusinessLast November, I noticed this ad near the back of an issue of <a href="http://www.rsgmag.com/">Restaurant Startup & Growth</a> magazine:<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjEuR6-ZHFQWp5Dizuv0IKuyWg41OFJMDTQXvSI-hPjKy4gyMFiU8aXnOiOTumJCOlIk_MJwaPJ_x_OCfXtcL6VVXIfvJW-BTOru8T88QLEtztS17Grwy7x8x1zAaO5zn3Zk-PbYy2jqfUG/s1600-h/Beadle.jpg"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 350px; height: 400px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjEuR6-ZHFQWp5Dizuv0IKuyWg41OFJMDTQXvSI-hPjKy4gyMFiU8aXnOiOTumJCOlIk_MJwaPJ_x_OCfXtcL6VVXIfvJW-BTOru8T88QLEtztS17Grwy7x8x1zAaO5zn3Zk-PbYy2jqfUG/s400/Beadle.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5352825508390619474" /></a><br />When I followed web address, I was shocked at what I saw:<br /><br />-No mention of boiling the wort.<br />-No mention of tank cleaning.<br />-No mention of oxygenation.<br />-No mention of how to deal with the CO2 produced during fermentation.<br />-No mention of how to troubleshoot problems without a qualified brewer.<br />-A requirement for a hot water source, but no warning that the water can't be softened.<br />-A 7-day fermentation cycle that includes two days of cooling. No maturation.<br />-A claim that three tanks equals five beers on tap at all times ("ask about mixing beers to produce additional flavors").<br />-A claim that ingredients alone cost $0.26 per pint, which makes a total cost of $0.30 per pint highly suspect.<br />-A claim that SPI's beer won a bunch of awards from a competition that I can't find any record of.<br />-A claim that a book written by Leigh Beadle, the company founder, started the US homebrewing revolution.<br /><br />That's the short list. It's possible that Specialty Products International conducts itself with the utmost integrity and addresses all of these issues in their dealings with individual customers. I doubt it, though. If their system was really a convenient solution to a whole host of brewing problems, I'd expect to find at least find one mention of it in a search of brewing industry publications. One thing is certain: SPI isn't marketing its products to people who know how to make beer.<br /><br />That bothered me quite a bit, but what bothered me more was RS&G's response when I wrote to one of their publishers to point out that the ad was likely exploiting their subscribers' ignorance: no acknowledgment of any sort. A "thanks for the info, but we need to honor our current agreement with SPI" or "you're biased and have insufficient credentials for us to take action on" or "we care more about ad revenue than actually helping restaurateurs" would have been fine. Pulling the ad would've sufficed as well, but it's appeared in every single issue since. I'm sure it brings in more money than my subscription, which will hopefully expire soon.<br /><br />Does anyone who reads this weblog have firsthand experience with a Beadle Brewing System? I'd call SPI and ask a bunch of questions myself, but doing so with no intention of becoming a customer would make me feel dirty. That's why reporters are paid the big bucks.Joe Waltshttp://www.blogger.com/profile/18115431808379517101noreply@blogger.com14