Article: The Economics of Texas BBQ

dbCooper

Those in Texas may find this interesting.....

https://smcorridornews.com/the-economics-of-texas-bbq-its-not-your-grandpas-barbecue-anymore/

HeavyG

BBQ is growing everywhere, not just Texas. A couple of our local microbrewers now have a bbq place attached to them.

Have been wondering for more than a year when the microbrew bubble is going to pop. Probably getting close to time to start wondering when the bbq joint bubble is also going to pop.

caliking

HeavyG said:

BBQ is growing everywhere, not just Texas. A couple of our local microbrewers now have a bbq place attached to them.

Have been wondering for more than a year when the microbrew bubble is going to pop. Probably getting close to time to start wondering when the bbq joint bubble is also going to pop.

I was thinking the same thing. But I think there is still time. Seems like BBQ joints have not reached the saturation level that micro and craft breweries have. 

But I live under a rock and don't get out much, so I know  there are way many more good bbq joints in other places that I just haven't heard of. 

SciAggie

That is an interesting read. Thanks for posting it.

@caliking Maybe artisan charcuterie is next. Classes in bung stuffing and tying? Can you get arrested for saying that?

JohnInCarolina

HeavyG said:

Have been wondering for more than a year when the microbrew bubble is going to pop.

Really?  I have a hard time imagining people getting sick of craft beer anytime soon.

Now, I can see a situation where fewer microbreweries end up being able to distribute nationally.  We’re probably way past that already.  But it seems to me that many of these joints aren’t more than a couple of blokes who are friends and mostly want to make beer that they like.  

Of course I live in a town with an embarrassment of breweries so take my views with a grain of salt.

OhioEgger

Last time I looked at the statistics for microbreweries, brewpubs, etc., the trend went something like this. For every seven that open, five others close. 

So the overall growth rate is good, but it's a very tough business to really succeed in.

caliking

JohnInCarolina said:

HeavyG said:

Have been wondering for more than a year when the microbrew bubble is going to pop.

Really?  I have a hard time imagining people getting sick of craft beer anytime soon.

Now, I can see a situation where fewer microbreweries end up being able to distribute nationally.  We’re probably way past that already.  But it seems to me that many of these joints aren’t more than a couple of blokes who are friends and mostly want to make beer that they like.  

Of course I live in a town with an embarrassment of breweries so take my views with a grain of salt.

Not that people will get sick of craft beer (still going strong after some millennia) but there are only so many breweries that the beer drinking populace can support. 

pgprescott

OhioEgger said:

Last time I looked at the statistics for microbreweries, brewpubs, etc., the trend went something like this. For every seven that open, five others close. 

So the overall growth rate is good, but it's a very tough business to really succeed in.

There is a plethora of slightly used brewing equipment for sale at pennies on the dollar. Without adequate distribution the model is difficult to sustain. The days of sneaking up on the giants is over. They use some strong arm tactics these days to squash the upstarts. 

TEXASBGE2018

It's a primal thing. BBQ is popular because at its heart its simple. Meat cooked over or with the aid of flame. It can be fancy too but the best I've had has always been simple. BBQ can also be very very lucrative. Even with today's meat prices a simple catering gig can render $100s if not $1,000s of dollars of solid profit. 

A simplified example. My mother in law used to run a BBQ Business out of a food truck/trailer. She would only work weekends and do catering jobs a few times a month. I think when she and I did the math she easily made a 6 figure income before taxes. For every brisket she bought and sold she made about $100 profit. A large catering job would earn her $2K-$3K. It's when you start using a variable cost model and adding headcount that your profits get eaten up. Stay small and you can reap the earnings for yourself.

caliking

SciAggie said:

That is an interesting read. Thanks for posting it.

@caliking Maybe artisan charcuterie is next. Classes in bung stuffing and tying? Can you get arrested for saying that?

I need some of those classes. Demonstrated this weekend  that my bung stuffing and tying skills are not where they could be. I'm better at doing other things to bung. 

alaskanassasin

@JohnInCarolina I used to frequent Sam’s Quik Shop that place was awesome. I think that was the name of it, just down from the hospital.

Hotch

Not that people will get sick of craft beer (still going strong after some millennia) but there are only so many breweries that the beer drinking populace can support. 

@caliking So we need more beer drinkers!

Hotch

I spent the weekend at the SCA World Championship in Ft Worth. Had a great time helping a friend from Chicago area. I got to talk with a few of the international guys here competing. A BBQ competitor from Belgium was telling me that it is growing fast at home. Asked what proteins they cook and it is Texas style with Brisket, ribs, pork and chicken. Thing is their local cattle breeds are very lean and local sourced brisket for comps pretty much does not exist. It all is imported from the states mostly. Prices are high!

lousubcap

I don't know where the growth stops and the industry flat-lines for each industry but I would bet on the staying power of the Q.    Then again I thought the craft beer business topped out around 10 years ago.  Of course, you don't know the volume the micro businesses need to become self-sustaining. 

JohnInCarolina

alaskanassasin said:

@JohnInCarolina I used to frequent Sam’s Quik Shop that place was awesome. I think that was the name of it, just down from the hospital.

Sam’s still exists, the location is just different.  It’s where I get all of my beer.

JohnInCarolina

caliking said:

JohnInCarolina said:

HeavyG said:

Have been wondering for more than a year when the microbrew bubble is going to pop.

Really?  I have a hard time imagining people getting sick of craft beer anytime soon.

Now, I can see a situation where fewer microbreweries end up being able to distribute nationally.  We’re probably way past that already.  But it seems to me that many of these joints aren’t more than a couple of blokes who are friends and mostly want to make beer that they like.  

Of course I live in a town with an embarrassment of breweries so take my views with a grain of salt.

Not that people will get sick of craft beer (still going strong after some millennia) but there are only so many breweries that the beer drinking populace can support. 

If the bubble refers to new microbreweries popping up and sticking around, no argument there.  My guess is that it’s still a growing industry but that the rate of growth has slowed.

milesvdustin

Craft breweries can put out disgusting swill and slap some style tag on it and act like it doesnt suck. 

I bought a 12 ounce bottle yesterday of a seasonal that was supposedly very good and highly rated. Tasted like cough syrup, I was pissed. It cost $9!

There is a line, and many brewers have crossed it.