Switching to a Self-Pour Business Model
Nestled in the heart of a quaint Virginian town, The Crab House stood as a beacon of culinary excellence. From the moment its doors opened, it was clear that this establishment was destined for greatness. The Crab House wasn’t just another seafood restaurant; it was an experience. The tantalizing aroma of freshly caught crabs, the warm ambiance that wrapped around you like a cozy blanket, and the ever-smiling staff that made you feel right at home. It was the place to be, especially during the vibrant spring and summer months.
Challenge of Declining Sales
However, as the leaves began to fall and the chill of winter set in, The Crab House faced a challenge that many establishments dread: declining sales. The once-bustling restaurant saw a significant drop in footfall. The financial strain began to loom as the vibrant energy of summer faded into the cold, harsh reality of fall and winter. Beer sales, which once contributed a decent chunk to their revenue, plummeted to a mere 8%, with a staggering cost of goods at 50%. The numbers painted a grim picture: payroll expenses were eating up 40% of their net sales, and food costs soared over 55%. The Crab House was on the brink of losing a whopping $256,000 by year-end.
Self-Pour: A Ray of Hope
It was evident that something had to change. The owners, determined not to let their dreams fade away, began researching innovative solutions. The world of craft beer, with its ever-growing popularity, caught their attention. They stumbled upon a concept that seemed almost too good to be true: self-pour taprooms. The idea was simple yet revolutionary. Allow customers to pour their own drinks, offering them a wider variety and a unique experience.
Inspired by this new business model and having witnessed the success of the PourMyBeer system in other Virginian establishments, the owners took a leap of faith. They decided to invest in a 40-tap, 20-screen self-pour beverage wall. The total cost, including the draft system and wall build-out, came to around $86,000. It was a bold move, but with the support of PourMyBeer and AC Beverage, the project was completed in a record time of less than six weeks, just in time for the holiday season.
From Loss to Profit: The Turnaround With Self-Pour
The results were nothing short of miraculous. The Crab House, which was once on the verge of a significant loss, saw a turnaround of $516,000, swinging from a projected loss of $256,000 to a profit of $260,000. The self-pour model was a game-changer. Draft beer sales skyrocketed by 529% in just a year, net sales surged by 215%, and payroll costs were slashed from 40% to a mere 18%.
Expansion and Continued Success
The success didn’t stop there. The Crab House’s beverage sales continued to soar, leading the owners to expand their horizons. They opened another location, equipped with the latest PourMyBeer technology, further cementing their position as pioneers in the self-pour revolution.
The Crab House’s story about increasing sales after switching to PourMyBeer’s self-serve system is just one of many successful ones. To read more PourMyBeer success stories, click the button below!
