Brewers Face Urgent Challenge to Revive Taproom Culture Amid Declines

UPDATE: The craft brewing industry in Colorado is facing a critical challenge as taproom attendance plummets. Executives gathered at the BizWest CEO Roundtable in Boulder on October 10, 2023, to discuss strategies for luring customers back into their establishments amid rising costs and shifting social behaviors.

“People aren’t going out as much as they used to,” warned Jeffrey Green, co-owner of Very Nice Brewing Co., which lost its Nederland location to a fire on October 8. He emphasized that the decline in the “going-out culture” is affecting all businesses, not just breweries. “It’s a bigger problem,” he stated, noting a significant shift in social habits among younger generations.

The trend is alarming. Davin Helden, owner of Liquid Mechanics Brewing Co. in Lafayette, reported an overall customer decline of nearly 5% compared to last year, following a previous drop of 3.5%. Some peers have reported staggering declines of up to 50%, with many unable to cover rent.

Experts agree that health consciousness among consumers is influencing drinking habits. “People today are more aware of their health,” said Helden, pointing out that many now monitor their alcohol intake with apps that track their well-being. “If you have one or two beers, that score is going to tank,” he added, reflecting a broader trend in moderation.

Furthermore, the rise of social media is reshaping how younger audiences socialize. “They’re so enthralled with being on social media instead of being with each other in a room,” noted Green. The pervasive use of technology has made staying home more appealing than gathering in taprooms.

Despite these challenges, brewery owners remain hopeful. Green expressed optimism, predicting a return to craft beer culture as younger generations might eventually value in-person social experiences. “I think it’ll come back around,” he asserted.

To combat the decline, breweries are innovating their offerings. Bob Baile, owner of Twisted Pine Brewing in Boulder, has transformed his brewery’s distribution area into an event space, aiming to attract gatherings from small parties to large events. “Our prime mission is ‘AIS: asses in seats,’” Baile quipped, emphasizing the need for physical presence to boost revenue.

Brewers are also recognizing the importance of creating engaging environments. “The places that have developed an ambience are where people want to go,” said Matt Wiggins, associate vice president for economic vitality at the Boulder Chamber. Trivia nights and themed events are essential to drawing customers back in.

However, the remnants of the COVID-19 pandemic still linger. Many patrons have grown accustomed to enjoying drinks at home, which complicates efforts to re-engage them. “They got used to drinking alone at home,” Helden explained.

As the industry grapples with these shifts, strategies to enhance marketing, reduce prices, and create appealing experiences are critical. “As painful as it has to be, prices have to go down,” Green stated. With many consumers opting to stay home and watch Netflix, the need for compelling reasons to venture out is urgent.

The craft beer community is at a crossroads. As the industry continues to face these significant challenges, the focus remains on adapting to new consumer behaviors while preserving the unique culture that made craft breweries popular in the first place.

With ongoing discussions and innovative strategies, Colorado’s brewers are determined to revive the taproom experience, but time is of the essence. The future of craft beer depends on their ability to connect with a generation that increasingly prefers the comfort of home.