Craft brewers weigh pros and cons of relaunching patios, taprooms – Crain’s Cleveland Business

Royal Docks Brewing Co. in Canton got its online ordering platform for food and beer rolled out just one day after being required to shut down because of the pandemic. That, coupled with a markdown of six- and four-packs, led to strong to-go sales. But that revenue only goes so far. In recent weeks, the carryout activity has died down.

Royal Docks laid off 62 of its 72 employees but has since hired some folks back, thanks to a federal Paycheck Protection Program loan. It plans to reopen the patio at its flagship brewhouse, but losses have been steep. The brewery destroyed "quite a bit" of beer, founder John Bikis said, including some "heavy-hitter brands" like Backyard Crusher, because only so much could be packaged at once. A surplus built up without restaurants, stadiums and events buying kegs. About 200 barrels worth of Backyard Crusher alone went down the drain none of which is covered by insurance.

It's upsetting for Bikis, whose business was named one of the fastest-growing breweries in the country in 2018. Since then, Royal Docks has expanded into its Brewhouse + Cannery adjacent to its flagship facility which features a large event space that Bikis estimated has lost at least $200,000 so far in canceled parties for weddings and graduations and opened a satellite bar/restaurant at the Akron-Canton Airport. The grand opening of its latest facility, the Foeder House + Kitchen, developed as part of the downtown Akron Bowery redevelopment project, is being pushed back to early June at the soonest.

Royal Docks' flagship brewhouse has sizable outdoor seating, and Bikis procured a tent in hopes guests will come even if it's raining. More important are the myriad safety precautions being put in place, of course. Bikis remains anxious about how reopening could go.

"We're trying to open and do so in a meaningful, safe way with the uncertainty of not knowing who's going to come out, how many people we will be able to host and whether it'll be enough to pay bills and the staff that'll be there," he said. "We've made it to this point, but what worries me is the uncertainty and the unknowns of how customers are going to react."

A couple days before opening on May 15, Bikis said there was still a lot to sort out, particularly with optional guidelines. He feels plastic barriers won't do much good and is forgoing those inside. But a contactless menu and ordering system that works with smartphones has been developed.

Customer behavior is something that concerns him.

"What if someone is shaking hands, or hugging, or moves a chair placed in one location to another because they want to be closer to someone? It's difficult for business owners and staff because there's a fine line of telling people how to behave," he said. "It's a dilemma."

Bikis said Royal Docks has been making about 35%-40% of what it normally would in recent months. He'll feel fortunate to make half as much this month as he did in May 2019.

As with others, May 15 is a litmus test for how reopening indoors May 21 could work and a gauge for whether it could be financially worthwhile.

"At the end of the day," Bikis said, "we have the green light to be open, and we're in a business of being open, so we're going to open. And that means taking all the necessary precautions to be safe for everyone."

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Craft brewers weigh pros and cons of relaunching patios, taprooms - Crain's Cleveland Business