Business Plan

Riverside Brewing Co. is a craft brewery and taproom opening in the Fishtown neighborhood of Philadelphia, Pennsylvania. The company will produce small-batch craft beers for on-premise consumption and local distribution, operating from a 4,800-square-foot facility with a 60-seat taproom and a 1,200-square-foot outdoor beer garden. The business projects Year 1 revenue of $551,000, growing to $860,000 by Year 3 as distribution accounts expand and taproom traffic matures.

Founded by James and Sarah Mitchell, Riverside Brewing Co. is structured as an LLC with an initial capitalization of $300,000, consisting of $75,000 in owner equity and a $225,000 SBA 7(a) loan. The loan will fund brewing equipment ($140,000), tenant buildout ($45,000), working capital ($25,000), and contingency reserves ($15,000). The brewery targets a break-even point at month 8 of operations and projects a Year 1 Debt Service Coverage Ratio (DSCR) of 1.42, exceeding the SBA minimum threshold of 1.25. Year 3 DSCR is projected at 7.59 as revenue scales and fixed costs remain stable.

Riverside Brewing Co. is a Pennsylvania limited liability company founded in 2024 by James Mitchell and Sarah Mitchell. The company holds a Pennsylvania Brewery License (Type B) permitting on-premise sales, off-premise distribution, and limited food service. The business operates from a leased facility at 2847 East Susquehanna Avenue in Philadelphia's Fishtown neighborhood, a corridor that has seen 34% growth in food and beverage establishments since 2020.

The facility comprises 4,800 square feet divided between a 15-barrel brewhouse (3,600 sq ft) and a customer-facing taproom (1,200 sq ft). An adjacent 800-square-foot patio provides seasonal outdoor seating for an additional 40 guests. The lease runs five years with two five-year renewal options at 3% annual escalation. Monthly base rent is $4,200, or $10.50 per square foot annually, consistent with Fishtown commercial rates.

The company employs 10 people: two founding partners (full-time), a head brewer, a taproom manager, two part-time bartenders, two part-time servers, a delivery driver, and a part-time bookkeeper. Payroll costs represent 22% of projected Year 1 revenue, within the 20-25% benchmark for craft breweries operating a taproom.

Riverside Brewing Co. produces five core beer varieties year-round, supplemented by seasonal and limited releases on a rotating basis. The core lineup includes an IPA (Fishtown IPA), a lager (Delaware Lager), a wheat ale (Riverside Wheat), a stout (Boathouse Stout), and a session ale (Pier Session). These styles were selected based on Philadelphia market consumption data, where IPAs account for 38% of craft beer sales, followed by lagers at 22% and stouts at 14%.

Revenue is generated through three channels. The taproom accounts for approximately 55% of projected Year 1 revenue, with an average transaction of $28 per customer visit (two pints plus a food item or merchandise). Wholesale distribution to local bars, restaurants, and bottle shops represents 35% of revenue, with an initial target of 25 accounts within a 15-mile radius by month 12. Canning and retail packaged sales comprise the remaining 10%, sold through the taproom and select retailers. The brewery also sells branded merchandise including glassware, t-shirts, and hats, contributing approximately $18,000 in Year 1 gross revenue.

James Mitchell, Co-Founder & Head of Operations

James Mitchell brings 12 years of experience in the food and beverage industry, including six years as general manager of a $3.2M-revenue brewpub in Center City Philadelphia. He holds a Cicerone Certified Beer Server credential and completed the Siebel Institute's Concise Course in Brewing Technology in 2022. James managed teams of up to 25 employees, oversaw vendor negotiations saving 12% on annual supply costs, and led a taproom renovation that increased per-seat revenue by 18%. He is responsible for day-to-day operations, vendor relationships, staffing, and financial management.

Sarah Mitchell, Co-Founder & Head Brewer

Sarah Mitchell is a graduate of the University of California, Davis Master Brewers Program with eight years of professional brewing experience. She most recently served as assistant brewmaster at a regional craft brewery producing 8,000 barrels annually. Sarah has won three regional brewing competition medals and developed the recipe portfolio that Riverside Brewing Co. will launch with. She oversees all brewing operations, recipe development, quality control, and production scheduling.

Rachel Torres, Taproom Manager

Rachel Torres has five years of hospitality management experience, most recently managing a craft cocktail bar in Northern Liberties with annual revenue of $1.1M. She is ServSafe certified and holds a RAMP (Responsible Alcohol Management Program) certification from the state of Pennsylvania. Rachel manages all front-of-house operations, staff scheduling, event coordination, and customer experience.

The U.S. craft beer industry generated $28.4 billion in retail sales in 2024, representing 24.7% of the total beer market by dollar volume. Pennsylvania ranks fourth nationally in craft brewery count with 487 operating breweries. The Philadelphia metropolitan area, home to 4.9 million residents, supports 112 craft breweries, a ratio of one brewery per 43,750 residents, slightly below the national average of one per 39,000. This gap suggests room for additional entrants, particularly in neighborhoods experiencing population growth.

Fishtown and the surrounding neighborhoods of Kensington and Northern Liberties have added approximately 6,200 residents since 2020, with a median household income of $72,400. The 25-44 age demographic, which accounts for 62% of craft beer consumption nationally, represents 41% of the local population, compared to 28% citywide. Foot traffic data from the Fishtown District shows a 22% increase in evening pedestrian volume since 2022, driven by new residential developments and restaurant openings.

Competitor Analysis

Riverside Brewing Co. differentiates through a combination of high-quality core beers, a full food menu (partnering with a local food truck for the first year), extended operating hours (Wednesday through Sunday, 12 PM to 10 PM), and an outdoor beer garden that competitors in the immediate area lack. The brewery's location on East Susquehanna Avenue places it between the established Frankford Avenue corridor and the developing Kensington Avenue strip, capturing foot traffic from both directions.

Riverside Brewing Co.'s marketing strategy focuses on four channels that deliver measurable returns for craft breweries in urban markets.

Social media and content (30% of marketing budget): Instagram and TikTok content featuring the brewing process, taproom events, and new releases. Craft beer consumers in the 25-44 demographic discover new breweries through social media at a rate of 47%, making this the highest-ROI awareness channel. Target: 5,000 Instagram followers by month 6.

Events and partnerships (25% of marketing budget): Weekly trivia nights, monthly live music, brewery tours on Saturdays, and partnerships with local food trucks on a rotating schedule. Events drive 35% of taproom visits at comparable Philadelphia breweries. The brewery will host a grand opening event with complimentary tastings and partner with the Fishtown Neighbors Association for community visibility.

Wholesale account development (25% of marketing budget): Direct sales to bars, restaurants, and bottle shops within a 15-mile radius. James Mitchell will dedicate two days per week to account development during the first six months, targeting 25 wholesale accounts by month 12. Each account averages $800/month in recurring revenue at comparable breweries.

Local SEO and Google Business Profile (20% of marketing budget): Optimizing for "brewery near me," "craft beer Fishtown," and "taproom Philadelphia" search terms. Google Business Profile optimization with regular photo updates, event posts, and review management. Target: top-3 map pack ranking for primary search terms by month 4.

Brewing operations run Monday through Friday, with a capacity of 30 barrels per week on the 15-barrel system (two brew days). The taproom operates Wednesday through Sunday: Wednesday and Thursday from 4 PM to 10 PM, Friday from 2 PM to 11 PM, Saturday from 12 PM to 11 PM, and Sunday from 12 PM to 8 PM. This schedule provides 44 taproom hours per week while concentrating labor costs on peak-demand periods.

The brewing process follows a standard schedule: grain milling and mash-in at 6 AM, boil completion by 12 PM, fermentation transfer by 1 PM. Primary fermentation runs 7-14 days depending on style, with conditioning and carbonation adding 3-7 days. Total grain-to-glass time averages 14-21 days, enabling the brewery to maintain 10 beers on tap at any given time (5 core, 3 seasonal, 2 experimental).

Key suppliers include Country Malt Group (base malts, 60% of grain bill), Yakima Chief Hops (hop supply contract, locked pricing through 2027), and White Labs (yeast). The brewery maintains a 30-day grain inventory and 90-day hop inventory to buffer against supply disruptions. Canning is handled by a mobile canning service (Iron Heart Canning) on a monthly schedule, eliminating the need for a $120,000 canning line investment during the startup phase.

Year 1 Monthly Profit & Loss

3-Year Summary

Break-even occurs in month 8 of operations, when cumulative net cash flow turns positive. The conservative scenario (75% revenue, 110% expenses) projects break-even at month 14, with Year 1 DSCR of 1.42. Even under stress conditions, the business maintains positive cash flow and meets SBA debt service requirements.

Each co-founder draws $2,000 per month ($4,000 combined) during Year 1, totaling $48,000 in annual owner compensation. This is below the market rate for a brewery operator in Philadelphia ($55,000-$70,000 according to BLS data), reflecting the founders' commitment to reinvesting early cash flow into business growth. Owner draws increase to $5,000 per month combined in Year 2 ($60,000 annual) and $6,000 per month in Year 3 ($72,000 annual) as revenue and margins stabilize.

Owner compensation is subordinate to debt service and operating expenses in the cash flow waterfall. If monthly net operating income falls below $5,000 in any given month, owner draws are reduced proportionally until the threshold is restored. This protection ensures debt service coverage is never compromised by owner compensation.

Total project cost is $300,000, funded through $75,000 in owner equity (25%) and a $225,000 SBA 7(a) loan (75%). The following table details the allocation:

The following actions are scheduled for completion within the first 90 days of loan funding:

1. Week 1-2: Execute lease agreement for 2847 East Susquehanna Avenue; submit tenant buildout plans to Philadelphia L&I for permit review.
2. Week 2-4: Place brewing equipment order with SS Brewtech (12-week lead time); finalize TTB Brewer's Notice application.
3. Week 4-8: Begin tenant buildout; hire taproom manager and head brewer; establish supplier accounts with Country Malt Group and Yakima Chief.
4. Week 8-10: Install brewing equipment; begin test batches; launch social media accounts and pre-opening content.
5. Week 10-12: Complete health department inspection; obtain Certificate of Occupancy; conduct soft opening for friends, family, and neighborhood residents.
6. Week 12: Grand opening event; begin wholesale account outreach to first 10 target accounts.

3-Year Cash Flow Projection

Pro Forma Balance Sheet

The following supporting documents are available upon request:

• Personal financial statements for James Mitchell and Sarah Mitchell
• Lease agreement for 2847 East Susquehanna Avenue
• Brewing equipment quotes from SS Brewtech and GW Kent
• TTB Brewer's Notice application (submitted)
• PA Brewery License application (submitted)
• Contractor bids for tenant buildout (3 bids)
• Letters of intent from 5 wholesale accounts
• Resumes for all management team members
• Certificate of insurance (general liability, liquor liability, property)
• 3-year tax projections prepared by CPA