Washington’s breweries facing huge challenges

Washington is home to more than 400 breweries, most of them small and independently-run businesses like mine. This homegrown industry employs more than 6,300 workers in urban, rural, and suburban communities all across our great state. These businesses have suffered deep economic losses caused by the ongoing – and vital – effort to combat and prevent the spread of COVID-19.

The good news is we have moved into Phase 2 in the state’s reopening plan allowing breweries, pubs, restaurants, and entertainment establishments to open to 25% capacity. Please make no mistake, we brewers (and our loyal customers) are thirsty, and while Phase 2 provides a sip, it does not quench the thirst.

The Legislature passed, and the Governor recently signed into law a measure that waives the annual liquor license fee for bars and restaurants across the state. It is smart and strategic relief for the industry, giving every license holder a “grant.” However, more must be done to protect these businesses, which often represent our communities and neighborhoods’ heart and soul.

Since the initial stay-at-home order issued almost a year ago, Washington breweries have endured tremendous challenges. For instance, two-thirds of them produce fewer than 500 barrels (1,000 kegs) per year. Breweries this size rely on selling beer in their tasting rooms and pubs and limited local distribution in kegs to restaurants and bars as their primary source of income – but the pandemic and pandemic-related regulatory restrictions have decimated these sales channels. Also, beer is a perishable product. Extended closures and limits at tasting rooms, bars, and pubs result in needing to destroy beer that has gone bad while unable to sell it in the marketplace.

Adding to the woes is the fact that operational costs have increased as revenue has dramatically declined. Increased costs for PPE and cleaning supplies, new infrastructures for outdoor cold-weather dining, takeout facilities, some brewers even invested in new canning lines, all with the hope of outlasting the pandemic.

In short, Washington’s small craft brewers and their employees need the continued help of state legislators and Congress. Opening at 25% capacity is a start. Still, it is not a sustainable business model. Because of that, the Legislature must be open to providing additional assistance and rejecting measures that would further inflict economic harm, like an increase in the beer excise tax.

Brewers and restauranteurs have been and will continue doing our part to help our communities get beyond this crisis. We are committed partners in the fight against COVID-19, following all Safe Start guidelines for restaurants and prioritizing our employees’ and patrons’ health and safety in all aspects of our operations.

Matt’s company, Goodwin Group, owns and operates seven restaurants and a brewery and has consulted with numerous hospitality businesses throughout the greater Spokane region.