Beer remains a lucrative industry in the U.S. at $115 billion, with growth over the last year coming as a result of price increases but also the shift back in beer volume to bars and restaurants from off-premise sales.
Voodoo Brewing Co. is one chain taking advantage of the everlasting popularity of beer through its brewpubs, which offer standard beer selections as well as customized lists that are unique to each location.
Founded in 2005 in Meadville, Pa., Voodoo Brewing Co. expanded into franchising in 2012 when Matteo Rachocki and his brother Curt saw their local Voodoo Brewing on the brink of closure. Rachocki had established himself in the New York restaurant space, and Curt was brewing craft beer privately. The duo and its team went all in and worked tirelessly to build out Voodoo Brewing Co.’s initial facilities, and the taproom took off. The team then began to open additional locations.
The move to franchising led to explosive growth with the awarding of almost 80 agreements, 17 thriving locations open, and 25 brewpubs projected to open by the end of 2023. In 2017, the chain opened a production facility, which allowed for expansion of its beer inventory.
Now the CEO, Rachocki says Voodoo Brewing Co.'s focus on product consistency and innovation as well as its dedication to uplifting fellow small businesses through local sourcing, has led to the company's success.
The "Anti-Franchise" Franchise Model
"We believe our success is tied to the fact that Voodoo Brewing Co. offers better beer, and local owners are able to be 'heroes' in their communities when they bring a distribution outlet to their towns," says Rachocki. "Owners get to have fun and put their own personal twist on the business, which is another differentiator of ours that only brings us closer to the community and elevates the consumer experience."
With the support of the brand's Voodoo Franchise Group team, that "personal twist" is what sets the franchise apart—so much so, that they've dubbed their way of operating the "anti-franchise model."
"We love being known as the 'anti-franchise' franchise as there are so many people in the general public who think poorly of the franchise model," says Rachocki. "What seems to be most common is people assuming that there is this handcuffed relationship between the franchisor and the franchisee, and we don't want to be like that. We encourage individuality in communities and truly partner with local owners, not boss them around. We do this by encouraging customization in each location."
Customization includes a community-specific local store icon and local menu customizations. Franchisees are encouraged to develop networks for local sourcing of food and beverage.
"While Voodoo Brewing Co. has a skeleton menu that most brewpubs offer, owners are able to customize additional offerings to ensure the local community has access to food options that really represent the community they live in," continues Rachocki, nothing that this includes partnerships with local distilleries, breweries, wineries, bakeries, farms, and butchers.
Beer Trends & Menus
Despite Voodoo Brewing Co.'s success, the brand says one of the biggest challenges can still be forecasting beer needs, especially in new markets. "Its next to impossible to predict (even with our historical data) what each market will do," says Rachocki.
To help see into the future and plan a better beer list, Rachocki says its important to know your customer. "Who comes in and pays the light bill when it's January and everyone else is 'taking a break'?" he says. "What I mean by that is, the folks that are in there the most need to be catered to the most. What do they like? Start there. Beyond that, a variety is nice. We’re seeing all kinds of folks from every walk of life in wide ranges of their life journeys in the pubs. So having something that provides the right mix is important, leaning heaviest on options that have the highest sale through rate."
Studying trends can also help. Rachocki says he's noticed there has been a shift from hoppy beers like IPA’s to lagers in the last year or so. The ones still holding on to IPAs are shifting from New England Styles back to West Coast Styles or even “Cold IPAs."
Aside from beer, Rachocki has also seen explosive growth in the cocktail and mocktail category sales in the pubs along with smoked foods and a "family-style" dining experience that focuses on shareables. On the technology side, he says mobile and tableside ordering are here to stay.
Selling Beer in the On-Premise
Aside from getting the beer lineup right and correctly forecasting needs, Voodoo Brewing believes visual assets are a huge help in selling beer—even in the on-premise.
Voodoo Brewing Co.'s beer cans have eye-catching, bright designs, which is done intentionally to bring a "visual vibe" to the brand. "The art is so important. It’s a highly competitive market out there. You no longer just need the best liquid, or the best sales team, or the best packaging and quality controls, but the best art to go with it," says Rachocki. "We want it to literally jump into your cart when you walk by at the store. We want that same opportunity in the pubs, so in pubs that have to-go sales or on-premise cans for sale, we merchandise large, two- and three-door coolers with the products in a certain way to the guests. The right placement, merchandising, lighting, etc. helps with this 'gotta have it' approach."
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