Craft brewers and food trucks
What can craft brewers and food trucks teach us about economics, government policy and freedom?
When the dot.com explosion hit, fueled by the rapid growth of the Internet, few would have thought it would be a boon for the low-tech world of delivery. Yet FedEx, UPS, and even the good ol’ post office saw incredible delivery growth as all those on-line purchases had to be delivered by somebody.
Did anyone plan this? Nope. It just happened. No government-driven genius, just the marketplace responding to a new world of on-line purchasing.
Much the same has/is happening with the explosion of craft brewers and more specifically their tap rooms - places we used to call bars ;-)
These tap rooms are incredibly popular. In fact if I were to start a craft brewer today, this is where I’d spend my efforts, not trying to be the next New Belgium. $6 per beer that has no transportation costs… few if any packaging costs… no sharing of the margin with those greedy distributors or retailers… just one heck of a lot of profit for the folks brewing the stuff. That’s where I’d stake my claim. As long as I can fill the place with people, I’m going to make a lot of money.
But in many places around the country these tap rooms are legally required to be just that, places where the craft brewer can sell their product. Nothing more. No kitchens providing food… just tap rooms providing beer.
And this is where the wonders of the marketplace again show their abilities. How did the marketplace … for those who need a definition, the marketplace or capitalism are better described as…
Free people freely interacting with other free people.
So how did the marketplace respond? With the genius of food trucks. Although the tap rooms might not have a kitchen, they probably have a food truck parked outside that can provide some yumminess whenever your heart desires. This wasn’t anyone’s grand plan… no government expert required… just the marketplace responding to a need/opportunity. A true win-win-win for all involved – the craft brewer, the food truck operator, and the customer.
The craft brewer doesn’t have the expense of running a kitchen (something which they probably have little, if any expertise in) and better yet, they in effect become 7 restaurants in one (in many cases even more). The tap room has this type of food on Monday, another on Tuesday, another on Wednesday, etc. Some are actually multiple restaurants in the same day… afternoon we’re this type of restaurant, in the evening we’re this type.
Most craft brewer’s web sites “sell” the various food trucks that will be at their place. They can be a strong marketing draw. It isn’t just the beer that is driving folks to some of these places. In many cases the lack of a kitchen has actually been turned into a strong positive!
Sure the craft brewer doesn’t get any of these food sale dollars, but they don’t have the headaches and expenses of providing the eating opportunity.
This in turn has driven the food truck industry to new heights. The quality and variety of food being offered has increased by orders of magnitude. These ain’t no roach coaches of old.
The food truck operators and the craft brewers act as symbiotic organisms… one’s success/improvement flows to the other and vice versa. Better food brings more people… the food truck wins and so does the craft brewer.
Better beer/marketing of the tap room brings more people… the craft brewer wins and so does the food truck.
Craft brewers fight to get the best food trucks… the food trucks win and the craft brewer wins.
Poor beer or marketing and/or lousy food hurts both the brewer and the food truck… thus it is quickly punished by fewer people for both. That symbiotic relationship functions in both directions ;-)
And throughout this beautiful dance, the customer wins every single time. Win-win-win.
Just a thought this holiday season and one to keep in mind as you fine-tune your political philosophy and think about who to vote for.
And as a last little X-mas present, the next time you hear someone spouting off about the “evils” of capitalism or the marketplace, remember those are just words. What they are describing is a process of free people freely interacting with other free people, bound by a general set of laws and regulations. Who could be against that? ;-)
Why am I on my soap-box? As the patriot and brewer Sam Adams noted,
It does not take a majority to prevail... but rather an irate, tireless minority, keen on setting brushfires of freedom in the minds of men
This is needed today, perhaps more than at any time in this country’s history. Please, grab some matches and go set some brushfires of freedom yourself!
From this black-hearted, mercenary… Happy holidays to all! Now get back to work.