Milwaukee-based Good City Brewing has sold its operations to The Explorium Brewpub, a surprise move for many local beer-lovers. Explorium, which already operates locations in Southridge Mall and downtown Milwaukee, will become the new entity The Explorium Hospitality Group after taking over four additional locations from Good City.
According to Mike Doble, owner of The Explorium Brewpub, “We’re going to continue operating the four locations as Good City Brewing for a little while while we reimagine some of the spaces and maybe rebrand.” This means that while Explorium will take over Good City’s assets and operations, it will initially maintain the Good City brand.
Dan Katt, co-founder of Good City Brewing, discussed the decision to sell with BizTimes Milwaukee reporter Ashley Smart. Katt revealed that Explorium is buying nearly all of Good City’s assets, but not the brand or intellectual property (IP). Instead, they have a licensing agreement that will allow them to use the Good City name for a period of time.
Katt cited several challenges faced by Good City Brewing in recent years, including navigating changes in consumer habits and adapting to a more sustainable business model. He also highlighted the importance of finding the right operator to take over the brewery’s locations, stating that “Brewery owners really think about production and volume, while restaurant operators think about selling to bars and restaurants.”
The craft beer industry has undergone significant changes in recent years, with new trends and innovations emerging. Katt acknowledged that while some breweries may have struggled due to market fluctuations, others have found success by pivoting towards retail and developing unique beverage options like RTD (ready-to-drink) cocktails.
Despite speculation about the “craft beer bubble,” Katt remained optimistic, stating that it depends on a brewery’s business model and financial position. He emphasized that there are still opportunities for breweries to thrive, particularly those that offer unique experiences and products.
Source: https://biztimes.com/qa-good-city-brewing-co-founder-discusses-decision-to-sell-the-business-future-of-the-brand