Most owners of a microbrewery know roughly how busy they are. Far fewer know whether they are actually making money on each unit, where profit is leaking, or which part of the business is growing. Key performance indicators, or KPIs, answer those questions in a few numbers you can check every month.
This guide covers the 7 KPIs that matter most for a microbrewery, how to calculate each one, and what to do when a number moves the wrong way.
Why KPIs matter more than turnover
Turnover tells you how much came in. It does not tell you whether prices cover costs, whether time is being used well, or whether cash will be there next month. A microbrewery can grow turnover and still make less profit if costs grow faster. KPIs show you the drivers behind the result, early enough to act.
The 7 KPIs for a microbrewery
1. Units sold
How to calculate it: Casks, kegs, cases and pints sold
Your volume.
2. Average selling price
How to calculate it: Revenue ÷ units
Rises with direct sales.
3. Product cost % of sales
How to calculate it: Ingredients, packaging and duty ÷ revenue
The core margin check.
4. Gross margin by channel
How to calculate it: Gross profit ÷ revenue for trade, retail and taproom
Shows where the money is made.
5. Casks and kegs out
How to calculate it: Containers with customers
Lost containers cost money.
6. Batch yield
How to calculate it: Litres packaged ÷ litres brewed
Shows wastage in production.
7. Trade debtor days
How to calculate it: Average days for trade customers to pay
Protects cash.
Interpreting these measures in practice
Pair batch yield with product loss, packaging cost and sell-through by sales channel. Brewery output is not revenue until stock is sold and collected, so track ageing inventory and customer payment terms. Compare direct, taproom and wholesale contribution after delivery, duty, fees and discounts. Monitor energy, cleaning time and equipment downtime by batch. Use repeat orders and customer mix to plan production rather than brewing to capacity without evidence of demand.
Start with the profit basics
Alongside the industry KPIs above, every owner should check four headline figures each month:
- Total income for the month and year to date
- Total costs, split into direct costs and overheads
- Net profit and operating margin
- Lowest cash balance in the next 12 weeks, from a cash flow forecast
If net profit is falling while turnover rises, look at the cost KPIs first. If cash is tight while profit looks fine, look at unpaid invoices.
An example month (illustrative figures)
Say a microbrewery takes £30,000 in a month and spends £21,000 on the direct costs of delivering the work. Gross profit is £9,000, a gross margin of 30%. If last month the margin was several points higher on similar turnover, something has changed in prices, costs or the mix of work, and the KPIs above show where to look. These figures are illustrations only: use your own.
What to do when the numbers slip
- Selling more direct through a taproom and online shop
- Costing every beer including duty and packaging
- Tracking casks and kegs so none are lost
- A tight core range brewed consistently
Pick one action at a time, so you can see what made the difference. If you are asking what the business could pay you, read how much a microbrewer earns in the UK.
How to review your KPIs every month
1. Update your records for the month: units, sales, costs and invoices. 2. Compare each KPI with last month and the same month last year, so seasonal swings do not mislead you. 3. Pick the one number that moved most in the wrong direction and find out why. 4. Decide one action for next month, such as a price change, a rota change or chasing a debtor. 5. Check the result at the next review.
Fifteen minutes a month on this routine is enough to catch most problems while they are still small.
Common mistakes with KPIs
Tracking too many numbers. Pick the handful that drive your profit and review them consistently.
Looking at one month in isolation. Trends matter more than single results.
Not acting on what you find. A KPI that never changes a decision is just a number.
Keeping figures in your head. Write them down, or let a spreadsheet calculate them, so nothing is guessed.
Run the numbers on your own business
The **Microbrewery Management System** tracks every unit, cost, invoice and VAT return, and works out your profit, margin and key figures automatically on a one-page dashboard. It costs £15 once, with no subscription. Before you open, work out your start-up costs with our free microbrewery start-up calculator. For the full start-up walkthrough, read our guide on how to start a microbrewery.
Frequently asked questions
What is the most important KPI for a microbrewery? Gross margin, because it shows whether your prices cover the direct cost of each unit. If it is wrong, growth only makes things worse.
Which KPIs should a new microbrewery track first? Start with units sold, average selling price and product cost % of sales. They are quick to work out and show straight away whether your pricing and capacity are right.
Can KPIs help me set prices? Yes. If your margin or rate per unit is below target, your prices are too low for your costs, however busy you are.
What is a good gross margin for a microbrewery? There is no single benchmark, because margins depend on your mix of work, location and whether you pay staff. The useful test is your own trend: a margin that holds steady or rises as you grow is healthy, and a falling one needs action on price or costs.
How often should I check my KPIs? Monthly for most figures, and weekly for cash and unpaid invoices.
Do I need software to track KPIs? No. A spreadsheet that calculates the figures from your records works well for most small businesses and avoids monthly fees.