Opportunity on tap: Are chain breweries the hospitality destination of the 2020s?

Craft beer purveyors Moon Dog unleashed their latest offering upon Melbourne’s Docklands in October – a 1200-capacity island themed brewery bar within the revamped Marvel Stadium Concourse.

Dubbed ‘Doglands’, the ambitious new venture, complete with a palm tree-lined boardwalk, live music stage and jungle-themed terrace restaurant, is the third Moon Dog brewpub to open in Melbourne in the space of 12 months.

In April, the company unveiled the ‘Wild West’ venue in Footscray and will introduce Moon Dog Beach Club to the coastal village of Frankston next month, totalling five locations for the burgeoning craft beer enterprise.

“It’s been a big year,” co-founder Josh Uljans told realcommercial.com.au.

“And there’s more to come. We’re currently scouting opportunities in Geelong and when the time is right we’ll look to expand beyond Melbourne.”

Moon Dog’s Doglands brewery bar in Docklands, Melbourne. Picture: Supplied

Brisbane brewery Felons Brewing Co has also enjoyed an eventful 2024.

Last month, the company headed south to take over Sydney institution Manly Wharf Bar, revamping the iconic waterfront venue as Felons Manly.

The official rebrand is the first step in a $13.5 million redevelopment of Manly Wharf, with a micro-brewery, indoor markets and beer hall for live music also in the works.

Artemus Group – the team responsible for the transformation of Howard Smith Wharves in Brisbane (and the location of Felons’ flagship venue) – purchased the entire Manly Wharf precinct for $110 million last year.

Felons brand director Dean Romeo called the expansion into the Sydney market “a natural step” for the company.

“We quickly identified the lifestyle synergy that locals in Brisbane and Manly both enjoy – it’s all about living the good life and enjoying the beautiful natural elements,” said Mr Romeo.

“Our immediate focus will be on the revitalisation of Manly’s waterfront precinct by turning it into a premium yet approachable hospitality destination and thriving community and cultural hub for all ages.”

A captive audience

The expansion of Felons and Moon Dog is part of a growing trend in chain brewpubs, joining the likes of fellow boutique brands Pirate Life and BrewDog in sporting multiple venues.

James Smith, founder of the country’s leading craft beer publication, The Crafty Pint, said with the emergence of a saturated wholesale market, craft breweries launching multiple venues makes sound economic sense.

“The current economic climate has made it tougher for craft brewers to sell their booze through retailers and pubs. They’ve realised the multi-venue brewpub is a far more viable approach,” he explained.

“It means they’re not having to fight for taps or shelf space in external venues, but instead have complete control of their own outlets; a perfect captive audience to sell their product directly to customers.”

Felons Brewing Co in Sydney. Picture: Supplied

Mr Smith added that large scale brewpubs offer exceptionally broad appeal.

“They’re designed to be exciting, welcoming and family-friendly. Look at Moon Dog World, which opened in 2019 – it’s this ridiculously huge place with crazy features like a lagoon and waterfalls,” he said.

“I think what that venue proved is that if you do something really different and provide a destination venue, people will want to go.”

Adapting to new markets

Maintaining consistency can be one of the biggest challenges for multi-venue brewpubs, BrewDog head of Australian operations Calvin McDonald said. The Scottish-born operation has expanded to London, Las Vegas, Tokyo, Brisbane, Sydney and Melbourne.

“Just making sure that visually our customers can tell it’s a BrewDog venue, no matter where they are in the world, is very important for us,” Mr McDonald said.

“Same with offerings like our buffalo wings, which we are famous for; we make sure it’s the same recipe across for every customer anywhere in the world.”

McDonald said brewing beers suited to each market is also of paramount importance.

Brew pubs offer novelty and familiarity at the same time. Picture: Supplied

“When we opened our first Australian location in Brisbane, we had to tailor our beer offering to the local audience. For example, everyone knows that a 3.5% mid strength is a must have here, whereas back in Scotland, that’s not a particularly popular style,” he explained.

“Same with the pale ale – it’s a must-have in Australia, but not anywhere else. So it’s about getting that balance right between making sure the offer is tailored to the local market, but also making sure you don’t forget what made you successful in the first place.”

For Felons Brewing Co, the difference between the new Manly venture surviving or thriving will come down to adapting to the local community.

“We take a lot of pride in getting to know the community, which is why we’ll be introducing initiatives like a weekly run club and beer yoga sessions, local charity events, sustainability workshops and collaborations with Manly’s thriving arts scene,” said Dean Romeo.

Build it and they will come

In recent years, the increased interest in brewpubs within the property sector can be attributed to their emergence as a sought-after amenity for developers.

“Many new developments are looking to attract a craft brewery as an anchor tenant because of the important role that they play in the streetscape,” said Matt Kirkegaard, founder of brewing industry news source, Brews News.

Damien Lake of Raine & Horne Commercial Inner West noted that brewpubs create a vibrant social hub which can significantly enhance the appeal of new precincts.

“They align well with the growing trend of ‘experience-driven’ commercial spaces where people are seeking out not just a place to live or work, but also a lifestyle,” said Mr Lake.

Moon Dog’s Doglands opened in October, 2024. Picture: Supplied

In the Perth suburb of Kennedy Bay, a two-storey brewpub, Long Point Brewing Co, has been tapped for inclusion in a new $13 million development for the coastal community.

The forthcoming project is a joint venture of Wormall Group and West Australian Beach & Golf Resort (WABGR).

WABGR director Lou D’Alessandro told The Crafty Pint the microbrewery will make a substantial addition to the Kennedy Bay community.

“The brewery will not only provide a boost to the local economy, but it will also serve as a cultural hub and destination driver, attracting tourists and providing a unique space for community gatherings,” he said.

Moon Dog’s Wild West in Footscray, Melbourne. Picture: Supplied

An industry in flux 

According to the Independent Brewers Association, craft breweries in Australia are continuing to grow, with the current number somewhere in the vicinity of 600.

“That’s everything from the guy doing 50 litre batches in his shed to the major names at the other end of the scale,” James Smith said.

However, the past 12 months has seen the craft brewery industry in a state of flux, with about 20 closing their doors, going up for sale or into voluntary administration, as rising costs and tax debts left over from COVID relief continue to cause hangovers for the industry.

Moon Dog World in Preston, Melbourne. Picture: Supplied

And while market saturation also continues to be an issue for newcomers looking to enter the game, Mr Smith believes there is still plenty of untapped opportunities available across the country.

“There has been a pinch point in certain parts of the market, but there is definitely still space for a lot more brewpubs, whether they’re big chains or small independents,” he said.

“Plenty of regional towns, cities and suburbs don’t yet have a local brewery offering something interesting. You’ve just got to be smart about what that offering is and where you’re going to do it.”