ALCATRAZ BREWING CLOSED

[Maltose Parrot]

September 22 was their last day of operations.

Heard rumors that they lost the lease, and 'Saddle Ranch' offered more? We were just talking to Dave at Fest of Ales!

http://www.alcatrazbrewing.com/#!

The beers have been mediocre, but wow.

[backyard brewer]

Yeah, really a bummer. Dave just barely got on board there, sucks to see him out of work again. Their location sucks though, it's impossible to park on that side of the Block, then adding that giant new building made it worse.

[bwarbiany]

Wow...

So food for thought here... I've long thought that craft beer is going through another bubble, and that a correction to the market was looming -- the sort of correction that would leave the good breweries standing, but knock out some of the more marginal producers.

In a matter of weeks, we've seen the announcement of Steelhead closing in Irvine, and now of Alcatraz.

Are these two unrelated data points, or is this the start of a trend?

Thoughts?

[BrewMasterBrad]

I agree that a bubble at some point is inevitable, but the good breweries will survive. Both of these closings were brewpubs and not production breweries, so maybe that is where the weakness will appear first.

[backyard brewer]

Wow...

So food for thought here... I've long thought that craft beer is going through another bubble, and that a correction to the market was looming -- the sort of correction that would leave the good breweries standing, but knock out some of the more marginal producers.

In a matter of weeks, we've seen the announcement of Steelhead closing in Irvine, and now of Alcatraz.

Are these two unrelated data points, or is this the start of a trend?

Thoughts?

Just my humble opinion, but both of these places were also older restaurants that have done little to keep themselves fresh. The last time I visited either place they both felt rather 'old'. Basically the same menus, same décor, tired and faded at Alcatraz and down right worn out and stained at Steelhead.

They were also both in very high rent locations with large footprints; the exact opposite business model most of the new breweries are following.

Before Dave's arrival at Alcatraz, I have not seen either of these breweries participate in any of the local events such as BrewHaHa, etc. I know Steelhead used to have a large presence at the OC Fair party, but I haven't been to that in years so I don't know if they were still doing that.

I'm not trying to sit back in my arm chair and Monday-morning quarterback either place; I don't have any idea what their real day-to-day was like and this is just based on my observation. But I can say both of these establishments are very close in operating model and it is not at all the model that the new pop-ups are following. These guys were/are more on par with the casual family dining model that is having its ass handed too it right now (Olive Garden, Chilies, Macaroni Grill, Red Robin, Islands etc.) They just happened to also brew beer.

I agree with Brad that a bubble in inevitable but neither of these instances is indicative of that happening.

IMHO

[brahn]

This is how I see it too. These places were very much restaurants that happened to have some level of brewery attached to them. Neither one was particularly focused on beer, at least not recently. Restaurants fail all the time and that is probably what's happened in these cases.

[bwarbiany]

Thanks guys. I'm entirely comfortable with the idea that these are isolated events unrelated to the general craft beer trend. Just wanted to get some thoughts how everyone else saw it.

[maltbarley]

The beer was ok, but never a priority. Reminds me of BJ's.

[Blackcomb]

Reminds me of BJ's.