With this podcast you will learn how Nate quit the grind of cubicle life and jumped on the beer and food train. Nate started Rockhound Brewpub a couple years ago and has been navigating success, beer in hand, ever since. You'll also learn some of the challenges of starting a restaurant, brewing beer and making a go with both. Nate Warnke is the owner of Rockhound Brewing Company. Nate and his crew make beer, food and smiles on Park Street in Madison.
Visit Nate at: http://rockhoundbrewing.com/
Enjoy!
Want to hear more? Hit it: [themo_button text="More Business Podcast Episodes" url="https://drawincustomers.com/category/podcast/" type="standard"]
[00:00:04]
You have found Authentic Business Adventures. The business program that brings you the struggle
[00:00:07]
stories and triumphant successes
of business owners across the land. Coming
[00:00:12]
to you in the sweet, sweet, sweet Draw
In Customers makeshift studio here.
[00:00:16]
So we are welcoming today Nate Warnke,
owner of Rockhound Brewing Company.
[00:00:21]
Nate, how are you doing today?
Good.
[00:00:22]
Thanks for having me again, James.
[00:00:24]
I'm excited.
I'm excited.
[00:00:26]
And I'll tell you why, because, one,
[00:00:28]
you're the first person that I've ever
had on the show for the second time. Woah.
[00:00:33]
So that's cool, right?
It's already a big deal.
[00:00:35]
Yeah right.
I'm honored.
[00:00:35]
Thank you.
[00:00:36]
And then second thing,
you're the first person I've had
[00:00:38]
on the show that's in the process
of closing their business.
[00:00:41]
Sure.
[00:00:41]
So this is I'm excited because
the authentic part of Authentic Business
[00:00:46]
Adventures business is
close, man, arguably.
[00:00:50]
Well, eventually all of them
do right, nothing lasts forever.
[00:00:53]
Eventually, everyone closes.
[00:00:54]
It's just like the covid
thing with death, right?
[00:00:56]
Somebody died like, everybody does.
[00:00:59]
Nobody gets out alive.
Right.
[00:01:01]
At any rate, we're talking to you.
[00:01:04]
You're closing in a month.
Just a little less than a month.
[00:01:09]
OK,
so for the people that don't know who you
[00:01:11]
are and what you do,
let's just start with the beginning.
[00:01:15]
So when did you start your business?
[00:01:16]
Why did you start it?
[00:01:17]
Just let's just give
the Cliff's Notes version.
[00:01:19]
Yeah, I'll give the the two
minute version of that.
[00:01:23]
So basically six a little over six years
[00:01:26]
ago, I left the corporate job and I
wanted to start a business and
[00:01:30]
and I decided that business was going
[00:01:31]
to be a brewpub because I
really like the vibe of brewpubs.
[00:01:34]
And it was a growing business segment.
All right.
[00:01:37]
So I came up
[00:01:38]
with Rockhound Brewing Company, which I'm
wearing all the logos today. Nice.
[00:01:42]
I go to wear them while I can.
[00:01:44]
Sure.
[00:01:46]
So, I started Rockhound Brewing Company
[00:01:47]
in 2016
and it was kind of my my brainchild,
[00:01:50]
my desire to, to make good beer and make
a community around, around a brewpub.
[00:01:57]
And then here we are four and a half years
later and we're working on shut down.
[00:02:01]
But yeah, we have a small brewpub,
it's about a hundred seats.
[00:02:07]
All right.
So there's one hundred seats.
[00:02:08]
We, we have one hundred eight capacity
[00:02:11]
and I'll segway into the covid thing
like right now our capacity's twenty seven.
[00:02:16]
Yeah that's crazy to me.
That's a quarter.
[00:02:19]
And you know it's one hundred
seats at a small restaurant.
[00:02:22]
It is.
And we have a full kitchen,
[00:02:23]
so we have a full restaurant, full food menu
and a full brewing operation on site.
[00:02:27]
Every one of our beers is brewed onsite
[00:02:28]
unless otherwise stated
as a collaboration.
[00:02:31]
Sure.
[00:02:31]
So I want to make it its
own little community.
[00:02:33]
And it was owner operated.
[00:02:35]
So that's basically me.
[00:02:36]
And I've got a couple of very,
[00:02:38]
very dedicated staff and they've
been there for my house manager
[00:02:42]
she's been there since day one.
Wow.
[00:02:44]
Yeah, I still got the same,
[00:02:45]
she wasn't house manager day one,
but she promoted two years later because
[00:02:49]
that was the future
of the of the pub.
[00:02:51]
Wow.
[00:02:52]
My chef has been involved
since before day one.
[00:02:54]
She's a friend of mine and he was kind
[00:02:56]
of a fill in for a while
and eventually became a chef.
[00:02:58]
So.
All right.
[00:02:59]
This is this is family, right?
So we are family.
[00:03:01]
Yeah. And we built up a community,
[00:03:03]
we built up a family.
[00:03:04]
We had a lot of good time for for the five
years that I've been in operation.
[00:03:08]
I live six blocks away.
[00:03:09]
So it's in my neighborhood.
[00:03:12]
And that's that's where we
are today now in covid land.
[00:03:15]
And I'm sure we'll talk
about playing that later.
[00:03:17]
Yeah, it's been a lot of fun for five
[00:03:18]
years, but now it's time
to time to let it go.
[00:03:20]
All right. So did you see when you first
started your business,
[00:03:23]
what was the goal? What was the end game
or did you have an end game?
[00:03:27]
Actually did it.
[00:03:30]
When I started the business,
I had I saw the cash flow in beer.
[00:03:34]
I saw the cash flow in restaurants.
[00:03:35]
And I said, well, you know,
I'm a pretty smart guy.
[00:03:38]
I've never had restaurant experience,
[00:03:40]
but I had homebrewed experience, hired
people who knew more than I did
[00:03:43]
from a restaurant perspective
because you hire what you don't know.
[00:03:46]
And I was hoping to bring in some good
cash flow to pay down some loans and then
[00:03:50]
turn that cash flow
into real estate property.
[00:03:53]
Oh. So,
[00:03:54]
my goal was actually to get that thing
self-sufficient, take the cash flow out
[00:03:59]
of that and put it into
investment properties.
[00:04:00]
OK, just small ones.
All right.
[00:04:03]
That was the actual goal when I started
[00:04:05]
talking about it six years ago
and then eventually sell the brewpub.
[00:04:09]
My assumption was in ten
years to employees.
[00:04:12]
All right.
[00:04:13]
You know, and employees that were
potentially interested in I did at some
[00:04:16]
point have employees who were interested
in buying the thing out.
[00:04:19]
And I figured it would be a ten year
plan where I would sell it to them.
[00:04:22]
You had employees
that showed interest already?
[00:04:24]
Yeah, showed interest.
You know, three or four years in.
[00:04:26]
I had employees are interested
in potentially looking at buying it.
[00:04:29]
So they loved what I was building.
Sure.
[00:04:31]
At the time.
[00:04:32]
Is there any reason not
to sell it to them now?
[00:04:35]
The economics are totally upside down
for that. Even at that bargain basement price.
[00:04:39]
I would I would entertain that.
[00:04:40]
But I don't think any
of my employees have the
[00:04:45]
potential for loans or cash on hand to do it.
Sure.
[00:04:48]
And I don't think they're going to be able
[00:04:49]
to get that loan under
the current circumstances.
[00:04:51]
All right.
That's even at bargain basement prices.
[00:04:53]
Sure would entertain that.
[00:04:55]
But so, like I looked at your.
I looked at your.
[00:04:59]
Facebook page, your website,
[00:05:02]
you have a following that any
restaurant would be proud of.
[00:05:06]
Absolutely.
[00:05:07]
When you got over 700 reviews,
the majority of positive of your four
[00:05:10]
point whatever, close to five, four
point four, four point three on Google.
[00:05:13]
Yeah.
Which is six on Facebook,
[00:05:15]
a super awesome super look, because
there's always anybody that actually.
[00:05:18]
That's hard.
That's right.
[00:05:19]
That's really hard.
So that's what I mean.
[00:05:21]
There's value to that.
[00:05:22]
Right, because I guess it's not
necessarily tangible real estate,
[00:05:26]
but in the Internet world,
that's valuable real estate.
[00:05:30]
It is.
And that,
[00:05:32]
you know, that's something that I guess is
[00:05:34]
a good lesson for any business that's open
or closed or starting up is that
[00:05:39]
I paid a lot of attention to social
media at the very beginning.
[00:05:42]
The negative reviews,
I took every one of them seriously.
[00:05:45]
All right.
[00:05:45]
And, you know, restaurant
reviews can be completely.
[00:05:50]
Oh, my gosh.
Right.
[00:05:51]
I don't want to get into the Yelp
[00:05:53]
discussion because I had
that the other day with Sony.
[00:05:54]
But it's like you can go anywhere with.
[00:05:57]
I was just joking with someone who looked
at the reviews for the Grand Canyon.
[00:06:01]
Yeah.
Yeah.
[00:06:02]
The National Park reviews.
Yeah.
[00:06:04]
Like someone like you that was blogging.
Couldn't see it.
[00:06:07]
Right.
[00:06:08]
You know, you go to you go to like Sequoia
National Park, go to many big trees.
[00:06:12]
Yeah.
You know, and that's true for restaurants.
[00:06:16]
Five point are like, yeah.
[00:06:19]
You know, you go to any restaurants
at the higher end restaurants and the ones
[00:06:22]
that are very, very well known
and even they get to star one star.
[00:06:26]
Oh, sure.
...