Modern Times brewery, a popular San Diego-based beer brand, recently made the difficult decision to close four of its West Coast taprooms. This includes the closure of its Oakland location, which opened in December 2019. The main reasons cited for these closures are the ongoing COVID-19 pandemic and the global declines in the craft beer industry.
The pandemic has undoubtedly had a significant impact on the hospitality and brewery sector. With social distancing measures, capacity restrictions, and overall decreased consumer confidence, many businesses in the industry have struggled to stay afloat. The closure of taprooms and the decline in on-site consumption have been particularly challenging for breweries like Modern Times.
Craft beer has experienced a decline globally, even before the pandemic hit. While the industry was booming for some time, there has been a saturation of the market, making it more challenging for breweries to differentiate themselves and maintain steady growth. Additionally, larger beer conglomerates have entered the craft beer scene, creating increased competition and further squeezing smaller breweries.
In the case of Modern Times, the decision to close four taprooms was likely a strategic move to consolidate resources and focus on their core operations. This is not uncommon in the industry, as businesses often need to make tough decisions to ensure their long-term sustainability. By closing underperforming or less profitable locations, Modern Times can redirect its efforts and resources towards its remaining taprooms and distribution channels.
It is important to note that the closure of these taprooms does not necessarily indicate that Modern Times as a whole is struggling. The brewery still has a strong presence in San Diego and other locations, and continues to produce and distribute its popular craft beers. The decision to close certain taprooms should be seen as a proactive step to adapt to the challenging market conditions rather than a sign of imminent failure.
As an expert, I have observed similar situations in the craft beer industry and have seen other breweries make similar decisions in response to market challenges. It is a difficult period for many businesses, and the ability to adapt and make tough choices is crucial for survival. While it is unfortunate to see taprooms close, it is important to remember that the craft beer industry is resilient, and many breweries have found ways to innovate and thrive even during challenging times.
The closure of four Modern Times taprooms, including the Oakland location, is a result of the ongoing pandemic and the global declines in the craft beer industry. These closures are a strategic move to consolidate resources and focus on core operations. While it is a challenging time for the industry, it is important to remain optimistic and support local breweries as they navigate through these difficult circumstances.