REED CITY — Reed City Brewing Company, a Northern Michigan brewery in Osceola County, is struggling to keep its doors open and its building is now in foreclosure, owner Kevin Murphy said.
Murphy and his wife, Deanna, have owned the business for the past eight years but the brewery is not making enough to cover its bills.
“It’s a great establishment. We’re not making bills. That’s all there is to it,” Murphy said.
Murphy said he could not pinpoint a single cause for the financial problems and described it as several issues happening at once.
“I don’t know where to put the blame. I really don’t. I don’t think there’s one specific spot to put the blame,” he said.
Murphy said winters are typically slow, with business dropping as much as 50% depending on what is happening locally, but this past year was worse.
He said the brewery’s menu prices are too low and that the business has been trying to build up its kitchen, including investments that allowed it to make food it could not make in the past. He said those costs, along with increasing supplies and utilities, hurt the bottom line.
Murphy also said his wife has faced serious health issues, including being hospitalized for more than a week after doctors told them she had six different strokes.
“We were told she had six different strokes. Yeah, we didn’t know about it, but then she was in the hospital for over a week. I was in the hospital the entire time with her. I think I came here one day for a couple hours, and that’s it,” Murphy said.
Murphy said he is not giving up and that his family has invested too much work in the business, including their three children working there.
“We plan on fighting to the end. I love the work I put into it. Between my wife and my kids. All three of our kids have worked here,” he said.
Murphy said the business plans to take steps to turn things around, including holding more interactive events such as its Wine Club, advertising more and raising prices. He said the brewery is also considering diversifying its menu offerings but does not plan to streamline the menu.
“Our menu is pretty simple. Do we have a lot of items? Yes we do, but there is nothing on our menu that is only used in one item,” Murphy said.