Ballast Point Brewing Company today announced the indefinite closure of its Chicago brewpub, effective October 24, due to the impact of the COVID-19 pandemic.
“With the winter months ahead and our ability to generate revenue significantly impacted with limited capacity due to COVID-19, we have made the very difficult decision to shut down operations at Ballast Point in Chicago effective October 24th,” the San Diego craft brewery shared, via Twitter.
“At that time, we are halting all on-site retail, brewery production, and taproom operations. Unfortunately, this decision impacts all of our Chicago employees. We are forever grateful for their contributions to our company.”
With the winter months ahead and our ability to generate revenue significantly impacted with limited capacity due to COVID-19, we have made the very difficult decision to shut down operations at Ballast Point in Chicago effective October 24th.
— Ballast Point Beer (@BallastPoint) October 14, 2020
Ballast Point said it intends to reopen next spring or summer after Chicago’s harsh winter ends and indoor service becomes possible again.
“We love being a part of the Chicago craft brewing community and appreciate all of the support we have received throughout the last few years,” Ballast Point wrote. “We look forward to reopening in 2021.”
UPDATE (7:50 p.m. ET, October 14): A Ballast Point spokesperson told Brewbound that 12 full-time workers and 11 part-time workers will be laid off as part of the closure. She added that the Chicago locations struggled during the summer months, especially during weekends, due to restrictions that restricted seating to 25% capacity and no more than 50 people in a room.
Constellation Brands opened the 12,000 sq. ft. space in the city’s Fulton Market District in May 2018. The company installed a 3-barrel pilot brewery at the location to supply the taproom with small batch beers and serve as a research and development facility.
Constellation Brands, however, would sell off Ballast Point and its associated brewpubs to little-known, Chicago-area small brewer Kings and Convicts just 19 months later.
The deal officially closed in early March, turning over Ballast Point’s six taproom locations and more than 500 employees. Days later, the COVID-19 pandemic took over American lift, leading states to close on-premise outlets. Ballast Point continues to operate locations in Anaheim, Little Italy, Long Beach, Miramar and San Diego.
Illinois has been a difficult market to operate in for breweries, bars, restaurants and taverns.
On October 1, Chicago Mayor Lori Lightfoot issued a press release with new guidelines that allowed restaurants, which Ballast Point’s Chicago location is considered, to increase their indoor service capacity to 40%, with a limit of 50 people inside one room or space.
In the same release, Lightfoot’s office announced that breweries, taverns, bars and other establishments that serve alcohol but not food were permitted to reopen indoor seating at 25% capacity or 50 people, whichever is fewer.
“Service remains limited to no more than two hours per party, and customers must be seated when eating, drinking or ordering – patrons cannot walk up to the bar to order,” the press release said.
Patrons of dining and drinking establishments in Chicago must wear masks at all times, even when seated, “except when actively eating or drinking,” to protect employees. Breweries, bars and taverns must offer table service only so that patrons cannot order at the bar. These establishments must make food available for customers by offering menus of nearby restaurants or allowing delivery from third-party platforms. All on-premise establishments must take phone numbers or email addresses from patrons for contract tracing.
The closure of Ballast Point’s Chicago taproom for the winter follows similar moves by Midwestern breweries.
Minneapolis’ Surly Brewing said it would shutter its beer hall due to lagging sales at the space. The company projected it would lose $750,000 by the end of the year if the beer hall remained in operation.
Wisconsin’s New Glarus Brewing announced its taproom, tours and gift shop would be closed to the public until 2021 because “it is currently impossible for us to welcome visitors while maintaining the appropriate social distancing necessary to ensure that you and our team remain safe,” the company said last month.