With Nearly 200 Breweries and Counting, Here's How Chicago's Crowded Beer Scene Is Adapting

Chicago has long been one of the country’s top dining destinations, and in recent years, the city has only furthered its influential reputation in the food and beverage industry. Thanks to its world-renowned restaurants and critically acclaimed chefs, Chicago has been named host city for the James Beard Foundation Awards—the Oscars of the culinary world—through 2021, and Condé Nast Traveler recently called Chicago "the best restaurant city in America right now." [kickout id="6"] In such a food-focused environment, it should come as no surprise that Chicagoans hold their beer to the same standards as their cuisine. In fact, the beer options in the city have surged, with the total number of craft breweries in Chicago and its surrounding suburbs currently edging close to 200, according to Jack Muldowney of The Hop Review, and it continues to grow. Some of the city’s best-known breweries like Goose Island have long outgrown their craft status to become nationally recognized brands, but many of the city’s breweries are still producing beer on a relatively small scale. Even when Chicago breweries make the move to the retail market, distribution often expands only into neighboring states. So with competition in the city for shelf and tap space becoming so fierce, what keeps brewers bringing their beers into the market? [kickout id="4"] Starting with a taproom Despite the saturation of breweries in Chicago, new ones continue to open, and some established breweries have started to open their own taprooms and brewpubs. Taprooms allow consumers to sample a brewery’s beer, usually brewed on location, and they may or may not serve food. Brewpubs brew beer and serve food, making them just as much restaurants as breweries. “There’s an increasing number of taprooms around us, and there’s an increasing number of great beer bars around us," said Jacob Sembrano, head brewer at Cruz Blanca in Chicago’s West Loop (and one of Adweek's Rising Brand Stars for Chicago). "There’s pressure in every form of beer now—shelf space, draft space and even competition for just getting people in the door. Breweries that have been open for five or six years are starting to open taprooms, because they realize they can build a local audience and build loyalty that way.” Jenny Pfäfflin, exam manager at the Cicerone Certification Program for expert beer servers, points out that “no one complains when a restaurant opens in their neighborhood.” “Breweries are finding out that with this brewpub model, they don’t have to compete for retail space or the tap handle," she said. "It’s a way to really prove yourself as a brewery before making that leap to becoming a full-time production brewery.” [kickout id="2"] The move to open a taproom makes financial sense for newcomers, too. Many breweries have found taprooms to be a dependable first step toward jumping into the crowded retail market. Taprooms allow breweries to build a loyal customer base while putting off some of the headaches involved in retail expansion like finding a distributor or marketing to a much larger audience. “Opening a taproom allows for a brewery to profit directly," said Lori Keller, manager at the 5 Rabbits taproom in the Chicago suburbs. "They can sell what they make to their customers in house. If you can open a successful taproom, there’s less reason to worry about expanding into the territory of crowded shelf space.” Building a culinary tradition The majority of taprooms and brewpubs aren’t known for their food. They tend to serve up typical bar fare like burgers, nachos and deep-fried snacks. But Chicago has recently given rise to a bevy of culinary-anchored taprooms, where the food may be just as important as the beer. Many of the city’s newest breweries are refocusing to champion their food, bringing in seasoned chefs to create more polished and elegant menus that will garner as much attention as their beers. [kickout id="3"] As the first Michelin-rated brewpub in the U.S., Band of Bohemia on Chicago's North Side is a prime example of the fine-dining trend among breweries. Its beer is infused with rare and exotic ingredients like white tea and starflower or toasted jasmine rice, lemongrass and Thai basil to round out the flavor of the ale. Botanically focused Forbidden Root takes the culinary influence a step further, using upscale ingredients to brew beers that mimic classic liquors—from amaro to Fernet-Branca and even the most popular of summertime drinks, rosé. In the same vein, celebrity chef and purveyor of Mexican culinary treats Rick Bayless’ Cruz Blanca is meant to recreate a type of Mexican brewery popular in the 1860s. The brewery makes beer for the fast-casual restaurant housed in the same building as well as the more polished open-fire grill restaurant, Leña Brava, next door. Cruz Blanca takes on German, Austrian and other European beer styles in an effort to recreate the styles popular in Mexico City when the original Cruz Blanca was brewing. They use Mexican ingredients and serve their beers alongside a menu of smoky, wood-grilled tacos. They also use many local ingredients and are often inspired by the local craft brewing community. [kickout id="1"] “At the end of the day, we’re still an American craft brewery” said Sembrano, “we want to embrace the changes that are happening in our own industry as well.” But despite the influence current trends may have on craft brewing in Chicago, there is still the personal variable to account for. “Chicago is distinctly different from other U.S. cities just in the community feeling that we have here,” Keller said. “There’s a Midwest mentality that extends to the chefs and restaurants. If you need to borrow an ingredient, if you need help with a project, someone will bend over backwards to assist you. You don’t see that in New York or L.A.” Getting a successful brewery off the ground in a market as crowded as Chicago's comes with a multitude of challenges. "To start now and grow, based solely on Chicago-only beer sales, breweries really have to get things right,” said Michael McAvena, beverage director at Heisler Hospitality. "They have to brew great beer, they have to have a good business plan, they have to have good financial backing, their cost has to be right, their brand has to look good, and they have good sales people on the street." By focusing on the same aspects that would make for a popular neighborhood restaurant or bar—such as building a community following or serving superlative food—Chicago’s craft beer industry still has space for more breweries to enter the market. "Are they making great beer, are they differentiating themselves—either in beer or in business model—and how much beer are they trying to sell?” said Bart Watson, chief economist with the Brewers Association. “If they’re staying locally focused and keep checking those other boxes, [Chicago] can probably take on more breweries, and they’ll have an opportunity to compete and succeed.”

City Spotlight

With Nearly 200 Breweries and Counting, Here's How Chicago's Crowded Beer Scene Is Adapting

Competition for shelf and tap space is becoming fierce

Rebecca Skoch

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Rebecca Skoch