SAN ANTONIO – The San Antonio craft beer scene faces tough times, with several breweries closing, scaling back or even filing for bankruptcy.
Economic pressures and rising costs are taking a toll on brewers across the Alamo City.
Beer enthusiasts know the difference between craft brews and domestic beers.
“I can drink a Bud Light, but that is not real beer,” said one brewery customer. “It’s like drinking water.”
Many San Antonio breweries are struggling to survive. Chris Pal-Freeman, the owner of Breakaway Brewery, said he has seen a significant shift in the industry over the past few years.
“A few years ago, it looked like a brewery was on almost every corner. Now, that’s not the way things are going,” said KSAT reporter John Paul Barajas.
“No, it’s not,” replied Pal-Freeman.
Pal-Freeman believes the hospitality industry is suffering due to rising costs and the economy’s impact on consumer spending. As both a brewery and a gastropub, Breakaway Brewery is feeling the pressure on multiple fronts.
“We’re seeing it in both our kitchen and brewing costs,” Pal-Freeman said.
From March 2024 to February 2025, at least seven breweries in the San Antonio area closed or scaled back operations. Alamo Beer Company filed for Chapter 11 bankruptcy in February, although they hoped to stay afloat.
Additionally, Freetail Brewing Company stopped its retail distribution in November.
“There was a brewery that opened before me, and then two others followed. One of those breweries isn’t around anymore,” Pal-Freeman said. “We’ve lost some other breweries that were pretty well established before I was.”
Despite the difficulties, Pal-Freeman is working to keep his business afloat. He has adjusted his operations to focus on smaller batches to maintain a steady return on investment.
“My core beers were five-barrel batches, and all my other beers were three-barrel batches,” Pal-Freeman said. “Now, I’m just sticking with three-barrel batches and brewing a little more often. It’s the balance of ROI.”
Pal-Freeman noted that while growth continues, it’s not at the pace initially expected.
“We still have constant growth, but it’s just the scale of the growth that is not what the projections were,” Pal-Freeman told KSAT.
The solution for beer enthusiasts or those looking to support San Antonio businesses is simple: enjoy a craft beer at a local brewery.
One customer at Breakaway Brewery said, “It’s delicious,” while sipping a cream ale. Another person enjoyed a dark beer called “The Berm” and noted it was “very smooth.
While the road ahead may be uncertain for San Antonio’s craft beer scene, loyal customers and dedicated brewers remain hopeful.
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