Tag Archives: Seek Beer Run Club

Beyond Permits: Why Craft Breweries Need a Social License to Operate

One of the things I enjoy most about being an academic researcher is discovering new ideas and concepts that are unfamiliar to me. Often, these are concepts that are well established in another discipline, or in a subfield of my own discipline with which I have little familiarity. Such discoveries can provide fresh perspectives on longstanding questions and open up new avenues of inquiry. They are especially rewarding when they have direct relevance to my own research and offer new ways of thinking about the issues I study.

Recently, while revising a paper for publication in a geography journal, I encountered a concept that was new to me: social license to operate (SLO). It is a concept that originated in the mining industry during the 1990s. Faced with growing environmental concerns, community resistance, and heightened public scrutiny, mining companies increasingly realized that legal authorization alone was insufficient. Long-term operational success also depended on gaining and maintaining the acceptance of local communities and other stakeholders. This form of community approval became known as a social license to operate. I was introduced to the idea through an entry by Robert G. Boutilier and Ian Thomson in the Encyclopedia of Business and Professional Ethics.

As I reflected on the concept of a social license to operate, it struck me that it applies surprisingly well to craft breweries. Before a new brewery can open its doors, it must navigate a complex regulatory process and obtain numerous permits and approvals. At the federal level, this includes securing a Brewer’s Notice from the Alcohol and Tobacco Tax and Trade Bureau (TTB), the primary authorization required to produce beer for commercial sale.

Breweries must also satisfy a range of state and local requirements. While local regulations vary by municipality, they commonly include zoning approval, building permits, fire department inspections and approval, wastewater and sewer permits, and authorization to sell alcohol.

Yet obtaining these permits does not automatically guarantee success. Just as mining companies must earn the acceptance of the communities in which they operate, craft breweries often depend on the support and goodwill of local residents, business owners, community organizations, and public officials. In this sense, a brewery’s long-term viability rests not only on its legal authority to operate but also on its ability to earn and maintain a social license to operate.

A brewery’s social license may be “granted” and then strengthened over time through community engagement, participation in local events, support of neighborhood organizations, responsiveness to complaints, and a demonstrated commitment to being a good neighbor. A brewery that functions as a valued third place and community asset is more likely to enjoy a strong social license.

Based on my own research, as well as that of other scholars, I would argue that craft breweries generally enjoy a strong social license to operate. Brewery owners are typically deeply embedded in their local communities and often strive to be good neighbors, contributing not only to the local economy but also to the social and cultural life of the places in which they operate. By fostering community connections, supporting local initiatives, and creating welcoming gathering spaces, many craft breweries have established themselves as valued community institutions rather than simply businesses. Beyond beer production, craft breweries have become important community hubs, offering spaces for yoga classes, book clubs, running clubs, and a variety of activities that foster social interaction and local engagement.

Jefferson Beer Supply in Jefferson, SD demonstrates that a brewery’s success depends on more than permits and regulations; through meaningful community engagement, it has earned a strong social license to operate.
Members of the Seek Beer Run Club meet every Monday evening at Seek Beer Brewery in San Diego, CA

However, Lian Dare, Jack Schirmer, and Frank Vanclay, in an article published in the journal Impact Assessment and Project Appraisal, argue that while community engagement is essential for gaining and maintaining a social license to operate, it is misleading to think of a social license as a single form of approval granted by a homogeneous community. Instead, they conceptualize social license as a continuum of multiple, overlapping licenses negotiated with different stakeholder groups at different scales of society. Viewed in this way, a proposed craft brewery may be welcomed by some stakeholders, such as nearby residents who enjoy craft beer and value the brewery as a community gathering place, while being opposed by others who are concerned about issues such as traffic, noise, anti-social behavior, or changes to neighborhood character.

While most breweries encounter little or no opposition from local residents, there are notable exceptions. For example, in 2026 residents living near Hamilton Family Brewery in Rancho Cucamonga, California, complained that the brewery had generated increased traffic, parking congestion, noise, and disorderly behavior associated with intoxicated patrons. In 2023, two residents filed a lawsuit against Savage Craft Ale Works In West Columbia, SC alleging that excessive noise and live music from the brewery had diminished their quality of life and prevented them from fully enjoying their home. Earlier, in 2016, residents in Ocoee, Florida, opposed a waiver request that would have allowed Toll Road Brewing Company to locate within 1,000 feet of several churches and mosques. In each of these cases, the dispute was not primarily about whether the brewery had legal authority to operate; rather, it concerned whether community members believed the brewery’s presence was compatible with local expectations and neighborhood quality of life.

Yet community attitudes toward beer-related venues are not always negative. In Philadelphia, PA for example, residents are currently fighting to preserve a popular beer garden that is slated to be replaced by an apartment building, demonstrating how some beer venues become valued community assets rather than unwanted neighbors. A developer plans to replace the PHS Manayunk Pop Up Beer Garden with a six-story, 73-unit luxury apartment building, but many residents have voiced concerns about increased traffic, congestion, and the loss of a valued community gathering space. For six years, the beer garden has served as more than a place to enjoy a drink; it has become a neighborhood institution where residents meet friends, celebrate milestones, and build community. The strong public reaction to its impending closure suggests that the venue has earned a social license to operate, gaining legitimacy and support by providing social value beyond its economic function. The controversy highlights how places such as beer gardens can become important components of a neighborhood’s social infrastructure, contributing to sense of place, community cohesion, and local identity and offers a powerful example of the importance of a business’s social license to operate.

The PHS Manayunk Pop Up Beer Garden in Philadelphia has become a popular community gathering spot

While objections to craft breweries are relatively uncommon and typically focus on localized impacts, there have been instances in which residents have opposed the siting of large breweries owned by multinational corporations. The importance of having a social license to operate was demonstrated in 2020 when residents of Mexicali, a city on Mexico’s northern border in Baja California, voiced strong objections to a nearly completed brewery being constructed by Constellation Brands. Public protests prompted the government to hold a referendum, in which local voters rejected the project. Locals accused Constellation of siphoning off scarce water resources. As a result of the referendum the Mexican government revoked Constellation’s license to build the brewery. The company had no choice but to abandon the Mexicali brewery and instead shifted its investment to a new brewing facility in Veracruz on Mexico’s Gulf Coast. Constellation Brands is a large multinational corporation who brew beers such as Corona, Modelo Especial, and Pacifico for the U.S market.

Residents protest the Constellation Brands brewery in Baja California, Mexico

Discovering the concept of a social license to operate has given me a new perspective on craft breweries and their relationship with place. While regulatory approval allows a brewery to open, long-term success depends on earning community trust and support. Most breweries achieve this through local ownership, community engagement, and the creation of welcoming gathering spaces. Ultimately, the success of craft breweries depends not only on making good beer but also on building relationships and contributing positively to community life.

Further Reading:

Boutilier, Robert G. and Ian Thomson. 2018. Social License to Operate. In: Deborah C. Poff and Alex C. Michalos, A. (editors) Encyclopedia of Business and Professional Ethics. Springer, Cham.

Dare, Melanie (Lain), Jack Schirmer, and Frank Vanclay. 2014. Community Engagement and Social Licence to Operate. Impact Assessment and Project Appraisal, Volume 32, Issue 3, Pages 188–197.

Talmage, Craig A., Caitliln Bletscher, Josh D. Newton, and Matthew M. Mars. 2025. Community Development on Tap: How Local Breweries Provide Creative Community-centered Spaces and Initiatives for Advancing Economic and Social capital. Community Development, Volume 56, Issue 6, Pages 815–836.

Seeking Great Beer in San Diego

I was in San Diego last week giving a guest lecture to students in the Craft Beer and Urban Economies class at the University of California-San Diego. The course is taught by my friend and colleague, Julie Wartell. As part of the class, students get the opportunity to visit and tour a local brewery. I was fortunate enough that my trip to San Diego coincided with a visit the class made to Seek Beer Co.

Julie, myself, and about 25 students descended on Seek Brewery early on a Sunday afternoon. Established in 2022, the brewery is located in the city’s North Park neighborhood, described by some locals as “the best beer neighborhood in the nation,” Like most craft breweries, it is relatively small. According to data provided to the Brewers Association, Seek produced 411 barrels of beer in 2023. It does have capacity for growth, however.

Our group was met at the brewery by founder and owner, Dave Ohmer. As with any brewery tour I go on, what interests me the most is hearing the owner talk about their background, their passion for brewing, and the opportunities and challenges that they see for their brewery and the industry more broadly.

Dave grew up in Cincinnati, Ohio. His emotional ties to this marvelous Midwest city are still evident in the Bengals banner that has pride of place in his production space. A interesting feature of Dave’s journey to brewer and brewery owner is that he never home brewed. This is highly unusual in the brewing industry. Data show that approximately 90% of today’s commercial craft brewers started on their professional journey as home homebrewers. During college, where he studied music, Dave waited tables at Downtown Grill and Brewery in Knoxville, TN. One day he asked the owners if he could volunteer in the brewhouse. His volunteer position transitioned to a paid position and from scrubbing floors and cleaning kegs he worked his way up to full-time brewer. Additional positions at Saw Works Brewing in Knoxville and Whole Foods Brewing Co. and Urban South Brewery in Houston, TX allowed Dave to expand his knowledge base and hone his brewing skills.

With a Bengals bag in the background, Dave Ohmer tells us about the brewing process

Seek has a relatively small taproom. A sign on the wall indicates that the space, legally, play host to 43 people. There is, however, an outdoor space, share with a neighboring brewery. This is vital to Seek’s success as it allows the brewery to serve more customers from its taproom. Currently, the taproom is responsible for 70% of Seek’s sales. The other 30% is self-distributed to local bars and restaurants. Going forward, Dave would like to increase the percentage of his sales that come from the taproom. Simply put, the profit margins on a taproom keg are just so much more generous than one that is distributed. During our visit, Dave mentioned that there had been rumblings of the outdoor space being converted to half-a-dozen parking spaces – this would not be a good development from Seek’s perspective.

When I was there Seek had about a dozen different beers on offer, including a Vienna Lager, a Coffee Stout, a Fruited Sour, a West Coast IPA, and a Hazy IPA. One thing that I noticed about the beers available was that all but one (an Imperial Coffee Stout) had ABS of under 7%. I asked Dave about this, and he said that this simply reflected market demand. Higher ABV beers had not been selling fast enough. This preference for lower ABV beers (although many would consider 6.9% to be quite high; its relative guess) is consistent with a broad market shift towards lower alcohol beers that has been observed. As a beer drinker who prefers beer to be under 7% ABV, I appreciated the wide choice of such brews on offer at Seek.

While a relative newcome to the San Diego beer scene, Seek has made a big impact. At the 2025 San Diego Beer News Awards (SDBNA), Seek won in six categories (Best Customer Service, Best Hazy IPA, Best Imperial IPA, Best Pilsner, Best Collaboration Beer and the inaugural Best Alternative Beverage award). What struck me about this list of awards was that not only does Seek produce great beer, but they also provide fantastic customer service. Behind the bar at Seek when I visited was Taproom Manager, Tyler Hamman. Along with Beertender, Savanah Marshall, Hamman is key to the great service that Seek’s customer’s experience. This was not the first time Seek had won the Best Customer Service Award – they had previously done so in 2023.

As Dave Ohlmer builds his brewery’s brand, and hopefully its taproom sales, providing good customer service is critical. In a research paper published in 2023 in the journal Agricultural and Resource Economics Review, researchers from Cornell University examined the relationship between various taproom characteristics and customer satisfaction. They found that the two most important contributors to customer satisfaction were the taproom’s interior ambience and the friendliness and knowledge of servers. And, perhaps not surprisingly, customers who were more satisfied with their taproom experience tended to stay longer, buy more beer, and spend more money.

Seek is also a brewery that is very engaged with its community. I experienced this on a previous visit in 2024. On that trip, Julie took me to Seek on a Monday evening. This happened to coincide with the weekly meeting of the Seek Run Club. Every Monday at 6pm, a group of folks meet up and have an at-your-own-pace walk/jog/run around the North Park neighborhood, at the end ow which everyone meets back at Seek for a beer (or two) and an opportunity to socialize. This activity is an indicative of a larger trend of breweries becoming the focus of what is generally known as Leisure Time Physical Activity (LPTA). The LPTA can be yoga, running, cycling, or any other activity that involves some level of physical exertion. The Run Club has become such a part of the identity of the brewery that one of the beer’s produced by Seek is called “On a Monday” a Light Lager with an ABV of 4.2% and has been dubbed as the “official beer of the Seek Run Club”.

The Seek Run Club meets every Monday
Seek Beer Run Club members enjoy a post-run beer
“On a Monday” – the official beer of the Seek Run Club

Further Reading:

Li, Jie, Sara M. WagneR, Miguel I. Gomez, and Anna Katharine Mansfield. 2023. Customer satisfaction and sale performance in New York State brewery tasting rooms. Agricultural and Resource Economics Review, Volume 52, Pages 132–150.

Seaman, Alana N, Lindsey Schroeder, Laura Morris, Kayla Hines, and Michele Abee. 2024. “Ten bucks for yoga and a beer in a cool vibey spot”: Exploring motivations for LTPA at craft breweries. Leisure Studies.