Skein and Tipple

Whidbey Island, Washington

Matt Owen always dreamed of owning his own cocktail bar and was intrigued when craft cocktails became popular in the early 2000s. “I always thought that a well-run bar would be one of the most stable small businesses one could take up,” he explains. “After all, a good libation is one of those affordable luxuries people treat themselves to, whether they are celebrating good times or commiserating bad times.”

Matt met his wife Marsha shortly before the pandemic hit in 2020. Marsha was working for the postal service, a stressful job at any time, but especially as an essential worker during a national crisis. When Marsha’s local yarn shop began looking for a buyer, Marsha, an avid knitter, proposed taking it over. The dilemma: Matt dreamed of opening a cocktail lounge but Marsha was presented with a unique chance to open a knitting shop. How could they open two new businesses at once in uncertain economic times?

One night, Matt had a stroke of genius. He recalled visiting a shop which combined retail sales with a small bar; could this work for them? The couple created Skein & Tipple, a shop which sells hand-dyed yarns in front and craft cocktails in the back. When S&T opened in 2022, the yarn shop and the craft bar kept separate hours, with the couple working in shifts. One day they kept both sections open and customers really responded. Today, both sides of the business are open for a portion of the day and for happy hours on the weekends. When the knitting shop is open in the evenings, they also serve cocktails at the bar.

Yarn Farm Kingston

Kingston, New York

Jocelyn Songco loved working with entrepreneurs who were building new businesses. The enthusiasm and energy of her clients inspired her to think about starting her own business. When her company reorganized and offered severance packages, she saw it as the perfect opportunity. Songco’s boyfriend Todd Rowe had several years of experience in the food industry. Serendipity led the pair to the ideal location in Kingston, New York (just a stone’s throw from the fiber world’s popular Sheep & Wool Festival in Rhinebeck), and Yarn Farm Kingston opened in October 2022.

Why combine a craft shop with a wine bar? Songco views the businesses as complementary, promoting overall business sustainability. Both also help create a gathering space for the local community.

“With the plethora of online shopping options for yarn, a local yarn shop needs to be much more than a place to buy yarn,” she concludes.

Another way Songco has broadened the customer base for her shop: expanding her product offerings beyond simply sticks and string. The shop sells supplies for weaving, spinning, sewing, felting, and more, offering classes for beginners and proficient crafters.

Songco believes that the combination of wine and craft is beneficial to sales. “For the shopper, it’s enjoyable to have a glass of wine, set up at the bar, and shop leisurely, chat with a friend, pop up to peruse the shelves and squish yarn, and in general take their time choosing they yarn and enjoying the entire process.” Those who accompany the crafter are often delighted. Now they can sip a beverage at the bar rather than wait impatiently until the visit is over. Some non-knitters have even come in again on their own because they enjoy the atmosphere so much.

Cleo’s Yarn Shop

Brooklyn, NY

Cleo Malone grew up in the yarn biz – her family owns Santa Rosa, California’s Cast Away Yarn Shop. When Malone fulfilled her dream of moving to New York City, she quickly discovered there were no yarn shops near her Bushwick neighborhood. The solution seemed obvious and Cleo’s Yarn Shop opened in 2023. Malone always viewed the shop as a meeting place where people with common interests could meet and hang out together without the high cost of the New York club scene. Cleo’s thoughtful offerings – classes for beginners and advanced knitters, craft circles for BIPOC and queer knitters, fun do-able projects in a variety of crafts– drew people in.

After a successful first year, Malone decided to take the next step, adding a café to the shop.

“People aren’t used to thinking of retail stores as places to hang out unless they’re attending a specific event,” she explains.

“On the other hand, people are very used to spending time in cafes. So why not add one and help change the way people view our space?”

When the shop moved to a new location, Malone added a cheery corner café set-up. The café serves coffee, tea, lemonade, and mocktails, with vegan baked goods on the weekend. Tickets for the shop’s Happy Hours serve as a coupon for the first drink and non-crafters from the neighborhood often stop just to patronize the café.

Malone deliberately wanted the café to serve non-alcoholic beverages only. She notes that there aren’t many locations to socialize in New York without alcohol involved, even though many younger folks don’t drink. “We wanted to create a wholesome place for people who want to socialize without alcohol involved.” She does, however, plan to host some yarn and wine tastings or offer champagne for special events.

Things To Consider

Wondering if you should add refreshments to your shop? You’ll want to think about the following.

Your focus.  Start by considering your vision. Do you want a separate area for refreshments or a more integrated set-up? Skein & Tipple views its two sectors as complementary but also runs one half of the business when the other is closed. The bar section is elegant and comfortable, with a pressed-metal ceiling and room for musicians. Yarn Farm Kingston and Cleo’s Yarn Shop have a more integrated approach, where the refreshments are part of the main business space and customers can easily sip and craft together.

What is the footprint of your shop? Square footage and layout will dictate how much space you can devote to refreshments and whether you can offer a separate space for them. You’ll also have to consider the physical requirements of your space. Cleo Malone took a DIY approach to keep costs down but not everyone can do renovations by themselves. You may need to run water lines, pipes, or extra wiring to accommodate a drinks or café set-up.

The Menu Options range from tea, coffee, and soft drinks to wine and beer to cocktails and snacks. Will you need to hire a barista or bartender, a chef or waitstaff (and how difficult will it be to find them)? Which menu best fits into your shop’s atmosphere?  Yarn Farm Kingston serves craft beer and wine (including an ale called “Brown Sheep”!), but also serves non-alcoholic beverages to ensure the focus stays on friendship and connection. Cleo’s offers only non-alcoholic beverages, offering some baked goods on weekends, so customers can relax with a low outlay of money. Yarn Farm Kingston features food options, so shoppers can have a nosh as well as a glass of wine; however, food service requires more space and will be subject to health code regulations.

Consider your state’s liquor laws and health code. If you decide to add food to your menu, you’ll need to find out the health code requirements in your area. In addition to a business permit, you may need a food license and to pass health and safety inspections. Find out the food handling requirements in your state – your employees may need licenses and training.

In most states, separate agencies regulate alcoholic beverages and regulations vary substantially from state to state. Our interviewees had little trouble applying for liquor licenses in New York and Washington states. They found that the cost was relatively low and the application process straightforward. Other states present bigger challenges. In my home state of Pennsylvania, the Liquor Control Board (PLCB) has complex and labyrinthine regulations. PLCB’s Shawn Kelly explained that Pennsylvania places strict limits on the number of liquor licenses that can be granted in each county. If a particular county has used its quota of licenses, you’ll have to try to purchase an existing one, usually at auction. In states like this, you’ll generally need to hire an attorney who specializes in state liquor regulation, adding uncertainty and expense.

Craft a well-written business plan. Matt Owen, from Skein & Tipple, found the hardest part of setting up the business to be explaining their hybrid concept to others. When one potential landlord balked, Owen created a visual presentation as a kind of elevator pitch. Use marketing data to support your proposal. For example, statistics show that customers who linger longer in a business tend to purchase more. Offering a place for non-crafters to relax can turn into additional profit from the sale of food or drinks.

Create a third space for your clientele. Sociologists use the term “third space” to refer to a separate place, other than work or home, where you spend time and socialize. Third places allow you to meet with friends, make new ones, explore hobbies, and connect with communities outside your workplace and home neighborhood. Adding refreshments to your craft business can turn a bricks-and-mortar shop into a third space, providing community, friendship, and fun for your customers along with opportunities for more sales.

Carol Sulcoski

Contributor