Brenna McDermott, Margie Hagen

The Casual Pint in Farragut will close July 31, owner Pat O'Brien told Knox News Monday.

The Admiral Pub, owned by Andy Fox of AWE Hospitality, will take its place under a new lease.

O'Brien and his wife, Barbara, opened the franchise at 143 Brooklawn St. in the Kroger shopping center more than four years ago.

O'Brien, a physician and home brewer, was impressed with the brand after visiting the downtown Knoxville location. The O'Briens hoped it would bring in residual income after retirement.

This is the only location O'Brien owns. There are six other Casual Pint locations in the Knoxville area.

"We have loved being in the Farragut community, selling craft beer and also supporting a fair number of charities in the area, which has really been our real joy," he said. "But unfortunately we have not gotten to the point where we were consistently in the black.”

Couldn't compete with Total Wine

Pat O'Brien said alcohol retailer Total Wine & More has had an effect on his packaged beer sales. The 30,000-square-foot competitor opened in summer 2018 in Turkey Creek.

“It’s probably one of the biggest reasons for us not being able to continue," he said.

Packaged beer sales made up about 25-30% of his business, he said. Once Total Wine opened, those sales "substantially" decreased.

“They negotiate a deal that there’s no way I can beat it," he said. "I can’t sell beer below my costs. So that was a big factor."

O'Brien added food and wine to the menu to boost revenues, but said it was a stop-gap.

Edward Cooper, vice president for public affairs & community relations for Total Wine & More said that to blame Total Wine is ignoring the "great threat" to all alcohol retailers: wine sales in grocery stores. It's forcing retailers to increase customer experience and selection and to lower prices.

"Grocery stores are now much more convenient for customers," Cooper said. "So people have to up their game. To blame it on us I think is short-sighted."

Cooper also noted that the retailer's beer sales in Knoxville fare "well below" the average company-wide sales.

The Admiral Pub to take its place

Fox is president of AWE Hospitality in Loudon. The Admiral Pub will purchase some business assets from the O'Briens, such as tables and chairs. Fox is not purchasing the Casual Pint franchise.

The new pub's beer permit was approved at the Farragut Beer Board meeting on June 27.

The AWE group operates four restaurants in Tellico Village: The Tellico Village Yacht Club's Blue Heron and three golf course restaurants. All are open to the public.

“I’ve been a customer (of the Casual Pint) for a couple of years and got to know Pat and Barb,” Fox told the Shopper News. He'll also apply for a license to sell wine.

He said he has plans to obtain more space in the shopping center for The Admiral Pub, and will add video games and a small pool table or Foosball table.

Small business goodbyes

O'Brien said Casual Pint has supported many charities, including Smoky Mountain Service Dogs, Catholic Charities of East Tennessee, The Lawn Chair Concert Series and Shangri-La Therapeutic Academy of Riding.

"I am blessed that I am able to absorb the large losses that have occurred over time in doing a business of this sort," O'Brien said. "But I met many wonderful people, both in the beer business and in our community.”

The Farragut Casual Pint will continue to serve draft beer and a limited summer kitchen menu and will begin offering discounts on in-stock packaged beer later in the month.