How to Pivot your Business Model: Transforming Sontes into a Rochester Brewpub

“But that’s part of being an entrepreneur, is forward thinking about where you’re going to be.  What do you want to do?  Where do I want to be in ten to fifteen years?” explained Tessa Leung, owner of Grand Rounds Brew Pub

Tessa has been innovating in Rochester’s food and drink scene for a long time.

This female businesswoman previously owned and ran Sontes, an upscale, locally sourced food and wine bar that used to sit right on the corner of 3rd Street SW and South Broadway.  While business at Sontes was great, Tessa could see that it was time for a change.  On April 15th last year, tax day for those keeping score, Tessa and her business partner/head brewer Steve Finnie opened up Grand Rounds Brew Pub, the very first brewpub in over twenty years in Rochester. 

Tessa previously met Steve at an event where he was serving up his beer and she absolutely loved his product.  “Then we looked at what was missing in Rochester and asked what did we really like,” she explained.  Tessa was passionate about wine.  Sontes was her “first baby”.  But when looking at Sontes’ business model, she realized the opportunity to really engage the local community and grow with Sontes was limited.

"Wine in the Midwest doesn't really scream camaraderie like it does in California, because we don't yet have that sense of wine culture, yet.  Wine is not a known commodity like beer in the Midwest.  But beer, it really is part of our Midwestern collective memories and consciousness."

Adding a community-focused piece was important for Tessa in this phase of her career as a food and beverage innovator.  While growing up in Stewartville, one of her favorite jobs was working at this local pizza place, a restaurant that was really inclusive and drew in everybody from the community.

“And it was the best pizza ever.  I’m not going to lie. …The whole town stood behind that.  The whole town got it.  The whole town was proud of that,” she said.

“I think in any business, and especially small business, I think involving the community and the local people, that’s what makes your business your business.  And that’s what makes your business really cool. …And it’s nice for Rochester people to say, ‘This is our beer.  We have this,’” Tessa explained.  

Even the Grand Rounds name is rooted in connectivity and community.  Grand rounds are part of the medical education process where physicians, students, and residents come together to talk about problems and to learn.  Gathering around the table over some beers at the end of the day is just an extension of this process. 

“What do people do when you get together and drink a pint?  You talk about problems.  You try to figure things out.  It’s kind of a grand round.”

The name Grand Rounds is a nod to Rochester’s past, but it also acknowledges Rochester’s future.  A future beyond these medical ties.  A future in entrepreneurship.  A future in beer.

The craft beer scene in Minnesota is one of the best in the country.  Minnesota has 105 craft breweries, or about 2.7 breweries per 100,000 people 21 years of age or older, according to the Brewers Association.  The beer scene in Rochester is starting to grow.  Kinney Creek set the pace, becoming the first brewery to open in Rochester since prohibition. 

“Rochester’s really starting to get this massive education on food and wine and beer and entrepreneurship.  Things aren’t what they were ten years ago.  And that’s good.  That’s really good,” said Tessa.

Now we have Kinney Creek Brewery, Grand Rounds Brew Pub, Forager Brewery, and LTS Brewing Company.  People are starting to take notice of our Rochester beers and breweries.  You don’t need to trek to the Twin Cities any more for a good, local craft beer.

“I’m so hopeful that this city becomes more like you see in Minneapolis or what you see in Portland or Seattle or Sonoma.  It’s a city that embraces that you have quality products and quality chefs and quality producers here and that Rochester does have a lot to offer,” Tessa explained.

Rochester has brewers making some phenomenal, award-winning beers from locally sourced ingredients.  As residents of this city, we’re starting to work through our beer primer and finally understand the difference between a brewery and a brew pub.  Our brewers are creating some innovative products.  Grand Rounds themselves just brewed their 100th batch of beer last month.  That’s 1400 kegs of beer. 

As a southeastern Minnesota born and bred girl, Tessa loves Rochester and the talent held within.  With all the changes happening in the community, Rochester is becoming an entrepreneurial hot spot in Minnesota and more and more people are finally starting to take risks

“I was the only one by myself for a quite some time that was doing something so different that it felt pretty lonely at times.  I really don't feel alone anymore.  It is nice be amongst fellow adventurers in the community, that are inspiring me!”