Co-founder Steven Yarak spread the idea of this unique business model throughout the neighborhood, which led to a meeting of 16 people in a vacant lot in Austin, Texas on January 14, 2006. Together, they assessed what it would take to give the neighborhood the brewpub it deserved. Among that initial group was Jeff Young and Johnny Livesay, Black Star Co-op's eventual first Beer and Kitchen Team Leaders.

Once the plans were drawn up, the real work began. It started with laying a strong business foundation while growing and educating the membership. The business was incorporated in Texas as a co-operative association under the new Business Organizations Code.