How to Open a Liquor Store: Costs & Considerations (2025)

The liquor industry is big business. It’s estimated that US consumers splash $318.2 billion on alcoholic drinks every year, with approximately $186 billion of that expenditure going towards liquor bought from supermarkets and convenience stores. 

Now’s a great time to open your own liquor store. With a knack for stocking products that customers like and attention to detail, you can turn liquor into a profitable business. 

That said, the process of opening a liquor shop is more complicated than a traditional retail store. From navigating licensing requirements and zoning laws to protecting your merchandise, here’s the complete guide on how to open a liquor store—including the costs you might incur along the way.

How to open a liquor store business

1. Research and plan
2. Apply for licenses and permits
3. Choose a retail location
4. Design your liquor store layout
5. Consider inventory management
6. Choose a point of sale system
7. Create an online store
8. Hire retail staff
9. Market your liquor store

1. Research and plan your new liquor store

A business plan outlines the vision for your business and acts as a roadmap on how you’ll get there. While some entrepreneurs write off a business plan (or worse, write one and never reference it again), it can help avoid common pitfalls that business owners tend to make when opening their first retail store. 

The most important components of your liquor store’s business plan include:

• Your target market. Who will you target? Think beyond demographics such as age and gender to pinpoint the pain points and purchase motivations that your target market shares. For example, this might be busy professionals who like the social symbol of expensive wine at parties they host.
• Niche focus. What type of liquor store do you plan to open? Specialty stores can charge premium prices for higher quality beverages, but you could also niche down the type of product you sell—like Mexican tequila or wine specialty stores.
• Market analysis. How big is the target market in your desired location? What competitors already exist, and how can you differentiate your liquor store? A unique selling proposition gives shoppers a reason to visit your store over other liquor stores. 

“Starting with a retail store has been the best way for me to get grounded in the industry and become, in many ways, an expert on consumer preferences and desires,” says Douglas Watters, founder of Spirited Away.

2. Apply for retail licenses and permits

Liquor is a heavily regulated industry in the US, but regulations can differ state by state. In Utah, for example, the state government controls the sale and distribution of all liquor, while more relaxed regulations in California mean alcohol can be sold in grocery stores, convenience stores, and privately owned stores.

Check your local laws regarding liquor licenses, permits, and operating requirements. Most require sellers to have a liquor license. This can cost as little as $40 or as much as $180,000 depending on the type of liquor you sell, how many licenses you need, whether it’s a quota state, and the local county.

You may also need generic business licenses, such as a seller’s permit if you operate in a state with sales tax. Again, these are regulations state-specific—some states have no sales tax while others have rates as high as 7.25%. Check with your local authority to determine your requirements, then work with a business lawyer who can help you ensure compliance. 

Finally, consider commercial retail insurance as an extra layer of legal protection. Monthly premiums for liquor liability insurance may be higher than other industries due to their naturally complex and heavily regulated nature. 

“In this particular field, there is a lot of red tape,” says Catherine Carter, co-founder of The Sip, in an episode of Shopify Masters. “Take your time, get your licensing, get your ducks in a row. Don't try to rush that process, or you’ll spend a lot of time on the back end trying to correct it later.”

3. Choose a retail location

Deciding on the right spot for a retail store is a big decision for any entrepreneur—even more so for liquor stores. While you don’t always need a large retail location (inventory is small enough to stack on shelves), there are some things to consider when scouting spots:

• Zoning laws. Some states have zoning laws that prohibit alcohol sales entirely; others have restrictions on the operating hours, the type of alcohol you can sell, or the proximity to certain businesses (such as schools or churches.)
• Visibility. Customers will only visit your store if they know it exists. High traffic areas, such as strip malls or busy high streets, can draw in passersby. But don’t just think about attracting foot traffic—liquor stores are often targets for theft. Opt for a spot that’s well-lit at night and clearly visible to deter criminals from targeting your store.
• Local demographic. Make sure your store is situated in an area with a customer base that is old enough to legally purchase alcohol. Areas commonly occupied by students or young families, for example, might not be the best fit. 
• Leasing agreements. Not all commercial real estate owners will be open to liquor store tenants because of the risks associated with one—like licensing complications or security concerns. Work with a real estate broker who can negotiate leases with property owners that are open to liquor stores occupying their space.

4. Design your liquor store layout

Liquor stores are unique in the sense that all products are one size (more or less). Bottles also sit well on vertical shelving units. Place bestsellers at eye level and use end caps to showcase special promotions. 

The layout of your store can also deter shoplifters from targeting your store. The basic loop layout, for example, arranges products on vertical shelving units around the perimeter of your store so that inventory (and visitors) are clearly visible at all times. You could also place high-value items behind the checkout desk for extra protection. 

💡Tip: Anti-theft devices—such as mirrors, alarms, security cameras, and locking display cases—can protect your inventory and deter shoplifters from looting your new business. 

5. Consider inventory management

Liquor stores tend to stock multiple quantities of the same product—perhaps even different sizes and flavors. Without proper inventory management guidelines, you’ll struggle to keep track of what you’ve sold and what’s still on the shelves.

Inventory management can also help keep track of your products’ expiration dates. While it’s true that some wines get better with age, other products (such as liqueurs) have limited shelf lives. An inventory management system can store these expiration dates so you can sell them before they’re unsellable. 

Now’s also a great time to think about your product assortment and category management. You could expand your product line to offer non-alcoholic beverages and cater to an entirely new target market. Or, you could become a full-service liquor store that also sells cocktail mixers, glassware, and mixology kits—all of which provide upselling and cross-selling opportunities to increase average basket size. Take VIN Chicago, for example. What started as a single wine store grew into a four-location business managing over 3,000 products across Chicago.

"The biggest advantage of Shopify is that it's completely integrated," says Peter Schwarzbach, owner of VIN Chicago. "Whether someone buys in-store or online, the inventory is always accurate. That's crucial when you're dealing with thousands of different wines and spirits."

6. Choose a point of sale system

A point of sale (POS) is the command center for your entire retail operation. More than just a tool to ring up orders at the checkout desk, the best POS systems offer a combination of hardware and retail software that can: 

• Accept a variety of payment options with integrated payment processing
• Update inventory quantities in real-time, including any returned merchandise
• Store customer data to use for personalization
• Manage different order fulfillment methods, such as buy online, pickup in-store (BOPIS) and local delivery
• Handle age verification requirements
• Process quick barcode scanning for efficient checkout
• Generate detailed sales reporting and analytics

Shopify, for example, has unified customer profiles that centralize any data you’ve collected on an individual shopper. See items they’ve viewed online, how many loyalty points they’ve earned, and which products they’ve bought. You can reference this to personalize the in-store experience.

💡Tip: Because Shopify natively builds POS and ecommerce on the same platform, data will update in real-time. You’ll get one centralized business “brain” that centralizes inventory, order, and customer data, no matter where you sell. 

7. Create your online store

Instead of targeting customers within a nearby radius to your brick and mortar store, an ecommerce website offers the freedom to sell liquor to anyone, anywhere.

That said, there are some considerations to protect your business when selling alcohol online. In the U.S., the minimum legal drinking age is 21 years old. You must ensure that customers meet this age requirement when both:

• Buying liquor online. Use age verification apps such as Blockify or Age Gate that ask for a customer’s date of birth before they can place an order. However, this can change by country—in the UK, for example, the legal drinking age is 18. Shopify makes this easy to handle with localized storefronts for each market. You can personalize the experience depending on each market’s age requirements and alcohol laws. 
• Receiving their order. Work with a shipping partner that asks for signature upon delivery from a recipient who is over the legal drinking age. This may make shipping more expensive, but can pay dividends by avoiding non-compliance penalties.

Once those regulations have been taken care of, think about how easy it will be to manage your ecommerce business alongside your retail store. Shopify unifies POS and ecommerce on the same platform to make it as stress-free as possible. Inventory, order, and customer data flow to one unified commerce operating system.

Boozy, for example, used Shopify to become the largest online liquor store in the Philippines. “We love the ability to customize different aspects of the storefront and platform, with full API access so we can create our own suite of private apps for our own inventory management and fulfillment system, and priority support if we run into any issues,” says co-founder and director Jonathan Joson.

8. Hire retail staff

There comes a time when it’s no longer possible to manage a store singlehandedly. There’s also the security vulnerability of operating solo; having at least two people in your store can offer backup if the worst happens. 

There are multiple roles you can hire for your retail store. When you’re just starting out, it helps to have an “all-rounder”—someone who can jump in and assist with the following tasks when required:

• Serving customers
• Processing refunds and exchanges
• Issuing gift cards
• Restocking products on the shelves
• Cleaning and tidying the store
• Creating promotional displays

Train staff on how to use your POS system, offer outstanding customer service, and spot underage customers. You can get in serious trouble for selling alcohol to minors—let your team know how to detect fake identification cards and operate ID scanners (if you use them).

💡Tip: If you’re training a new employee, set their user profile to “Require manager approval” in Shopify POS. This lets you double check that a customer meets the minimum drinking age before serving them alcohol in your store. 

9. Market your liquor store

Design a retail marketing campaign that drives foot traffic to your liquor store. For example, you could host a grand opening party to let people know the store is open. Plan fun experiences, such as free tasting stations and discounts on their first purchase, to incentivize people to visit. 

You could also attract customers by partnering with other local businesses. A wine store, for instance, could offer a gift card to redeem at a local chocolatier (and vice versa). This lets both brands lean on each other’s audiences to acquire new customers. 

The ultimate goal should be to build a community around your liquor store that keeps customers coming back. “We have to reach people and communicate some of that humanity, authenticity, and purpose bigger than just trying to sell you something,” says Josh McJannett, co-founder of Dominion City Brewing, in a recent Shopify Masters episode. 

Considerations for opening a liquor shop

Compliance with regulations

Liquor stores are bound by red tape that keep their businesses on the right side of the law. It helps to have legal counsel—whether that’s an attorney or contact at your local authority—as you go through the process of setting up your new retail business. They can make sure you’re allowed to legally operate, meet licensing requirements, and have the necessary credentials to sell alcohol. 

Insurance

Business insurance protects your liquor store in case the worst happens. If a customer has a slip in your store or it’s targeted by shoplifters, retail insurance can cover legal fees and compensation. It can also offer payouts if you’re found liable for a mistake. 

Financial planning

The cost of opening a liquor store varies dramatically based on your business structure, state, and retail location. 

Do your research in advance and summarize your findings in a business plan to prevent any last minute surprises that throw your budget off course. Account for both upfront and ongoing costs in your retail business plan. This helps you make sensible financial projections and secure funding to plug any gaps. 

Open your liquor store today with Shopify

Liquor stores differ from other businesses because there’s much more red tape around what you can (and can’t) do. That said, you can turn your retail store into a thriving business. It just takes extra planning and legal counsel to confirm you’re meeting regulatory requirements.

Shopify POS has all the features you’ll need to operate a liquor store, no matter whether you sell online or offline. 

And you don’t need to become a tech wizard to take advantage—Shopify POS is designed to be intuitive and user-friendly, so you can focus on what matters: connecting with customers and growing your business.