Is a liquor store a good investment in 2025? In short, yes! But that doesn’t mean it will be a surefire success.
Rising prices, tariffs, and changing liquor industry trends make running a liquor store more challenging. However, with the proper planning, enough passion, and the flexibility to adapt to changes as they come, running a profitable liquor store is within your reach.
In this article, we’ll highlight the top factors you should consider when investing in a liquor business.
The Liquor Industry: Trends and Numbers
Thinking of investing in a liquor store? Here are a few important trends and metrics to know.
- The average profit margin for a liquor store is 20% to 30%
- Typical startup costs for a liquor store are between $100,000 and $250,000
- Ready-to-drink (RTD) cocktails are increasingly popular, as well as nonalcoholic (NA) options
- Laws around online sales are relaxing, and liquor store e-commerce is on the rise
- Tariffs are causing uncertainty for the pricing of certain products
Long story short, liquor stores offer a lot of promise for business owners, but with prices rising and consumers getting pickier, you have to make smarter decisions to find success.

Is a Liquor Store a Good Investment? 6 Factors To Consider
Are you ready to run a liquor store? Here are a few essential things to keep in mind to maximize your investment and ensure your store is around for years to come.
1. Location and Foot Traffic
The location of a liquor store goes a long way to determining its popularity and profitability. What kind of neighborhood is the store in? What are the demographics and income levels of the local customers?
Remember, unless you have a very specific niche, people aren’t likely to travel from far and wide to visit your store, so you’re better off thinking local. You should also consider other stores in the area (e.g., grocery stores). People are more likely to go to you if you’re near other shopping locations.
Last, consider your location's popularity and potential foot traffic and how they’ll affect your overhead costs. A store in a popular shopping center will net more visitors, but you’ll face higher rent or leasing costs.
2. Local and State Restrictions
Even if you have a dream location, you still need to see if it’s possible to set up a liquor store there. Many states have zoning laws restricting the number of liquor stores that can run in a given area or bar them from operating within certain distances from schools or residential neighborhoods.
Liquor laws are extremely local, decided entirely at the state, county, and city levels. It’s vital to have an understanding of the rules before you invest in a liquor store.
If you run a liquor store in an alcohol control state, things can be even trickier since getting a liquor license will be more competitive (and likely more expensive), and the state will dictate the prices of your products.

3. Product Selection and Niche
Is your liquor store just another place to buy the basics, or is it a go-to spot for specific products like craft beer, scotch whisky, tequila, and mezcal?
The answer will depend a lot on your local competition and your passion. Visit nearby liquor stores and see if there are gaps in their selection or areas where your expertise could help you stand out.
Remember, as far as competition goes, it’s not just about being better, but being different. A mix of diverse and specialized product selections will help your store stand out.
However, knowing you don’t necessarily have to offer a perfect product selection from day one is important. Instead, as your business grows, use the sales data on your point of sale (POS) system to see your bestselling items, which products are bought together, and more.
Use these insights to invest more in products your customers love and decide where to focus your marketing and store layout efforts.
4. Inventory Management Processes
Effectively managing your inventory is arguably the most critical aspect of running a liquor business because liquor inventory will be your most significant ongoing expense.
However, that’s easier said than done. When liquor inventory management is done by hand, it can lead to stockouts, dead stock, and literal days spent writing and receiving invoices.

To optimize inventory levels and maximize your liquor store investment, it’s essential to use modern inventory management software. These tools will help you significantly streamline your daily processes thanks to features like:
- Automated reorder alerts based on your sales history and supplier lead times
- Tracking of individual wine bottles, six-packs of beer, and cans sold from larger cases
- Real-time inventory updates with each sale or delivery
- Automated receiving and invoicing
- Unlimited and custom SKUs for a wide variety of different product types
- Reports showing inventory turnover, dead stock, and sources of shrink
The good news? You don’t need to invest in a separate system to improve your inventory management. Most liquor store POS systems come with inventory management features built in.
5. Marketing and Customer Retention
The success of your package store will depend largely on your ability to bring in new customers and keep old ones coming back. That’s where a well-crafted marketing strategy comes into play.
When most people think of marketing, they think of corporations running big ad campaigns, but it’s much more than that. Marketing can be as simple as promoting the release of a new wine, sending out a newsletter with a discount code, or posting on social media.
The goal of marketing is to tell people why they should shop with you, so focus on showcasing your expertise and personality. A liquor store with a consistent marketing plan is more likely to differentiate itself and find success.

Perhaps most importantly, you need to find ways to bring existing customers back. Returning customers, on average, spend more than a new customer who’s trying you out for the first time.
Launch a loyalty program to give shoppers the perfect excuse to come back to your store. The simplest form of customer loyalty lets customers earn points for every dollar spent, which they can later redeem for discounts or freebies.
To get the most out of a liquor store customer loyalty program, you should:
- Advertise your customer loyalty program with signage or train staff to mention it at checkout.
- Clearly state how customers can earn points and how to redeem them.
- Create a tiered approach to points redemption (e.g., 1000 points gives you $10 off while 2000 points gives you $30 off). This way, people are encouraged to spend more to optimize the points they earn.
- Change things up with days or specific items that earn double points.
When people sign up for your customer loyalty program, you’ll also get a window into the preferences of your favorite customers. Use the sales history of your customer loyalty members to come up with unique promotions and discounts that will appeal to their tastes.
6. Online Sales and Convenience
For many states, online liquor sales were a necessity sparked by the pandemic — but once the genie was out of the bottle, it turned out that online alcohol sales weren’t just a fad, and e-commerce sales are expected to grow over the coming years.
Online sales are an excellent way to reach new customers, generate more revenue, and compete with larger chains.
The first step is having a liquor point of sale system that integrates with alcohol e-commerce. This will allow you to:
- Have accurate and up-to-date listings and stock levels for both your in-store and online inventory
- Validate online customers’ ages and set age-restricted shipping requirements
- Use high-risk payment processors to process credit cards and other digital payments online.
A compatible POS system is essential, even if you only plan to offer local pickup. Even if you have no plans to sell online, a website with an accurate product listing gives customers an easy way to browse your stock — and considering that the majority of people find local businesses online, it’s a handy way to introduce the world to what you offer.
Optimize Pricing and Create a Winning Product Selection With Bottle POS
Is a liquor store a good investment? In short, yes — but it requires taking a strategic, customer-centric approach to find success. Whether you’re starting a new liquor store or taking one over, you need to consider:
- Location, foot traffic, and overhead costs
- Product selection and niche
- Inventory management processes
- Ability to attract and retain customers
- E-commerce and other avenues to expand its reach
While this isn’t necessarily a comprehensive list of everything a liquor store needs to know to run a profitable shop, it’s a good starting point. Every liquor store owner’s journey is different.
To stay competitive and keep prices down, the right tools are essential. Bottle POS has over a decade of experience working exclusively with liquor stores, wine shop owners, and other alcohol retailers to help them find long-term success.
Looking for more tips on starting a liquor store the right way? Check out our comprehensive guide on creating a liquor store business plan.
