Chapters

Introduction

As a small business owner, you’ve made countless investments in your liquor store. 

You’ve put your hard-earned money into your small business, devoted long hours to turning it into the perfect retail space, and shared your enthusiasm for fine spirits with your community. 

With so much on the line, you need to do everything you can to protect your investment with the very best liquor store security strategies. 

Liquor store security is crucial for protecting your business from crime, theft, and legal threats — all of which can endanger your small business’ profitability and longevity. 

Liquor stores also face unique challenges that make security complex. Your store likely has hundreds — if not thousands — of bottles in stock, with everything from the most affordable vodkas to the rarest luxury whiskeys on your shelves. On top of these inventory intricacies, you must also navigate the legal limitations governing alcohol sales. 

That’s why we’ve created this guide to help you unravel the tangled web of liquor store security. In this guide, you’ll find: 

  • An overview of the legal landscape of alcohol sales
  • Strategies for securing your liquor store’s inventory, cash, and sensitive documents
  • A list of essential liquor store security tools
  • Best practices for inventory management and shrinkage reduction
  • How to train your employees to spot and respond to crime
  • Ways to use your liquor store’s POS system for the ultimate small business security

Let’s dive in and explore how liquor store security can make a difference for your small business. Cheers!

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Liquor Store Security: The Basics

Obtaining and Maintaining a Liquor License

One of the first steps you’ll need to take on your journey to owning a liquor store is to apply for a liquor license

Licensing requirements vary by area, so make sure to thoroughly research your state and county’s laws to learn what type of license you’ll need, what the application process looks like, and what fees are associated with the required licensure. 

Whether you’re in the process of applying for or renewing your business’ liquor license, it’s critical to be proactive. Depending on your state and county, the process of obtaining a liquor license can be lengthy and expensive, so make sure to get started early and budget accordingly. 

After your liquor store’s license has been approved, your next step is to stay compliant with all laws and regulations regarding alcohol sales. 

Each state, county, and municipality will have different laws regulating liquor store operations, so check with your local government to learn what rules apply to your business. For example, many areas limit the times that you’re allowed to sell alcohol, with some prohibiting sales on Sundays or late at night. 

The most important law to know is that all states prohibit the sale of alcohol to customers under the age of 21. To keep your liquor store on the right side of this law, we recommend using a point of sale (POS) system with built-in age verification. This tool prompts your cashiers to confirm customers’ birthdates using an ID verification scanner during the checkout process, ensuring that they never skip this essential step. 

Failure to understand and follow these laws can result in severe consequences, including costly fines, suspension or revocation of your liquor license, and even criminal charges.

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Tax Requirements for Selling Alcohol

Small business owners in any industry are tasked with navigating the complexities of taxes — but the tax laws that apply to liquor stores can be particularly tricky. 

The types of taxes that your business will need to pay depend on a number of factors, including your state and city’s laws, the type of alcohol you sell, your sales volume, and more. 

Federal Taxes on Alcohol

All businesses that sell alcohol in the United States are subject to the Alcohol and Tobacco Tax and Trade Bureau (TTB), the body responsible for administering the federal government’s taxes on alcohol. 

Let’s take a look at the tax rates the TTB collects depending on the type and volume of alcohol being sold: 

  • Beer is taxed by the barrel, and the rate depends on the brewer. Small, domestic brewers are taxed at a lower rate, while larger or foreign brewers are taxed at a higher rate. 
  • Wine is taxed according to its alcohol content, with stronger blends being taxed more heavily than wines with a lower alcohol percentage. 
  • Spirits are the most heavily taxed category of alcohol. Like wine, liquors with higher proofs are subject to higher taxes. 

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Your liquor store’s inventory determines what taxes you have to pay at the federal level. For example, if you specialize in liquor, you might have to pay higher taxes than a store that exclusively carries craft beers. 

State and Local Taxes

All state and local governments have the power to levy their own taxes on the sale of alcohol. For example, your state might require you to collect an alcohol-specific sales tax from your customers. 

The rates and types of taxes vary from state to state and city to city, so make sure to check with your area’s authority to ensure that your liquor store is compliant with all tax laws. 

Here are our best tips for avoiding a tax disaster: 

  • Keep a close eye on federal, state, and local laws, so that you’re always prepared for tax season. 
  • Consult with tax professionals or legal advisors specializing in alcohol-related laws to verify that all tax obligations are met.
  • Utilize your POS system or add-on accounting software to accurately track your sales and calculate your taxes. 

Underpaying your liquor store’s taxes can create major problems, so take the time to learn about these laws and ensure that your business is in full tax compliance. 

How To Protect Your Business With Liquor Store Security Strategies

Now that we’ve covered how compliance with licensing, tax, and age verification laws can protect your liquor store’s profitability, let’s talk about additional steps you can take to secure your liquor store. 

Secure Your Physical Space

Some of the most effective liquor store security strategies are also the simplest. In this section, we’ll share some tools and tips for setting up your liquor store to prevent theft and other unlawful behavior.

Set Up Locks, Vaults, and Safes for Valuables

Securing your liquor store’s assets is crucial for deterring and preventing theft. You’ll want to take special care to lock up your most valuable inventory items and your cash. 

For example, if your liquor store carries rare, limited-edition spirits, it’s a good idea to secure them more carefully than your standard well liquors. 

Let’s look at a few liquor store security tools that you can use to protect your cash and your most expensive stock: 

  • Locks are versatile solutions that can restrict access to certain items or areas within your liquor store. You’ll want to invest in high-security, tamper-proof locks to place entrance doors, storage rooms, and cabinets where valuable items are kept. For a more high-tech solution, consider using electronic keypad locks that allow you to set unique access codes for employees, track entry and exit, and change codes as needed without the need to physically change locks.
  • Vaults are typically built into your liquor store’s walls and provide the highest level of security. Vaults are a great option for securing large amounts of rare, expensive inventory or sensitive documents. 
  • Safes allow you to store business documents and cash securely. Safes are a flexible solution, and there are several different options available depending on what you plan to store in your safe. For example, you might opt for a wall safe if you’re hoping to discreetly store valuable inventory or documents, or you might choose a drop safe for your employees to deposit cash from sales throughout their shifts. 

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Installing an adequate combination of locks, vaults, and safes can deter criminals from targeting your store, delay access to valuables if a thief breaks into your store, and even protect your assets in the event of flooding, fire, or another disaster. 

Restrict Access to Inventory Areas

While shoplifting and break-ins are a major cause for concern, it’s also important to protect your liquor store from internal threats. Unfortunately, employee theft is a common problem, with one in five small business owners reporting that an employee has stolen from them. 

The key to preventing employee theft is strategically limiting access to your liquor store’s assets. Consider installing access control systems that restrict access to the spaces where you store your excess inventory, cash, and sensitive documents. 

Technologies like key cards and biometric scans provide the ultimate level of security to ensure that only your most trusted employees have access to your secure areas. With these systems, you can assign your employees a personalized key card to enter your storage rooms, or you even implement employee fingerprint or facial recognition tools for heightened security. 

Another benefit of these technologies is that they keep a detailed record of who accessed your secure spaces and when they entered, making it easy to keep a close eye on your valuables and investigate potential issues as they arise. 

For added security, you can install cameras in strategic areas of your stockrooms to further protect your valuable inventory. 

Use Lighting and Signage To Discourage Theft Attempts

Subtle changes to your store’s layout can be surprisingly effective in your mission to secure your small business. 

Installing bright lighting and putting up clear signage throughout your store are two foundational liquor store security strategies that can deter criminals from targeting your business. 

Thieves do their best work in the dark, so make sure that all areas of your liquor store are well-lit with bright lighting. Pay special attention to your entrance and exit, any dark corners of your space, and your parking lot. 

Ensuring that your space is illuminated with appropriate lighting does more than just deter shoplifting; it also creates a more welcoming environment for your customers, enticing them to spend more time exploring all the spirits your liquor store has to offer. 

Signage is another powerful theft deterrent. A few well-placed signs letting visitors know that they’re on camera, that your store has security measures in place, and that you plan to prosecute shoplifters can be very effective. 

For the most visibility, place these signs at your store’s entrance and near your checkout counters. 

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Leverage Surveillance Technology To Safeguard Your Liquor Store

Security cameras and alarm systems are classic liquor store security strategies for a good reason. 

Well-placed security cameras are an effective way to deter theft and catch thieves if they decide to target your business. Let’s look at three types of security cameras you might consider employing in your store: 

  • CCTV Cameras: Closed-circuit television (CCTV) cameras are a reliable and cost-effective way to cover all angles of your space. They provide a constant loop of footage that’s stored on a device in your store, so you can easily refer to the footage in the event of criminal behavior. 
  • IP Cameras: Internet protocol (IP) cameras are digital cameras that are connected to the internet. While these cameras tend to be more expensive, they enable you to keep an eye on your store from anywhere. Newer IP cameras also offer higher-resolution video than older CCTV technologies. 
  • Motion Sensor Cameras: These cameras are ideal for areas that require monitoring but don’t have constant activity, such as stockrooms or after-hours on the sales floor. They conserve energy and storage space by recording only when triggered by movement, making them a cost-effective and efficient option.

Along with cameras, you might consider investing in an alarm system to protect your store and your staff. Here are the two main types of alarm systems for liquor stores: 

  • Motion Sensor Alarms: This type of alarm system uses motion sensors to detect unauthorized movement in your store after hours. When armed, these detectors can trigger an alarm or notify a monitoring service if movement is detected, allowing you to respond to a break-in immediately. 
  • Silent Alarms: Silent alarms are a critical tool for keeping your staff safe. If a criminal decides to target your store during your open hours, your employees will be able to trigger a silent alarm that alerts the authorities without escalating an already dangerous situation. 

The right camera and alarm system for your liquor store will depend on your unique security concerns, the size and layout of your store, and your budget. You might also consider investing in a combination of multiple types of cameras and alarms to provide flexible monitoring.

Consider Bottle Caps, Tags, and Anti-Theft Holders

If you carry a selection of rare, expensive spirits or wines, then you might want to take additional precautions to prevent shoplifters from targeting these items. 

Fortunately, there are some simple retail solutions that you can implement to secure these items while still displaying them on the sales floor. Let’s look at a few security technologies: 

  • Bottle Caps: Bottle caps fit over the caps of your wine or liquor bottles to prevent them from being poured without removal. They are designed with a unique unlocking mechanism that only the store staff can open with a special key or magnetic device.
  • Bottle Tags: You can attach hard security tags to the neck of bottles that can only be removed at the checkout counter. These tags either set off an alarm when taken from the store or spill ink onto a shoplifter. 
  • Anti-Theft Holders: Anti-theft holders secure your bottles completely, allowing your customers to see them on display but not move or touch them. If a customer wants to purchase a bottle from an anti-theft holder, one of your employees will have to unlock the anti-theft holder. 

Bottle caps and tags are a flexible, affordable option if you carry a larger selection of valuable bottles, and they allow your customers to interact with your products and carry them around as they make a decision. In contrast, anti-theft holders are far more secure, but they might negatively impact your customer’s experience in your store. 

The right type of liquor security technologies will depend on your concerns, inventory, and budget, so spend some time determining what will work best for you and your customers.

Streamline Your Liquor Store Operations

Now that we’ve covered some of the most effective technologies for securing your liquor store, let’s explore some best practices that can protect your business and keep it as profitable as possible. 

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Manage Your Liquor Inventory Effectively

Inventory management is paramount for liquor store security. Maintaining accurate records of your stock will help you spot theft and assess its impact before it becomes a major loss. 

The best way to take charge of your liquor store inventory is to use your POS system. Your POS system should be able to track every bottle as it journeys through your store, showing you an up-to-date overview of your stock levels at any time, from anywhere. 

Here are a few key features to look for as you assess liquor store inventory management software solutions: 

  • Real-time inventory monitoring that enables you to keep an eye on your store’s stock levels from anywhere
  • A centralized database with common liquor, wine, and beer SKUs to make importing your inventory a breeze
  • Case break management that allows you to view your inventory as individual units or as whole or partial cases

In addition to leaning on your POS system to help you keep track of your liquor store’s hundreds (or thousands) of bottles, you’ll also want to implement these two key inventory management techniques: 

  • Perform regular audits of your inventory to ensure that your records accurately reflect what you have in stock. 
  • Regularly compare your inventory records with your sales records to ensure that everything matches up. 

While these strategies are essential for preventing and monitoring shrinkage in your liquor store, inventory management is also essential for keeping your customers happy and your sales high. Maintaining accurate inventory records makes it easier to keep your shelves stocked with your shoppers’ favorite spirits, preventing costly stockouts and boosting your overall customer satisfaction. 

Train Your Employees

The right strategies and tools can only go so far in protecting your liquor store; you also need to rely on your team to spot, prevent, and respond appropriately to theft. 

To ensure that you and your employees are all on the same page when it comes to liquor store security, plan and facilitate a store-wide training that covers your business’ guidelines, tools, and strategies for preventing theft. 

Here are a few essential topics to cover in your security training: 

  • The most common shoplifting techniques and how to spot them
  • How to arm and trigger your store’s alarms and security systems
  • How to respond to theft
  • What actions to take in the event of a robbery or break-in
  • Best practices for monitoring your liquor store’s inventory levels and shrink

Make sure to regularly administer this training to ensure all of your team members are up to date on your store’s crime prevention policies and procedures. 

Choose the Right Liquor Store POS System

An often overlooked liquor store security tool is your POS system

Your POS system is the central hub of your business. It processes all of your sales transactions, manages your inventory, and maintains detailed records of your store’s performance. 

Choosing the right POS system and leveraging its security tools is key to protecting your liquor store.

Leverage Your POS System’s Security Features

Securing your POS system is just as important as securing your physical store. 

While your employees need access to the main features of your POS system, it’s essential to grant them access to only the tools and information they need. 

Make sure that your POS system enables you to set specific permissions for each of your employees. For example, if one of your team members works on the sales floor stocking your shelves, counting your bottles, and occasionally helping your customers navigate your store, they don’t need comprehensive access to your POS’ full suite of features. Instead, you can customize their permissions, allowing them only access to your POS system’s inventory management tools. 

Restricting your team’s access to only the essential features will streamline your operations and prevent costly issues like voided transactions or fraudulent returns.

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Monitor Shrinkage With Your POS System

Making use of your POS system’s full range of features can help you identify security issues before they become major losses. 

Your POS system should have powerful inventory management and sales reporting features that allow you to identify discrepancies. 

For example, your POS system might show that you have 100 bottles of your most expensive bourbon in stock, and you confirm with your POS system’s sales reports that this number should be accurate. If you only find 75 bottles on your shelves and in your stockroom, you can start investigating the cause of this discrepancy. 

Find the Right POS System

Now that we’ve explored how important your liquor store’s POS system is for security, let’s discuss how to choose the right solution. 

Most importantly, you’ll want to choose a POS provider that specializes in the liquor industry. This will ensure that you have all the tools you need to navigate the complexities of alcohol sales. When evaluating your options, look for these features: 

  • Robust inventory management features to help you keep an eye on your stock levels and easily identify discrepancies 
  • Flexible employee permissions that allow you to restrict your team members’ access to POS features and data based on their roles
  • Advanced sales reporting and analytics to help you monitor liquor store shrinkage and assess your business’ financial health
  • Built-in age verification to keep your liquor store compliant with the laws regarding alcohol sales

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If you’re looking for the best solution on the market to keep your liquor store secure, check out Bottle POS. Along with all these security features, Bottle POS offers a full range of tools to streamline your operations, attract new customers to your liquor store, and boost your sales. 

Secure Your Liquor Store With Bottle POS

Now you’re prepared to put these security tools and techniques to work in your liquor store!

Here’s a quick recap of our main liquor store security tips: 

  1. Research the federal, state, and local laws governing liquor store operations, paying special attention to licensing, age verification, and tax laws.
  2. Use locks, vaults, and safes to secure your valuable inventory, cash, and sensitive business documents.
  3. Restrict access to your stockroom using personalized key card systems or biometric scans.
  4. Use bright lighting and clear signage to deter theft attempts.
  5. Install security cameras to prevent and spot criminals.
  6. Invest in alarm systems to protect your inventory and your staff.
  7. Consider using bottle caps, hard tags, or anti-theft holders to secure your rarest, most expensive bottles.
  8. Keep accurate records of your inventory, perform frequent audits, and regularly compare your stock and sales records to monitor your shrinkage.
  9. Train your staff on your liquor store’s security tools and procedures.
  10. Invest in a liquor-specific POS solution to secure your store, streamline your operations, and boost your sales. 

Searching for the most powerful liquor store security enhancement tool to put to work for your small business? Look no further than Bottle POS

With robust inventory management tools, flexible employee permissions, and advanced reporting and analytics, Bottle POS has everything you need to make liquor store security a breeze. Plus, you can use Bottle POS’ customer loyalty program, integrated e-commerce platform, and marketing integrations to give your sales a major boost. 

If you’re ready to start your journey to a more secure, profitable liquor store, schedule a live, personalized demo of Bottle POS today. 

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