Owning a liquor store can be lucrative, but getting started isn’t as simple as stocking shelves and unlocking the doors. A hefty price tag is attached — one that goes far beyond sourcing inventory.
Liquor store startup costs add up quickly, from leasing the right location and investing in a point of sale (POS) system to navigating licensing fees, zoning permits, and other strict compliance laws.
So, how much do you need to budget? While the total varies based on location and store size, expect to spend at least $100,000 just to get things rolling.
To help you prepare and avoid unexpected expenses, let’s break down the four biggest costs of opening a liquor store.
1. Liquor Store Licensing and Permits: What You Need to Know
Securing a liquor license is a legal requirement in all 50 states, but the cost can vary based on state and local regulations. Generally, application or initial license fees can range from under $100 to over $300,000, depending on location, competition, and availability.
For example, California liquor licenses can reach $375,000 for a full liquor license, while states like South Dakota offer licenses for as little as $300. On average, most liquor store owners should budget between $1,000 and $3,000 for a standard liquor license.
However, additional fees for county and city permits can drive up costs, making it crucial to research local requirements early in the process.
To operate legally, liquor store owners must budget for several licensing fees, including:
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Application and processing fees: One-time costs for submitting a new license application.
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Recurring licensing fees: Most states require annual renewal payments, while others, like Delaware, operate on a biennial renewal system.
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Local and county fees: Some cities impose additional licensing fees in addition to state requirements. For example, Chicago-based liquor stores must pay city and state licensing fees.
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Quota system costs: Some states, such as Florida and Georgia, have liquor license quotas, meaning licenses are limited and can only be purchased from existing license holders. In high-demand areas, this can drive up costs to $100,000 or more.
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Additional requirements: Certain states have extra conditions. In Hawaii County, for example, liquor stores must notify all property owners within 500 feet before opening.
Because liquor laws change frequently, it’s best to check your state’s Alcohol Beverage Control (ABC) board or local government website for the latest permit fees and licensing requirements. Planning ahead ensures compliance and helps avoid costly delays.
2. Liquor Store Location Costs: What to Expect
In real estate, the pros say location is everything — and when it comes to running a liquor store, they’re right. The best spots put you right in front of customers, offering high visibility, regular foot traffic, easy access, and plenty of parking. But prime locations come with a price tag, making your store’s lease a major contributor to your liquor store’s startup costs.
So, what can you expect to pay? Rent varies widely, but most liquor store owners spend between $3,000 to $5,000 a month, depending on the city, state, and desirability of the location. A high-traffic intersection in a major metro area will cost more than a tucked-away storefront in a smaller town.
And don’t forget about renovations. If the space needs work, build-out estimates can range from $30 to $300 per square foot, depending on contractor rates and the extent of the updates. Whether installing custom shelving, refrigeration units, or security upgrades, every improvement adds to your upfront investment.
3. Stocking Your Shelves: Liquor Store Inventory Prices
When launching a liquor store, inventory is the foundation of your business. Unlike typical retail shops, where the prices for stock fluctuate, alcohol comes with steep upfront expenses, making it a substantial part of your liquor store’s startup costs.
So, what exactly do you need to fill your shelves? Here’s a breakdown of essential inventory categories:
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Beer: Stock a diverse selection, including domestic staples, craft favorites, and imports. Keep IPAs, lagers, stouts, and seasonal releases in rotation to satisfy every beer drinker.
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Wine: Know your market. Are your customers reaching for bold reds, crisp whites, or celebratory sparkling wines? A balanced selection that reflects local demand keeps sales flowing.
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Spirits: Stock the essentials: vodka, whiskey, rum, gin, and tequila. Offering a mix of budget-friendly, mid-range, and high-end labels ensures you have something for every customer and occasion.
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Non-alcoholic drinks, mixers, and snacks: Customers picking up a bottle for a party don’t want to make multiple stops. Carrying soft drinks, club soda, bitters, non-alcoholic beers and wines, and grab-and-go snacks adds convenience and extra revenue.
Before opening, expect to invest between $50,000 and $250,000 in inventory. The exact amount depends on your store’s size, customer base, and storage capacity.
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Large stores in high-demand areas need deeper stock and a wide selection.
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Smaller liquor shops can start leaner and expand their inventory over time.
Once you’ve stocked your shelves with a mix of products, the next step is making sure they’re displayed in a way that improves the shopping experience. The proper shelving, refrigeration, and store layout impact how customers browse, shop, and spend.
4. Setting Up Your Liquor Store: Essential Storage and Fixtures
How you organize and display your inventory plays a huge role in customer experience and sales. A well-designed store layout makes it easier for customers to find what they need and ensures your inventory stays fresh. Here’s what to budget for when outfitting your store:
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Shelving and displays: Your customers should be able to browse effortlessly, whether picking up a favorite bottle or exploring something new. Wall-mounted shelves, gondola units, and specialty displays like custom wine racks or branded liquor shelving maximize space and create an attractive, easy-to-navigate store layout.
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A standard 48” shelving unit costs around $1,250, but your total expense will depend on the size of your store and the amount of shelving you need.
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Refrigerated storage: Products like beer, white wine, champagne, and ready-to-drink cocktails need proper refrigeration to maintain quality. Walk-in coolers, upright glass-door fridges, and large shop-floor coolers keep drinks chilled while serving as eye-catching displays for impulse purchases.
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Expect to spend anywhere from $2,700 to $6,500 for a 10-door walk-in cooler, with prices varying based on size and energy efficiency.
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Point of sale (POS) system: A liquor store-specific point of sale (POS) system keeps your inventory and case breaks organized, automates reordering, and prevents stockouts. If you're looking for a budget-friendly software solution without sacrificing essential features, a cloud-based option is a great choice. A basic subscription typically starts at around $59 a month.
Overlooking storage, display, or essential technology can slow you down on day one. Making these investments upfront ensures your liquor store is functional, efficient, and ready to impress customers from the moment you open your doors.
While preparing for the obvious startup expenses, it’s important not to overlook hidden expenses that can catch you by surprise. These often-overlooked factors are crucial for running a successful liquor store — and can pile up fast:
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Security systems: Installing security systems such as cameras, alarms, and 24/7 monitoring services is essential. Basic surveillance systems cost between $1,000 and $5,000.
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Employee wages: From cashiers to stock clerks, staffing your store is a major cost. Budgeting competitive pay helps attract and retain skilled employees.
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General liability insurance: Expect to pay anywhere from $1,500 to $3,000 annually.
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Marketing and advertising: Digital ads, local promotions, and social media campaigns can cost $5,000 to $10,000 for initial promotions.
Thinking ahead about these hidden costs helps you stay financially prepared for the challenges of running a successful liquor store.
Budget for Your Liquor Store’s Startup Costs With POS Nation
Launching a liquor store is a major investment, but a solid plan can make the difference between long-term success and costly mistakes. Get a demo of the top liquor POS software today and see how POS Nation can help you run a more efficient liquor store that’s the talk of the town.