What do you need to open a liquor store in ny
I have couple Qs, please please help me out, Justin. The store on the city limits does k per month in beer, liquor, snack foods.
When it comes to the open licenses to sell alcohol in New York State there are two basic categories — wholesale and retail. A wholesale license means you are legally authorized to manufacture, warehouse and distribute alcoholic beverages to the retailers, who are then legally able to buy alcohol at wholesale and re-sell the products for consumption on or off their premises, depending on their class of license.
So, for example, the manufacturer is the label on the bottle, the wholesaler is the distribution channel and the retailers are the bars, restaurants, public vendors, liquor stores and convenience stores who sell to consumers. A felony DWI, certain misdemeanors and out-of-state convictions can all disqualify you. If you meet the basic requirements, you can obtain an application by calling the New York Liquor Authority offices or by downloading the form from the right sidebar.
Once the liquor authority office receives your application they work very hard to process it as quickly as possible.
Each office handles a specific region and can handle hundreds of applications and questions per day; roughly 70, applications per year are investigated.
Many local governments have restrictions prohibiting liquor from being sold near schools, churches, libraries and hospitals. Market saturation also is a concern. People like to shop all at once. Because of this, it is what a good idea to open a liquor store next to a grocery store. However, if the grocery store has a liquor license, you might not be able to compete with its low prices and discounts through bulk buying. A lawyer who has worked with obtaining liquor licenses before can walk you through the application as well as the registering of your business. Inventory is your most important asset as it is what attracts you customers.
I prefer not to give out my phone number. I am involved in a startup that wants to get a product drinking game into a distribution network for liquor stores. My question is, how do you supply your store with product other than alcohol? Do you purchase everything through a distributor? Hi Kipp, All alcohol must be purchased through a distributor. Distributors will push their new products, definitely. For something like a board or card game it would be challenging. I doubt a distributor would be interested…but you never know. Perhaps you could get sponsored by a big distributor?
They like to give away swag and other promotional items. Thanks for all the advises that you have been giving to help people. It is really good location in front of collage dorm and its close to my house. Hi Tony, See if you find any information on comparable sales in your area. Is the owner willing to carry or are you paying cash? Grossa month, 61 year old business and building grandfathered inwith fuel and tobacco. What is your estimated value of the real estate? Hello attempting to see if asking price is too far liquor. I need with or without inventory. Maybe there are special considerations that make it a good deal but, for me, the price is way too high.
We own the shop an property an are on the main corner of a k county. That is a main thru way to one of tn largest vacation areas. The county has set regulation that there can only be 6 liquor stores. I have the opportunity to be one. An at this time we are planning to in large the building size from sq ft to sq ft. The tn laws I have read states the liquor sales an storage can only be on the bottom floor. I own an opperate a store that will be moved to the second floor an will generate the residual to cover all business exspences.
How did you get that covered? I have owned an operated 6 businesses. Do you see any set backs to this area of sales? Local Moon shine also?
I bought insurance to cover the building and I paid extra to insure lost store revenue if something bad happened that would force us to close our doors. Because alcohol is heavily regulated in most states you have to wade through plenty of bureaucracy. Just part of the deal if you want to be in the liquor business.
Local brewer or distiller promotions tastings, etc are generally good for business as long as everyone is following all state and local regulations. Hi Justin and everyone else for all this excellent information.
I live in Los Angeles, I work in a bank as a teller for years and finally saved up some money to buy my own business as I get old. A friend suggested a Liquor store that is in business for the past 10 years. There is a CVS and 2 other liquor stores about blocks away and there is another supermarket coming up in the next 10 days to the south. I am very confused to go for it or not. Where do I learn more about the types of Beer, Wines and Liquor? Asking price is k with k in inventory. They say cash flow is around I liquor to run this passively and hopefully pay myself k per year.
Your thoughts on the deal? Am I over paying? Thank you in advance for your feedback. Hi CM, Actually, I think the asking price you fair. Maybe even low which is concerning. The seller may be terrified of the ballot measure likely coming up for vote in November that, if passed, would allow grocers to carry full strength beer and wine. Is the store near a big grocery store? You should probably look into the ballot measure and bring it up with the owner.
Even then, there will be fire drills requiring your presence. Inventory and cash flow will be a challenge. Asking k Owner finance with k down Sales are k Cash flow is k Smaller store with 80k in inventory. Hi Ned, It sounds like a good money maker but, for me, the asking price is too high. Liquor store ownership works best as an owner-operator set-up.
Front of store Licenses: But, who knows, maybe the market is different in California and these are bargain prices. Does that sound to good to be true? They gave me father is sick 2 stores story. Sales are shady only 6 month of excel type documents. No debt on the company. Around 40k a month give or take a few. But this is on an excel doc not taxes. Hi Justin, I recently bought a liquor store and wondering if there is a recommended POS for liquor stores. I did some research and seems like square POS is capable of inventory management and will alert if you are running low on inventory.
And square also save emails for customers and we can send them need emails as well along with promotional offers etc. We ended up using a Mac-based program called LightSpeed. It was pretty good but reporting was completely inadequate.
I would keep going with the Square system until you run into a major problem. I am a student at Ohio University and we are creating a Business Concept for an alcoholic beverage store. It would be what if I could ask you a few questions and just take up a little bit of your time. If you could shoot me an email I would love to throw a couple questions at you. We me and my husband are trying to partner up with my sister to buy a store store and we are open to put an expense sheet together and just wonder if you can help me with the payroll questions.
What is the overall average payroll expenses percentage per gross sales for a 2mil gross sales? How much does a store manager make? My sister will be just investing, she store help out during holidays or few weekends but my husband and me will be the one managing the store and work at the store. Figure less in yearsmaybe more in years if volume is steady or increasing.
Hello Justin, I stumbled upon this blog and thanks so much for all the gracious advise you are giving out! My husband and I own a micro-distillery in Oregon. At a glance it appears the regulation structure is relatively similar to Colorado. Judging by the Ducks hat you can probably confirm that.
We have a national distributor but a this point, for now, our home state is left to us.
This may change in the future but we enjoy getting out and introducing folks to our products which we are, of course, very passionate about. So far, this has mostly consisted of having a tasting booth at various events across the state. My question to you as a liquor store owner, is do you have any advice for us as we begin the process of contacting what liquor stores here in Oregon to discuss our products and offer our time to come and provide some tastings to their patrons? Is there sort of a standard way most distillery owners do this? Are there currently any good passive ownership businesses in Pueblo?
Perhaps a carwash or Laundromat? Do you have some websites you could recommend I look at for opportunities in Pueblo or Southern Colorado. Hi Jay, you can check for business listings on BizBuySell. The best opportunity for a passive ownership business, in my opinion, is real estate. Rental houses, apartment buildings, open buildings, etc.
Does liquor store owners get together: Justin — Thank you! So, I would ask you the following. How would you evaluate the following business.
Hi Justin thank you for the load of info. Yes, I think the high-end of the ratio is the right starting point. People shopping for wine are likely to make convenience purchases of standard beer and liquor offerings from time to time. Might as well accommodate them with a limited inventory. It also creates value for some liquor store owners in what would otherwise become vulnerable locations e. I think it will work out okay. The new legislation has minimal impact on me because I sold the liquor business a while back and my only connection is via real estate.
First i want to thanks for all your info and liquoring about people. Hi Terry, Good question. My wife and me work in Houston and would like to move to Denver Area as we are almost done with the Texas heat after living here for 10 years: My wife would be quitting her job to run this store full time and I would be able to help on the weekends as well. We have over k cash that we would like to turn into a 90k net a need. Can you please advise on which areas we should be you down to-Boulder,Golden,Lakewood,Westminister are the first ones that come to our mind but we are open for suggestions.
Hi Mac, I think the areas you listed are all good prospects in terms of high growth areas.
I think you might want to include Colorado Springs. Denver housing prices and traffic have gotten a bit out of hand and I think Colorado Springs and Pueblo will benefit long term if Denver continues to morph into LA.
Hi Eve — congratulations! No easy feat creating a million dollar business from scratch. I see a lot of liquor stores for sale advertised on BizBuySell.
You could also advertise with a local realtor and list the business for sale. Do you own the real estate as well? Hi Dee, Great idea. Hi Justin, I posted on your blog few mins ago. Just checking to see if I can post this message or not. Hi Justin, Your blog and posts are extremely valuable. Excellent work and thank YOU. The area is all black community.
Avg salary is low as per city data. The current owner is running this for 22 years and the business is 40 years old. Looks like an exciting opportunity! What sort of guidance? Just wanting to know if the price is fair? Anything in particular I have notes from this blog already to look into this property and business? I would start by getting a local realtor to do a market analysis on the real estate.
Maybe New Jersey has different regulations that make the license worth more. I have no idea how to value the check cashing business.
I would ask for a breakdown of the various components so you can understand their math and negotiate with a more complete understanding of each piece of the puzzle. Thank you for your story. When you are the face of the business it holds you to a higher sense of responsibility. Richard Benchimol Leads Indeed http: In the what of Ga, is it legal for a distributor to make you purchase one item, in order to have the option to purchase another item? Where I live just went wet. We need the largest dry city in the state. The store on the city limits does k per month in beer, liquor, snack foods.
My question is a first to market a good approach here? If you need good information you should visit this site here. It is a big challenge to every liquor industry in selling their liquor product; big name […]. We have narrowed our choice of industry to just 2 or 3, with liquor stores being one of them we live in Washington, DC.
Your article is very informative. Does this sound about right? As we look at stores, the claims of net profit seem to be highly exaggerated if this is the case. Hi Phil, Could you share your sources? This could be higher if the value of the store is worth more than it would be here in Colorado. Same if a store does a larger share of liquor or wine open of beer. Not sure about the 1. Too much depends on the operator.
I think gross revenue is the most important figure. Revenue trend over the past years is important too. That said, at the end of the day, you have to use some business savvy and street smarts you assess the opportunity. Every deal involves risk. As for the valuation assumption, I looked at two sources: Multiply your total by 45 percent.
Frequently Asked Questions
Add the value of your inventory and equipment to the total. The net profit number came from a SageWorks industry survey in Forbes from We have actually focused our search on listings with seller financing. Hi Justin- I am looking for your advice on a startup liquor,wine, beer store.
How to Start a Small Liquor Store
Specifically looking on how to forecast total revenue, cashflow and minimum revenue to cover expenses. Estimated Expenses aboutStore is near a cross-road, which is going to be a 4-lane road from 2-lane road. Hi DS, Not possible for me to come up with revenue given this info. Too many critical variables. My guess is it would be pretty meager in year 1 but improve from there. And there will always be tension between what you can make and how many hours you want to work behind the counter.
Sorry I can provide more specific info. Justin was messing around the net and saw your blog. Great stuff and advice you have been sharing the last few years. I wanted to add the most famous slogan of all is till true Location, Location, Location! Publix which is still family owned has entered the liquor business as well but are selective with their locations and do not build near churches or schools.
This has allowed Independents like myself to fill a void and be connected to a great anchor. It is located on a major connecting road between I and the Florida Turnpike next to a McDonalds so once again Location is the name of the game.
Last thing along with location is competition you have to do thorough research on current and more importantly future competitors who could open near you.
Owner-operator is the only way to truly make money in this business unless you have a superstore which is only possible in certain states for Independents. Other simple things I can suggest are a quality POS system which you MUST utilize for inventory and shrink and have a strong cash control policies in place! Also develop a rapport with your distributors. I worked for 22 years for a liquor wholesaler which is how I know to handle them as the retailer. Be tight with your money unless you have to fight a Big Box then pick and choose what brands to battle with.
Liquor Store License
Greg, Thank you for sharing your knowledge and experience! I am certainly also a believer in the location, location, location mantra. Do you have any specific suggestions for dealing with distributors? How can owners without your experience avoid bad deals? Thank you very much for sharing your knowledge. My husband and I are planning to open a liquor business in Maryland. We just know the very basic brands.
Should we hire someone with indepth knowledge about alcohol? We have a small saving of about 75K cash flow, should we invest in this business venture? Please give us your advice. My suggestion would be for one or both of you to get a job, even part-time, as a clerk in a liquor store.
This will help you learn more about the business while you a few bucks along the way. Thank you so much for all of your valuable information. My father and I are very interested in purchasing an existing liquor store. No Real Estate included. However, this depletes both of our savings, and we are looking for stable income for us both, especially as he liquors up on retirement out of the concrete industry.
What is the best way for me to analyze this deal? I have a goal of approx: I would also insist on paying the inventory cost, not any arbitrary assigned value. You need to be able to ride through ups and downs while you learn the ropes. Instead of going through the SBA you might instead make your offer subject to owner financing. I am myself thinking through investing in a liquor store that will be operated by a couple of friends. This is based in a KCMO suburb. They want me to be involved from an investor perspective to provide cash for initial inventory. I do not have to be associated with day to day operations.
This is perfect as I can continue my day job and life. I need this deal is not doing any justice to my ROI. I would ask to see 5 years of revenue history. Often real estate would be held separately in an LLC and the store itself would be an S-corp. You should ask them to clarify how the business ownership and real estate ownership will be structured.
Hi Justin, I bought a liquor store in Georgia almost two years ago. It was in distress. I have had to continue to put money in the store. The inventory has grown considerably. Which bottles sell better on what shelf, what brands in the what of store? Hi Tod, Congrats on your purchase and sales growth! Maybe talk with your wine distributors and ask them to run some tasting events in your store. Capture visitor emails and promote wine offerings that way? Your store trade area may not support big wine sales so you may have better luck focusing and expanding on the categories already selling.
Thanks for all of the information in this thread. Located in a strip mall with no competition within 2 miles of radius. I was able to confirm with the local distributor who services the account that it is the largest in the area. The broker told me the seller will not pay the individual brokers commission on inventory so he is asking me to bake you into the offer. Also a sperate price evaluation analysis deck…on why this business is worth the price was open.
Why must I file price schedules for liquor or wine? What is a "C" license? What is the difference between a "commercial", "micro" and "farm" manufacturing license? What basic requirements are necessary to be a wholesaler in New York State? At a minimum, the business must have an office in New York State with an employee present during regular business hours. The licensed premises does not need to have a storage area for alcoholic beverages but, if alcoholic beverages are stored at another need in this state, that location must have a warehouse permit. The business will also need the appropriate federal wholesale permit.
If the licensee wishes to import alcoholic beverages from another country, a federal Importer's Permit will also be required. The cost of the license depends on the type of alcoholic beverage that is being sold.
There are four types of licenses available: A liquor wholesale license includes the ability to sell wine at open. A beer wholesaler may also obtain a license to sell cider at wholesale from the same location. The fee schedule for wholesale licenses is available on this web site. A wine brand label that has federal approval is deemed approved by the SLA. All other brand labels must be submitted for approval to the SLA. More detailed information about brand label approval is available on this web site.
To avoid discrimination among retailers and prevent illegal trade practices, liquor and wine can only be sold at the prices stated in the schedules filed with the SLA. There are two schedules; one containing the prices paid by wholesalers; and another with the prices paid by retailers. Price schedules are filed on a what basis and are available for review on this web site.
A "C" License is a wholesale beer license with the privilege to sell at retail to the consumer. Micro-distillers and micro-brewers have no restrictions on the ingredients they use, but liquor a cap on the amount of alcoholic beverages that they can produce each year.
They also are required to use a specified amount of ingredients grown or produced in this state in the manufacture of their alcoholic beverages. How old must a person be to work in a grocery store or convenience store that sells beer? What must I do to conduct a teen night in my premises? What is acceptable proof of age to purchase alcohol in New York State? Can a restaurant deliver beer with a food order?
If I have a felony conviction, can I work in a licensed premises? Can a store store or grocery store take returns of unwanted purchases? What can I do about a noisy or rowdy bar? Are football pools, dice games, sign up sheets illegal?
Capital Needed to Start a Liquor Store
Does the authority have tips or training for bartenders? Can a liquor or wine store licensee sell wine: The general rule is that an employee who sells or handles alcoholic beverages must be at least 18 years of age.
However, off-premises beer licensees may employ a person under 18 as a cashier for beer sales as long as that person is in the presence of and under the direct supervision of a person 18 years of age or over. Off-premises beer licensees may also employ persons under the age of 18 to stock and handle deliveries of beer, as well as handle beer containers being returned for redemption. At least 10 days prior to the event, you must notify the SLA, in writing, advising us of the exact date.
You cannot sell or serve any alcoholic beverages during such events. The following documents can be accepted as proof of age for the purchase of alcoholic beverages: College identifications, employee identification cards or any other form of identification not listed above cannot be accepted as the primary proof of age, but can be used as a secondary means to verify the identity of the person.