Liquor Store Business Plan
Whether you are launching a new liquor store business or expanding an existing one, success hinges on understanding the market trends, maintaining a competitive edge, and building a dedicated customer base. Conduct thorough market research and use the sample liquor store business plan below as a roadmap for your venture.
Sample Business Plan Template for a Liquor Store
This liquor store business plan template outlines the key components necessary for crafting a comprehensive plan. It is versatile and can be tailored to various types of liquor stores, including retail alcohol outlets, specialty liquor shops, wine boutiques, and craft beer establishments.
I. Executive Summary
Business Overview
[Liquor Store Business Name], located at [insert location here], will be a community and quality-focused liquor store based in Atlanta, GA. [Liquor Store Business Name] will strive to offer customers a unique alcohol-buying experience and the widest variety of product offerings available anywhere in the area. The flagship store will foster a friendly, warm, and consultative environment with competitive pricing and an unparalleled shopping experience.
Products and Services
[Liquor Store Business Name]’s product offerings include a comprehensive range of whiskey, cognac, vodka, tequila, rums, champagnes, wines, and beers. The store will offer limited edition releases and premium alcoholic beverages at fair and affordable prices. While wines and liquor will be the Company’s primary product offering, [Liquor Store Business Name] will supplement retail sales with an alcohol catering division. This part of the business will supply and serve alcohol for benefits, private events, parties, etc., in the Atlanta metro area.
Customer Focus
[Liquor Store Business Name] will primarily serve the residents aged 21 and older who live within a 10-mile radius of our store. The demographics of these customers are as follows:
- 416,000 residents
- 1,750 workers (who do not live in the neighborhood)
- Average income of $54,700
- 38.9% married
- 49.6% in Management/Professional occupations
- Median age: 34 years
Management Team
[Liquor Store Business Name] is led by [Founder’s Name], who has been in the liquor store business for 20 years. While [Founder] has never run a liquor store himself, he was an assistant manager at another store previously. As such, [Founder] has in-depth knowledge of the liquor industry, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).
Success Factors
[Liquor Store Business Name] is uniquely qualified to succeed for the following reasons:
- There is currently no quality liquor store in the community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to frequent our business when launched.
- Our location is in a high-volume area with little direct traffic and will thus be highly convenient to significant numbers of passersby each day.
- The management team has a track record of success in the liquor business.
- The liquor store business is a proven business and has succeeded in communities throughout the United States.
Financial Highlights
[Liquor Store Business Name] is currently seeking $330,000 to launch. Specifically, these funds will be used as follows:
- Store design/build: $165,000
- Working capital: $165,000 to pay for marketing, salaries, and land costs until [Liquor Store Business Name] reaches break-even.
Top line projections over the next five years are as follows:
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Total Revenues | $548,962 | $774,907 | $1,460,823 | $1,706,778 | $2,431,412 |
| Total Direct Cost | ($274,481) | ($371,215) | ($689,371) | ($418,338) | ($436,959) |
| Gross profit | $274,481 | $403,692 | $771,452 | $1,288,441 | $1,994,454 |
| Gross Profit Margin (%) | 50% | 52% | 53% | 75% | 82% |
| Total Other Expenses | ($279,550) | ($350,822) | ($704,244) | ($972,774) | ($1,575,558) |
| EBITDA | ($5,069) | $52,870 | $67,208 | $315,667 | $418,896 |
| Depreciation | ($9,820) | ($9,820) | ($9,820) | ($9,820) | ($9,820) |
| Amortization & Impairment | $0 | $0 | $0 | $0 | $0 |
| EBIT | ($14,889) | $43,050 | $57,388 | $305,847 | $409,076 |
| Interest Expense-Debt | ($8,815) | ($7,668) | ($6,444) | ($5,143) | ($3,763) |
| Interest Expense-Leased Assets | $0 | $0 | $0 | $0 | $0 |
| Interest Income | $0 | $0 | $0 | $0 | $0 |
| Other Income (Expenses) | $0 | $0 | $0 | $0 | $0 |
| Pretax Income | ($23,704) | $35,382 | $50,944 | $300,703 | $405,313 |
| Income Tax Expense | $0 | ($3,436) | ($17,831) | ($105,246) | ($141,860) |
| Net Income | ($23,704) | $31,946 | $33,114 | $195,457 | $263,454 |
| Net profit (%) | -4% | 4% | 2% | 11% | 11% |
II. Company Overview
Who is [Liquor Store Business Name]?
[Liquor Store Business Name], located at [insert location here], will be a community and quality-focused liquor store in Atlanta, GA. [Liquor Store Business Name] will strive to offer customers a unique alcohol-buying experience and the widest variety of product offerings available anywhere in the area. The flagship store will foster a friendly, warm, and consultative environment with competitive pricing and a seamless shopping experience. Through improved merchandising and an upgraded sampling, handling, and delivery process, the company will strive to transform the in-store alcohol buying experience for consumers while creating a unique and distinctive brand identity, differentiation, and brand recall for itself.
[Liquor Store Business Name]’s product offerings include a comprehensive range of whiskey, cognac, vodka, tequila, rums, champagnes, wines, and beers. The company will provide customers with access to limited releases and premium brands at fair and affordable prices. While wines and liquor will be the Company’s primary product offering, [Company Name] will supplement retail sales with an alcohol catering division. This part of the business will supply and serve alcohol for benefits, private events, parties, etc., in the Atlanta metro area.
[Liquor Store Business Name] was founded by [Founder’s Name]. While [Founder’s Name] has been in the liquor business for some time, it was in [month, date] that he decided to launch [Liquor Store Business Name]. Specifically, during this time, [Founder] took a trip to Fort Lauderdale, FL. During his trip, [Founder’s Name] frequented an independently owned liquor store that enjoyed tremendous success. After several discussions with the liquor store owner, [Founder’s Name] clearly understood that a similar business would enjoy significant success in his hometown.
Specifically, the customer demographics and competitive situations in the area were so similar that he knew it would work. Furthermore, after surveying the local population, this theory was proven.
[Liquor Store Name]’s History
Upon returning from Fort Lauderdale and surveying the local customer base, [Founder’s Name] established [Liquor Store Business Name] as a Limited Liability Company on [date of registration].
[Founder’s Name] has selected three initial locations and is currently undergoing due diligence on each property and the local market to assess which will be the most desirable location for the store.
Since its establishment, [Liquor Store Business Name] has achieved the following milestones:
- Identified ideal store location and submitted a Letter of Intent to lease
- Developed the store’s name, logo, and website located at www…
- Applied for and obtained required permits and liquor licenses
- Determined the list of products to be offered
- Determined required equipment and inventory management system
- Identified 20 potential key suppliers and received preliminary interest from them
[Liquor Store Business Name]’s Products
Below is [Liquor Store Business Name]’s initial product offering:
- Beer
- Wine
- Whiskey
- Cognac
- Vodka
- Tequila
- Rum
- Champagnes
- Ice
Besides the largest and most varied inventory in the county, the company will promise that the store either carries the customer’s alcohol of choice or can source it from an external third party. This offer will successfully establish the company as the ultimate and final source for high-quality, niche, and rare alcohols in the entire area.
Store Design
[Liquor Store Business Name] will develop a 5,000-square-foot store whose key elements will include the following:
- Main store
- Storage Room
- Coolers
- Tasting area
- Wine Racks
- Liquor Displays
- Check-Out Counter
- Restrooms
The retail store has 20 dedicated parking spots, which should suffice even in peak hours.
[Liquor Store Business Name] plans to be open 7 days a week, from 10 AM to 7 PM. As market demand dictates, we may extend or reduce our hours.
III. Industry Analysis
[Liquor Store Business Name] directly or indirectly competes with all liquor stores near our store. Competition will come from big box retailers, convenience and grocery stores, and other liquor stores.
Industry Statistics & Trends
The following industry size facts and statistics bode well for [Company Name].
- Total US revenue stood at $44.7 billion last year, with a total net income of $3.8 billion for the liquor industry. Projected annual growth is forecast to be 2.9% over the next five years.
- A sustained consumer shift away from drinking at restaurants, bars, and nightclubs towards drinking at home. Sales of alcoholic beverages at bars and restaurants fell 4.6%, while sales at liquor stores, supermarkets, and other retailers for “at home” drinking rose 9.3%. Americans are consuming 10 drinks on average each month at home, compared with only 5.7 drinks in bars and restaurants.
- Alcohol consumption per capita is growing across the United States; today, 67% of Americans are active drinkers, the highest percentage since 1985.
- Despite the worst recession in nearly 80 years, alcohol stores have proven to be largely recession-proof, with liquor store revenues expanding 9% over the past five years. Industry experts are forecasting sustained revenue growth for liquor manufacturers and stores across the United States.
- Deregulation of state-run liquor stores, coupled with revitalization in consumer demand, bolstered industry revenue. In particular, many consumers switched to low-cost liquor in economical packaging, which kept industry revenue afloat.
IV. Customer Analysis
Demographic Profile of Target Market
[Liquor Store Business Name] will serve the residents of [location] and the immediately surrounding areas.
The area residents we serve are affluent and are expected to spend more on beer and wine per capita than the national average.
The precise demographics of the town in which our retail location resides are as follows:
| Omaha | |
|---|---|
| Total Population | 426,835 |
| Square Miles | 6.89 |
| Population Density | 3,789.20 |
| Population Male | 48.04% |
| Population Female | 51.96% |
| Target Population by Age | |
| Age 18 to 24 | 11.87% |
| Age 25 to 34 | 14.70% |
| Age 35 to 44 | 12.15% |
| Age 45 to 54 | 13.54% |
| Age 55 to 64 | 11.82% |
| Target Population by Income | |
| Income $50,000 to $74,999 | 11.16% |
| Income $75,000 to $99,999 | 10.91% |
| Income $100,000 to $124,999 | 9.07% |
| Income $125,000 to $149,999 | 9.95% |
| Income $150,000 to $199,999 | 12.20% |
| Income $200,000 and Over | 32.48% |
Customer Segmentation
In the United States, there are a total of 313 million people, with over 222 million of the total population over the age of 21 years. The major age demographic for consumers who purchase liquor is between the ages of 21 and 30 years, followed by consumers aged 31 to 40 years.
Download our free liquor store business plan PDF.
V. Competitive Analysis
Direct & Indirect Competitors
The following liquor stores are located within a 10-mile radius of [Liquor Store Business Name], thus providing either direct or indirect competition for customers:
Sigels Liquors
Founded in 1905, Sigel’s is an Atlanta-based wine, beer, and liquor store that operates 10 stores in the Atlanta area. Sigel’s Beverages prides itself on carrying a vast selection of hard-to-find, hand-crafted spirits. This includes more than 225 single-malt scotches, single-barrel bourbons, rare wines and cognacs, imported brandies, vodkas, and microbrews.
Sigel’s locations are designed to have a comfortable, elegant atmosphere with informational displays, including video loops highlighting products. It also has a warehouse and sales of more than $125 million last year, including a large business selling liquor to restaurants.
Sigel’s Wholesale division is North Texas’ most comprehensive full-service beverage alcohol distributor, specializing in unmatched personal service. Sigel’s offers the area’s most complete selection of spirits (ranging from the most popular to the most difficult to source), wines, beers and ales of all types, glassware (direct distributor for Libbey and Riedel), bar supplies, and associated products. Sigel’s fleet of delivery trucks makes am and pm deliveries six days a week.
Total Wine & More
Headquartered in Potomac, MD, Total Wine & More owns more than 90 stores in 15 states nationwide, as well as in Canada. Although Total Wine specializes in wines, its stores also include beer and liquor in their product portfolio. The company’s stores sell, on average, 8,000 different types of wine, 3,000 kinds of spirits, and 2,500 varieties of beer. Total Wine & More has 100 superstores and is expecting to continue to expand operations. By having numerous retail locations, the company can use its leverage to secure low-cost contracts with breweries, distilleries, and wineries, which can benefit consumers in the form of cost savings. The company also sells wine accessories like decanters, as well as cigars and other products. About 57.0% of revenue is generated from wine sales.
This company has recently begun expanding to Canada, as well as to western states such as Arizona, California, Texas, and New Mexico. The company implemented plans to have at least two stores in Washington, where a new law ended the state’s retail monopoly on liquor. New locations are bringing in additional revenue by expanding the company’s reach to new markets. IBISWorld estimates that Total Wine & More will earn $1.6 billion next year.
Goody Goody
Starting out in 1964, Goody Goody has grown to be one of the major liquor suppliers at the wholesale level for higher-end restaurants and hotels in DFW.
Goody Goody Liquors Inc. operates 23 stores in the area. It has two stores in Houston, and more are planned for Longview, BuckEye Anna, Little Elm, and Colleyville.
The store’s inventory includes thousands of types of wines, liquors, and beer, and a walk-in wine room includes some rare bottles. The store offers tastings of several Texas-based Vodkas, Wines, and Bourbons, as well as many other liquid libations and exotic elixirs.
Competitive Advantage
[Liquor Store Business Name] enjoys several advantages over its competitors. These advantages include:
- High-End Focus: [Liquor Store Business Name] will focus solely on high-end beer, wine, and liquor lovers, which is a fast-growing market segment by revenue. By focusing on high-end customers vs. the mass market, we can provide a personalized, meaningful shopping experience.
- Management: Our management team has years of liquor retail experience that allows us to sell to and serve customers in a much more sophisticated manner than our competitors.
- Relationships: Having lived in the community for 25 years, [Founder’s Name] knows all the local leaders and newspapers, as well as suppliers. As such, it will be relatively easy for us to build branding and awareness of our store.
VI. Marketing Plan
The [Liquor Store Business Name] Brand
The [Liquor Store Business Name] brand will focus on the company’s unique value proposition:
- Offering personalized, curated beer, wine, and liquor selections in an intimate environment
- Rotating products to always offer the latest selections
- Providing exceptional customer service
Promotions Strategy
[Liquor Store Business Name] expects its target market to be individuals living within a 10-mile radius of its store location. The marketing strategies to reach these individuals include:
Direct Mail
[Liquor Store Business Name] will distribute direct mail pieces throughout the neighborhoods surrounding its locations. These mailers will include special offers and incentives to encourage loyal and new target customers to visit the store.
Newspaper Advertising & Community Sponsorships
[Liquor Store Business Name] will initially advertise in local newspapers and sponsor community events to build brand awareness.
Digital Marketing
[Liquor Store Business Name] will maintain a website and publish monthly email marketing campaigns to encourage customers to attend upcoming in-store events, buy new products, and participate in seasonal promotions.
In-Store Events
[Liquor Store Business Name] will host exclusive in-store events to generate buzz among local merchants and press. These events will feature tastings of premium beverages and guided tours, highlighting our exceptional service and high-quality products to attract customers.
Pricing Strategy
[Liquor Store Business Name] pricing will be appropriate for the high quality and level of service associated with the store.
VII. Operations Plan
Functional Roles
To execute this liquor store business plan, the following functions need to be performed on a daily basis:
Administrative Functions
- General & administrative functions including legal, marketing, bookkeeping, etc.
- Sourcing suppliers and managing supplier relations
- Hiring and training staff
Retail Store Functions
- Customer service and check-out
- Gift wrapping
- Gift certificate program management
- Display stock, rotation and design
- Janitor/maintenance personnel to keep the store clean
Milestones
[Liquor Store Business Name] expects to achieve the following milestones in the following [X] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name]store |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Launch [Company Name] |
| [Date 5] | Reach break-even |
VIII. Management Team
Management Team Members
[Liquor Store Name] is led by [Founder’s Name], who has been in the liquor business for 20 years. While [Founder] has never run a liquor store himself, he was an assistant manager at a liquor store previously. As such, [Founder] has an in-depth knowledge of the liquor store business, including:
- Store operations and management
- Floor sales
- Display design
- Retail marketing
- Hiring and training workers
- Liquor trends
[Founder] has personal relationships with a variety of suppliers.
[Founder] graduated from the University of ABC, where he majored in Communications.
Hiring Plan
[Founder] will serve as the operations manager, ensuring operational efficiency. To launch the liquor store business, we need to hire the following personnel:
- Assistant Manager (Will handle much of the business operations and manage the store on [Founder]’s days off)
- Check-out and Floor Staff (3 to start)
- Part-Time Bookkeeper (will manage accounts payable, create statements, and execute other administrative functions)
IX. Financial Plan
Revenue and Cost Drivers
[Liquor Store Name]’s revenues will come from the sale of children’s clothing to customers.
The major costs for the company will be the cost of goods sold (supplier costs), staff salaries, and rent for a prime location. In the initial years, the company’s marketing spend will be high as it establishes itself in the market.
Capital Requirements and Use of Funds
[Liquor Store Name] is seeking a total funding of $330,000 to launch its store. The capital will be used for funding capital expenditures, manpower costs, marketing expenses, and working capital.
Specifically, these funds will be used as follows:
- Store design/build: approximately $165,000
- Working capital: Approximately $165,000 to pay for Marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions & Forecasts
Find the key assumptions below that went into the financial forecast and a summary of the financial projections over the next five years.
| Product Type | Percentage |
|---|---|
| Wine | 23% |
| Liquor | 26% |
| Beer | 19% |
| Food / Softdrinks | 20% |
| Tobacco / Other | 12% |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
