Inventory costs might be going up, but liquor is still a profitable business venture in the Sunshine State.
If you’re thinking of opening a package store in Florida, one of the most important tasks you’ll need to do is get your Florida liquor license. But how much should you budget? And which type of license do you need?
In this blog, we’ll review the types of liquor licenses available in Florida — plus, we’ll give you an adjusted breakdown of the costs associated with each.
The annual cost of a liquor license in Florida can range from $28 to $1,820, depending on the type of liquor you plan to sell or distribute. You’ll also need to pay initial application fees, which can vary.
Why such a wide range of fees? Like all states, Florida has different licenses for off-premises (e.g. package stores, wine shops) and on-premises alcohol sales (e.g. bars, restaurants).
Additionally, for package stores or other off-premises retailers, there are different licenses available based on what you sell (e.g. beer and wine, or beer, wine, and spirits). Stores that plan to sell spirits must apply for a Quota License. These are awarded once a year via a lottery drawing and are limited to a certain number per area.
In most cases, the average cost of applying for a new liquor license in Florida amounts to more than $2,500. As a best practice, consider budgeting 10% to 15% above this figure.
Determining which liquor license applies to your business is half the battle. There are five main types of liquor licenses in Florida, including:
One of the quirks of Florida liquor law is that there aren’t an unlimited number of liquor licenses, at least if you plan to sell spirits.
The Quota License is highly sought after among package stores, as the number of available licenses is determined by the county population. Specifically, the state usually allocates one license for every 7,500 residents.
To get a quota license, you can either enter the annual quota lottery drawing or buy an existing license. Obtaining a new Quota License requires paying a one-time Hughes Act fee of $10,750. If you’re transferring a license, you need to pay a transfer fee of up to $5,000, in addition to the sales price of the license itself. The state does not set the price for quota licenses sold on the open market, so the price of the license itself will vary depending on who’s selling it.
Remember: The Quota License only applies to people selling spirits. If you plan to only sell beer and wine, either as a standalone business or in a convenience store, there are no restrictions on the number of licenses. If you know your craft beer and wines, this can be a great way to get started.
If you own a restaurant and want to sell drinks, you’re in luck! There’s also a special restaurant alcoholic beverage license that serves as an exception to the quota rules for selling spirits.
To apply for a Florida liquor license, you are now required to use the DBPR’s online system. In addition to paying the licensing fees, you need:
The application takes a maximum of 90 days to process, and the more complete your application is, the more likely it is to be processed quickly.
An important note: We are liquor retail experts, not liquor legal experts — please double-check the full requirements with the DPBA before applying.
Related Read: Sole Proprietorship Examples (+ 4 Essential Tools for Small Retailers)
Getting a liquor license in Florida is a tricky and often confusing process. Once you get it, we don’t blame you for wanting to kick your feet up and relax.
The hard work is just beginning. Now that you’ve got your liquor license, it’s time to make your package store a success. There are three major points to keep on top of:
The right technology makes all the difference. At POS Nation, we’re passionate about matching small business owners with the industry-specific systems that can help make their lives easier and boost profits.
To learn more about finding the right package store POS system for your business, schedule a demo today.