Ready to turn your passion for delicious brews into a profitable small business?
Opening a beer store can be fun (and lucrative), but like any business venture, you need a solid plan.
In this blog, we’ll explore everything you need to know about how to open a beer store — from securing the right type of license to standing out from the big-box competition.
1. Understand the Legal Landscape
First, you need to understand the laws and regulations regarding the sale of beer.
The federal government prohibits the sale of any alcoholic beverages to customers under 21, but your state likely has additional laws about beer sales. Here are a few examples:
- Time restrictions: Some states limit when you’re allowed to sell beer, with popular restrictions on early-morning or Sunday sales.
- Promotions: Some states restrict what kinds of discounts you’re allowed to offer on beer, with some laws banning happy hour or time-based promotions.
- Strength: Some states only allow private stores to sell beer below a certain alcohol by volume (ABV), restricting the brands and brews you can stock.
Make sure to check with your state’s Alcoholic Beverage Control (ABC) commission or similar authority, thoroughly research state and local laws, and make a compliance plan to prevent costly legal issues.
2. Secure the Right License
All states require you to have a license to sell beer — but figuring out what kind of license you need can be tricky.
Here are a few of the most common license types and how they differ:
- Full liquor licenses allow you to sell all kinds of beverages, including beer, wine, and spirits.
- Beer and wine licenses allow you to sell beer and wine under a certain ABV — not full-strength spirits or fortified wines.
- On-premise licenses allow you to serve beer in your store, meaning that customers can drink alcohol on your property.
- Off-premise licenses are retail licenses, allowing you to sell beer but not serve it.
Competition for licenses can be strict in some states, and some states even have lotteries and auctions for licenses. Other states have lengthy, complex application processes. To avoid licensure-related delays, we recommend starting this process as early as possible.
Pro tip: This is the perfect time to file other essential paperwork to start your beer store. Secure business insurance, establish your store as a sole proprietorship or limited liability company (LLC), and apply for any other general retail permits required by your state and city.
3. Create a Unique Value Proposition
Why should customers choose your beer store? Having a clear answer to this question is crucial.
In other words, you need a unique value proposition (UVP) that outlines how you plan to meet customers’ needs and set your business apart from the competition.
Start by visiting other beer retailers in your neighborhood — from local breweries to the beer aisle of your nearby supermarket. Take note of what they’re doing well and where they fall short.
Your beer store should fill the gap left by these competitors to ensure you’re offering customers something unique.
For example, if you’re surrounded by boutique breweries with high prices, you might offer a better selection of popular beers at lower prices. If your only nearby beer retailers are big-box chains, you might have more success with a handpicked selection of specialty beers at premium prices.
4. Calculate Your Startup and Ongoing Costs
Now, let’s crunch the numbers. When it comes to financing your beer store, the last thing you want to be is surprised — so it’s critical to have an accurate estimate of your startup and ongoing costs.
The major expenses to get your beer store up and running include:
- Filing paperwork and applying for licensure: $1,000 to $5,000
- Securing and renovating a retail space: $5,000 to $20,000
- Purchasing initial inventory: $20,000 to $50,000
After accounting for expenses like rent, utilities, labor, and marketing, you can expect to spend between $50,000 and $100,000 to start your beer store.
Related Read: How To Secure Liquor Store Financing [+ Top Solutions]
5. Find and Design the Perfect Space
You’ve secured your beer license and financed your business — now it’s time to take concrete steps toward opening your beer store.
Sufficient foot traffic is essential for steady sales, so look for a location that’s easily visible and accessible. While center-city and corner spaces will be more expensive, they may be worth it in terms of extra sales.
After you’ve found the perfect spot, turn it into the perfect beer shopping experience. Install reliable coolers so customers can grab ice-cold single beers, curate fun beer-themed decor, and invest in high-quality speakers and lighting to create the right atmosphere.
6. Invest in the Right Equipment
It’s time to get your beer store set up with the right equipment.
Before making your first sale, you need a point of sale (POS) system. This powerful tool lets you ring up customers and accept payments — but that’s not all.
A POS system designed for beer stores should include other helpful features like:
- Real-time inventory management that lets you track your stock levels by the individual bottle and full or partial case
- Built-in age verification to protect your store and community from the threat of underage alcohol sales
- Bottle deposit management to help you stay compliant with your state’s bottle bill laws
- Build-your-own six-pack options to let customers try new brews
- Mix and match promotions to increase your average basket size and inventory turnover
- In-depth reporting and analytics to help you stay compliant with reporting laws and learn more about your customers’ beer preferences and shopping habits
- Seamless e-commerce integration that lets you offer convenient options like beer pickup and delivery
Starting with an all-in-one, fully-featured beer store POS from day one will ensure smoother operations and more sales opportunities.
7. Curate Your Product Selection
Let’s face it: You can’t compete against big-box retailers and convenience stores on price.
However, you can provide customers with the best selection in town.
While you should still carry popular imports and domestics, we recommend crafting a curated selection of beers that shoppers can’t find anywhere else. Specialize in craft brews, IPAs, or local beers from nearby breweries.
Pro tip: Take a seasonal approach to stocking your beer store. Every time customers stop by, they should be surprised and delighted by new options, like crisp ciders in the fall and hearty stouts in the winter.
8. Attract Customers
Ready to make your first sale? Your final step is to attract customers.
Get the word out about your grand opening by building a social media presence, claiming your Google Business Profile, or hanging an “Opening Soon!” banner outside your store. Offering a grand opening discount can also help you bring your first customers through the door.
From there, your goal should be customer retention. You want these one-time customers to become loyal to your beer store, relying on you for all their beverage needs.
The best way to accomplish this is by launching a loyalty program. Every time customers make a purchase, they’ll earn points — which they can later redeem for special perks, discounts, or even free beers.
Your POS system should make it easy to set up your program, customize the rewards structure, enroll new members, and track loyalty points and rewards.
Start Your Beer Store With Bottle POS
Congratulations! Now you know how to open a beer store, and you’re ready to take the first steps toward small business success.
The journey won’t be easy — but you don’t have to take it alone. We’ve designed an all-in-one POS solution to help you launch, manage, and grow your beer store: Bottle POS.
Bottle POS includes features like built-in age verification, beer inventory tracking, in-depth reporting and analytics, marketing tools, and more to help you conquer your biggest challenges. Plus, our team of beer and liquor industry experts is available around the clock to help you make the most of your new POS system.
Discover how Bottle POS fits into your beer store business plan with our build and price tool.
by Gina Obert
