How to Open a Liquor Store in Texas: 6 Essential Steps

Planning to open a liquor store in the Lone Star state? We’re here to help.

In this quick guide, we’ll explore everything you need to know about how to open a liquor store in Texas — including an overview of Texas’ liquor laws, tips for standing out from the competition, and marketing strategies to help you build a loyal customer base. 

Cheers to your small business adventure!

Should You Open a Liquor Store in Texas?

Before we dive into how to open a liquor store in Texas, let’s cover a more important question: Should you?

Launching a new liquor store can be a great opportunity to share your love for fine spirits while turning a healthy profit, but it won’t be an easy journey. 

Texas isn’t the strictest state when it comes to liquor laws, but it also isn’t the most lenient. You’ll have to work hard to understand Texas’ liquor store regulations and make a compliance plan — along with securing funding, becoming a marketing pro, and creating an excellent shopping experience for your customers. 

If you have the funding and the passion, we say go for it! Now, let’s dive in and explore the six key steps to opening a liquor store in Texas. 

1. Understand Texas Liquor Laws 

The first step to opening a Texas liquor store is to understand the state’s liquor laws. 

The Texas Alcoholic Beverage Commission (TABC) is the agency that regulates alcohol in Texas. We recommend thoroughly exploring their website to understand the laws that will apply to your business, but here are just a few examples: 

• Licensing: The TABC requires you to apply for a specific license that aligns with the type of alcohol you plan to sell. 
• Sourcing: The TABC requires you to purchase from certain authorized wholesalers and keep records of where your inventory comes from. 
• Operating hours: The TABC regulates when you can sell certain types of beverages. For example, you can’t sell liquor in a retail store on Sundays. 
• Marketing: The TABC strictly regulates how you can advertise and promote alcoholic beverages. 
• Reporting: The TABC requires you to maintain invoices, sales records, and other documentation and be prepared to show them to authorities. 

Start the licensing process as early as possible, and make a plan to comply with these laws and regulations. 

Pro tip: A point of sale (POS) system designed for Texas liquor stores can help you comply with these regulations. 

2. Size Up the Competition

There’s no way around it: Your liquor store will face tough competition. With over 3,000 liquor stores in Texas — including big names like Total Wine and HEB — you’ll have to find a way to stand out. 

But instead of trying to offer the lowest prices, we recommend setting your liquor store apart through your product selection and customer service. 

Consider specializing in a particular kind of liquor, whether it’s rare bourbons or luxury tequilas. Carving out a niche will help you attract an enthusiastic, loyal customer base. 

You can also create an exceptional shopping experience by offering excellent customer service. Train your staff to greet customers and help them find exactly what they’re looking for. You can also use your POS system to look up a customer’s shopping history and make personalized recommendations. 

3. Make a Financial Plan

A solid financial plan is an essential ingredient for small business success. Before taking any action toward opening your liquor store, make sure you know the answers to these questions: 

• How much will it cost to get your store’s doors open? Startup costs include leasing and renovating a location, installing shelving and other equipment, securing a TABC liquor license and purchasing initial inventory. 
• Where will this money come from? Reach out to one of Texas’ Small Business Administration offices for guidance on securing a loan. 
• How much money will you make? Project your cash flow, estimate your monthly revenue, and perform a breakeven analysis. 

Crunching these numbers before opening your liquor store’s doors will give you a better chance of achieving profitability. 

Related read: Liquor Store Profit Margins: A Quick Guide for Liquor Store Owners 

4. Invest in the Right Tools

Running a liquor store is tough, and you can’t do it alone. That’s why you need a powerful POS system specifically designed for liquor stores. 

Look for one that includes features like: 

• Scanner-powered age verification to help you stay legally compliant
• Real-time inventory monitoring with case-bottle tracking to keep your shelves perfectly stocked
• Built-in customer loyalty program and flexible promotions to help you attract customers and make more sales
• Automation features to simplify the reordering and receiving processes
• Advanced sales reporting to help you comply with reporting regulations and better understand your customers

We recommend looking for a provider that offers 24/7 support and has experience supporting Texas-based liquor stores. 

5. Hire and Train Staff

Liquor store success also requires the right team. 

Before hiring, familiarize yourself with Texas’ employment laws and research competitive wages in your area. 

Once you’ve assembled a team, it’s time to train them! Make sure they understand: 

• Your product selection and how to make liquor recommendations
• How to use your store’s POS system
• The importance of excellent customer service
• Your store’s daily procedures and policies

Thorough training will build trust between you and your employees and ensure they can run the store in your absence. 

6. Plan Your Grand Opening and Market Your Store

An effective marketing strategy is a must-have for liquor store success. Your marketing plan should include how you will attract and retain customers.

Here are some of our top tips to keep the sales flowing: 

• Offer a grand opening promotion and regular discounts to bring customers through your door
• Launch a customer loyalty program to reward shoppers for choosing your liquor store
• Embrace e-commerce by offering convenient options like liquor pickup and delivery

Implementing a liquor store marketing plan might sound intimidating, but the right POS system can make it a breeze. Look for one that includes flexible promotion options, a built-in customer loyalty program, and e-commerce integration. 

Achieve Liquor Store Success in the Lone Star State

Congratulations! Now you know how to open a liquor store in Texas, and you’re ready to start your small business journey. 

Starting a business from scratch can seem intimidating, but we’re here to help. Bottle POS, our liquor-specific POS solution, is designed to help entrepreneurs like you succeed. It includes powerful liquor inventory management features, sales-boosting marketing tools, advanced reporting and analytics, and more. 

See how Bottle POS fits into your liquor store business plan by scheduling your personalized demo today.