How much does a Liquor Store cost to buy?

A typical Liquor Store sells for 2x to 3.5x seller's discretionary earnings. With estimated SDE of $216K, expect to pay roughly $432K to $756K before adjustments for assets, debt, growth, and local market quality.

How much does it cost to start a Liquor Store?

Startup costs range from $100K to $500K depending on location, equipment, and scale.

Physical

Liquor Store

One of the most recession-proof businesses on earth — people drink more in downturns, not less

Bottom line

Worth studying, but do not buy without strong local proof.

Liquor stores are protected by state licensing regimes that cap the number of competitors in a given area, creating a soft moat that most physical retailers can only dream about. A well-located independent store does $600K–$3M in annual revenue at 22–28% gross margins and 15–20% net margins — exceptional for retail. The customer is loyal, the product doesn't spoil, shrinkage is low, and the ticket size is growing as premium spirits (craft whiskey, high-end tequila) trade up the average receipt. State-controlled licensing means you're buying not just a store but a government-granted permission slip that competitors can't easily replicate.

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Acquisition score

Margin · multiple · SBA data

58Strong

Avg revenue

$1.2M/yr

$400K–$3.5M range

Profit margin

18%

~$216K SDE

Multiple

2–3.5×

of SDE

Est. buy price

$432K–$756K

startup: $100K–$500K

How It Works

Stores purchase spirits, wine, and beer at wholesale from state-authorized distributors at 25–40% below retail. Margin is made on the markup. High-velocity SKUs (handles of vodka, popular wines) generate volume; premium and rare bottles generate margin. Loyalty and location are the two moats — customers within a 1-mile radius are sticky and return weekly. Many stores add a beer cave, craft beer wall, or tasting bar to increase dwell time and average ticket. The license is the asset: in restricted states (PA, NH, Utah) it can be worth more than the business itself.

BizBite verdict

Watch / verify

Liquor Store has enough high-level data for a first look, but BizBite has not assigned a category-specific operating model yet. Treat the score as preliminary.

58Strong

low data confidence · 40/100medium financing fit

Why it may work

No strong positives yet. More verified data needed.

Be careful

!Source link status has not been verified yet
!No last-checked date yet
!No SBA category enrichment yet
!No category operating model yet
!Low data confidence

Deal Calculator

Priced off $216K SDE — can this deal service its own debt?

2.74×

DSCR · Lender-comfortable

Purchase multiple — 2.5× SDE ($540K)

Category range: 2×–3.5× SDE

Down payment — 10% ($54K)

SBA minimum equity injection is 10% for change-of-ownership

Interest rate — 10.50%

Typical SBA 7(a) range: 9.5–12% (prime-based)

Loan term — 10 years

Standard SBA 7(a): 10 years for business acquisition

Purchase price

$540K

2.5× of $216K SDE

Cash to close

$70K

$54K down + ~3% closing

Debt service

$7K/mo

$79K/yr on $486K loan

Cash-on-cash

196%

cash back in ~7 mo

Debt service coverage · what the lender sees

2.74×+$11K/mo after debt

Most SBA lenders want ≥1.25× coverage; 1.5×+ is a strong file.

SDE = revenue × margin estimate for this niche; it includes owner compensation, so budget your salary out of cash flow. Excludes working-capital injection, capex reserves, and taxes. Actual SBA terms vary by lender and borrower.

Pros

+State licensing restricts competition — you're buying a protected market position
+Recession-resistant: alcohol consumption is historically counter-cyclical
+High inventory velocity means strong cash flow relative to balance sheet
+Premium spirits trade-up trend is expanding average receipt and margins
+Loyal, high-frequency customer base with 85%+ repeat purchase rates

Cons

-Inventory-heavy: $100K–$400K in stock is tied up at any given time
-License transfer can take 6–18 months depending on the state — complicates acquisitions
-Theft and shrinkage require security investment and careful inventory management
-Big-box competition (Total Wine, BevMo) compresses margins in open-market states

Best For

Buyers seeking a cash-flowing physical retail business with a regulatory moat and recession-resistant demand

Operating Costs

Primary costs: COGS (70–78% of revenue), 2–5 employees, rent ($3K–$12K/month depending on size and market), state license fees, and security. June 2026 checks still support 15–20% mature-store operating margins and roughly 2.2x–4x SDE for most liquor stores, with premium locations and wine/spirits mix earning the higher end.