Small convenience stores have lost market share in recent years.
With tight margins and competition from big chains, convenience stores need every advantage to succeed. Many see liquor sales as a lucrative revenue stream from a proven product category. But can convenience stores sell spirits alongside their standard soda, snacks, and smokes?
This post helps answer that question. We’ll explore the laws and regulations you must consider when determining whether your convenience store can sell liquor.
Can Convenience Stores Sell Liquor?
Let’s not beat around the bush. We’ll start by answering the central question of this post outright: Can convenience stores sell liquor? The short answer is… it depends.
The laws around liquor sales vary significantly from state to state. For example, more restrictive states like Utah and Pennsylvania only allow state-run liquor stores to sell hard spirits, whereas other states have looser restrictions.
For some states, your store size and type can impact whether you’re allowed to sell liquor from your convenience store. Many states allow larger stores to carry a full range of alcohol products while restricting smaller operations to beer and wine only.
Before you dig into the details of trying to get a liquor license for your convenience store, you’ll want to familiarize yourself with your state’s regulations. Depending on your location, you may also need to consider special zoning rules, limitations on what you can display, and other red tape before you can begin stocking liquor in your store.
Related Read: How To Make a Convenience Store Profitable in 7 Simple Steps
When weighing the option, be sure to consult local governance first and understand the specific hoops to jump through. The paperwork and compliance demands may be steep, but the rewards of expanded inventory could pay off nicely. Carrying liquor in your store may increase foot traffic and drive more sales for your store.
With this general information in mind, let’s examine some of the specific laws and regulations you should consider when asking if convenience stores can sell liquor in your locality.
1. Licensing Regulations
The first type of liquor law or regulation you should consider for your store is licensing regulations. Most local and state governments have extensive licensing requirements related to the sale of alcoholic beverages. Generally, permits allowing the sale of beer and wine are easier to obtain than permits to sell distilled spirits and liquor.
The exact laws vary widely depending on the jurisdiction. Most areas categorize licenses into tiers based on the type of beverages being sold. For example, one tier may cover beer and wine while another handles sales of hard liquor. Licensing costs also increase substantially for sellers of higher-proof spirits.
Related Read: How Much Is a Liquor License? 3 Top Factors
Beyond categories, state alcohol control agencies often limit the number of distilled spirit retail licenses available in a region. This restriction can make acquiring a liquor license challenging for convenience stores not specializing in alcohol sales. Even meeting prerequisites like location, business licenses, inventory systems, and employee oversight may provide significant hurdles, given convenience store staff's small footprint and high turnover.
Examples:
- Texas:
Convenience stores in Texas can sell beer and wine under certain conditions. However, liquor sales are typically restricted to specific liquor stores or retailers that hold the necessary permits for selling distilled spirits. - California:
In California, convenience stores can obtain licenses to sell beer and wine but cannot sell spirits or hard liquor. Liquor sales are restricted to dedicated liquor stores or retailers specializing in distilled spirits. - Pennsylvania:
The sale of alcohol in Pennsylvania is highly regulated through the Pennsylvania Liquor Control Board (PLCB). Convenience stores, also known as "beer distributors," are allowed to sell beer and malt beverages but are not permitted to sell wine or liquor.
2. Alcohol Control Boards
Next, you must consider the alcohol control boards governing your area. Every state has an alcohol control board or commission responsible for regulating the alcohol trade. These agencies establish the ground rules for licensing and sales and distribution restrictions within their jurisdictions.
Related Read: How Much Does It Cost To Open a Convenience Store? 5 Factors That Influence Cost
In many regions, the alcohol boards take a hands-on oversight role when it comes to liquor in particular. In 17 U.S. states, the government controls wholesale distribution and sets pricing. Some even manage the operation of retail liquor outlets directly.
Given the intensive governance model alcohol boards impose around distilled spirits, securing authorization for liquor sales can be extremely challenging for convenience stores.
Examples:
- Utah:
Utah's Department of Alcoholic Beverage Control (DABC) oversees the sale and distribution of alcohol within the state. The DABC sets strict guidelines on who can sell liquor, and it's often limited to state-run liquor stores, with very few licenses for other retailers. - Oregon:
The Oregon Liquor Control Commission (OLCC) regulates the sale of alcoholic beverages in the state. The OLCC establishes rules for licensing and distribution, determining which types of establishments can sell liquor, usually limiting it to specialized liquor stores.
3. Local Ordinances
Finally, you need to look beyond your state and consider any laws or regulations governing your city or locality.
Alongside state alcohol control boards, local ordinances can bring an additional layer of requirements around licensing and alcohol sales limitations. Municipalities often use zoning rules and distribution caps to impose further boundaries around those permitted to deal liquor.
Related Read: What C-Store Insurance Should My Business Have?
Since convenience stores cannot control where they are zoned, they frequently struggle when attempting to navigate layers of county and city alcohol ordinances. Local groups also tend to advocate restricting liquor to dedicated retailers in the name of public health, making it harder for convenience stores to get over that hurdle.
Examples:
- New York City, New York:
Local ordinances in New York City restrict liquor sales in convenience stores. While some convenience stores can sell beer, liquor sales are primarily limited to liquor stores or vendors holding specific licenses.
- Miami, Florida:
In Miami, local ordinances might further restrict alcohol sales in convenience stores. While some may sell beer and wine, liquor sales are typically reserved for licensed liquor stores, following guidelines set by the city or county.
Can Convenience Stores Sell Liquor? Managing Your Store Effectively
Convenience store owners in many states face an uphill battle when pursuing liquor sales in their stores. From complex licensing to oversight by alcohol control boards and more, getting the right licenses and permits in place can be challenging. However, with the right information and a little determination, convenience store owners in many states can secure the licenses they need to sell liquor in their stores.
But getting the right licenses to carry your new inventory is only the beginning.
If you want to manage your store efficiently and profitably, you need the right tools in place. The right technology for your store will help you manage age-restricted items, minimize shrinkage due to theft, and keep shelves stocked with your bestselling products — and the most important tool in your arsenal is your point of sale (POS) solution.
Convenience stores need specialized point of sale systems with features for automated age verification, lottery sales integrations, dual pricing, and advanced inventory management.
Enter: C-Store POS.
C-Store POS offers the most advanced all-in-one convenience store management platform. Purpose-built for your unique needs, it simplifies operations and sales growth. Don't let regulatory issues get you down. Instead, take charge with software that will help your convenience store thrive.
See for yourself! Schedule a demo of C-Store POS today.
