6 Smart Ways to Pick the Best Location for Liquor Store

Having the best selection of wines, craft beers, and spirits is great, but if your store is tucked away in a low-traffic area or surrounded by too many competitors, your sales could take a hit.

The right location ensures steady retail foot traffic and easy accessibility. Plus, you can cater to a customer base that exactly matches your product offerings.

So, how do you pick the best location for a liquor store? This guide will walk you through the key factors to help you make a well-informed decision.

The Best Locations for Your Liquor Store

Choosing the right location for your liquor store ensures steady sales, convenience, and long-term profitability. Here are top choices:

• Busy Commercial Areas – Near grocery stores, malls, or bustling streets with steady foot traffic.
• Residential Neighborhoods – Provide a built-in customer base for home drinkers (if zoning allows).
• Nightlife & Entertainment Districts – Attract customers shopping before parties.
• Tourist Hotspots – Serve travelers stocking up for hotel stays or vacations.
• Highway & Drive-Thru Locations – Ideal for busy commuters and road-trippers.

Is Finding the Right Location Worth It?

A big YES! After all, your location impacts every aspect of your liquor store business, from customer volume to profitability. Here’s how:

• Steady customer flow → Higher sales and revenue
• Easy to find → Boosts brand recognition and recall
• Prime spot → Helps you stand out from competitors
• Long-term success → Ensures profitability and minimizes relocation risks

6 Essential Factors for Choosing the Best Liquor Store Location

A little extra effort in scouting the best location for a liquor store today, and huge financial rewards down the road! So, here's what you should consider:

1. Local Regulations & Zoning Laws

Alcohol sales are highly regulated. So, before you fall in love with a location, ensure you can legally open a liquor store there. Here are some aspects of laws and restrictions to consider:

• Research whether your state permits private liquor stores or if alcohol sales are regulated by state-run systems.
  
  • Some states, like Pennsylvania, Alabama, North Carolina, Utah, and New Hampshire, have state-run liquor stores, which means private businesses cannot sell spirits. 
  • Others, like California, Texas, Michigan, and Florida, allow privately owned liquor stores but they have strict licensing requirements.
• Some states issue separate licenses for beer, wine, and spirits. If you plan to sell all three, you may need multiple permits.
• Licensing processes can take months, varying by state, license type, and quota system regulations. Start early, as fees range from $100 to over $500,000.

Many cities have zoning laws dictating where liquor stores can operate. Common restrictions include:

• Most cities prohibit liquor stores from operating too close to schools, churches, or residential areas. Some areas restrict liquor stores to commercial zones only.
• Certain states, like New Jersey and Wisconsin, limit the number of liquor stores within a specific radius based on population to prevent oversaturation.

Regardless of the location, liquor stores must also comply with state laws on age verification. Using an advanced liquor store POS system can help scan IDs, preventing underage sales.

2. Market Demand & Demographic Data

After you've ensured a legally viable location, check if there’s demand for your products in the area.

Understand Your Target Audience

Who are your ideal customers? To find out, think of:

• Age and lifestyle: College students, working professionals, and retirees have different purchasing habits.
• Income levels: Higher-income areas can support premium liquor stores. But lower-income areas may require competitive pricing.
• Cultural preferences: Some communities prefer certain types of alcohol. For instance, areas with a strong Hispanic population might have higher demand for tequila and mezcal.

For example, a liquor store in Miami’s upscale Brickell neighborhood will likely cater to professionals who buy craft cocktails and imported wines. Meanwhile, a store near the University of Florida in Gainesville may focus on budget-friendly beer and party packs.

Research Population Density & Growth Trends

Urban locations offer high foot traffic but come with expensive rent. Suburban stores may rely more on regular, car-dependent customers.

But besides these more conventional options, why don't you go for a location in a growing neighborhood? It could be a goldmine in a few years. 

For example, in places like Seattle, Austin, Miami, and Atlanta, the rapid expansion of tech companies has driven population growth. So, look for promising future commercial and residential projects to tap into a growing customer base.

You can use data tools for demographic insights. For example:

• From the U.S. Census Bureau, you can get insights into population growth and demographics.
• Competitor analysis platforms like Yelp and Google My Business can show what liquor stores are already operating in an area.

3. Study Local Competition

Check how many liquor stores are already in the area. Market too saturated? Well, it may be hard to stand out. But a unique selection or better pricing might help you carve out a niche.

Conduct a SWOT Analysis

A SWOT analysis helps evaluate competition as you find the best location for liquor store. So, find out:

• What established stores do well, like pricing, customer service, or inventory
• Where they fall short, like poor selection, bad location, or limited hours
• Unique products or services you can offer, like curated gift boxes, or online ordering
• High competition, changing regulations, or economic downturns

Find Market Gaps

Look for ways to differentiate:

• Specialty products: Organic wines, craft spirits, or locally sourced beverages
• Better customer experience: A well-lit, inviting store with knowledgeable staff
• Exclusive services: Home delivery, VIP memberships, or online pre-orders
• Special events: Tasting events, mixology workshops, or VIP wine nights. 

Even a simple loyalty program, like a free bottle after a set number of purchases, keeps customers coming back. 

Stock What’s Trending (and Exclusive!)

Customers love discovering new and limited-edition drinks. Keep up with seasonal trends. Bonus tip: Create a "Staff Picks" section having unique or best-selling bottles, making it easier for customers to choose.

4. Foot Traffic & Visibility

The more people who pass by your store, the more chances you have to attract customers, especially impulse buyers. Your liquor store is likely to perform best in areas where people frequently shop or socialize. So, contenders for the best location for liquor store include:

• Busy streets
• Shopping centers
• Nightlife districts

For example, in Las Vegas, liquor stores near The Strip benefit from constant retail foot traffic, as tourists often buy alcohol for their hotel rooms.

Secondly, your store should be easy to spot. A poorly visible store, even in a great location, might miss out on customers.

• Use bold colors and clear fonts to make your store recognizable from a distance.
• A bright, inviting storefront can make a big difference, especially at night.
• Highlight promotions, bestsellers, or seasonal drinks to attract walk-in traffic.

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5. Accessibility & Parking Convenience

If customers struggle to park or find the entrance, they may choose a competitor.

• If possible, choose a location with an attached parking lot.
• Ensure there’s sufficient street parking nearby, preferably with easy contactless payment and mobile ordering options.
• Being in a plaza with other retailers lets you have shared parking, which can help attract shared customers.
• Being near a bus stop, subway station, or ride-share hotspot can bring in additional customers.

6. Safety & Security Considerations

Since alcohol is an expensive item, liquor store theft is common. So, choose a low crime location. Here's how:

• Check local crime reports using websites like CrimeMapping.com to know crime trends in different neighborhoods.
• Visit the area at night. Some areas may seem fine during the day but feel unsafe after dark.

Plus, put CCTV cameras to cover all entry points and high-value inventory areas. Ensure your store has a working security alarm with a reliable response system. Bright exterior lighting discourages loitering and break-ins.

Also, proper staffing during peak hours and late hours stops theft and ensures quick response to any incidents. Plus, role-based permissions to employees restrict access to sensitive functions. The result: repeat business and customer trust.

‍Preventing liquor store thefts, from shoplifting to employee theft, a cloud-based POS system lets you track sales trends and manages inventory in real time at multiple locations from anywhere. POS analytics reports help instantly detect discrepancies. Ultimately, these features help your liquor store save money and time!

Capitalize Your Liquor Store Location With OneHubPOS 

Select a spot that aligns with local laws, customer demand, foot traffic, and profitability. That's the best location for liquor store businesses. But this is just the first step. Running the store smoothly is where the real challenge begins. 

From tracking sales trends in high-traffic areas to preventing theft in late-hour spots, OneHubPOS does everything for you. Ready to make your store location work better for you? Book a demo today!