How to Open a Liquor Store in Australia 2025
Are you dreaming of owning a thriving liquor store in Australia? With the right planning and execution, you can turn that dream into a reality.
Your journey to opening a liquor store in Australia can either be joyous or troublesome. But you can make your journey a rewarding venture by following our guide.
In this article, we'll take you through the step-by-step process of starting your own liquor store in Australia. From obtaining licences to choosing the perfect location, we've got you covered. So, let's raise our glasses and get started!
Steps to Open a Liquor Store in Australia: A Complete Checklist
Here is a complete checklist you need to follow to open a liquor store in Australia:
- Conduct Market Research
- Create a Business Plan
- Choose a Business Structure
- Register Your Business
- Obtain Licences and Permits
- Secure a Suitable Location
- Source Suppliers and Inventory
- Hire and Train Staff
- Get the Right Insurance Coverage
- Design Your Store Layout and Merchandising
- Promote Your Liquor Store
- Get an Online Ordering System/POS System
How to Start a Beverage Business in Australia?
Conduct Market Research
The liquor industry is a very lucrative business to get into. However, there are a ton of things that you will need to research, understand and prepare before you even begin. So, it's essential to conduct thorough market research.
Understand the demographics and preferences of your target customers, analyse the competitors, and identify any gaps in the market. This research will guide your decisions in terms of product selection, pricing, and marketing strategies.
Create a Business Plan
A well-structured business plan is the backbone of any successful venture. Outline your business goals, target market, marketing strategies, financial projections, and operational plan. Your business plan will serve as a roadmap to take your liquor store in Australia to success. It will also attract potential investors.
Choose a Business Structure
Decide on the legal structure for your liquor store, such as a sole proprietorship, partnership, company, or trust. Each structure has its benefits and implications. So, consult with a legal advisor or an accountant to determine the best fit for your business.
Register Your Business
Register your liquor store with the Australian Securities and Investments Commission (ASIC) and obtain an Australian Business Number (ABN). This step ensures that your business is legally recognized and can operate legitimately.
Obtain Licences and Permits
This is one of the most important things on this list. Without appropriate licences, selling liquor can be considered a crime. Liquor licensing laws in Australia are strict, and obtaining the appropriate licences and permits is crucial. The requirements may vary depending on your state or territory, so check with the local liquor authority for specific guidelines.
Secure a Suitable Location
Choosing the right location is vital for the success of your liquor store. Look for areas with high foot traffic, proximity to residential neighbourhoods, and limited competition. Consider the lease terms and negotiate the best deal possible to maximise your profitability.
Besides not choosing a suitable location, you should also consider local regulations where you’re trying to set up your liquor store. There can be instances where councils or local governments can set restrictions on how certain areas can or cannot be used.
For example, there was a liquor licence freeze in Kings Cross and the Sydney CBD. Consequently, this rule stopped new places from selling alcohol, like hotels and clubs until 30 April 2021.
Source Suppliers and Inventory
Once your licences and store location are fixed, it’s time to fetch the good stuff. Establish relationships with reliable liquor suppliers to ensure a consistent and diverse inventory. Negotiate pricing and terms with suppliers to maintain healthy profit margins. Consider offering a mix of popular and niche products to cater to a wide range of customers.
Hire and Train Staff
Recruit knowledgeable and customer-oriented staff to assist customers and provide recommendations. Properly train your staff on liquor regulations, responsible service of alcohol (RSA), and customer service skills.
Get the Right Insurance Coverage
Protect your liquor store and its assets by obtaining comprehensive insurance coverage, including public liability insurance and product liability insurance. This will safeguard your business in case of any unforeseen incidents or legal claims.
Design Your Store Layout
Create an inviting and organised store layout that enhances the shopping experience for customers. Consider the placement of products and aisle spacing to promote sales.
Promote Your Liquor Store
Implement effective marketing strategies to attract customers to your store. Utilise both online and offline channels, such as social media, local advertising, and promotional events.
One great way of reaching your target audience is by running paid advertisements called PPC ads. These ads can be run from multiple channels such as Facebook, Instagram, and TikTok. While can’t directly sell liquor on these platforms, you may be able to direct traffic to your online store.
You can also collaborate with local businesses and engage with the community to increase brand visibility. If you could become a supplier to a restaurant, bar or similar establishment, your business could boom in no time.
Install an Online Ordering System
Incorporate a modern Australian POS system into your liquor store operations. A Liquor Store POS can streamline inventory management, track sales data, and enable online ordering for customers. This system also comes with niche features like age verification that can be very handy for your liquor store.
How Much Does it Cost to Open a Liquor Store in Australia?
It can cost around $150,000 to $500,000 to open a small liquor store in Australia. However, the cost can vary significantly depending on factors like location, store size, inventory selection, and licensing fees. It is essential to prepare a detailed budget during the business planning phase to ensure you have sufficient funds to cover all expenses.
In some cases, the costs might be more than you expected. If you need extra funds, you can get an investor to support your store. Alternatively, POSApt's Liquor POS System offers a short-term cash flow boost through Lucapay. This can help you handle tough times without having to sell or give up on your liquor store.
Wrapping Up
Those were the general steps on how to start a liquor store in Australia. Following them can certainly allow you to have a fulfilling and profitable venture.
One key aspect that shouldn't be overlooked is choosing reliable business software for your liquor store. This will not only streamline your operations but will also help to make data-driven decisions for your business.
If you plan carefully and put your heart into it, your liquor store can become a go-to destination for enthusiasts. Cheers to a successful liquor store business in Australia!
Also Read: How to Choose a POS System for Business
*DISCLAIMER: This article is for general information only. POSApt does not guarantee accuracy, completeness, or specific results from following this advice. Consider consulting business professionals for tailored guidance.