A liquor store can be a highly profitable venture, especially through the franchise route.
Steps in Setup:
- Secure premises before applying for a Liquor License.
- Obtain SARS clearance for a Tax clearance certificate.
- Contact a reputable Liquor License Consultant for all costs.
- Decide on your target market.
- You only need a license if selling or supplying alcohol for consumption.
- Liquor stores are profitable in South Africa due to the high alcohol consumption.
- Owning a liquor store requires passion, management skills, and product sourcing expertise.
Costs and Profits:
- Startup costs range from $50,000 to $100,000.
- Liquor stores make an average profit of 1.7%.
- Owners earn $21,000 to $51,000 annually depending on various factors.
- New liquor licenses cost between R15,000 and R25,000.
- Licenses need annual renewal within 12 months.
Other Information:
- Many liquor businesses operate within closed ecosystems.
- South Africa has over 5,000 liquor stores with high turnovers.