Overview of Bodegas
A bodega is a small owner-operated convenience store with ethnic market influences, often open late hours. The name comes from the Spanish for "storeroom" or "wine cellar". Bodegas rely on lottery and cigarette sales which generate most revenue but have low profit margins. Other items have higher profit margins, as much as 20%-30% compared to 5%-20% for lotto tickets, cigarettes, and e-cigarettes. Convenience stores are typically profitable offerings with average gross margins greater than $450,000.
Financial Aspects
Startup costs for a bodega range from $50,000 to $100,000. Bodega owners can make over $250,000 per year. Profitable ventures may open other locations within a city or area, increasing potential profits.
Challenges and Success Stories
Hundreds of bodegas closed by April 2020 due to the pandemic. Bodega owners share how they compete with – and sometimes beat – the competition: Smart money moves for your business.
Conclusion
Despite the struggle, there are still about 12,000 bodegas open for business around New York City. Bodegas are known for community and character, and most folks are loyal to their neighborhood bodega. Bodegas often stay open until 4AM, serving both daytime and nighttime crowds.