Buying into an Off Licence

[Saleen836]

As title, a friend of mine works in one and has been offered the chance to buy out 1 of the 2 owners as they want to retire, price mentioned was £50k which is mainly for the stock, I asked for a bit more info on out goings etc and also is the shop unit owned or leased.The unit is on a rolling lease but still waiting on out goings.

Friend says they are turning over approx £1k almost every day but this can either be good or bad depending on out goings, anything else to be wary of?

[anonymous-user]

What is the other of the 2 current owners going to do?

[Saleen836]

JPJPJP said:

What is the other of the 2 current owners going to do?

Remain as half owner

[Si1295]

Is the alcohol licence under the remaining owners name or will you/your friend have to apply for one? Is it a franchise or independent? We ran a Bargain Booze as part of a petrol station a few years ago. It generally ran itself once we got the right staff in however I found myself working both Christmas & New Years Eve most years. Net profit was ~£65k/year iirc

[2 GKC]

Not sure the asking price and daily revenue stack up?

[hotchy]

Only turning 7k a week? If there is a chance to double that then ok. Realistically you need 15k turnover a week to get staff and make money.

[Saleen836]

Thanks all, I did tell friend it would require some serious research.

[red_slr]

Something else to think of, peoples buying habits have changed.

The older generation now drink Lidil and Aldi booze.

The younger generation don't drink much IME and if they do it tends to be in posh inner city bars.

Personally in 10-15 years I think the off licence industry will shrink considerably.

That said, the world is a crazy place right now so things might do the opposite!

[singlecoil]

Buying into a small off licence, with only a very limited amount or even no control at all of the business, is not a good idea.

If your friend could front £50,000 then he'll have a very big choice of businesses here

https://uk.businessesforsale.com/

some of them might even be viable.

[anonymous-user]

Are off licenses still a thing ? I assumed they all lost out to the supermarkets , apart from the odd independent or boutique ones.