If you’ve ever thought about getting into retail and love being your boss, starting an off-licence business in the UK might be the perfect opportunity. Off-licences—also known as convenience shops or corner shops that sell alcohol—are a staple in British communities. These small yet highly profitable shops typically sell alcohol, tobacco, snacks, and other essential groceries, often with extended opening hours.
In this guide, we’ll cover everything you need to know to start or invest successfully in an off-licence business in the UK, from securing the right licences and understanding your local market to exploring start-up costs, daily operations, and long-term profitability.
What Is an Off Licence Business in the UK?
An off licence (or off-licence) is a retail shop legally allowed to sell alcohol for consumption off the premises. You’ll often find off licences selling wine, beer, spirits, soft drinks, cigarettes, snacks, and other convenience items. Think of them as mini supermarkets that stay open late and serve local neighbourhoods.
In the UK, off licence shops can be:
- Independent corner shops
- Franchises or part of symbol groups (like Nisa, Premier, or Costcutter)
- Newsagents that also stock alcohol
- Combined with grocery or takeaway businesses
The industry remains attractive thanks to the relatively low barrier to entry, regular foot traffic, and repeat customers. However, regulation and licensing must be taken seriously.
Understanding the Off-Licence Market in the UK
The UK off-licence sector is a mature and lucrative one. According to IBISWorld, the industry is worth over £15 billion annually and remains relatively stable even during economic downturns. That’s because people tend to buy everyday essentials locally and off-licences fill that demand, especially for quick purchases of alcohol and snacks.
These businesses often operate in densely populated urban areas or residential communities, where the convenience of location plays a major role. Many also see a boost in trade during weekends, holidays, and local events. With changing consumer behaviour towards local shopping, especially after COVID-19, off-licences have become more relevant than ever.
Is Starting an Off-Licence Right for You?
Before diving into the technicalities, take a moment to evaluate if this business suits your lifestyle and goals. An off-licence business typically demands long working hours, daily involvement, and keen attention to customer service. If you’re passionate about retail, have strong people skills, and are ready for a hands-on venture, then this could be an excellent fit.
On the other hand, if you’re planning to invest rather than run it yourself, then it’s important to understand the operational requirements and make sure you hire a reliable manager.
Why Start an Off Licence Business in the UK in 2025?
Investing in or starting an off licence business in the UK in 2025 is more appealing than ever due to these reasons:
- Rising demand for alcohol, snacks, and convenience foods
- Flexible hours and manageable staffing needs
- Lower setup costs than supermarkets or pubs
- Option to franchise or grow into multiple locations
According to the Office for National Statistics (DoFollow), UK households spent an average of £10.50 per week on alcoholic drinks purchased for home use in 2023 — and that figure is expected to rise.
This presents a massive opportunity for anyone ready to tap into this reliable consumer trend.
Step-by-Step Guide to Starting or Investing in an off-licence Business in the UK
1. Create a Business Plan
Every successful venture starts with a solid business plan. Your plan should outline:
- The type of off-licence you want (standalone, integrated with a grocery shop, or part of a franchise)
- Start-up costs and funding strategy
- Revenue projections and profit margins
- Location and customer base analysis
- Marketing and advertising strategy
A clear plan will not only guide your decision-making but will also make it easier to secure funding if needed.
2. Choose the Right Location
Location is critical for an off-licence. You’re aiming for a place with high footfall and easy accessibility. Look for areas near housing estates, bus stops, tube stations, schools, or industrial zones where workers may stop in after hours.
If you’re investing rather than building from scratch, examine existing shops in prime locations. Assess the customer base, daily sales, and competition before making a decision.
3. Understand Legal and Licensing Requirements
Running an off-licence means complying with various UK laws. The most important is obtaining a Premises Licence and a Personal Licence under the Licensing Act 2003.
- Premises Licence: Issued by the local council, this licence allows you to sell alcohol on your property. You’ll need to provide a detailed floor plan and meet conditions such as security, hours of operation, and preventing underage sales.
- Personal Licence: This allows an individual to authorise alcohol sales. You or your designated supervisor must complete the Level 2 Award for Personal Licence Holders (APLH) and apply through your local authority.
Read more about licensing on the UK Government site.
You also need to register your business with HMRC, ensure you have public liability insurance, and comply with tobacco display regulations if selling cigarettes.
4. Determine Start-Up Costs and Secure Funding
Starting from scratch can cost between £20,000 to £80,000, depending on size, location, and inventory. If you’re buying an existing off-licence, prices range from £40,000 to over £200,000.
Your budget will typically include:
- Lease or purchase of premises
- Fit-out and shelving
- Stock (alcohol, snacks, tobacco, grocery items)
- Licencing and legal fees
- EPOS (Electronic Point of Sale) system
- Staff wages
- Insurance
To finance your venture, consider:
- Business loans from UK banks or credit unions
- Government-backed loans or grants
- Private investors or partnerships
- Franchise opportunities with initial funding support
5. Stock Your Shop Strategically
Your product selection should match your customer base. Alcohol is key, but you’ll also make solid margins on:
- Cigarettes and tobacco
- Lottery tickets
- Crisps and snacks
- Soft drinks and mixers
- Convenience groceries (milk, bread, etc.)
Keep track of what sells and stock accordingly. Popular alcohol brands, seasonal specials, and chilled drinks are strong earners. Use promotions and loyalty cards to drive repeat business.
6. Hire and Train Staff (If Needed)
You might be the main person running the shop, especially early on, but hiring additional staff can ease the pressure. Whether it’s family members or part-time employees, ensure they’re trained to:
- Check ID (Challenge 25 policy)
- Handle cash and card payments
- Follow alcohol sales laws
- Provide friendly customer service
You’re legally responsible for their actions, so ongoing training is essential.
7. Market Your Off-Licence Effectively
Now that your off-licence is up and running, it’s time to let people know you’re open for business. Here’s how you can market it effectively without breaking the bank:
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Local Flyers and Posters: Old-school but still effective, especially if you’re in a busy area. Pop them up in local shops, community centres, or near transport hubs.
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Google My Business Listing: It’s free, easy to set up, and a must-have for local visibility. When someone searches for “off-licence near me”, you’ll want your name to pop up.
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Facebook and Instagram Pages: Social media is your friend. Post regularly about new stock, offers, or events. It’s also a great place to build a community vibe.
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In-Store Promotions: Think “Buy 2, get 1 free” deals, discounts on bulk purchases, or limited-time offers. They not only attract new customers but keep regulars coming back.
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Partner with Delivery Apps: Platforms like Uber Eats, Deliveroo, or Just Eat are ideal if you want to offer home delivery. Great for boosting evening and weekend sales.
And don’t forget to encourage customer loyalty. A simple reward card (e.g., “Buy 9, get the 10th free”) or seasonal promotions around Christmas, Easter, or local events can go a long way. The key is to stay visible, be consistent, and keep your branding on point—before you know it, you’ll have a solid customer base that keeps coming back.
Investing in an Existing off-licence Business
If you’d rather invest than start from scratch, consider purchasing a running business. This route reduces start-up hassle but requires careful due diligence:
- Request financial records (past 12 months minimum)
- Understand weekly turnover and expenses
- Evaluate lease terms and liabilities
- Check the local competition
- Ensure licences are transferable or reapply accordingly
Using a business broker or commercial estate agent can make the process smoother.
Risks and Challenges of Running an Off-Licence
Like any business, off-licences come with risks:
- Theft and anti-social behaviour: Install CCTV and security systems
- Fluctuations in demand: Plan for seasonal peaks and dips
- Licensing violations: Train staff to avoid selling to underage customers
- Rising energy and supplier costs: Monitor expenses and shop around
Being aware of these early on helps you prepare for the unexpected.
Final Thoughts: Is the off-licence Business Right for You?
The off-licence business in the UK can be incredibly rewarding. It offers a consistent income, the opportunity to be your own boss, and the chance to serve your local community.
However, it’s not a passive investment. It requires time, effort, and a hands-on approach—especially in the beginning. Whether you’re starting from scratch or investing in an existing shop, due diligence, licensing knowledge, and excellent customer service are key to your success.
Ready to get started? Bookmark this guide, share it with a potential partner, or check out our related articles on UK business ideas and how to open a shop.
