Buy a Liquor Store in Memphis, TN

The Memphis Liquor Market

Memphis has a dense, working-class retail base and a culture built around hospitality, live music, and food. That means steady, recurring foot traffic for neighborhood liquor stores, not the boom-and-bust cycles you see in tourist-dependent markets.

Tennessee's liquor licensing laws are state-controlled and notoriously slow. Liquor stores in Tennessee require a Retail Liquor License issued by the Tennessee Alcoholic Beverage Commission (TABC), and new licenses are restricted in most counties. That restriction is a moat for existing operators. You are not just buying a business, you are buying a license that a competitor cannot easily replicate.

Memphis proper sits in Shelby County, which allows retail liquor sales. The surrounding suburban counties have varying rules. Know which jurisdiction you are buying in before you get attached to a deal.

Deal Economics

National data across 138 active listings shows a median asking price of $512,500 and median cash flow of approximately $157,800. That prices most Memphis-area liquor stores at 3.3x cash flow, which sits inside the SBA 7(a) acquisition sweet spot of 3x to 5x.

The market runs wide. Price range goes from $79,000 for a bare-bones operation to $6.2M for a high-volume store with real estate included. Size matters here. A $79K store may be cash-flowing $30K a year. A $6M store with attached real estate is a different transaction entirely and may exceed the $5M SBA loan cap.

For a typical deal at $512,500:

• SBA 7(a) loan (80%): $410,000
• Seller note on full standby at 0% interest (10%): $51,250
• Buyer cash equity (5%): $25,625
• Total equity injection (10%): $76,875

At current SBA rates of approximately 10% to 11% on a 10-year term, annual debt service on a $410K loan runs roughly $65,000 to $68,000.

With $157,800 in annual cash flow, that gives you a DSCR of approximately 2.3x. That clears both our 2x target and the 1.5x floor with room to spare.

These are rough estimates based on market data. Actual terms depend on individual qualification and lender.

What to Look For in a Memphis Liquor Store

Sales data that holds up. Point-of-sale reports, cash register tapes, and bank deposits should reconcile. Liquor stores are historically cash-heavy businesses, which means some sellers underreport. Be skeptical of cash flow claims that are not supported by tax returns going back at least three years. SBA lenders will require two to three years of business tax returns, and so should you.

License transferability. The TABC license must transfer to you or you must apply for a new one. Confirm the transfer timeline before you sign a letter of intent. Delays can be weeks or months, and they affect your closing timeline and your lender's willingness to proceed.

Inventory valuation. Liquor store acquisitions often include significant inventory, sometimes $50,000 to $150,000 or more. Understand whether inventory is included in the asking price or is an add-on at closing. SBA loans can finance inventory as part of a business acquisition, but the structure matters.

Lease terms. A store with two years left on its lease and a landlord who has raised rent three times in four years is a risk. Target locations with at least five years remaining or a clear renewal path at controlled rates.

Customer concentration. Neighborhood liquor stores depend on repeat foot traffic, not accounts receivable. But check whether any meaningful portion of revenue comes from wholesale-adjacent relationships or catering accounts that could walk if ownership changes.

Tennessee-Specific Considerations

Tennessee law prohibits liquor stores from selling beer and wine in most cases. That matters for revenue modeling. A convenience store or grocery competitor can sell beer; your store cannot. This narrows the product mix but also keeps your customer base focused on spirits, which carry better margins than beer.

Sunday sales are permitted in Shelby County following a 2016 local referendum. Confirm hours and Sunday sales permissions are current and transferable for any store you evaluate.

State law also restricts ownership. You must be a Tennessee resident or establish Tennessee residency to hold a retail liquor license. Budget for the compliance process and work with a Tennessee attorney familiar with TABC before you make an offer.

Frequently Asked Questions

How much does it cost to buy a liquor store in Memphis?

Based on national data across 138 listings, the median asking price for a liquor store is $512,500. Prices range from roughly $79,000 for small or distressed operations to $6.2M for high-volume stores with real estate. Median cash flow runs near $158K, implying an average multiple of 3.3x.

Can I use SBA financing to buy a liquor store in Tennessee?

Yes. Liquor stores are eligible businesses under SBA 7(a) guidelines. You will need a 10% equity injection, typically structured as 5% buyer cash and a 5% seller note on full standby. The SBA loan covers up to 85% to 90% of the acquisition price, with a maximum loan amount of $5M.

What does the Tennessee liquor licensing process involve for buyers?

A Retail Liquor License from the TABC is required and must either transfer from the seller or be applied for new. New applications in most Tennessee counties face restrictions on issuance. Allow 60 to 120 days for the transfer or approval process and confirm the timeline with a TABC-familiar attorney before signing a purchase agreement.

What financial records should I request when evaluating a Memphis liquor store?

Request three years of business tax returns, monthly POS reports, bank statements, and inventory records. Reconcile cash deposits against reported revenue. Liquor stores with high cash volume require extra scrutiny. SBA lenders will independently verify income through IRS transcripts, so the numbers must hold up under that review.

How long does it take to close a liquor store acquisition with SBA financing?

Most SBA-financed business acquisitions close in 60 to 90 days from signed letter of intent. Liquor store deals in Tennessee often run longer due to TABC license processing. Budget 90 to 120 days in your timeline and negotiate a closing extension clause in your purchase agreement to protect yourself if licensing delays the transaction.

Thinking About Buying a Memphis Liquor Store?

Regalis Capital's deal team reviews 120 to 150 deals per week and works with buyers specifically on SBA-financed acquisitions. If you are evaluating a Memphis liquor store or want help running the numbers on a specific listing, start with a free deal assessment.

Talk to our team about Memphis liquor store acquisitions.