Liquor Stores Using New Tech Report Six-Figure Profit Gains and Save Up to 50 Hours Monthly

Liquor store owners across the United States are beginning to see a shift in how they run their businesses, as new technology solutions enter an industry that has long relied on outdated systems. For decades, most liquor retailers have managed inventory, compliance, and sales using software built in the 1990s or generic point-of-sale tools designed for restaurants and cafes. This has left many store owners spending hours on manual paperwork and struggling with thin profit margins.

The U.S. liquor retail market is part of a $250 billion beverage-alcohol industry that includes retailers, distributors, and suppliers. Despite its size, the sector has seen little innovation compared to other areas of retail. Many liquor stores carry thousands of products and work with dozens of distributors, creating a complex environment that older software systems are not equipped to handle.

Jake Bolling, founder of the technology company Scotch, says that the industry’s complexity demands specialized solutions. “Many retailers carry anywhere from 1,000 to 10,000 SKUs in their stores and source those products from more than 30 distributors,” Bolling explains. “The sheer transactional volume and inventory complexity demand a system that delivers intelligent recommendations, automates key workflows, and lets owners focus on customer service instead of IT management.”

Until recently, liquor retailers had two main choices for technology: legacy systems like LiquorPOS and mPower Beverage, or modern point-of-sale systems such as Clover and Lightspeed. The former are often outdated and slow, while the latter lack features specific to liquor retail, such as compliance tracking and inventory management for a wide range of products.

Scotch aims to fill this gap by offering an all-in-one operating system designed specifically for beverage alcohol retailers. The company’s software replaces the patchwork of legacy tools that many stores still use, streamlining operations and providing real-time data to help owners make better decisions.

Keegan Jenks, owner of Bacchus Wine & Spirits in Colorado, says that switching to Scotch has made a significant difference for his business. “We scoured the market for a new system, and Scotch stood out significantly above the other solutions in this industry,” Jenks says. “Not only are the team and technology fantastic, but the opportunity to expand our business has now become a reality.”

Sara Gesie-Peace, who owns Cheers Fine Wine & Spirits in Georgia, also reports improvements since adopting the new system. “Our prior POS was truly a POS—it held us back operationally,” she says. “Having actionable data at our fingertips has enabled us to not only save significant amounts of time in the day-to-day running of our business but also dramatically improve profitability.”

The move toward smarter software is helping liquor retailers of all sizes save time, improve margins, and focus more on customer service. Bolling, who previously built technology for convenience stores at his company Skupos, says that liquor retail presents even greater challenges. After Skupos was acquired in 2023, he turned his attention to understanding the liquor industry and building a team to address its unique needs.

Investors have taken notice of the opportunity. Scotch recently raised $10 million in seed funding led by First Round Capital, with participation from Lerer Hippeau, Toba Capital, Watchfire Ventures, and industry figures such as Cory Rellas of Drizly and Tim Barash of Toast and Dutchie. Snoop Dogg, through his 19 Crimes Wines brand, is also among the backers.

Liz Wessel, Partner at First Round Capital, says that Bolling’s experience and understanding of the industry were key factors in their decision to invest. “He lives and breathes his customers’ world, speaks their language, and understands their pain points from the inside out,” Wessel says.

With the new funding, Scotch plans to expand its team and continue developing features tailored to liquor retailers’ needs. The company is focusing on automation and intelligence to help stores manage inventory, track sales trends, and stay compliant with regulations.

Bolling says that the success of the fundraising round was due to a clear understanding of the problem, strong market demand, and a credible team. He emphasizes that building relationships with investors is about more than just raising capital—it’s about finding partners who can help the company grow.

The liquor industry itself is also changing. While some reports suggest that younger consumers are drinking less, Bolling says that consumption is simply returning to pre-pandemic levels and that preferences are shifting. Gen Z customers are choosing premium spirits, ready-to-drink cocktails, and lower-alcohol options, reflecting a trend toward quality and moderation.

Retailers who can track these changes in real time are better positioned to stock products that sell. According to Bolling, stores using Scotch’s system are saving up to 50 hours a month and increasing profitability by six figures annually.

As technology becomes more integrated into liquor retail, independent store owners are gaining tools that were once only available to large chains. The adoption of specialized software is helping small businesses compete more effectively and adapt to changing consumer preferences.

The transformation underway in liquor retail shows how technology can reshape even the most traditional industries. As new generations of consumers redefine what and how they drink, retailers who embrace data-driven systems are likely to stay ahead in a rapidly evolving market.