---

New York Cracks Down on Liquor Store Openings Amid Industry Decline and Rising Competition

New York State authorities are tightening restrictions on new wine and liquor store openings as the industry faces mounting pressure from declining alcohol consumption, rising tariffs, and growing competition from cannabis. The State Liquor Authority (SLA), which oversees licensing, has reportedly rejected up to 70% of new retail applications this year, citing concerns that additional stores could destabilize existing businesses (New York Post, 2025).

A Shrinking Market and Fierce Local Battles

In Brooklyn’s Bedford-Stuyvesant neighborhood, Rand Liquor Store successfully challenged a competitor’s attempt to reopen a 138-square-foot shop on Nostrand Avenue. The SLA sided with Rand during an August 6 hearing, with Commissioner Lily Fan stating, “The landscape has changed significantly since the prior store closed. I’m not sure that this area can justify another store.”

This decision reflects a broader trend: liquor retailers are increasingly turning to legal challenges to block new entrants. According to attorney Max Bookman, the fear is that oversaturation could lead to price wars and lax enforcement of age restrictions. “When liquor stores are forced to compete like other businesses, they may offer alcohol at extreme discounts and turn a blind eye to underage customers,” Bookman told The Post.

Tariffs and Changing Tastes Hit Sales Hard

Alcohol sales in New York have dropped by as much as 25% this year, following a similar decline in 2024. The Trump administration’s imposition of 15% tariffs on European wines has further strained the market, forcing retailers to raise prices on imported bottles. “We have six different things working against us, and tariffs are making it that much harder,” said Daniel Posner, owner of Grapes The Wine Company in White Plains, NY.

Nationwide, wine consumption is at its lowest level since 1961, according to the International Organization of Vine and Wine. A report from Wine & Spirits Wholesalers found that U.S. wine sales fell 8.7% in the first half of 2025, while spirits dropped 6% and beer declined 0.8% (Wine & Spirits Wholesalers, August 2025; NIQ, 2025).

Closures and License Surrenders on the Rise

Retailers are increasingly choosing to exit the business. A Freedom of Information Act request revealed that at least 106 liquor licenses were voluntarily surrendered to the SLA this year, leaving just 3,330 active retail licenses statewide as of August 25.

“More liquor stores are closing or are for sale,” said attorney Robert Swetnick, who represented Rand Liquor Store. “It’s not a lucrative business like it used to be.”

Winfield-Flynn Wine & Spirits, a Manhattan staple for 74 years, quietly shut its doors after being sued for $100,000 in unpaid bills. Wine Geeks in Armonk, NY, closed in March after 15 years, with owners Derek and Carol Todd citing post-COVID industry decline in a farewell video.

Retailers Pivot to Budget Bottles

To stay afloat, many shops are shifting their inventory toward lower-cost wines. Sip NYC on the Upper East Side recently ran a 25% discount on Burgundy wines, moving $20,000 worth of stock. “We basically didn’t make a profit,” said owner Justin Loeb, who is now investing in more affordable, name-brand products like Josh Cellars.

Loeb also slashed prices on premium Italian wines, offering a 2018 Uccelliera Brunello Di Montalcino for $56.24 (down from $75) and a 2018 Tua Rita Keir Toscana Syrah for $104 (down from $140). “We saw the same situation during the recession of 2008 and 2009, but people were drinking more then,” Loeb noted.

Posner echoed the sentiment: “Hundred-dollar-plus bottles are dead, and no one is buying $50 cabs,” referring to cabernet sauvignon.

Regulatory Hurdles and Public Convenience Clause

Unlike bars and restaurants, wine and liquor stores in New York must demonstrate that their opening serves the “public convenience and advantage.” This clause has been used to block several recent applications, including Kosher Corks in Fresh Meadows, Queens, and 5th Ave. Wines & Liquors in Bay Ridge, Brooklyn.

Commissioner Fan cited declining sales at nearby competitors as justification for rejection. Red’s Wine & Spirits, for example, reported $34,000 less in revenue in 2024 compared to the previous year.

Conclusion: A Shifting Landscape for Alcohol Retail

With consumer preferences evolving and regulatory scrutiny intensifying, New York’s wine and liquor retailers are navigating one of the toughest environments in decades. Between economic pressures, changing health attitudes, and competition from cannabis, the industry is being forced to adapt—or shut down.

As Commissioner Fan put it, “The business model for liquor retail is no longer what it used to be. We must consider sustainability, not just expansion.”

---