A bodega is a small convenience store, often family-owned, located on street corners in New York City. The name comes from the Spanish word for "storeroom" or "wine cellar". Bodegas are known for their community feel and unique character.
The startup costs for opening a bodega can range from $10,000 to over $1 million. Most owners need financing or investors to cover these costs. In general, bodega owners can make a comfortable living, with many earning over $250,000 per year.
Bodegas rely heavily on lottery and cigarette sales, which generate around 80% of revenue but offer lower profit margins. The remaining items have higher margins from 20% to 30%. Without lottery and cigarettes driving foot traffic, many bodegas would struggle to survive.
Owning a convenience store can be quite profitable, with average gross profit margins over $450,000. Deli items also bring in good money, with prepared food seeing profit margins from 50% to 80%.
Who owns bodegas in New York?
How much do delis in NYC make?