Opening a Tobacco Shop: Practical Guide to Costs and Procedures
Opening a Tobacco Shop: Practical Guide to Costs and Procedures
The idea of opening a tobacco shop in Italia is still appealing today. It offers a stable business, a constant cash flow, and a central role in the local community. But how do you do it in practice? And how much does it cost?
This practical guide will provide you with essential information, going beyond the usual platitudes and focusing on what really matters to successfully start your tobacco shop.
Authorizations and Requirements: What You Absolutely Need to Know
Opening a tobacco shop is strictly regulated by the State. It is not enough to have a place and the desire to work. Here are the key points:
State Concession: This is the heart of everything. Without the concession from the State Monopoly (ADM - Agenzia delle Dogane e dei Monopoli), you cannot sell tobacco products. Obtaining it ex novo is extremely difficult, almost impossible. The most common way is to buy an existing tobacco shop.
Subjective Requirements: You must possess certain moral and professional requirements. For example, you must not have been convicted of specific crimes and you must be compliant with tax obligations.
Local Requirements: The premises must comply with urban planning, health and safety regulations. The location is crucial: areas with high pedestrian traffic, proximity to offices or schools are an advantage. Avoid areas with too many tobacco shops nearby.
Commercial Licenses: In addition to the state concession, you will need the normal commercial licenses issued by the Municipality (SCIA – Segnalazione Certificata di Inizio Attività).
Heartfelt advice: Before investing a single euro, contact a professional experienced in tobacco shops. They will help you navigate the bureaucracy and verify that you and the premises are compliant.
Tobacco shops are subject to specific constraints both in terms of number and mutual distance, determined based on the population of the municipality.
In municipalities with fewer than 10,000 inhabitants, the opening of one retail outlet is permitted for every 1,500 inhabitants, provided that the nearest tobacco shop is at least 600 meters away.
Regarding the minimum distances between retail outlets, these must respect the following criteria:
in municipalities with up to 30,000 inhabitants: at least 300 meters;
in municipalities with between 30,000 and 100,000 inhabitants: at least 250 meters;
in municipalities with over 100,000 inhabitants: at least 200 meters.
In addition to the distance requirements, each tobacco shop must possess the relevant license and meet certain productivity parameters.
In particular, it is not possible to open a new retail outlet if a quarter of the sum of the commissions on tobacco products of the three nearest tobacco shops (located within 600 meters of the new point of sale) does not reach at least the following values:
€19,965 in municipalities with up to 30,000 inhabitants;
€31,990 in municipalities with between 30,000 and 100,000 inhabitants;
€39,825 in municipalities with over 100,000 inhabitants.
However, if the new business is located more than 600 meters away from the three nearest retail outlets, the requirements relating to distance and productivity do not apply.
Initial Costs: Prepare for the Investment
Opening a tobacco shop requires a significant investment. Costs vary depending on the location, size of the premises, and the turnover of the tobacco shop you are purchasing. Here is an overview:
Purchase of License/Business: This is by far the most substantial item. The price depends on the turnover, location, and the presence of additional services (e.g. lotto, superenalotto, payment services). Expect to spend from several tens of thousands to hundreds of thousands of euros.
Renovation and Furnishings: Adapt the premises to your needs. A functional counter, shelving for products, and security systems are essential.
Initial Merchandise: Tobacco products, gift items, stationery, scratch cards. Prepare a budget to fill the shelves.
Deposit for the Monopoly: The ADM requires a deposit to guarantee the correct fulfillment of obligations.
Bureaucratic and Professional Expenses: Accountant, notary, appraisals. Do not underestimate these items.
Attention: Do not be fooled by overly attractive offers. An undervalued tobacco shop may hide problems (debts, disputes, unfavorable location). Always do a thorough due diligence.
Checklist: Essential Steps to Open Your Tobacco Shop
Here is a detailed checklist to guide you through the opening process:
Market Research: Analyze the area, the competition, and the potential catchment area.
Tobacco Shop Search: Identify a tobacco shop for sale that meets your needs and economic possibilities. Sherlok can be a great starting point for finding opportunities.
Due Diligence: Carefully analyze the financial statements, contracts, and legal situation of the tobacco shop. Rely on experienced professionals.
Negotiation: Define the purchase price and the terms of sale.
Transfer Request: Submit the application for transfer of the concession to the ADM.
Financing: If necessary, apply for a bank loan or leasing to purchase the business.
Renovation and Furnishings: Adapt the premises to your needs.
