First of all, the tobacco store business is protected by a solid moat.
Tobacco cannot be purchased online, so smokers can only buy it from offline tobacco stores.
How much a seasoned smoker smokes in a month is basically fixed.
After running the tobacco store for a long time, it has a group of regular customers.
Every month, there's a guaranteed income coming in.
The profit from alcohol is multi-faceted too.
On one hand, they earn the branding fees from suppliers, and on the other, money from customers, benefiting from both ends.
Besides, retail alcohol sales only make up a small portion of a tobacco store's alcohol sales.
Corporate team-building events and large banquets like weddings and funerals are the bigger deals.
In a big city like Beijing, there are weddings and funerals every day.
New companies establish and host team-building events and anniversary celebrations every day.
