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Lee's Discount Liquor
IndustryAlcohol
Founded1981; 43 years ago (1981) in the Las Vegas Valley
FounderHae Un Lee
Headquarters
Henderson, Nevada
,
United States
Area served
Nevada
Key people
Kenny Lee (president)
OwnerLee family
Number of employees
185 (2011)
Websiteleesliquorlv.com

Lee's Discount Liquor is a chain of liquor stores in Nevada. It was founded by Hae Un Lee in 1981, and is the largest liquor retailer in the state, with 22 locations as of 2017. Besides the Las Vegas Valley and Reno, the company also has stores in Mesquite and West Wendover, two locations that are popular with residents of nearby Utah, where alcohol laws are more strict. The company is known for its humorous advertising, which often features Hae Un Lee and his son Kenny Lee, who respectively serve as chief executive officer and president for the company.

History

Early years

Lee's Discount Liquor was founded by Hae Un Lee, who immigrated to the United States from South Korea in 1980.[1][2][3][4] Lee received a loan from a relative and used it to help finance a Las Vegas liquor store business, which he opened in 1981.[5] With $100,000,[6] Lee opened the 1,200 sq ft (110 m2) store,[1][5] Plaza Liquor,[3] on the corner of Spring Mountain Road and Jones Boulevard.[6] Lee later changed the name to A Plaza Liquor so it would be listed first in the local phone book. When Lee extended the name to A Plaza Liquor Barn, a California chain with a similar name threatened to sue him, ultimately leading to the name Lee's Discount Liquor.[3] Lee operated one of the few standalone liquor stores in Las Vegas, where most packaged alcohol was sold in supermarkets.[2]

Lee had gotten the idea to open a liquor store after buying a bottle of Scotch whiskey in Las Vegas. At the time, Lee did not know how to speak English, and the cashier did not say anything to him when he purchased the whiskey.[1][2][3][4] Lee later said, "I went to buy a bottle of Johnny Walker Black Label, and the (sales clerk) said nothing to me. I spoke zero (English). So (I decided) 'This is my business.'"[1] Lee soon realized through experience that there would be customers who ask him questions about the alcohol products. He had difficulty helping such customers to locate specific products in the store, although he worked to improve his English, as well as his knowledge about the liquor business.[3]

Lee made only $875 in the first month, and the first year of revenue brought in less than $50,000.[1] According to Lee's son Kenny, "(He) didn't know what he was doing, and modeled it after stores in Los Angeles that not only carried liquor but other items, almost a convenience store."[5] Hae Un Lee decided to promote the store in response to the poor revenue.[5] The store received promotion through advertisements on vans, as well as flyers that were left door-to-door and also passed out by Lee's children. Lee also promoted the store through newspaper advertisements.[2][3][4]

Lee learned from a friend about a liquor store in Denver, and he flew there to learn how the business was operated.[4] In Denver, Lee was advised to change his store format to focus on discount liquor.[5] Lee realized how successful his store could be when monthly revenues increased to $30,000 within a year and a half of its opening.[2] Lee said he worked hard to ensure the store would be successful. He worked seven days a week and operated it largely by himself.[3] Lee would work overnight shifts as a bellhop, go home to sleep for three hours, and then open his liquor store for a 12-hour shift.[7] At some point, Lee also worked late-night shifts as a busboy for a casino in downtown Las Vegas, while operating the liquor store during the day, taking naps under the store counter at times.[2][8]

Expansion

A second liquor store was opened in 1984.[5] Spirits were the most successful product for Lee's during the 1980s, and the business later updated its selection to include premium liquors for wealthy customers.[1] In 1989, Lee purchased his first store building to eliminate the lease, making for a bigger profit.[1] The majority of future store locations were also owned entirely by the Lee family rather than leased.[4][5] Lee's son, Kenny Lee, started working for the company in 1992,[9] first as a store stocker and later as a cashier, before becoming a vice president six years later.[4] Hae Un Lee was closely involved in the development of new store locations and would learn about the area surrounding potential sites, including the number of nearby homes, average income, and other demographics.[4] By 1996, the company had three store locations.[7]

In 1997, alcohol retailer BevMo! opened two locations in Las Vegas to compete against Lee's, which opened two more stores in response and expanded its alcohol selection. After a year and a half, BevMo! closed its locations in Las Vegas. Lee's grew to become a major retailer of alcohol in the Las Vegas Valley, with its biggest competitors consisting of Costco, Sam's Club, and supermarkets.[6] Lee's developed a reputation for its low prices and large variety of products, including some obscure alcohols.[10][11][9][12] There was some consideration to changing the name to Lee's Wine and Spirits, although Hae Un Lee insisted on keeping the current name to market the chain as a discount retailer.[6] Lee later said, "Here in the United States, people like discounts, Discount Tires, etc."[3] Lee's became a frequent recipient of the "Best of Las Vegas" award, given out by the Las Vegas Review-Journal.[13][10][14]

A Lee's Discount Liquor store

In 2003, Lee's began holding free wine-tasting events in its stores as part of its popular wine club. The first tasting included the presence of Andrew Firestone, a reality television star.[9][5][15] Lee's subsequently introduced a beer-tasting event.[16] As of 2004, Lee's had eight locations in the Las Vegas Valley, with a 29,000 sq ft (2,700 m2) store in Henderson also serving as the company headquarters.[6] The store offered 1,600 different products, including beer, spirits, and wine.[17]

As of 2006, Lee still worked seven days a week. He said Las Vegas was a difficult place to operate a liquor store for several reasons, including competition from grocery stores and bars. In addition, Clark County, Nevada has laws which prohibit liquor stores from operating within 1,500 feet of schools, churches, and other businesses with a liquor license. At the time, Lee operated nine of the 45 liquor stores located in the Las Vegas Valley,[18] and Lee's Discount Liquor had become the largest alcohol retailer in Nevada.[1] Lee attributed his success to repeat customers, a large selection of products, and large stores which allowed him to buy products in balk.[18] A 12,000 sq ft (1,100 m2) Lee's Discount Liquor store opened in Mesquite, Nevada in 2006.[19] It became popular among residents in nearby Utah, where alcohol laws are more strict.[19][20]

In 2010, McCarran International Airport sought to open a liquor store in its facility for additional revenue,[21][22][23] during a period of poor economic conditions.[24] Lee's was chosen to operate the store, which would be called Lee's Runway Liquor and would share revenue with the airport.[22] Lee's had until the end of 2011 to begin construction on the store,[24] but it ultimately did not proceed because of disagreements about the proposed partnership with the airport.[10][25][26] As of 2011, Lee's had 185 employees, and Kenny Lee had become the company president.[2][5] In 2012, Kenny Lee took over daily operations of the 17 store locations, although his father remained involved in the business as well.[9]

In April 2016, a Lee's cashier was shot and killed during a store robbery,[27][28][29] and three men were subsequently arrested for their involvement.[30][31][32] Two of the suspects received prison sentences,[33] while prosecutors sought the death penalty for the third suspect, who was convicted on all charges.[34][35]

As of 2016, Hae Un Lee had no plans of retiring from his position as the company's chief executive officer.[3] Later that year, construction began on a new Lee's Discount Liquor location in West Wendover, Nevada, near the Utah border.[36] It opened the following year, marking the company's first location in northern Nevada.[37][38][20] The store is 30,000 sq ft (2,800 m2) and offers more than 6,000 products.[20] Like the Mesquite store, it attracts buyers from Utah, where alcohol prices had recently been increased by the state's Department of Alcoholic Beverage Control.[37][38][20] Kenny Lee said, "Utah is all state-run and priced so outrageously that people will drive to stock up." The Mesquite store was one of the company's most successful locations. At the time, Lee's remained as the largest liquor retailer in Nevada, with 22 locations.[20] The stores are owned by various members of the Lee family.[9] Stores range from 5,000 to 31,000 square feet, with the average store being around 16,000.[12]

In 2019, Lee's opened its first store in Reno, Nevada, and there are plans to add a second location there.[39][40]

Advertising

Lee's Discount Liquor is known for its humorous advertising, which consists of print ads, commercials, and billboards throughout the Las Vegas Valley.[3][10][37][11] Some commercials and billboards feature Lee and his son Kenny,[41][37][11] who said, "We are goofy, funny and a little edgy."[3] Hae Un Lee and his son got the idea to do the commercials in 2002, after seeing a commercial for another father-son business in Minnesota that belonged to the same guild as the Lees.[5] Kenny Lee said, "It's almost like we're cheesy local celebrities. But my dad gets a kick out of it."[9] Dan Aykroyd and Mike Ditka have also appeared in Lee's commercials to promote their alcohol brands.[5][42]

Lee's advertisements often feature jokes relating to alcohol; they have received some criticism.[11][3] In 2013, several billboard advertisements became controversial for their message, "Alcohol: it's cheaper than therapy." A Change.org petition was started by a group who believed that the billboards encouraged people with alcohol addiction to drink more, rather than to seek therapy. Hae Un Lee did not believe the ads were funny, while Kenny Lee said, "I thought they were funny and goes well with our television commercials, but didn't realize the people it would affect."[43][44][9] Kenny Lee later said, "There's always going to be people who don't like our ads. When KLUC did an online poll about us, 85% of the people said that they knew we were just joking around. When you are in a city where you have mobile billboards with half-naked girls, it's hard to believe that people would give us trouble for the stuff that we put on our signs."[4]

References

  1. ^ a b c d e f g h "Purchase of bottle of Scotch led Korean immigrant to start business". Las Vegas Review-Journal. July 16, 2007. Retrieved March 4, 2020.
  2. ^ a b c d e f g Smith, Hubble (August 13, 2011). "Lee's Liquor celebrates 30 years in Las Vegas". Las Vegas Review-Journal. Retrieved March 4, 2020.
  3. ^ a b c d e f g h i j k l Hernandez, Rocio (August 10, 2016). "How Lee's Liquor became a Las Vegas success story". Las Vegas Review-Journal. Retrieved March 4, 2020.
  4. ^ a b c d e f g h Brown, Ben (September 2, 2016). "Lee's Discount Liquor Celebrates Its 35th Year in Las Vegas". The Las Vegas Food and Beverage Professional. Retrieved March 4, 2020.
  5. ^ a b c d e f g h i j k Hall, Debbie (November 15, 2012). "Lee's Discount Liquor". Las Vegas Woman Magazine. Retrieved March 4, 2020.
  6. ^ a b c d e Miller, Valerie (December 23, 2004). "Wine seller". Las Vegas Business Press. Archived from the original on January 25, 2005.
  7. ^ a b "Immigrant in search of the American dream". Hawaii Tribune-Herald. October 31, 1996. Retrieved March 4, 2020 – via Newspapers.com.
  8. ^ Simich, Jerry L.; Wright, Thomas C. (2010). More Peoples of Las Vegas: One City, Many Faces. University of Nevada Press. ISBN 978-0-87417-818-0. Retrieved March 4, 2020.
  9. ^ a b c d e f g "Lee's Discount Liquor Is A Vegas High-Roller". Market Watch. September 22, 2015. Retrieved March 4, 2020.
  10. ^ a b c d "Question of the Day". Las Vegas Advisor. January 27, 2012. Retrieved March 4, 2020.
  11. ^ a b c d Miller, Steve (2020). Uncopyable: How to Create an Unfair Advantage Over Your Competition (Updated and Expanded Edition). Sound Wisdom. ISBN 978-1-64095-171-6. Retrieved March 4, 2020.
  12. ^ a b "Lee's Discount Liquor Projects $85 Million In Sales For 2015 As Good Times Return To Vegas". Shanken News Daily. July 7, 2015. Retrieved March 4, 2020.
  13. ^ Rinella, Heidi Knapp (2004). Best Of Las Vegas: Best Eats And Drinks, Entertainment, shopping, freebies, sports, People And More!. Stephens Press, LLC. p. 136. ISBN 978-1-932173-41-3. Retrieved March 4, 2020.
  14. ^ "Lee's Discount Liquor". Best of Las Vegas. Retrieved March 4, 2020.
  15. ^ McDarrah, Timothy (November 24, 2003). "Fast-afoot Jackson keeps 'em guessing". Las Vegas Sun. Retrieved March 4, 2020.
  16. ^ Hogan, Jan (October 3, 2006). "Chugging out, sipping in – Lee's beer-tasting event growing in popularity". Summerlin View. Archived from the original on October 23, 2006.
  17. ^ Miller, Valerie (May 9, 2005). "Immigrant's company has created a major retail chain". Las Vegas Business Press. Archived from the original on April 27, 2006.
  18. ^ a b Buhler, Brendan (May 1, 2006). "Liquor stores don't have much of a shot". Las Vegas Sun. Retrieved March 4, 2020.
  19. ^ a b Hummel, Debbie (June 3, 2007). "In a growing Utah town, the liquor store stands alone". Associated Press. Retrieved March 4, 2020.
  20. ^ a b c d e Stephenson, Kathy (November 8, 2017). "Giant discount liquor store opens in West Wendover, giving Utah buyers another place to cross the border for cheap booze". The Salt Lake Tribune. Retrieved March 4, 2020.
  21. ^ Schoenmann, Joe (July 18, 2010). "Are liquor sales set to take off at McCarran?". Las Vegas Sun. Retrieved March 4, 2020.
  22. ^ a b Golden, Fran (August 6, 2010). "Las Vegas Airport Liquor Store Clears Hurdle". AOL. Retrieved March 4, 2020.
  23. ^ "Airport cleared to negotiate liquor store lease". Las Vegas Review-Journal. August 3, 2010. Retrieved March 4, 2020.
  24. ^ a b Schoenmann, Joe (December 22, 2011). "Lee's Runway Liquor must start construction by Dec. 30 or risk default". Las Vegas Sun. Retrieved March 4, 2020.
  25. ^ "Question of the Day". Las Vegas Advisor. March 26, 2012. Retrieved March 4, 2020.
  26. ^ Schoenmann, Joe (May 6, 2012). "In the county, what's become of contracts, airport liquor store, expletives". Las Vegas Sun. Retrieved March 4, 2020.
  27. ^ Torres-Cortez, Ricardo (April 19, 2016). "Employee killed in robbery at Lee's Discount Liquor store; witness identified". Las Vegas Sun. Retrieved March 4, 2020.
  28. ^ Crosby, Rachel (April 20, 2016). "Lee's Liquor cashier's silence may have saved pregnant co-worker's life". Las Vegas Review-Journal. Retrieved March 4, 2020.
  29. ^ Crosby, Rachel (April 21, 2016). "Pregnant Lee's Discount Liquor manager to name son after cashier gunned down Monday". Las Vegas Review-Journal. Retrieved March 4, 2020.
  30. ^ Torres-Cortez, Ricardo (May 4, 2016). "2 arrested in slaying of Lee's Liquor employee". Las Vegas Sun. Retrieved March 4, 2020.
  31. ^ Crosby, Rachel (May 4, 2016). "Third suspect in fatal Lee's liquor store shooting surrenders to police". Las Vegas Review-Journal. Retrieved March 4, 2020.
  32. ^ Ferrara, David (June 7, 2016). "Men accused in Lee's Liquor killing plead not guilty". Las Vegas Review-Journal. Retrieved March 4, 2020.
  33. ^ Lacanlale, Rio (November 6, 2019). "Brothers sentenced in killing of Las Vegas liquor store clerk". Las Vegas Review-Journal. Retrieved March 4, 2020.
  34. ^ Ferrara, David (January 28, 2020). "Death penalty trial begins in Lee's Liquor killing in Las Vegas". Las Vegas Review-Journal. Retrieved March 4, 2020.
  35. ^ Ferrara, David (February 5, 2020). "Man convicted of all counts in Lee's liquor store murder case". Las Vegas Review-Journal. Retrieved March 4, 2020.
  36. ^ "Lee's Discount Liquor Breaks Ground". West Wendover City. December 21, 2016. Retrieved March 4, 2020.
  37. ^ a b c d Winslow, Ben (July 26, 2017). "A massive new liquor store is opening in West Wendover". KSTU. Retrieved March 4, 2020.
  38. ^ a b Winslow, Ben (November 11, 2017). "Lee's Discount Liquor opens a huge store in West Wendover, making Utahns run for the border". KSTU. Retrieved March 4, 2020.
  39. ^ McGinness, Brett (August 8, 2019). "Under construction: 7 projects underway in Reno-Sparks". Reno Gazette Journal. Retrieved March 4, 2020.
  40. ^ "Retail Summary: Third Quarter 2019". Nevada Business Magazine. January 1, 2020. Retrieved March 4, 2020.
  41. ^ Knapp Rinella, Heidi (June 15, 2018). "Notable Las Vegans share memories with famous fathers". Las Vegas Review-Journal. Retrieved March 4, 2020.
  42. ^ Rumore, Kori (January 10, 2020). "Mike Ditka's almost 40 years as a paid pitchman: Check out more than 50 commercials from the former Chicago Bears coach". Chicago Tribune. Retrieved March 4, 2020.
  43. ^ Saclolo, Alison (June 15, 2013). "No laughing matter: Liquor store chain removing controversial billboard". Las Vegas Sun. Retrieved March 4, 2020.
  44. ^ "Vegas-Area Liquor Store Removes "Alcohol: Cheaper Than Therapy" Billboard". RTTNews. June 17, 2013. Retrieved March 4, 2020.
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