The old Dairy Queen building at 507 N. Elm Street in Jefferson, empty since 2020, is finally getting new life as a liquor store. Oasis Wine & Spirits, owned by local business operators Karan and Money Khanna, is aiming to open its doors there later this month or by November 1 at the latest.
The Jefferson City Council gave its blessing to the project on September 22, approving a Class E Retail Alcohol License and a Retail Tobacco License for SGRD Group, Inc., the corporate entity behind the store, according to the City of Jefferson. The council backed both permit applications unanimously, clearing the way for the Khannas to bring a dedicated liquor retailer to the city. Karan Khanna, who already owns the Amoco gas station and the Subway in Jefferson, told Raccoon Valley Radio that the closest standalone liquor store is currently about 30 miles away.
That gap in the market is part of what's driving the new venture. Oasis Wine & Spirits will offer liquor, wine, and other alcoholic beverages once it opens, giving Jefferson residents a dedicated option they haven't had locally in years.
A Building's Long Vacancy Finally Ends
Dairy Queen was the last business to occupy the 507 N. Elm Street building before it closed permanently on January 26, 2020. Franchisee Fourteen Foods shut the location down citing poor business performance, per the station's report. Fourteen Foods is the nation's largest Dairy Queen franchisee, operating more than 240 locations across 13 states, according to the Minneapolis / St. Paul Business Journal.
The building sat empty for roughly six years afterward, even as the Greene County Development Corporation worked to find new ownership for the vacant site following the restaurant's exit, the same report notes. Property records show the building totals 1,889 square feet of retail space on a 0.42-acre parcel, according to Compass Real Estate.
Property Changed Hands Before Khannas Signed On
West Des Moines-based QUIB Properties LLC purchased the property from seller Brew Oil in June for $270,000, then leased the space to the Khannas. QUIB Properties is based in West Des Moines and now leases the property to two current business owners in Jefferson.
Oasis Wine & Spirits isn't the Khannas' first venture into the alcohol retail space. The brand also operates a store in Winterset, which opened in 2023 and offers liquor, wine, beer, and tobacco products, according to Madison County Tourism.
How Iowa's Licensing System Changed
The store's state approval reflects a broader shift in how Iowa handles off-premise alcohol sales. Under Senate File 2374, effective January 1, 2023, the state consolidated what used to be separate liquor, wine, and beer permits into a single Class E Retail Alcohol License, according to the Iowa Department of Revenue.
Getting that license isn't free or simple. Applicants must post a surety bond between $5,000 and $15,000 and pay annual state fees ranging from $2,500 to $7,500, with the exact amount depending on city population and store square footage, per the Iowa Business License Information Center.
Jefferson serves as the county seat and commercial hub of Greene County, with a population of 4,182 recorded in the 2020 U.S. Census. For a community of that size, the arrival of a standalone liquor store on a prominent corridor marks a notable shift for North Elm Street, which has sat with a vacant anchor building since the Dairy Queen closure. With city approval in hand, the Khannas are now working toward a late-October or early-November opening for Oasis Wine & Spirits.
