Murray and Katie Devereux first applied for a licence when the store opened in 2008, but were refused because it "did not look like a grocery store and it did not seem like one either".
An appeal was lodged the following year, but discontinued when a rehearing was scheduled for 2010, which also failed.
Their second application was publicly notified this week.
Mr Devereux said he "would not apply for it if I thought it was a waste of my time".
"I was a bit annoyed that we didn't get it last time. We actually felt that we sold enough grocery items the first time we applied and but now there is a new judge and everybody has different opinions and different outlooks on things.
"I do know the local liquor authority are going to oppose it and it will go to court and we just have to put our case."
He believed the renewal of liquor licences for other Night 'n Day stores in Dunedin and Queenstown was a good indication he would be successful.
A "lot of changes" had also been made to the store, including doubling the fresh fruit and vegetable section, and selling more fresh meat, he said.
"We have looked to try and improve things as much as possible."
Mr Devereux believed there was demand for his store to sell alcohol as he was often approached by customers asking about its liquor licence.
In November last year, the Commerce Commission received a complaint about the store misleading customers by displaying images of alcohol in a window when it did not sell alcohol.
A compliance advice letter was sent asking that the images of alcohol be covered or removed until a liquor licence was obtained.
At the time, Mr Devereux said he planned to put up large signs saying the store was unable to sell liquor until it was granted a licence, rather than removing or covering the images.
Dunedin District Licensing Authority inspector Tony Mole said it was too early to say if he would oppose the liquor licence application, as it was "not complete".
Every new application for an off-licence "must be accompanied by a breakdown of their sales figures", which had not been supplied yet, Mr Mole said.
"If they had provided them in December, when they made the application, they would have had the licence determined a hell of a lot quicker."
Once figures were supplied, they would be analysed and a decision would be made as to whether the licence would be granted, or directed to the Liquor Licensing Authority (LLA) for consideration.
Because the LLA declined the original application, he believed it was "likely" the decision would again be referred to them.
In 2009, the LLA declared an intention to reclassify convenience stores as dairies, which cannot sell alcohol, rather than grocery stores, which can.
That change was part of liquor legislation going through Parliament, Mr Mole said.
"It's likely convenience stores will be removed from the ability to hold a licence."
