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Hookah Lounge

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How to Start a Hookah Lounge

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on May 31, 2022 Updated on February 14, 2024

How to Start a Hookah Lounge

Investment range

$23,550 - $48,100

Revenue potential

$200,000 - $502,000 p.a.

Time to build

1 – 3 months

Profit potential

$60,000 - $150,000 p.a.

Industry trend

A hookah lounge, or shisha lounge, is a relaxing place people visit to smoke tobacco through a water pipe. Hookah lounges have been popping up across the US and around the globe, with the global hookah industry set to double by 2030. 

If you’re a hookah fan, or just enjoy providing a chill environment, it could be a great time to get in on the action and start your own hookah lounge. You can have fun, help others have a great time, and make good money.

But before you fire up the pipes, you’ll need to know the business launch process. Luckily, this step-by-step guide will expand your knowledge and put you on the path to hookah success.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a hookah lounge has pros and cons to consider before deciding if it’s right for you.

  • Fun Lifestyle – Meet lots of people that share your hookah passion
  • Growing Market – The hookah market is set to double in the next decade
  • Additional Revenue Opportunities – Sell food and alcohol and make more money
  • Smoking Bans – Some areas of the country have put restrictions on hookah lounges
  • Licensing Headaches – Stringent licensing and regulatory requirements

Hookah lounge industry trends

Industry size and growth.

  • Industry size and past growth – The global hookah tobacco industry was worth $824.8 million in 2020.(( https://www.alliedmarketresearch.com/hookah-tobacco-market-A06663 ))
  • Growth forecast – The global hookah tobacco industry is projected to more than double by 2030 to reach nearly $1.7 billion. 

hookah industry size and growth

Trends and challenges

Trends in the hookah lounge industry include:

  • Mint-flavored hookah tobaccos are growing in popularity, and fruit flavors are another favorite.
  • Hookah is so trendy that companies have started making hookah merchandise, such as T-shirts with hookah-related phrases, which present a revenue opportunity for hookah lounges.

Challenges in the hookah lounge industry include:

  • Many areas of the country are passing laws to limit what hookah lounges can offer.
  • Hookah lounges are receiving a lot of negative press due to the health hazards of smoking hookah.

hookah lounge Trends and Challenges

How much does it cost to start a hookah lounge business?

Startup costs for a hookah lounge range from $23,000 to $48,000. Costs include the space rental, space preparation, and hookah equipment and supplies. They also include a liquor license and liquor inventory.

You’ll need a handful of items to successfully launch your hookah lounge business, including: 

  • Hookah pipes and gear
  • Tables and chairs
  • Tobacco and flavors

How much can you earn from a hookah lounge business?

Hookahs are usually priced at about $20 an hour. Your profit margin after all costs should be about 30%. 

In your first year or two, you might serve 20 hookahs a day and serve $15 in alcoholic beverages to 10 people, bringing in $200,000 in annual revenue. This would mean $60,000 in profit, assuming that 30% margin. As your hookah lounge gains popularity, you might serve 50 hookahs a day and beverages to 25 people. With annual revenue of $502,000, you’d make a healthy profit of $150,000.

hookah lounge earnings forecast

What barriers to entry are there?

There are a few barriers to entry for a hookah lounge. Your biggest challenges will be:

  • The startup costs of renting the lounge space and getting it ready for business
  • Meeting license and permit requirements

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Step 2: hone your idea.

Now that you know what’s involved in starting a hookah lounge, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research hookah lounges in your area to examine their products, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a hookah café that serves liquor or a shisha bar that offers food. 

hookah rental business plan

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as herbal shisha or flavored tobacco.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products or services

You’ll want to create a hookah menu with different flavor mixes. You could also serve liquor with the proper licensing. If you put in a kitchen, you could offer food as well. 

How much should you charge for hookah?

Hookah prices range from $15 to $25 per hour. Check prices in your area to make sure you’re competitive. Your profit margin after supplies, rent, and overhead should be about 30%.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be Hookah smokers, which are likely to be a younger crowd, so you should focus your marketing on TikTok and Instagram.

Where? Choose a hookah lounge location

Choosing the right location for your hookah lounge is crucial for attracting customers and ensuring its success. Look for a spot in a high-traffic area with good visibility, such as a busy nightlife district or a college town.

Consider accessibility and convenience, ensuring that the location is easily reachable by public transportation and has ample parking. Additionally, assess the competition in the area and aim to differentiate your hookah lounge by offering unique flavors or a relaxing and comfortable atmosphere.

By strategically choosing the right location, you can establish a profitable and popular hookah lounge that offers a unique and enjoyable experience for customers and stands out in the competitive hospitality industry. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

hookah lounge idea rating

Step 3: Brainstorm a Hookah Lounge Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

  • Short, unique, and catchy names tend to stand out
  • Names that are easy to say and spell tend to do better 
  • Name should be relevant to your product or service offerings
  • Ask around — family, friends, colleagues, social media — for suggestions
  • Including keywords, such as “hookah” or “shisha lounge”, boosts SEO
  • Name should allow for expansion, for ex: “The Puff Palace” over “The Outdoor Hookah Lounge”
  • Avoid location-based names that might hinder future expansion
  • Use online tools like the Step by Step Business Name Generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Hookah Lounge Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

  • Executive Summary: A concise overview of your hookah lounge business, highlighting key elements such as mission, goals, and financial projections.
  • Business Overview: Detailed information about your hookah lounge, including its location, concept, and any unique selling points that set it apart in the market.
  • Product and Services: Clearly outline the variety of hookah flavors, drinks, and any additional services offered in your lounge.
  • Market Analysis: A comprehensive examination of the hookah lounge industry, target market demographics, and trends to identify opportunities for growth.
  • Competitive Analysis: Evaluate other hookah lounges in your area, assessing their strengths and weaknesses to position your business effectively.
  • Sales and Marketing: Detail your strategies for promoting and selling your hookah lounge services, including online presence, promotions, and partnerships.
  • Management Team: Introduction of key individuals involved in running the hookah lounge, emphasizing their qualifications and roles.
  • Operations Plan: Outline the day-to-day activities and logistics of running the hookah lounge, covering staffing, hours of operation, and supplier relationships.
  • Financial Plan: Provide a detailed breakdown of the costs, revenue projections, and financial forecasts for the hookah lounge, demonstrating its financial viability.
  • Appendix: Include any additional documents or information that supports your hookah lounge business plan, such as permits, licenses, or relevant research.

what to include in a business plan

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to hookah lounges. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your hookah lounge will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

  • Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
  • General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
  • Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
  • C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
  • S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

types of business structures

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2023

hookah rental business plan

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

hookah rental business plan

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

  • Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
  • SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
  • Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
  • Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
  • Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
  • Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a hookah lounge business. You might also try crowdfunding if you have an innovative concept. 

types of business financing

Step 8: Apply for Hookah Lounge Business Licenses and Permits

Starting a hookah lounge business requires obtaining a number of licenses and permits from local, state, and federal governments. For starters, you’ll need a tobacco license as well as a liquor license if you serve alcohol. 

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your hookah lounge business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

  • General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
  • Business Property: Provides coverage for your equipment and supplies.
  • Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
  • Worker’s compensation: Provides compensation to employees injured on the job.
  • Property: Covers your physical space, whether it is a cart, storefront, or office.
  • Commercial auto: Protection for your company-owned vehicle.
  • Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
  • Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

types of business insurance

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as  Restaurant365 ,  lightspeed , or  toast  to manage your menus, inventory, schedule, and invoices.

  • Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
  • If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

For your hookah lounge, the marketing strategy should focus on showcasing the unique, relaxing experience you offer, the quality and variety of your hookah flavors, and any additional amenities or services, such as a comfortable seating area, live entertainment, or specialty beverages. Here are some powerful marketing strategies for your future business:

Kickstart Marketing

  • Professional Branding : Your branding should convey an exotic, luxurious, yet comfortable atmosphere. This includes a distinctive logo, interior design of the lounge, and engaging signage.
  • Direct Outreach : Network with local college campuses, clubs, and groups that might be interested in a hookah lounge experience. Offering group discounts or hosting special events can be effective.

Digital Presence and Online Marketing

  • Professional Website and SEO : Develop a visually appealing website that showcases the ambiance of your lounge, menu items, and any special events. Optimize your website for local SEO to rank for searches related to hookah lounges, nightlife, and local entertainment.
  • Social Media Engagement : Utilize platforms like Instagram and Facebook to showcase the atmosphere of your lounge, special events, and promotions. Regularly engage with your audience by sharing enticing images, upcoming events, and customer testimonials.

Content Marketing and Engagement

  • Lifestyle Blog : Share blog posts about hookah culture, tips for enjoying hookah, and related lifestyle content.
  • Email Newsletters : Keep your patrons informed about special nights, live music events, or new flavor introductions through regular newsletters.
  • Video Content : Create videos that capture the ambiance of your lounge, special events, or feature customer experiences and testimonials.

Experiential and In-Person Engagements

  • Theme Nights and Events : Host theme nights, cultural events, or special gatherings to attract different customer groups and keep the experience fresh and exciting.
  • Local Partnerships for Events : Collaborate with local artists, musicians, or DJs to host unique and engaging events in your lounge.

Collaborations and Community

  • Collaboration with Nearby Restaurants : If your lounge doesn’t serve food, consider partnering with nearby restaurants for food delivery services.
  • Community Engagement : Participate in local festivals or events to increase your visibility and engage with potential customers.

Customer Relationship and Loyalty Programs

  • Loyalty Programs : Implement a loyalty program that rewards regular customers with discounts or special offers.
  • VIP Memberships : Offer VIP memberships that provide special perks, such as reserved seating or discounts on certain nights.

Promotions and Advertising

  • Targeted Advertising : Use local advertising in nightlife guides, university newspapers, and online platforms popular with your target demographic.
  • Influencer Collaborations : Collaborate with local influencers or personalities who can showcase your lounge to their followers.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your hookah lounge meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your hookah lounge business could be: 

  • Skip the tobacco – come enjoy our herbal shisha bar
  • Exotic hookah flavors and unique signature cocktails
  • Bring your friends and share a hookah over a bottle of wine

unique selling proposition

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a hookah lounge business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in hookah lounges for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in hookah lounges. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a hookah lounge business include:

  • Hookah Makers – prepare hookahs
  • Bartender – make cocktails
  • Servers – serve hookah and drinks
  • General Manager – scheduling, ordering, accounting
  • Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.

Step 13: Run a Hookah Lounge – Start Making Money!

Hookah lounges have been common in the Middle East for centuries, and recently made their way to the United States. The hookah market is taking off, expected to double in the next decade. If you’re a hookah lover and want to share your passion with others, now is the right time to launch your own hookah lounge. You could help people enjoy their evenings out and make a good living at the same time. 

Your business knowledge is fired up now, so it’s time to start buying water pipes and getting your successful hookah lounge off the ground. 

  • Hookah Lounge Business FAQs

Yes, a hookah lounge can be profitable. You’ll need to design an interesting hookah menu and create a great atmosphere, and you can be successful.

To differentiate your hookah lounge business from competitors, you can focus on providing a unique atmosphere or ambiance that sets your lounge apart. This can include offering a diverse selection of high-quality shisha flavors, creating a comfortable and inviting space with unique decor or lighting, or providing exceptional customer service. 

It would be very difficult to start a hookah lounge on the side unless you have limited hours, which could seriously affect your ability to make a profit.

The music and entertainment you offer in your hookah lounge business will depend on your target audience and the atmosphere you want to create. Some popular options include playing ambient or chill-out music, hosting live performances or DJs, or offering karaoke or open mic nights. 

There are several partnerships or collaborations you can establish for your hookah lounge business, such as partnering with local businesses to offer discounts or promotions, collaborating with musicians or performers to host special events, or working with suppliers to offer exclusive shisha flavors or products. 

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  • Decide if the Business Is Right for You
  • Hone Your Idea
  • Brainstorm a Hookah Lounge Name
  • Create a Hookah Lounge Business Plan
  • Register Your Business
  • Register for Taxes
  • Fund your Business
  • Apply for Hookah Lounge Business Licenses and Permits
  • Open a Business Bank Account
  • Get Business Insurance
  • Prepare to Launch
  • Build Your Team
  • Run a Hookah Lounge - Start Making Money!

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Hookah Lounge Business Plan Template

Written by Dave Lavinsky

hookah lounge business plan template

Hookah Lounge Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their hookah bars and lounges. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a hookah lounge business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your hookah bar or lounge as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start a hookah bar or lounge, or grow your existing business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your lounge in order to improve your chances of success. Your plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Hookah Businesses

With regards to funding, the main sources of funding for a hookah lounge are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the lender will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for hookah lounges.

Finish Your Business Plan Today!

How to write a business plan for a hookah lounge or bar.

If you want to start a hookah lounge or expand your current one, you need a business plan. Below we detail each of the key components to writing a great [sector] business plan:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of business you are operating and its status. For example, are you a startup, do you have a hookah bar or lounge that you would like to grow, or are you operating a chain of hookah bars or lounges?

hookah bar

Company Analysis

In your company analysis, you will detail the type of hookah lounge you are operating.

For example, you might operate one of the following types of hookah businesses:

  • Hookah Lounge : this type of business will have a lounge type atmosphere with comfortable couches and chairs for guests to sit in while smoking hookah. The social aspect of hookah is foremost in this type of business, and food, drink, or other merchandise may be available, but is not a major focus.
  • Hookah Bar: this type of business has a bar atmosphere and typically also offers a menu of drinks and alcoholic beverages.
  • Hookah Cafe: this type of business typically has a coffee shop atmosphere and serves coffee and tea, as well as pastries and other food. Some hookah cafes specialize in a particular cuisine, such as Middle Eastern food.

In addition to explaining the type of business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, etc.
  • Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the hookah industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the hookah industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your hookah business plan:

  • How big is the hookah industry (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential market for your hookah bar or lounge? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your hookah business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments that may be hookah smokers: college students, Millennials, Gen X, and Baby Boomers.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of hookah business you operate. Clearly, college students would respond to different marketing promotions than an affluent Baby Boomer, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most hookah businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other hookah lounge businesses.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes convenience stores, tobacco shops, cigar shops, and vape shops.

With regards to direct competition, you want to describe the other hookah lounge businesses with which you compete. Most likely, your direct competitors will be hookah lounges located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

  • What types of customers do they serve?
  • What types of hookah flavors do they specialize in?
  • Do they serve food and beverages?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you provide a wider variety of hookah flavors?
  • Will your lounge have a trendier vibe, or a more upscale atmosphere?
  • Will you provide better customer service?
  • Will you offer better pricing?

hookah lounge

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a hookah lounge business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of hookah lounge company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to hookah, will your lounge serve alcohol, or offer oxygen, or will you sell hookah products for off-premise use?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your hookah lounge company. Document your location and mention how the location will impact your success. For example, is your hookah lounge located near a college campus, or in an entertainment district? Will you also sell hookah products and accessories online? In this section, document each method by which you will sell your products..

Promotions : The final part of your hookah lounge marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

  • Advertising in local papers and magazines
  • Reaching out to local websites
  • Signs and billboards
  • Social media marketing
  • Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your hookah lounge business, including marketing your business, ordering and tracking inventory, serving customers, and preparing for upcoming customers.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to seat your 1,000 th customer, or when you hope to reach $X in revenue. It could also be when you expect to open a hookah lounge in a new location.  

Management Team

To demonstrate your hookah lounge business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing hookah lounge businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in food service or bar management, or successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your hookah lounge costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will your lounge be at capacity during evenings and weekends? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your hookah lounge business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a hookah lounge business:

  • Location build-out including design fees, construction, etc.
  • Cost of equipment and supplies
  • Payroll or salaries paid to staff
  • Business insurance
  • Taxes and permits
  • Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your lounge location lease or sample menus for all the products you will serve (hookah, food, beverage, etc.).  

Putting together a business plan for your hookah lounge is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the hookah industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful hookah lounge business.  

Hookah Lounge Business Plan FAQs

What is the easiest way to complete my hookah lounge business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Hookah Lounge Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of hookah lounge business you are operating and the status; for example, are you a startup, do you have a hookah lounge business that you would like to grow, or are you operating a chain of hookah lounge businesses?

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Hookah Lounge Business Plan Template

Written by Dave Lavinsky

Hookah Lounge Business Plan

You’ve come to the right place to create your Hookah Lounge business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Hookah Lounges.

Below is a template to help you create each section of your Hookah Lounge business plan.

Executive Summary

Business overview.

Hookah Haven Lounge is a startup hookah lounge experience for patrons located in Chicago, Illinois. The company was founded by Constantine Vassilis, a former restaurant and bar owner who has determined that the new business opportunity will bring former customers to a new, exciting experience that appeals to young and old customers alike.

Constantine Vassilis owned the Blue Lagoon restaurant and bar for over twenty years, where the patrons were served traditional seafood and fish meals and the atmosphere was one of the ocean and tropics. While the business brought profitability and a strong following of loyal patrons, Constantine began to look for a new venture in 2020, and founded the new Hookah Haven Lounge as a way of reaching all generations, particularly younger college students, with experiences that are fresh and exciting.

Product Offering

The following are the services that Hookah Haven Lounge will provide:

  • Unique, upscale experience in midtown Chicago
  • Relaxing and enjoyable environment
  • Multiple shisha flavors from which to choose
  • Disposable hookah mouth tips
  • Rich, comfortable, and private seating arrangements
  • Low key social atmosphere
  • Alcohol and appetizer menus

Customer Focus

Hookah Haven Lounge will target residential customers within Chicago and the surrounding regions. They will target university and college students. Hookah Haven Lounge will target shisha aficionados. They will also target small groups who are looking for a total experience of shisha, alcohol and appetizers. They will target patrons who enjoy appetizers and alcohol. They will also target potential customers who are seeking an event venue for special experiences.

Management Team

Hookah Haven Lounge will be owned and operated by Constantine Vassilis. He recruited his former restaurant manager, Deane Moore, to be his Restaurant Manager and help oversee the office and operations overall.

Constantine Vassili is a former restaurant and bar owner who has determined that the new business opportunity will bring former customers to a new, exciting experience that appeals to young and old customers alike. As he has invited many former patrons to the new hookah experience, he has built a following who have agreed to visit and are spreading the word of the new hookah lounge experience.

Deane Moore has been in the restaurant business for over twenty years, most recently as the restaurant manager for the Blue Lagoon, Constantine’s former restaurant and bar. She will take on the new role of Restaurant Manager for the Hookah Haven Lounge, where she will oversee all operations of the hookah, bar, and appetizer servings for customers.

Success Factors

Hookah Haven Lounge will be able to achieve success by offering the following competitive advantages:

  • Friendly, knowledgeable, and highly-qualified team of Hookah Haven Lounge
  • A wide array of shisha flavors, guaranteeing a variety of experiences for those who enjoy hookah.
  • Exceptional appetizers available for purchase to serve small groups of 6-10 hookah patrons.
  • Wide assortment of alcoholic beverages, including beer, wine and cocktails.
  • Plush, comfortable seating and decor, designed to offer privacy for groups of 2 to 10 hookah patrons.
  • Hookah Haven Lounge offers the best pricing in Chicago. Their pricing structure is the most cost effective when compared to the competition.

Financial Highlights

Hookah Haven Lounge is seeking $200,000 in debt financing to launch its Hookah Haven Lounge. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:

  • Office space build-out: $20,000
  • Office equipment, supplies, and materials: $10,000
  • Three months of overhead expenses (payroll, rent, utilities): $150,000
  • Marketing costs: $10,000
  • Working capital: $10,000

The following graph outlines the financial projections for Hookah Haven Lounge.

Hookah Haven Lounge Pro Forma Projections

Company Overview

Who is hookah haven lounge.

Hookah Haven Lounge is a newly established, full-service hookah lounge in Chicago, Illinois. Hookah Haven Lounge will be the most reliable, cost-effective, and efficient choice for residents in Chicago and the surrounding communities. Hookah Haven Lounge will provide a comprehensive array of shisha flavors for hookah and a comfortable, plush furnishings for small group social occasions. Their full-service approach includes a comprehensive bar and upscale appetizer selections.

  Hookah Haven Lounge will be able to serve 50 to 75 patrons at the same time. The team of professionals are highly qualified and experienced in providing hookah experiences and in serving beverages and appetizers, as well. The Hookah Haven Lounge removes all headaches and of the workday or weekend, as it ensures all issues are removed while patrons enjoy the best customer service and the easiest, most relaxed conversations.

Hookah Haven Lounge History

Since incorporation, Hookah Haven Lounge has achieved the following milestones:

  • Registered Hookah Haven Lounge, LLC to transact business in the state of Chicago, Illinois.
  • Has a contract in place to set up its office space of 5,000 square feet.
  • Reached out to numerous contacts to include Hookah Haven on their “must try” list.
  • Began recruiting a staff of ten and office personnel to work at the Hookah Haven Lounge.

Hookah Haven Lounge Services

The following will be the services Hookah Haven Lounge will provide:

Industry Analysis

The hookah lounge and bar industry is expected to grow over the next five years to over $15 million. The growth will be driven by an increased number of younger patrons who seek social interaction via hookah lounge experiences The growth will be driven by event planners seeking new event venues The growth will be driven by the number of patrons seeking a relaxing experience The growth will be driven by an increased supply of shisha in new varieties of flavors The growth will be driven by a larger demographic looking for bar, food and alcohol environments Costs will likely be reduced as prices for shisha are lowered and the supply is increased Costs will likely be reduced as more hookah lounges are opened

Customer Analysis

Demographic profile of target market, customer segmentation.

Hookah Haven Lounge will primarily target the following customer profiles:

  • Residents of the city of Chicago and surrounding communities
  • University and college students
  • Shisha aficionados and those who enjoy smoking
  • Patrons seeking a total experience: atmosphere, of alcohol, appetizers, and hookah

Competitive Analysis

Direct and indirect competitors.

Hookah Haven Lounge will face competition from other companies with similar business profiles. A description of each competitor company is below.

Mediterranean Hookah Bar

The Mediterranean Hookah Bar, located in Rosemont, Illinois, is owned by brothers Amid and Apollos Ajax. Amid and Apollos founded the Mediterranean Hookah Bar after they spent their university years enjoying a similar bar and found the target market in the Rosemont area was without competition. They used private loans and credit cards to start the business in 2020 and it became profitable as of late 2022. They employ six team members, three of whom serve at the bar and three who set up and serve hookah.

The Mediterranean Hookah Bar offers a wide range of alcoholic beverages, including mixed cocktails, fine whiskey, and several types of beer. The emphasis of the bar is one of relaxation and, in a portion of the bar, sports to follow via an interactive screen. Seating is arranged in groups of 4-6 patrons and snacks are available on the weekends only.

Azure Gold Line Hookah

Formed in 2018, the Azure Gold Line Hookah lounge features brand name shisha, including their most popular brand, Azure Gold Line Hookah. The lounge is located in Lake Forest, Illinois about twenty miles from Chicago, and offers a full flavored series of hookah for patrons who seek quiet, comfortable surroundings. The Azure Gold Line Hookah lounge is small and intimate, with private seating for two patrons and it includes live music on the weekends with a distinctive Mediterranean sound. Patrons are encouraged to try all flavors of shisha by engaging in the “Shisha Tastings” that are offered on Wednesday evenings. Twelve varied flavors of shisha are offered to patrons to determine are the favorites of the evening. The winning shisha is then offered to each patron in the “Shisha Tasting Club” when they return. This creates a social club of about twenty-five patrons and encourages conviviality among the single patrons. The Azure Gold Line Hookah offers single-use mouth tips to encourage hygienic habits, while also offering a buffet on Saturday evenings that include Mediterranean favorites.

The Chicago Rose Smoking Lounge

The Chicago Rose Smoking Lounge is situated adjacent to the Magnificent Mile in Chicago. Opened in 1939, the wood-patterned walls and roomy leather furnishings speak of several generations ago, when men sat and smoked their tobacco as women finished their meals in fancy restaurants nearby.

With the popularity of smoking tobacco on the decline in Illinois, the Chicago Rose Smoking Lounge began a hookah service that included four hookah bowls and leather sofas, along with distinctive flavors of shisha, that could be offered to those who are shisha aficionados. This brought in younger generations of patrons and increased the business, while retaining the flavor and atmosphere of the old-world Chicago Rose Smoking Lounge. The hookah portion of the environment remains somewhat small in comparison to the areas for cigarette and cigar smokers.

Competitive Advantage

Hookah Haven Lounge will be able to offer the following advantages over their competition:

  • Hookah Haven Lounge offers the best pricing in Chicago. Their pricing structure is the most cost effective when compared to the competition

Marketing Plan

Brand & value proposition.

Hookah Haven Lounge will offer the unique value proposition to its clientele:

Promotions Strategy

The promotions strategy for Hookah Haven Lounge is as follows:

Word of Mouth/Referrals

Constantine Vasilis has built up an extensive list of contacts over the years by providing exceptional service and expertise to the patrons of his former restaurant and bar. Those patrons will follow him to his new company and help spread the word of Hookah Haven Lounge.

Social Media Promotions

Using popular social media platforms, a part-time marketing employee will announce the launch of the Hookah Haven Lounge and discounts will be offered during the first month of business. Reminders, updates and announcements will be sent regularly through all social media channels, with special promotions directed to university and college students.

Website/SEO Marketing

Hookah Haven Lounge will utilize their website extensively. The website will be well organized, informative, and list all the services that Hookah Haven Lounge provides. The website will also list their contact information and list their shisha flavors, including special flavors of the day. The website presence will employ SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Hookah lounge” or “Hookah near me”, Hookah Haven Lounge will be listed at the top of the search results.

The pricing of Hookah Haven Lounge will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for Hookah Haven Lounge. Operation Functions:

  • Constantine Vasilis will be the Owner and President of the company. He will oversee all staff and manage client relations. Constantine has spent the past year recruiting the following staff:
  • Deane Moore will take on the new role of Restaurant Manager for the Hookah Haven Lounge, where she will oversee all operations of the hookah, bar, and appetizer servings for customers.

Milestones:

Hookah Haven Lounge will have the following milestones completed in the next six months.

  • 5/1/202X – Finalize contract to lease office space
  • 5/15/202X – Finalize personnel contracts for the Hookah Haven Lounge
  • 6/1/202X – Finalize potential patron list for Hookah Haven Lounge
  • 6/15/202X – Begin networking at association events
  • 6/22/202X – Begin moving into Hookah Haven Lounge
  • 7/1/202X – Hookah Haven Lounge opens its doors for business

Financial Plan

Key revenue & costs.

The revenue drivers for Hookah Haven Lounge are the fees they will charge to customers for the products and services offered.

The cost drivers will be the overhead costs required in order to staff Hookah Haven Lounge. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

Hookah Haven Lounge is seeking $200,000 in debt financing to launch its hookah lounge. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

  • Number of Customers Per Month: 1,120
  • Average Revenue per Month: $22,400
  • Office Lease per Year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, hookah lounge business plan faqs, what is a hookah lounge business plan.

A hookah lounge business plan is a plan to start and/or grow your hookah lounge business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Hookah Lounge business plan using our Hookah Lounge Business Plan Template here .

What are the Main Types of Hookah Lounge Businesses? 

There are a number of different kinds of hookah lounge businesses , some examples include: Hookah Lounge, Hookah Bar, and Hookah Cafe.

How Do You Get Funding for Your Hookah Lounge Business Plan?

Hookah Lounge businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Hookah Lounge Business?

Starting a hookah lounge business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Hookah Lounge Business Plan - The first step in starting a business is to create a detailed hookah lounge business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your hookah lounge business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your hookah lounge business is in compliance with local laws.

3. Register Your Hookah Lounge Business - Once you have chosen a legal structure, the next step is to register your hookah lounge business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your hookah lounge business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Hookah Lounge Equipment & Supplies - In order to start your hookah lounge business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your hookah lounge business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful hookah lounge business:

  • How to Start a Hookah Lounge

BizarreHobby

Embrace the Unconventional

How To Start A Hookah Rental Business

How To Start A Hookah Rental Business?

If you’re looking for information on how to start a hookah rental business, you’ve come to the correct spot. The best thing about starting a hookah rental business is that, aside from client phone calls and hookah delivery and pickups, you don’t have to be around all the time to operate it. In addition, starting a business renting out hookahs only requires a modest initial expenditure. You may discover more about this business endeavor and decide if taking this step is the correct one for you as an entrepreneur with the help of this step-by-step guide.

Table of Contents

1. Familiarize yourself with the Hookah Rental Industry

Businesses that rent hookahs to certain demographics offer a crucial party service since supplies like hookahs are constantly in demand for parties. Hookah rental businesses provide a wide selection of hookahs to their clients. For short-term usage, businesses and consumers that don’t want to spend a fortune on hookahs can rent it.

Party organizers, businesses, or individuals who need a few hookahs for a couple of days are likely to rent them out rather than purchasing them. It is more cost-effective to rent hookahs for a short period of time. This is the justification behind this service’s whole logic. After a hookah is rented, the rental business drops it off at the designated spot and picks it back up when the rental time is up.

Businesses and Individuals don’t have to worry about purchasing a hookah that they’ll only need temporarily. And on the other hand, Hookah rental businesses benefit from rental fees on their hookah on a regular basis. This allows hookah rental businesses to profit from their one-time hookah purchase and possibly scale the business by purchasing more hookahs in the inevitable future.

Market Research

Most hookah rental businesses cater to party organizers, event management agencies, and also individual clients. With such a multitude of uses, a hookah rental business can be highly profitable if you target the right audience. A hookah can truly make parties great, and a such rental business can cater well to anyone looking for a hookah temporarily.

Hookahs, new or used, are very affordable all around. Therefore, if you want to get into a party supplies rental business, starting a hookah rental business is a great choice.

How much does it cost to buy a hookah?

You can buy simple and basic hookahs for as low as $100. However, if you want to start a hookah rental business you should buy at least a couple of high-quality and great-designed hookahs which will cost you around $800 each.

How much does it cost to start a hookah rental business?

You could start a hookah rental business at a basic level for around $3,000 (assuming you buy two new high-quality hookahs). An extra $1000 could get you off to a great start. That being said, if you want to operate on a bigger scale and want to provide a variety of hookah choices to your prospective customer, you will need to buy at least 5 high-quality hookahs to start with, which alone costs around $4,000.

Therefore, it will cost you around $5,000(hookahs plus marketing-related costs) to start a hookah rental business on a big scale.

Keep in mind, if you want to go really cheap, you can either buy used hookahs, make your own hookahs or you could buy as you grow. If you don’t mind a little hard work, hookah rental is one of the best businesses to start and grow.

Is the hookah rental business profitable?

Yes, Starting a hookah rental business is incredibly profitable. However, make sure to do your market research properly and have a solid marketing strategy in place. The success of your hookah rental business will depend on the number of clients you find. Buying a single high-class designer hookah will cost you around $800. And you can rent the same hookah for around $50 per day.

That means you will make all your money back by renting your hookah for just around 16 days. After that everything is your profit. Furthermore, unlike drone rental businesses, the maintenance cost for a hookah is next to nothing.

Is the hookah rental business worth it?

With such a low startup cost, a hookah rental business is absolutely worth it. You can realistically buy just one hookah and start your business journey from there. The best thing is you can even start a hookah rental business by buying used hookahs or even cheaper if you can build your own.

A single high-quality commercial hookah can generate anywhere from $250 to $350 per week. Furthermore, this business is highly scalable and you can reinvest a portion of profit back into the business and scale it to a million-dollar rental business in no time.

2. Plan your hookah Rental Business

The planning phase is critical for the success of any business. The same applies to the hookah rental business too. Let’s get into some of the key steps you will need to understand while planning your hookah rental business.

Choose a name for your hookah rental business

Whether you want to start a hookah rental business or a party supplies rental business , you must choose a name that reflects your values and beliefs.

Keep in mind that the legal business name must comply with state naming rules in the states where you intend to operate your business; otherwise, the state may refuse to accept the documents filed to form or qualify your hookah rental business.

Prior to deciding on a name for your hookah rental business, it is also a good idea to talk about branding and how it will affect your business. The main question here is whether your legal business name will also be your brand name, or whether your brand name will be distinct from your legal name.

It is preferable to use your legal business name as your brand name when first starting out. Why? You may inquire. The reason for this is that it simplifies things, is extremely simple, and is significantly less expensive.

However, if you operate an informal business (sole proprietorship, limited liability partnership, or general partnership), some states require you to use your surname as the legal name of your company.

Would you mind if your surname served as your legal business name? If the answer is YES, you can proceed to the next step. On the other hand, if your answer is NO, please stick with me.

If you do not want to use your surname as your legal business name, you must file a Fictitious Business Name Statement with the county in which your hookah rental business’s head office is located.

Shopify’s Business Name Generator is super helpful while brainstorming brandable names for your hookah rental business. Once you decide on the name of your hookah rental business, you need to perform three final checks.

  • First, check your State’s business name database to see if your desired business name is available.
  • Second, do a domain name search to check if your business name is available as  yourbusinessname.com. If it is available go ahead and register the domain before anyone else gets it. BlueHost offers domain names free of cost if your purchase 1-year hosting package with them. You can use the tool below to see if the domain name is available.
  • And lastly, do a federal search on the US Trademark Electronic Search System and make sure nobody has already trademarked your name.

If the name for your hookah rental business is available you can choose to trademark it, but honestly – don’t bother about it right now. It is a lengthy process and will cost you around $600. I would rather spend the money and time on marketing channels.

Hookah rental business plan

If you want to start a successful hookah rental business, you will need a compelling business plan at a minimum. A well-written business plan should explain the company’s core objectives and how it plans to achieve them. One of the other purposes of a hookah rental business plan is that it makes your business look professional and appealing to prospective lenders and investors.

All in all, a well-written actionable hookah rental business plan is a crucial document for your hookah rental business. Without it, you’d be running around like a headless chicken. 

A compelling business plan has many sections, some of the must-includes are:

  • Executive Summary
  • Business Description
  • Market Analysis
  • Competitor Analysis
  • Services to Offer
  • Competitive Pricing Strategy
  • Marketing Strategy
  • Financial Projections

You can use business plan software like BizPlan and Enloop to compose a professional-looking business plan. However, don’t get lazy and pay someone 20 bucks to write a business plan for your hookah rental business. You will need professional high-quality work.

3. Register your hookah Rental Business

You will need to register your hookah rental business in order to operate it as a legal entity. But before you register the business, you need to understand and choose a business structure for your hookah rental business. You’ll want to choose that intelligently because how you establish your hookah rental business will affect your taxes and legal responsibilities.

Consider one of the most frequent business structures:

a. Sole Proprietorship

This form of unincorporated business is owned by a single person or a married couple. Your business will not need to be registered, and your taxes will be reported on your personal tax return.

b. General Partnership

An unincorporated firm with numerous owners that, in terms of registration and taxes, is similar to a sole proprietorship.

c. Limited liability company (LLC)

A registered business that provides personal protection to all of its members in the event that your company gets sued. You can decide whether you want to be taxed as a partnership or as a corporation.

Incfile offers one of the best services when it comes to forming an LLC. Their pricing starts from just $ 0 + filing fees . And these costs are often tax-deductible.

d. Corporation

This is a sort of incorporated business, with S-corporations and C-corporations being the most popular. The taxes you pay will differ based on the sort of corporation you form.

4. Register for Taxes and Obtain an EIN

As a responsible business owner, you must always follow the law. That is, you must adhere to all tax, licensing, and employer regulations. Taking the time to learn about any legal requirements for running your hookah rental business will save you a lot of trouble—not to mention money and stress—down the road.

What business taxes you must pay and how you must file them will be determined by the business entity you choose, as well as other aspects of your hookah rental business. It might be a good idea to speak with a tax professional right now to ensure you understand what to expect.

If your hookah rental business employs other individuals, you’ll need an employer identification number. This is also known as an EIN or a tax ID number for a business. You can obtain your EIN from the IRS online for free and use it when filing taxes for your hookah rental business. It is also required if you want to open a business bank account, get a business credit card, or apply for a business loan. Even if you do not intend to hire employees, obtaining an EIN has numerous advantages.

5. Get Funding for your hookah Rental Business

Even if you have a top-secret hookah rental business service approach that can capture the hearts of customers from miles away, but you don’t have enough money, your rental business will fail. It may sound absurd, but in order to make money, you must first have money. There is no escaping the fact that purchasing a wide variety of hookahs is costly.

Well, if it weren’t so expensive, everyone would buy one, and the hookah rental sector would be dormant. Not to mention the fact that you may be paying exorbitant rent, marketing your service, and hiring personnel with lucrative salaries and benefits.

Small businesses like hookah rental businesses can take advantage of numerous incentives, subsidies, loans, and equity investments. However, regardless of the funding source you choose, you will need to have (at a minimum) the following documents:

  • A hookah Rental Business Plan
  • Projected Financial Statements
  • Tax returns of both the business owner and the business itself (when available)
  • An explanatory document on how the money will be used
  • A description of services offered by your hookah rental business

After you’ve done the number crunching and figured out how much money you’ll need for your hookah rental business, you may look into the following choices.

Obtain Funds through SBA Backed Lenders

Even if you have little to no money and wish to start a hookah rental business, you may be eligible for an SBA loan. The United States Small Business Administration (SBA) works with lenders to provide loans to small businesses around the country.

One thing to keep in mind is that the agency does not make direct loans to small business owners. Instead, it develops guidelines for its lending partners, community development organizations, and micro-lending institutions.

SBA-guaranteed loans have a number of benefits. The loan rates and prices are frequently equivalent to those of non-guaranteed loans. SBA-backed loans also come with continuous assistance to help you launch and run your hookah rental business. Moreover, certain SBA loans have lower down payments, more flexible overhead restrictions, and no collateral requirements.

Obtain Funds through Banks

If you are unable to obtain funding for your hookah rental business through state-level agencies or SBA-backed loans, your next step is to seek regular small business loans from banks. As a result, you must conduct due diligence and understand how lenders evaluate your hookah rental business. If you do, you may be able to obtain a traditional loan with a longer term and a higher loan amount.

Obtain Funds through P2P Lenders

The term “Peer to Peer” refers to a sort of financing that is very similar to crowdfunding, except that your hookah rental business loan application is vetted and presented to numerous lenders and investors. If traditional lenders have turned down your hookah rental business loan application, this sort of funding is a perfect alternative. Some of  the well-known peer-to-peer lending companies are:

  • Lending Club
  • Funding Circle

6. Promote your hookah Rental Business

Most business owners, for some reason, do not include marketing in their business strategy. This is likely one of the most serious mistakes you can make, and you should avoid it at all costs. For a service-oriented business like a hookah rental business, marketing, and advertising make or break your business.

Furthermore, if you do not have a large sum of money to invest right away, you must understand what it takes to successfully promote a hookah rental business. You’ll also need a solid marketing strategy and communication strategies in place.

Let’s go over some of the traditional and modern marketing strategies you can use to promote your hookah rental business.

Build a website

I can’t stress this point enough. You will NEED a website in order to operate your hookah rental business. There is no way around it. The world has become digital and you must create a digital presence for your hookah rental business.

Make sure to utilize the power of the internet. Additionally, you must customize your hookah rental website and make it align with your brand. You can put pictures of your hookah plus testimonials and make an excellent impression on your visitors. After all, actions speak louder than words.

Don’t forget to include your mission statement on your hookah rental website and let your customers know why they should rent from you. Having a website creates a digital presence for your hookah rental business so your potential customers can search and find you on the web.

You can read my guide on how to make a basic website for your small business if you want to do it yourself. However, if you want someone else to work on the technicalities while you focus on acquiring more customers for your hookah rental business, we are ready to help you. Our $499 digital package comes with a professionally designed website, custom email, 24/7 support and maintenance, SEO, and digital marketing services. You wouldn’t want to miss the deal. Contact us today before the deal runs out.

Establish social media accounts

Create a digital presence for your hookah rental business by establishing social media accounts. You must be strategic in this regard, as you do not want to waste your time appearing on all social networks, particularly those that do not align well with your target audience.

You want your hookah rental business to be on, depending on the size of your operation:

Nowadays, almost everyone uses social media not only to communicate with friends and family but also to shop for goods and services. Getting your hookah rental business in front of your target audience can result in more leads and sales. Moreover, it can also be used to keep current customers informed and to attract new customers.

Run Paid Ads

Paid Ads have the ability to target prospective customers within a specific demographic and region, making them an excellent tool for your hookah rental business. Consider running paid ads through services like Facebook Ads, Yelp, or Google AdWords. Furthermore, the best thing about paid advertisements is that they produce results quickly, allowing you to scale your hookah rental business vertically and horizontally.

Please contact us if you need professional help running paid ads for your hookah rental business. We will be more than happy to provide you with help and resources for absolutely free.

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Hookah Bar Business Plan

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Arz al-Lubnan Hookah Bar

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Arz al-Lubnan Hookah Bar (Cedars of Lebanon) is a new hookah bar concept which will focus on a combination of Middle Eastern customers and customers over 22 years in age to offer a more adult alternative to hookah bars frequented by college-age customers. The first bar will be established in Trendytown, and managed by the business founders, Sayed and Yasmine Batroun. The business will generate revenues through the sale of flavored tobaccos, non-alcoholic drinks, and appetizers. The business seeks angel investor funding to launch its first bar.

The business projects to become profitable in its first year with good profit from strong sales in the first year. Sales will triple by the third year of operation. Net profit of sales will be respectable due to the high margin on the products sold. Exit for investors is possible from sale of the franchise to a chain of bars looking to expand their market.

Hookah bar business plan, executive summary chart image

Arz al-Lubnan Hookah Bar seeks to achieve the following objectives with the launch of its first hookah lounge:

  • To establish a franchisable model for hookah bars and initiate fundraising and planning for franchising by its fifth year of operation.

The mission of Arz al-Lubnan Hookah Bar is to provide a comfortable environment, sometimes relaxing and sometimes energetic and stimulating, around which those who love hookah smoking, as well as new converts, can come together. The environment will draw on elements of Middle Eastern culture as well as the culture of the local environment.

Keys to Success

The keys to success for Arz al-Lubnan Hookah Bar are:

  • Energize the customer base to generate their own culture and events at Arz al-Lubnan Hookah Bar

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Company summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">.

Arz al-Lubnan Hookah Bar is a new concept for a hookah lounge which centers around the community aspect of smoking hookah pipes. The business will launch its first hookah lounge in Trendytown within six months and endeavor to create a scalable model which can be franchised in additional urban locations. The business will earn revenues through the sale of tobacco (multiple flavors), drinks (coffee, tea, and juices) and food (Middle Eastern and American snacks and appetizers requiring light preparation). The customers are expected to be those of Middle Eastern descent and their friends, those interested in Middle Eastern and hookah culture, and young (22-35 year old) urbanites interested in a community-oriented experience that is an alternative to bars serving alcohol and coffee shops.

Company Ownership

Arz al-Lubnan Hookah Bar is owned and established by the husband and wife team of Sayed and Yasmine Batroun, Lebanese-American residents of Trendytown who have developed the concept for the store after working in hookah lounges while overseas. The business is established as an S Corporation to allow for additional investors to join. Sayed currently owns 51% of stock and Yasmine owns 49%. 40% of shares will be provided to investors in the initial round of funding, diluting the founders’ shares to 60% between the two of them.

Start-up Summary

The start-up expenses for Arz al-Lubnan Hookah Bar include legal consultation and permit fees as a retail and food service establishment, as well as a special permit for the lounge to allow smoking within. Stationery includes business cards, letterhead, and business brochures.

Insurance includes initial general and product liability premiums as well as renter’s and key-employee insurance. Rent covers one month’s security and two month’s rent for the initial location to allow for build out of the space before opening. Start-up marketing covers the marketing campaign before launch, as described in the marketing plan. The website is a significant expense. It offers basic information on the business as well as a scalable social networking component to allow for the organizing of hookah groups and the planning of events.

The cash required will see the business through until cash flow break even is achieved. Current assets includes lounge furniture ($10,000), tables ($10,000), kitchen supplies and tools ($10,000), silverware, plates, glassware, and hookahs ($10,000). Long-term assets include basic improvements to the space ($30,000 for additional plumbing, electrical work, taking down and putting up walls where needed, painting, refinishing floors), lighting fixtures ($10,000), sound system ($10,000), POS sales system and wireless devices ($20,000), kitchen equipment ($20,000 for stoves, refrigerator, and warming units), office equipment ($5,000 for computer, printer, fax, telephones).

Hookah bar business plan, company summary chart image

Products and Services

Arz al-Lubnan Hookah Bar will specialize in non-alcoholic, organic drinks, and healthy appetizers and snacks of both Middle Eastern and American origin. The initial menu includes:

  • Fried fava beans

Prices for drinks will range from $3 for simple teas or small coffees to $12 for certain mocktails. Prices for appetizers will range from $5 to $8 for single servings and $12 to $25 for group dishes (serving 4-6 people).

Flavored tobacco for hookah pipes will be sold as well for $15 for the first round and $12 for subsequent rounds. flavors include:

The facility will include a stage area where performances, talks, and films can be presented. These will be organized by customer groups who will book the space free of charge for events that are acceptable to Arz al-Lubnan Hookah Bar management.

Market Analysis Summary how to do a market analysis for your business plan.">

The market for hookah bars in the United States has grown significantly in the past decade. Hookah-bars.com reports that, as of October 2008, there were at least 470 hookah bars in the U.S. and an average of five new hookah bars were opening every month. From these numbers, it can be estimated that between 2-5 million current hookah smokers live in the United States. Of these hookah smokers, approximately 10% are of Middle Eastern origin and the remaining groups are of American origin but have grown to embrace hookah culture.

In Trendytown, Arz al-Lubnan Hookah Bar will focus on locals in the greater Trendytown area of Middle Eastern origin and young professionals.

Market Segmentation

Arz al-Lubnan Hookah Bar has determined the following market segmentation for potential customers:

Middle Eastern Americans: Area residents who have either immigrated from the Middle East or have family origins in the Middle East. They value the connection that hookah bars provide with their culture and traditional elements. As many Muslims do not drink alcohol, they do not feel alienated in hookah bars, which they sometimes do in bars which focus on liquor. They appreciate being able to meet other Middle Eastern Americans at hookah bars, both for friendship and for dating. While this is a small market segment in Trendytown, they use hookah bars more frequently than other groups.

College Age Residents: College students who seek an alternative to bars and parties on their campuses seek out different experiences. Hookah bars provide such an experience because of their exotic ambiance, colorful atmosphere, focus on group dynamics, and the element of danger/risk provided by smoking. Furthermore, those between the ages of 18 and 21 can frequent hookah bars while they cannot go to many bars that serve alcohol.

Young Professionals: 22-35 year-old professionals who are tired with bar culture sometimes react against it by looking for other activities. They seek locations where they can congregate with friends, talk, and share a new experience. However, they are turned off by hookah bars with a high percentage of college age customers.

Hookah bar business plan, market analysis summary chart image

Target Market Segment Strategy

Arz al-Lubnan Hookah Bar will target Middle Eastern Americans and young professionals, and not college age residents. By seeking the target market segments described here, Arz al-Lubnan Hookah Bar intends to establish a base of Middle Eastern devotees who will serve to give the bar credibility and authenticity. These devotees will feel comfortable bringing their non-Middle Eastern friends to Arz al-Lubnan Hookah Bar. These additional customers must be sought to prove Arz al-Lubnan Hookah Bar as a franchisable model for American consumers. Therefore, Arz al-Lubnan Hookah Bar will be positioned for young professionals as an alternative to bars where community can be developed, as well as a non-threatening fusion of American and Middle Eastern cultural aspects, rather than a total immersion in Middle Eastern culture.

These markets exist throughout the United States and the Trendytown location will serve as a proving ground for the Arz al-Lubnan Hookah Bar model.

Service Business Analysis

Over 470 hookah bars are in existence in the United States, spread throughout the country with some concentration in cities. From 2000 to 2004, at least 200-300 new hookah bars opened for business, according to the journal Smokeshop . Generally, as long as 80% of sales are derived from tobacco, smoking within hookah establishments can be permitted by law.

The hookah bar industry is highly fragmented, with most bars being independent establishments. A small percentage open a second or third location. There are currently no national hookah bar franchises.

Indirect competitors to hookah bars are coffee shops, bars that serve liquor, and cigar stores/tobacconists.

Typically, hookah tobacco is sold and pipes are provided to customers in hookah bars. Tobacco is sold in rounds which serves a group of four to six for about an hour. Food and drinks are sold via waiter or bar service while customers sit in groups and smoke. While some attend hookah bars alone, customers typically attend with groups and sit at round tables with their group.

Competition and Buying Patterns

Hookah bar customers in the United States judge between establishments based on location (they will not be willing to travel too far out of their way for a hookah bar) the variety of flavors served, the atmosphere, and the additional food and drink options served.

Specific competitors for Arz al-Lubnan Hookah Bar include Ali Baba Hookah Bar, Babylon Hookah Lounge, Desert Cafe, and Zee’s Smoking Corner.

Ali Baba Hookah Bar : With DJs and dance parties on weekends, Ali Baba’s serves a younger crowd who enjoy meeting others.

Babylon Hookah Lounge: Also has DJs and tends toward a young consumer base. Older customers complain that the lounge is loud, much like a rave concert.

Desert Cafe: Loved by regulars for its owner and its atmosphere, Desert Cafe has plasma TVs, outdoor seating in summer and atmospheric lighting. The location is faulted for its low quality tobacco and lack of upkeep on their hookahs.

Zee’s Smoking Corner:  With an extensive list of flavors, Zee’s also focuses on college age residents and drives away others with its loud music and party atmosphere.

Web Plan Summary

The website for Arz al-Lubnan Hookah Bar will offer a standard “brochure-style” presentation with details on the products, services, location, and concept of the bar, as well as an extended social community component, tied in to Facebook. The website will serve casual customers interested in the bar as well as fans who become involved in creating cultural events and groups at Arz al-Lubnan Hookah Bar through the social portal, which will include a basic calendar visible to all users and extended features reserved for members who log-in.

Website Marketing Strategy

The website for Arz al-Lubnan Hookah Bar will be promoted through PR, direct advertising, search engine optimization, and the growing community of customers.

  • The community of customers will generate word-of-mouth and online referrals by inviting friends to the Arz al-Lubnan Hookah Bar website through Facebook or Arz al-Lubnan Hookah Bar’s social network component

Development Requirements

Development of the website requires an experienced Web development firm with past success in developing social networking components for businesses. The website will include the following in its basic, front end:

  • Location and Directions page with connection to maps from Google Maps or MapQuest

The social portal of the site will include:

  • Automated tie-ins between the site and the Facebook Fan Page to minimize changes that must be made in two places

Furthermore, the developer will create a Facebook Fan Page, and a back end for the site including:

  • Ability for management to add or remove photos from photo gallery and to organize them into albums

Development of the website will occur over a three month period. The first two months will produce a beta version which will be tested by management, with revisions given to developers, for one month after that. It is expected that additional changes will extend over the first few months of operation and $500/month of the marketing budget is devoted to ongoing maintenance and development in the first year.

Strategy and Implementation Summary

The focus for implementation will be on establishing the quality of the offering, its suitability for the 22+ target market, and the infrastructure to allow for community-driven culture. The fostering of the Arz al-Lubnan Hookah Bar community will be important to the growth of the business and its proof as a franchisable model.

Competitive Edge

Arz al-Lubnan Hookah Bar’s competitive edge will be established through its community organizing ability via its website. This website will present an interface for users to:

  • Send out invites for these events

The party-like atmosphere at other hookah bars does not allow for easy conversation and for performances and events of the type expected at Arz al-Lubnan Hookah Bar.

Marketing Strategy

The marketing strategy of Arz al-Lubnan Hookah Bar will be to establish a base of Middle Eastern American customers first, and using these customers to bring in other young professional as friends. To that end, the following tactics will be employed:

  • Advertising with posters and flyers in the downtown Trendytown area

The bar’s grand opening will be marked by an event featuring live music, free food and drink offers, and door prizes.

After the launch, promotional incentives for customers will be advertised in newspaper advertisements, on the website, and in the store for:

  • Incentives to organize the first events via the website (such as free rounds of tobacco for the organizers at a later date)

These expenses are included in the Profit and Loss statement for Arz al-Lubnan Hookah Bar as marketing expense.

Sales Strategy

Arz al-Lubnan Hookah Bar will sell its products through attentive wait staff and bar counter staff. They will be compensated through base hourly wages and tips and will work to provide the best customer service possible. Wait staff will use wireless tablets to place orders which are sent over the bar’s wireless network to kitchen staff and bar staff to prepare dishes and drinks.

Sales Forecast

Sales will be predominantly through tobacco revenues, which also has a relatively low cost of sales. Secondary revenue streams are food and drinks which will be sold to some, but not all, customers who order tobacco. Sharp growth is expected over the first three years of operation as the community aspect of Arz al-Lubnan Hookah Bar is developed and customer-directed programming begins to take place.

It is expected that a customer will return to Arz al-Lubnan Hookah Bar on average 15 times a year, taking part in 20 rounds of tobacco in that time. Therefore, this projection represents 1,000 customer groups in the first year, 2,500 customer groups in the second year and 3,500 customer groups in the third year.

Hookah bar business plan, strategy and implementation summary chart image

The $15,000 in start-up marketing will be spent on the downtown ad campaign (design and production of posters and flyers, as well as purchasing ad space), PR campaign (creation and mailing of press kit), and the grand opening event (live music, door prizes, decorations, free food and drink offers).

After the launch, the business will hold a series of promotions – first the business card drawing and then event incentives – to initiate programming at Arz al-Lubnan Hookah Bar.

Hookah bar business plan, strategy and implementation summary chart image

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Arz al-Lubnan Hookah Bar is managed by the husband and wife team of Sayed and Yasmine Batroun, Lebanese-American residents of Trendytown who have developed the concept for the store after working in hookah lounges while overseas.

Sayed Batroun will manage store operations and train wait and kitchen staff. He has culinary experience with ten years as a cook. He will handle procurement and inventory management. He will also work as head cook during initial operations.

Yasmine Batroun will manage marketing, business development, and finance. She has an MBA and corporate experience as a marketing associate for a Fortune 500 business. She will oversee accounting and bookkeeping. She will provide general management in the restaurant as needed, including management of events.

In the second year of operation a general manager will be hired to take over staff supervision, staff training, procurement and inventory management. Sayed Batroun will continue to serve as head cook but will work on a more strategic level in other areas.

Additional staff will include kitchen staff and wait staff.  

Personnel Plan

Staff will include two bartenders, two wait staff, and one kitchen staff initially. This will grow to four bartenders, six wait staff and three kitchen staff. Wages for bartenders and wait staff are lower as they are significantly augmented by tips. These personnel assumptions are based on the bar being open 80 hours per week.

Financial Plan investor-ready personnel plan .">

The business is expected to grow significantly in its first three years as it meets the market need for an alternative to local youth-oriented hookah bars. Growth to a second location will occur in the fourth year, financed by the cash reserves of the business.

Start-up Funding

While the owners will invest substantially in the company, the bulk of the start-up funding will be provided primarily by outside investors, with an additional long-term loan against the assets of the bar. Credit card debt will make up the remainder.

Investors will be provided with 40% of shares for their investment, as the current partners are contributing considerable sweat and financial equity of their own, as well as their specific expertise and credibility as Lebanese-Americans.

Important Assumptions

We assume that the growth in hookah bar popularity will continue and that the country is ready for a national chain. We assume that anti-smoking lobbyists and anti-Middle Eastern sentiment in the Unites States will not damage the reputation and image of hookah bars.

Break-even Analysis

A projected monthly fixed operating cost is shown in the table below. With this level of fixed cost, break even is expected in the sixth month of operation.

Hookah bar business plan, financial plan chart image

Projected Profit and Loss

Key expenses will include the cost of sales attributed to supplies and raw materials, payroll for the growing staff, marketing to promote the bar in the community, and the bar’s rent and depreciation. The bar will show a profit in the first year which will continue to grow. This is expected due to the high gross margins of selling tobacco through hookahs and the type of food and drinks sold.

Hookah bar business plan, financial plan chart image

Projected Cash Flow

The cash flow table and chart show the business becoming cash flow positive within six months of operation. Cash will be retained in the business and invested in short-term holdings in preparation for expansion of the franchise after the third year of operation.

Long-term debt will be paid over the first three years of operation with a grace period for the first six months. Short-term borrowings will be paid over the first year of operations.

Some current assets must be replenished each year, and long-term assets must be replaced beginning in the second year as some equipment ages.

Hookah bar business plan, financial plan chart image

Projected Balance Sheet

The net worth of Arz al-Lubnan Hookah Bar will grow significantly due to relatively low liabilities and high cash reserves as the business prepares for future self-financed expansion.

Business Ratios

The business is compared here against Snack and Nonalcoholic Beverage Bars, industry SIC code 5812, NAICS code 722213, with over $1 million in annual revenue. Gross margin is expected to be higher than average due to the premium that can be earned from tobacco sales.

40% of equity will be awarded to investors for their cash contribution, 22% to founders for their cash contribution, and the remaining 38% to owners for their sweat equity. This values the company at $317,500 initially.

Assuming valuations at either a multiple of earnings (10 is reasonable for this industry), or a multiple of sales (2 is reasonable for this industry), the valuation at the end of year 3 of the entire company is around $3.385 million (an average of the two methods of valuation). This yields a significant, 121% internal rate of return for investors. An exit event will be possible when the company raises money for franchising or sells to an existing franchisor at the point of expansion.

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hookah rental business plan

How to Start a Hookah Lounge

Also called a hookah café, a shisha bar, or a hookah den, a hookah lounge is a place where customers go to smoke shisha. This flavored tobacco is smoked through a pipe, and it can be shared by multiple people. Hookah lounges can charge by time, by pipe, or by tobacco amount.

Learn how to start your own Hookah Lounge and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Hookah Lounge Image

Start a hookah lounge by following these 10 steps:

  • Plan your Hookah Lounge
  • Form your Hookah Lounge into a Legal Entity
  • Register your Hookah Lounge for Taxes
  • Open a Business Bank Account & Credit Card
  • Set up Accounting for your Hookah Lounge
  • Get the Necessary Permits & Licenses for your Hookah Lounge
  • Get Hookah Lounge Insurance
  • Define your Hookah Lounge Brand
  • Create your Hookah Lounge Website
  • Set up your Business Phone System

We have put together this simple guide to starting your hookah lounge. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

  • What are the startup and ongoing costs?
  • Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Hookah Lounge Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

  • Your state's business records
  • Federal and state trademark records
  • Social media platforms
  • Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your hookah lounge?

Business name generator, what are the costs involved in opening a hookah lounge.

A hookah lounge costs about $40,0000 to start. This price includes having a nice retail space to fund. It also includes licensing and insurance. The other costs include sourcing useable hookahs and shisha. Typically, a lounge will carry between 10 and 30 hookahs. Each can cost as much as $150.

What are the ongoing expenses for a hookah lounge?

Ongoing expenses include rent, utilities, cleaning, hookah replacement, and shisha replacement. Normally, a hookah lounge will cost about $2,000 to $3,000 per month to run. A 50-gram container of shisha can cost as little as $10 to buy. The same container can be split across multiple hookahs, resulting in a profit of about $100.

Who is the target market?

The best customers are those who aren’t rowdy. Because hookah smokers need to be at least 18 years old, the hookah-smoking culture can be chaotic. Hookahs are fragile, and a hookah lounge owner will lose money if their hookahs are broken. Every lost hookah reduces the overall number of people who will buy services. Ideal customers are quiet. They’re also return visitors. Hookah lounges make a lot of money from familiars, often creating deals and discounts for them.

How does a hookah lounge make money?

A hookah lounge makes most of its money by giving patrons a hookah to smoke. A hookah “session” is paid for either before it begins or after it is over. Normally, one hookah is shared between two and four people. Hookah lounges can either charge by the hour, or they can charge by the bowl’s size. Normally, a hookah lounge will determine a bowl’s price by how much shisha it can hold. A large bowl, for example, may burn longer. For this reason, it costs more to smoke.

Hookah lounges can also make money by selling shisha separately. Or, they can sell hookahs and hookah accessories. These accessories include coals, hoses, and vases. Other hookah lounges may sell food or even alcoholic beverages.

Customers can be charged about $10 for a single-person smoking experience, $15 for a three-person smoking experience, and $20 for a four-person smoking experience. Each smoking “experience” includes one hookah to be smoked. You can also offer to replace the bowl’s shisha, if you’d like. This isn’t necessary, but it can definitely retain customers if it’s balanced against the expense.

How much profit can a hookah lounge make?

A hookah lounge can make quite a lot of money, if it’s successful. Average profits are about $150,000.

How can you make your business more profitable?

To become more profitable, you should create incentives. Because shisha is a niche form of entertainment, a lot of customers will return to hookah bars with unique atmospheres. Consider adopting a discount plan, rewarding returning customers, or offering food and drinks.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your hookah lounge is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

  • Separates your personal assets from your company's assets, which is necessary for personal asset protection.
  • Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

  • Separate personal and business expenses by putting your business' expenses all in one place.
  • Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a hookah lounge. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Certificate of Occupancy

A hookah lounge is generally run out of a storefront. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO).  A CO confirms that all building codes, zoning laws and government regulations have been met.

  • If you plan to lease a location :
  • It is generally the landlord’s responsibility to obtain a CO.
  • Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a hookah lounge.
  • After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
  • If you plan to purchase or build a location :
  • You will be responsible for obtaining a valid CO from a local government authority.
  • Review all building codes and zoning requirements for your business’ location to ensure your hookah lounge will be in compliance and able to obtain a CO.

Food Regulations

When selling food, you will need licensing from a local health department; all establishments serving food are required to pass a health inspection. Tips for faring well on a health inspections

There are federal regulations regarding what can and cannot be added to, sold as, and processed with food. Attached is a resource from the Food and Drug Administration detailing the process of starting a food business: How to Start a Food Business .

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Hookah Lounge needs and how much it will cost you by reading our guide Business Insurance for Hookah Lounge.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a hookah lounge

Fortunately, hookah lounge promotion takes care of itself. Word of mouth, normally, will suffice. That said, you can boost your hookah lounge’s visibility by marketing through liquor stores, outside grocery stores, near college campuses, and party areas. Once a hookah lounge is “found,” it usually catches on quickly.

How to keep customers coming back

Customers will come for the hookah, but they’ll stay for the experience. Because smoking shisha is a social event, customers will flock to whichever lounge offers the best amenities and prices. Normally, this includes: a low shisha price, loose smoking restrictions, informative staff, an interesting environment, and good deals.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

  • All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
  • Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
  • Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

TRUiC's Startup Podcast

Welcome to the Startup Savant podcast , where we interview real startup founders at every stage of the entrepreneurial journey, from launch to scale.

Is this Business Right For You?

Anyone who’s interested in shisha, hookah, or the hookah culture should open a lounge. A hookah lounge is a good business for entrepreneur types, diner lovers, and tobacco connoisseurs.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a hookah lounge?

A hookah lounge owner is in charge of setting up hookahs for people to smoke. A lounge owner needs to make sure all the hookah pipe pieces are clean. Similarly, they need to make sure the lounge’s shisha supply is clean and unspoiled. A lounge owner charges customers, keeps track of payments, and cleans the establishment. Hookah lounges are typically small, and they can be operated by a single person. Some hookah lounge owners stock hookahs for sale. They can also sell shisha, hookah hoses, hookah bowls, and other accessories.

What are some skills and experiences that will help you build a successful hookah lounge?

A hookah lounge owner needs to have a firm grasp on hookahs. They need to understand how they’re smoked, how shisha is measured, how to take care of a hookah, and how to make a pleasant smoking session. High-quality hookah lounge owners also understand the culture of smoking hookah. Because hookah is a middle-eastern novelty, some visitors go to lounges to try something exotic. While hookah has become pretty popular, a high-quality lounge will still cover the “bells and whistles” to make a nice experience.

A hookah lounge owner also needs to understand liquor and tobacco laws. Guests need to be safe at all times. Guests can smoke too much hookah, causing them to get sick. A good hookah lounge owner will make sure guests are knowledgeable about hookah.

What is the growth potential for a hookah lounge?

A lot of hookah lounges are local. Because of this, there isn’t much growth potential on a state, or even national, level. A hookah lounge can, however, become a local favorite. If your hookah lounge offers the best shisha, the lowest prices, the best discounts or other great amenities, expect it to be a main location for visitors.

Hookah lounges gain a lot from tobacco’s inelastic demand . People who smoke hookah will often pay a lot for it, and they’ll keep returning to purchase it. For this reason, a hookah lounge which provides the best products, services or cost opportunities will have a very big advantage.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a hookah lounge?

When jump-starting a hookah lounge, make sure your prices are affordable. Additionally, make sure you’re offering shisha the customers like. Again, hookah bars benefit from the average customer’s love of tobacco. That said, a hookah lounge which doesn’t prepare shisha properly can lose business quickly.

Raw materials will also need to be sourced. Make sure you’re using popular shisha, and make sure your employees are skilled in the art of shisha preparation. While shisha preparation isn’t too difficult, there is a firm culture behind it.

How and when to build a team

At the start, you can run a hookah lounge yourself. You should quickly gain between one and three workers, however. A lot of hookah lounges are small, and they thrive on having a café-like atmosphere. That said, a hookah lounge with slow service is often passed up.

Useful Links

Industry opportunities.

  • Star Hookah Lounge Franchise opportunity
  • 40 Thieves Hookah Lounge Franchise opportunity
  • Hookahs Franchise opportunity

Real World Examples

  • Atlanta business
  • Michigan business

Further Reading

  • Tips for Opening a Hookah Bar
  • Operating a Hookah Lounge Business
  • Explore more Entertaintment based Business Ideas

Have a Question? Leave a Comment!

Financial Model, Business Plan and Dashboard Templates - FinModelsLab

How To Write a Business Plan for Hookah Lounge in 9 Steps: Checklist

By alex ryzhkov, resources on hookah lounge.

  • Financial Model
  • Business Plan
  • Value Proposition
  • One-Page Business Plan

Welcome to our blog post on how to write a business plan for a hookah lounge! With the increasing popularity of hookah lounges, now is the perfect time to venture into this industry. According to recent statistics, the hookah lounge market is projected to grow at a CAGR of XX% between 2021 and 2026.

So, how can you ensure the success of your hookah lounge? Let's dive right into the 9 essential steps you need to take.

1. Conduct market research: Before starting your hookah lounge, it's crucial to understand the current market trends, customer preferences, and competition. Analyzing the demand and identifying your unique selling proposition will set you apart in the market.

2. Define your target market: Identify your target demographic and tailor your offerings to their preferences. Whether it's attracting young adults or creating a cozy atmosphere for professionals, understanding your target market will help you shape your lounge accordingly.

3. Determine your location: Choose a strategic location that is accessible, has ample parking, and aligns with your target market. Consider factors such as foot traffic, proximity to other entertainment venues, and local regulations.

4. Estimate startup costs and create a budget: Calculate your initial investment, which includes expenses like lease payments, furniture, hookah equipment, licenses, marketing, and staffing. Creating a comprehensive budget will help you gauge your financial requirements and plan accordingly.

5. Develop a branding and marketing strategy: Craft an appealing brand identity that resonates with your target market. From your logo and signage to your online presence and promotions, a strong marketing strategy will attract customers and build brand loyalty.

6. Research legal requirements and regulations: Familiarize yourself with local laws regarding hookah lounges, smoking restrictions, age restrictions, permits, and health and safety regulations. Ensuring compliance is essential to avoid legal issues in the future.

7. Identify potential suppliers and negotiate contracts: Establish relationships with reliable suppliers who can provide high-quality hookahs, flavored tobaccos, shisha accessories, and beverages. Negotiating favorable contracts will help you maintain consistent supplies and maximize profitability.

8. Create a detailed financial forecast: Forecast your revenue and expenses for the initial years of your hookah lounge. Consider factors such as overhead costs, labor, inventory, and seasonality. A meticulous financial forecast will guide your decision-making and attract potential investors.

9. Outline your business goals and objectives: Set clear and measurable goals for your hookah lounge. Whether it's increasing customer satisfaction, expanding your customer base, or achieving a specific revenue target, having defined objectives will drive your business forward.

By following these 9 steps, you will be well on your way to creating a comprehensive and effective business plan for your hookah lounge. So, roll up your sleeves, do your research, and get ready to embark on an exciting and profitable venture!

Conduct Market Research

Before embarking on any business venture, it is crucial to conduct thorough market research to assess the viability and potential success of your hookah lounge. This step will help you gather essential information about the demand and competition in your target market.

The first aspect of market research is analyzing the demand for hookah lounges in your area. Determine if there is enough interest and demand for such a establishment by studying the demographics and preferences of the local population. This can be accomplished through surveys, focus groups, and online research.

Next, it is important to assess the competition in your target market. Identify existing hookah lounges or similar establishments in the area and evaluate their offerings, pricing, and customer base. Understanding your competition will help you carve out a unique niche for your hookah lounge and differentiate it from others.

Additionally, market research should also involve identifying potential partnerships or collaboration opportunities with complementary businesses. For example, you might consider collaborating with local restaurants or bars to offer joint promotions or discounts.

Tips for Conducting Market Research:

  • Utilize online survey tools to gather data from potential customers.
  • Visit existing hookah lounges in different areas to observe their operations and learn from their successes and shortcomings.
  • Attend industry trade shows and conferences to network and gain insights into current trends and innovations.
  • Engage with the local community through events or social media platforms to understand their preferences and gather feedback.

By conducting comprehensive market research, you will be equipped with the necessary knowledge and insights to make informed decisions throughout the planning and execution phases of your hookah lounge. This research will help you understand your target market better, define your unique selling proposition, and ultimately increase the chances of success for your business.

Define Your Target Market

In order to successfully run a hookah lounge, it is crucial to define and understand your target market. This will not only help you tailor your offerings and marketing strategies, but also ensure that you are attracting the right customers who will contribute to the success and sustainability of your lounge.

Firstly, consider the age group you want to target. Are you aiming for college students and young adults, or do you want to cater to a more mature crowd? Knowing your target age range will help you determine the atmosphere, music, and ambiance that will appeal to them.

Next, think about the interests and preferences of your target market. Are they seeking a place to socialize with friends, relax after a long day, or simply enjoy the experience of smoking hookah? Understanding their motivations and desires will guide you in designing an inviting and comfortable space that meets their needs.

Furthermore, it's important to investigate the demographics of your target audience. Are they predominantly male or female? What is their socio-economic background? Knowing these details will assist you in pricing your hookah flavors, drinks, and food options accordingly.

Tips for Defining Your Target Market:

  • Conduct surveys or focus groups to gather insights from potential customers.
  • Explore social media groups and forums related to hookah and identify common interests.
  • Visit other hookah lounges in the area and observe the customers who frequent those establishments.
  • Consider collaborating with local organizations or influencers that align with your target market to expand your reach.

With a clear understanding of your target market, you can now move forward with the other steps involved in starting your hookah lounge, knowing that you have a solid foundation to build upon. Remember to regularly reassess and adapt your strategies based on the evolving preferences and demands of your target audience to stay ahead in the competitive hookah lounge industry.

Determine Your Location

Choosing the right location for your hookah lounge is crucial to its success. The ideal location should be easily accessible, have sufficient parking space, and be in an area with high foot traffic. Here are some steps to help you determine the best location for your business:

  • Research local demographics: Start by analyzing the demographics of different neighborhoods or areas where you are considering opening your hookah lounge. Look for areas with a large population of potential customers, such as young adults or college students.
  • Evaluate competition: Take a thorough look at existing hookah lounges or similar establishments in the area. Consider their proximity to potential customers and assess if there is enough demand to support another business in the same location.
  • Consider zoning regulations: Research local zoning regulations and ensure that the location you choose is suitable for a hookah lounge. Check if there are any restrictions on opening a smoking establishment in that particular area.
  • Assess traffic and accessibility: Pay attention to the traffic patterns in the area and evaluate if the location is easily accessible by car, public transportation, or foot traffic. A convenient location will attract more customers and make it easier for them to visit your lounge.
  • Examine parking options: Adequate parking is essential for your customers' convenience. Make sure there are sufficient parking spaces available near your chosen location, either on-site or nearby.
  • Consider neighboring businesses: Assess the surrounding businesses and determine if they complement your hookah lounge. Being located near establishments that attract a similar target market, such as restaurants or nightlife venues, can help increase your visibility and potential customer base.
  • Visit potential locations at different times of the day to observe foot traffic and assess noise levels.
  • Talk to local residents or business owners to gather insights about the area and its potential for a hookah lounge.
  • Consider the overall ambiance and atmosphere of the neighborhood to ensure it aligns with your target market and business concept.

Estimate Startup Costs And Create A Budget

Estimating startup costs and creating a budget is a vital step in ensuring the successful launch and operation of a hookah lounge. By carefully planning and managing your finances, you can avoid unexpected expenses and build a solid foundation for your business. Here are some key considerations:

  • Identify one-time expenses: Determine the initial costs involved in setting up your hookah lounge. This may include leasing or purchasing a property, renovating the space, purchasing hookahs, shisha flavors, furniture, and other necessary equipment.
  • Estimate recurring expenses: Consider the ongoing expenses that will be incurred on a regular basis. These may include rent or mortgage payments, utilities, employee salaries, inventory restocking, marketing, and insurance.
  • Research costs and obtain quotes: Reach out to suppliers, contractors, and service providers to gather accurate pricing information. This will help you calculate the cost of materials, labor, maintenance, and any other services required to run your hookah lounge.
  • Create a detailed budget: Based on your research and estimated costs, develop a comprehensive budget that outlines your anticipated expenses and projected revenue. Be sure to include conservative estimates and allow some flexibility for unforeseen costs.
  • Consider financial contingencies: It's always wise to have a contingency fund in case of unexpected emergencies or events that may impact your business. Factor in a reserve for contingencies, such as equipment repairs, legal fees, or a temporary decrease in revenue.
  • Review and revise: Regularly review and update your budget as your business progresses. Keep track of your actual expenses and revenue to identify any discrepancies and adjust your financial plan accordingly.
  • Consult with industry experts or seek professional advice to ensure accuracy in your cost estimates.
  • Consider negotiating deals or discounts with suppliers to help reduce your startup costs.
  • Research financing options, such as loans or grants, to support your initial investment or expansion plans.
  • Be realistic with your revenue projections to avoid overestimating and falling short on your financial commitments.

Develop A Branding And Marketing Strategy

Developing a strong branding and marketing strategy is crucial for the success of your hookah lounge. It will help you establish a unique identity in the market and attract your target customers. Here are some important steps to consider:

  • Define your brand: Start by determining the core values, mission, and vision of your hookah lounge. Consider what sets your lounge apart from competitors and how you want to position your brand in the market. This will guide all your marketing efforts.
  • Create a compelling brand identity: Design a visually appealing and cohesive brand identity that includes a logo, color scheme, and typography. Ensure that it reflects the ambiance and atmosphere of your lounge. Consistency in your branding will make your lounge more recognizable and memorable.
  • Identify your target audience: Understand who your potential customers are and what their preferences and interests are in relation to hookah lounges. This will help you tailor your marketing messages and promotions to effectively reach and engage them.
  • Develop a marketing plan: Set clear marketing objectives and outline the strategies and tactics you will use to achieve them. This can include online and offline channels such as social media marketing, influencer partnerships, email campaigns, and local advertising. Determine a budget for your marketing activities.
  • Build an online presence: In today's digital age, having a strong online presence is essential. Create a professional website for your lounge, optimize it for search engines, and establish active profiles on relevant social media platforms. Engage with your audience, share relevant content, and promote special events or offers.
  • Offer unique promotions: Attract customers by providing special promotions, discounts, or loyalty programs. This can help create a sense of exclusivity and incentivize repeat business. Consider hosting themed nights or collaborating with other local businesses to extend your reach.
  • Regularly monitor and analyze the effectiveness of your marketing strategies to make data-driven decisions and optimize your efforts.
  • Consider hosting events or partnering with popular local influencers to create buzz and attract a wider audience.
  • Engage with your customers on social media platforms, respond to their comments and reviews, and encourage them to share their positive experiences.
  • Collaborate with complementary businesses, such as restaurants or nightclubs, to cross-promote and expand your customer base.

Research Legal Requirements And Regulations

When starting a hookah lounge, it is crucial to research and understand the legal requirements and regulations that apply to your business. Compliance with these laws will ensure that your lounge operates legally and avoid any potential legal issues in the future.

Here are some important aspects to consider:

  • Business Licensing: Determine the specific licenses and permits required to operate a hookah lounge in your area. This may include a general business license, health permits, and tobacco licenses. Research the necessary application processes and ensure you meet all requirements before opening your lounge.
  • Age Restrictions: Familiarize yourself with the minimum age requirements for customers to enter and smoke in your hookah lounge. Different countries or states may have different laws regarding the legal age for purchasing and consuming tobacco products.
  • Tobacco Regulations: Research the laws and regulations regarding the sale and use of flavored tobaccos in your jurisdiction. Some areas may have restrictions on certain flavors or ingredients, so ensure compliance with these regulations to avoid penalties or closure.
  • Health and Safety: Understand the health and safety regulations that apply to your hookah lounge. This may include proper ventilation systems, fire safety measures, and sanitation requirements. Implementing these measures will not only keep your customers safe but also demonstrate your commitment to their well-being.
  • Alcohol Licensing (if applicable): If you plan to offer a full-service bar, research the specific alcohol licensing requirements for your location. This may involve obtaining a liquor license, adhering to specific operating hours, and following responsible alcohol service practices.
  • Entertainment and Music Licensing (if applicable): If you plan to offer live music or other forms of entertainment, research the necessary licenses and permits. This may include performance licenses, sound permits, or contracts with musicians or DJs.

Tips for Researching Legal Requirements and Regulations

  • Consult with a lawyer or legal advisor familiar with the hospitality or tobacco industry to ensure you have a comprehensive understanding of all legal obligations.
  • Regularly review and stay updated on any changes or updates to the laws and regulations that may impact your hookah lounge. Compliance is an ongoing process.
  • Reach out to local government offices, health departments, or business associations for guidance and resources related to legal compliance.
  • Take the time to understand the regulations thoroughly and educate your staff to ensure everyone is in compliance, which will contribute to a smooth and legally compliant operation of your hookah lounge.

By thoroughly researching and complying with the legal requirements and regulations specific to your hookah lounge, you can operate your business with confidence and mitigate any potential legal issues. This proactive approach will contribute to the success and longevity of your establishment.

Identify Potential Suppliers And Negotiate Contracts

Identifying the right suppliers for your hookah lounge is crucial for the success of your business. The quality of your hookah flavors, tobaccos, and accessories will directly impact the experience of your customers. Here, we will discuss the steps to follow in order to identify potential suppliers and successfully negotiate contracts with them.

First and foremost, you need to conduct thorough research to find reliable suppliers in the market. Look for suppliers who have a good reputation and offer high-quality products. You can attend industry trade shows, network with other hookah lounge owners, and explore online directories to find potential suppliers.

Once you have identified a list of potential suppliers, start by reaching out to them and expressing your interest in their products. Request samples of their hookah flavors, tobaccos, and accessories to assess their quality. It is important to taste the products yourself and also seek feedback from others to ensure that they meet your requirements.

When negotiating contracts with suppliers, carefully review their terms and conditions. Consider factors such as pricing, minimum order quantities, delivery schedules, and return policies. Negotiate for competitive pricing and favorable terms that align with your business needs.

Tip 1: It's important to build a strong relationship with your suppliers. Regularly communicate with them to understand their product offerings and any new additions to their inventory.

After finalizing the terms, ask for a written contract that clearly outlines the agreed-upon terms and conditions. Make sure to include clauses for quality control, payment terms, and potential penalties for non-compliance.

Tip 2: Consider establishing long-term contracts with your suppliers. This can help you secure preferential pricing and ensure a stable supply of high-quality products.

Regularly evaluate the performance of your suppliers to ensure that they continue to meet your expectations. Assess factors such as product quality, on-time deliveries, and customer service. If you encounter any issues, address them promptly and discuss potential solutions with your suppliers.

By carefully identifying potential suppliers and negotiating contracts that are beneficial to your hookah lounge, you can ensure a steady supply of high-quality products. This will contribute to the overall success and customer satisfaction of your business.

Create A Detailed Financial Forecast

Creating a detailed financial forecast is crucial for the success of your hookah lounge. It allows you to estimate your business expenses, project your future revenue, and determine the profitability of your venture. Follow these steps to create a comprehensive financial forecast:

  • 1. Projected Revenue: Start by estimating your monthly revenue based on the number of customers you expect, the average spending per visit, and any additional sources of income such as event hosting or merchandise sales.
  • 2. Cost of Goods Sold (COGS): Determine the cost of the hookah tobacco, drinks, and food items you plan to offer. This will help you calculate the gross margin and ensure that your pricing strategy covers these costs.
  • 3. Operating Expenses: Identify all the expenses required to run your hookah lounge, including rent, utilities, staffing costs, insurance, marketing, and maintenance. Be as detailed as possible to get an accurate understanding of your monthly expenses.
  • 4. Start-Up Costs: Compile a list of one-time costs needed to launch your business, such as lease deposits, equipment purchases, licenses, permits, and initial inventory. Consider any renovation or remodeling expenses that may be necessary.
  • 5. Break-Even Analysis: Use your projected revenue, COGS, and operating expenses to calculate your break-even point. This will help you determine how many customers you need to cover your monthly expenses and start making a profit.
  • 6. Cash Flow Management: Develop a cash flow forecast that outlines the timing of your inflows and outflows of cash. This will enable you to identify potential cash shortages and plan accordingly to maintain a positive cash flow.
  • 7. Sensitivity Analysis: Assess the impact of various scenarios on your financial forecast. Consider factors such as changes in customer traffic, fluctuations in the cost of supplies, and shifts in consumer preferences. This analysis will help you understand potential risks and make informed decisions.
  • Use historical data from similar businesses or industry benchmarks to validate your revenue and expense estimates.
  • Keep your financial forecast up-to-date by reviewing and adjusting it regularly based on actual performance and market conditions.
  • Consider seeking professional assistance from an accountant or financial advisor to ensure the accuracy and reliability of your financial forecast.

Creating a detailed financial forecast for your hookah lounge is essential for securing funding, making informed business decisions, and ensuring long-term profitability. Take the time to gather accurate data, analyze market trends, and carefully estimate your costs to create a realistic forecast that sets you up for success.

Outline Your Business Goals And Objectives

When starting a hookah lounge, outlining your business goals and objectives is crucial for success. These goals provide a clear direction for your business and serve as a roadmap to guide your decisions and actions. Here are some important steps to help you outline your business goals and objectives:

1. Define your vision: Start by articulating your vision for the hookah lounge. What do you want to achieve? How do you want your lounge to be perceived by your customers? Clearly define the overall purpose and values of your business.

2. Identify your target market: Understand who your target customers are and their preferences. This will help you tailor your services, flavors, and atmosphere to meet their needs. Research their demographics, interests, and habits to ensure that your goals align with their expectations.

3. Set SMART goals: Use the SMART framework to set specific, measurable, achievable, relevant, and time-bound goals. For example, instead of setting a vague goal like 'increase customer satisfaction,' set a specific target like 'increase customer satisfaction ratings by 20% in the first year of operation.'

4. Prioritize your objectives: Determine the most important objectives that will contribute significantly to the success of your hookah lounge. Prioritize these objectives based on their potential impact and allocate resources accordingly.

  • Regularly review and update your business goals and objectives to stay aligned with market trends and changes.
  • Involve your team members in the goal-setting process to foster a sense of ownership and commitment.
  • Break down larger objectives into smaller, actionable steps to make them more attainable.

5. Monitor progress and adjust: Establish a system to track and evaluate your progress towards achieving your goals. Regularly review your performance and make necessary adjustments to stay on track. This will enable you to proactively address any challenges or opportunities that arise.

6. Align with your financial forecast: Ensure that your business goals and objectives align with your financial forecast. Your goals should be realistic and achievable based on your projected revenues and expenses. It is important to maintain a balance between ambitious goals and financial sustainability.

By outlining your business goals and objectives, you will have a clear roadmap to guide your actions and measure your success. This will help you stay focused, make informed decisions, and build a thriving hookah lounge that meets the needs and desires of your target market.

In conclusion, writing a business plan for a hookah lounge requires careful consideration and thorough research. By following the nine steps outlined in this checklist, you can ensure that your business is set up for success. Remember to conduct market research, define your target market, determine your location, estimate startup costs, develop a branding and marketing strategy, research legal requirements, identify potential suppliers, create a financial forecast, and outline your business goals.

By taking the time to create a comprehensive business plan, you can confidently move forward with your hookah lounge venture, knowing that you have considered all aspects of the business and are prepared for any challenges that may arise.

  • Conduct market research
  • Define your target market
  • Determine your location
  • Estimate startup costs and create a budget
  • Develop a branding and marketing strategy
  • Research legal requirements and regulations
  • Identify potential suppliers and negotiate contracts
  • Create a detailed financial forecast
  • Outline your business goals and objectives

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Hookah Catering - The Business of Mobile Hookah Lounge Events

Hookah Catering - The Business of Mobile Hookah Lounge Events

Hookah Catering is a popular side business for hookah enthusiasts who want to share their love of hookah with a new and wider audience. There are a few different strategies for the business in terms of booking gigs and billing methods as well as a wide variety of options when it comes to equipment, shisha flavors and execution.  What is changing is customer expectations.  Gone are the days when you could show up with a bag full of cheap hookahs and box or two of shisha and set up your booth for the night. If you want to get started and do this right, here are some helpful tips to make sure you are starting a profitable business and not a accumulating junk that will take up space in your garage.  We will cover different strategies for hookah catering business models, tobacco permits and licensing, and marketing ideas.

Picking a Lane for your Mobile Hookah Business

How do you want to do this?  There are two common strategies and its a lot harder to do both at the same time and be successful. We recommend focussing on one method and executing at a high level. There are advantages and disadvantages to either method and we will break those down to help you decide which way you want to go.

Option 1: On-Site Hookah Rentals

This strategy involves setting up a mobile hookah lounge at a bar, night club, music festival or other event/venue and charging customers to smoke hookah on an order by order basis. You attract customers, present your options and charge customers as they order. What are the advantages of running this kind of mobile hookah business? 

Advantages:

  • Special event and night club hookah rentals can ask a higher price than a typical hookah lounge due the captive audience and the convenience of having a hookah lounge brought to them. It's no different than paying $12 for a beer at a festival or night club.  
  • Providers tend to have more freedom in regards to the amount of equipment and flavors they offer.
  • In a high traffic environment, your earnings are unlimited.
  • Some business establishments may cover your tobacco permit requirements. (Though you may need Tobacco Permits to purchase wholesale shisha tobacco, depending on your state laws.)
  • You can incorporate up-sells, such as fruit heads, Lolli-tips, or ice hoses for additional revenue.
  • A recurring weekly booking at a venue, bar or night club provides consistent income.

Disadvantages:

  • No guarantee of nightly income.  If no one orders, you don't get paid.
  • Venues may charge fees to operate or take a cut of all sales.
  • Uncertainty about demand can leave you with too much or too little gear for a successful night.
  • Less control over the environment and space for your operation.
  • You may or may not be over or understaffed which can lead to lost profit.
  • Rowdy venues may result in damaged rental hookah inventory and lost/stolen other supplies.

Option 2: Flat Fee Hookah Event Catering

Flat fee event catering is a different strategy that comes with its own advantages and disadvantages. You book parties in advance with a predetermined number of hookahs and flavors an then arrive at the event location and time, set up and service hookahs for the predetermined time.

  • You get paid up front.
  • You know exactly how many hookahs, flavors, accessories and employees you need to bring.
  • You can charge a flat fee for your time and equipment regardless of the number of servings provided.
  • You typically get a higher ROI/profit margin for event management.
  • Controlled environment is often safer for you and the equipment than a night club.
  • Events are great places to network for referral business.  Book a party from a party.
  • It's more difficult or may be inappropriate to up-sell during the event, which limits your income.
  • You may not be able to book a recurring event easily.
  • Get your first few events booked is more challenging.
  • Tobacco permits may be required to operate a stand alone tobacco based hookah business.

Don't Just Show Up, Create an Experience

If this is your business, bring an element of professionalism. Consider your dress code.  You might consider getting T-Shirts printed that say "Hookah Chef" or perhaps you wear all black pants, button up shirt, tuck it in and look sharp.  If you look like a premium service you can elevate the whole experience and charge a premium price. If you look like you rolled out of bed at 7pm and the customers are not sure if you are a customer or staff member, that is a serious problem. Make sure your prep area and ordering station is immaculate and orderly. Your goal should be to take hookah from the perception that it is bad, dirty, or sketchy and elevate it to luxurious and elegant cultural experience.

Have a clean and well designed menu with clear pricing and flavor options. You will find that most people have very little hookah knowledge outside of hookah bars and will have a lot of questions. If you offer flavors with ambiguous names like "Blue Surfer" either change the name on the menu or print out what it tastes like. Let the customers smell some the flavors before they make their selection. When you present the hookah, explain the process, how the hookah works, how to smoke and what to expect. You are the expert, and most people will be too shy to ask questions, so give your customers a $1,000,000 presentation and they will be happy to pay for your services and refer your business to people they know.

How to Start Making Money with Your Hookah Catering Business

You are ready to start bringing in cash and run your first hookah party.  So now what? This is where many hookah catering businesses die, because there are a lot of people who love hookah, or thought this was an easy get rich quick side hustle, but never thought about actually booking gigs.  Here is the secret....Start knocking on doors, visiting potential venues and networking with people who will bring the business to you. This is the grind that is hard to do, can be uncomfortable, but is what will actually make you money.

If you want to run hookahs at a night club, bar or pre-existing business, you need to show up in person, ask for the owner and explain what you do and what is in it for THEM, NOT YOU! Understand that they already have a profitable business and letting you mooch off their customers is  not very appealing.  What value do you bring to them?  Are you going to promote your events and bring extra traffic to their bar? Are you willing to pay a flat fee or rent each night to set up on their patio? Will you offer a 50/50 split of the revenue? Can you pair your hookahs with their specialty cocktails so that they bar owner can sell more drinks to customers who pay to smoke your hookah?

Every business owner is different and every business is different, so there is no 1 size fits all proposition. You will want to find out the best deal for the venue owner to get your side hustle in the door. If you can prove that you are adding to his business and not taking away, then you have more leverage to work out a more favorable arrangement. But the hardest part is getting your foot in the door and selling that first hookah set up. Be prepared to hear a lot of "No's" at first, but don't be discouraged. Once you land a few good gigs and develop a good relationship, you can build a great side business working a couple night shifts a week.

Booking Hookah Gigs for Private Events

If you think you would rather do pre-paid event catering, you can still offer your services at clubs and bars, but offer a different arrangement. You can offer to provide free hookah tasting events to his customers to encourage them to stay longer and spend more money, while he pays you a flat fee for providing the hookah service. He/She may be able to attract a lot of foot traffic if they promote a "Free Hookah Lounge" night in their bar.  Find the dollar amount and number of hookahs that feels right.  In the beginning you might even do a few runs for free, just to see if it catches on.  If it does, then it's time to ask for a bigger fee and help promote the event through your social media.

Another great source of leads will be working with professional event planners, promoters, and wedding planners. I recommend getting a professional card, flyer and menu with clear package pricing printed.  If you network with party planners who can show your package offerings to customers, you are more likely to get booked.  Build a little cushion in your prices, and make sure that you give the event planner a commission for booking your service.  That extra incentive will ensure they are offering your services to potential clients on a regular basis.

Finally, book a party from a party.  While you are working a wedding, private party or corporate event, it is part of the job to network with the customers. Make sure you pass out business cards and let people know how to book your services at their next party, wedding or company function.  

How Much Should You Charge for Your Mobile Hookah Service?

Great question, and as always, the answer will vary depending on many factors. First, lets consider the scenario where you have set up hookahs to charge customers in a preexisting venue such as a bar or night club. The pricing can range because of the differences in the environment. Are you in a dive bar in Missoula, Montana or a night club in Miami? We get feed back that most mobile services are charging $15 - $25 in a typical bar and between $25-$45 for service in night clubs. Here are some factors to consider when setting your prices for hookah rentals:

  • How many hookahs you have to rent
  • The quality of your equipment and shisha
  • Are you using a premium HMD like the Kaloud Lotus?
  • The average drink prices in the bar
  • Your Presentation (How you look, your prep area looks, how you present the finished product. Do you have "extras" like fruit heads, LED lights, candy mouth tips, etc.)
  • The financial arrangements with the venue (Do they take a cut, flat fee or something else)

Hookah Equipment Needed for Hookah Catering

When it comes to getting the right hookahs, you need to make a decision.  Are you investing in your business, or are you just trying to start a little side hustle with the bare minimum cost. If you think that you can run a successful mobile hookah lounge with the cheapest hookahs available, I highly recommend you reconsider your goals. These hookahs are what will make you money. Invest in better quality hookahs up front that will not only last longer, be more durable but will also be more impressive and create more value to your customers. If your customers see a $12 cheap hookah in your fleet, why would you expect them to get excited about paying $20 for 1 session?  You also want to have some consistency.  It will look much more professional and legitimate if you have matching hookahs that coordinate with your style concept, than showing up with mixed bag of sizes, styles, modern, traditional, colors, etc.  You are a professional and your fleet of rental hookahs will communicate how serious you are as a hookah experience provider.

Adam R. wrote a great article with a detailed list of recommended hookahs, shisha tobacco, coals and accessories.  Learn how to start a hookah catering business with the right equipment here.

Special thanks goes out to Royal Hookah in Mexico City.  They added a lot of great input for this blog and if you are ever in Mexico City, we highly recommend visiting one of their locations. Photo courtesy of Royal Hookah, featuring Oduman Glass Hookah, Kaloud Lotus and Samsaris set with custom beaded hookah cover.  You can find them on Instagram - @royalhookahmx

Take a minute to learn from their success.   Here is our exclusive interview with Daniel and Jorge from Royal Hookah in Mexico City.

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Launching Your Own Mobile Hookah Catering Business: A Comprehensive Guide

Are you considering opening a mobile hookah catering business? In this post, we will guide you through the essential steps to establish a thriving enterprise in this niche market, covering everything from how to start a hookah business to opening a hookah lounge. Let’s dive into the details of creating a successful hookah catering venture.

1. Conduct Thorough Market Research

Understanding the local hookah business landscape.

Before embarking on your hookah catering journey, it’s crucial to analyze the local market and understand the demand for such services. Identify potential competitors, from hookah lounges to mobile hookah businesses, and study their offerings. Assess the feasibility of your business idea based on your findings and decide whether you want to learn how to start a hookah lounge or focus on a mobile hookah business.

Key Factors to Consider

Target audience: catering to diverse cultural backgrounds and preferences.

It is important to recognize that the hookah business has evolved significantly over time and has become a global phenomenon, appealing to diverse audiences worldwide. Catering to an Arab clientele will differ from catering to a more Western population, as cultural preferences and expectations vary. The hookah industry has been influenced by many regions, including Spain, Russia, the Dominican Republic, the United States, Germany, Turkey, and more. As a result, it is essential to consider the unique characteristics of your target audience when planning your hookah catering venture.

Identify the demographic and psychographic characteristics of your potential customers, such as age, income level, interests, and lifestyle preferences. Additionally, consider the cultural backgrounds and influences that shape their preferences in a hookah catering service or lounge. This information will help you tailor your services to meet their specific needs and expectations, ensuring a successful and enjoyable experience for all.

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For instance, when catering to an Arab clientele, it might be important to emphasize traditional flavors, decor, and customs. On the other hand, catering to a more Western or diverse audience may require a broader range of flavors and a more modern ambiance. By understanding the unique preferences and expectations of your target audience, you can design your hookah catering services to appeal to a wide range of customers and create a memorable experience for everyone.

hookah rental business plan

Market Trends: Adapting to the Evolving Global Hookah Industry

The market trends in the hookah industry are highly connected to the diverse target audience and the international influence that shapes customer preferences. These trends include new flavors, innovative charcoal products, and state-of-the-art hookahs that are continually evolving. At Hookah Express, we are always striving to bring you the latest news on the business side of the industry, ensuring you stay informed and competitive in this dynamic market.

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To stay up-to-date with the latest trends in the hookah industry, it is essential to keep an eye on the global landscape and the various cultural influences that drive innovation in products and consumer preferences. This will enable you to adapt your offerings, catering to the ever-changing demands of your diverse clientele, and ultimately staying ahead of your competitors.

By regularly researching new products, attending industry events, and engaging with fellow professionals, you can stay informed about the latest developments in the global hookah market. Incorporating these market trends into your hookah catering services or lounge will ensure that your business remains relevant and appealing to a wide range of customers, boosting your chances of success in this competitive industry.

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Pricing Strategies: Determining the Right Price for Your Hookah Catering Services

Setting the right price for your hookah catering services is crucial for success in the industry. Prices can vary significantly, with services ranging from $30 up to $500 per session. This pricing does not include refills or any other type of upselling, which can also factor into your pricing decisions. When determining your price point, it’s essential to consider the local market and the specific conditions of your operation.

When setting your prices, consider the following situational factors that can influence your pricing strategy:

  • Average spend per ticket: What is the average amount customers spend on general items, such as drinks in a bar, in your area? A higher average indicates that clients are more willing to spend, allowing you to set a higher price for your services. Connecting the amount of money that people are willing to spend on general items with how much you could charge for your hookah services helps ensure that your pricing aligns with customer expectations.

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High End Establishment Hookah Check.

  • Capacity of the establishment: If you’re partnering with an establishment, consider its capacity. A higher average ticket price with a lower volume of clients may necessitate a higher price for your services to ensure profitability.
  • Unique value proposition: What unique features, benefits, or experiences do your hookah catering services provide that set you apart from your competitors? Identifying and emphasizing your unique selling points can justify a higher price for your services, as customers may be willing to pay more for an exceptional or exclusive experience.

Considering these situational factors along with a thorough analysis of your competitors and an understanding of the optimal price range for your services will help you determine the right pricing strategy for your hookah catering business. Keep in mind that striking a balance between offering competitive pricing and ensuring profitability is essential for your venture’s success.

Customer Preferences: Tailoring Your Hookah Catering Services to Meet Client Expectations

Understanding the preferences of customers in your target market is essential for crafting a successful hookah catering service or lounge. By recognizing what your potential clients value most, you can tailor your offerings to meet their expectations and create a unique selling proposition (USP) that sets you apart from the competition.

Consider the following aspects when assessing customer preferences:

  • Variety of flavors: Offering a wide range of flavors, including traditional and innovative options, can cater to diverse tastes and preferences. Stay updated on emerging flavor trends and incorporate them into your menu to keep your offerings fresh and appealing.
  • Ambiance: The atmosphere of your hookah catering service or lounge plays a significant role in attracting and retaining customers. Design a comfortable, inviting, and culturally appropriate ambiance that aligns with your target audience’s preferences and expectations.
  • Level of service: Providing exceptional service can be a key differentiator for your business. Train your staff to deliver friendly, knowledgeable, and attentive service that enhances the overall customer experience.
  • Customization options: Allowing customers to personalize their hookah experience by offering various tobacco blends, hookah accessories, and other customization options can help your business stand out and cater to individual preferences.

Use the insights gained from understanding customer preferences to shape your unique selling proposition, setting your hookah catering service or lounge apart from the competition. By offering a tailored experience that meets the expectations of your target audience, you will be better positioned to attract and retain customers, ultimately contributing to the success of your business.

Tips for Effective Market Research

  • Use online resources like Google Trends : Platforms like Google Trends provide insights into search trends and popularity of specific keywords related to your industry. This information can help you gauge consumer interest in hookah services and identify potential areas of growth.
  • Conduct surveys or interviews : Reach out to potential customers or industry professionals to gather firsthand information about their preferences and pain points. This qualitative data will help you fine-tune your services and offerings to better meet the needs of your target audience.
  • Attend industry events and network with professionals : Participate in trade shows, conferences, and networking events to connect with other professionals in the hookah industry. These connections can provide valuable insights, resources, and potential partnership opportunities.

By conducting thorough market research, you can gain a deep understanding of the local hookah business landscape and make informed decisions about the direction of your hookah catering venture, be it a hookah lounge or a mobile hookah business.

2. Acquire the Necessary Permits and Licenses

Complying with hookah lounge start-up requirements.

mobile hookah catering business licenses

To operate a legitimate hookah catering service or hookah lounge, ensure you have all the required permits and licenses. Regulations may vary depending on your location, so consult with local authorities to obtain the correct documentation. Knowing what permits you need to start a hookah lounge or mobile hookah business is essential for legal operation.

Below is a table with contact information for the revenue departments in each state. These agencies can help you obtain the necessary permits and licenses to start your hookah catering business or mobile hookah business:

  • Alabama Department of Revenue 50 N Ripley St, Montgomery, AL 36130 (334) 242-9627
  • Alaska Department of Revenue 550 W Seventh Ave, Suite 500, Anchorage, AK, 99501 (907) 269-6620
  • Arizona Department of Revenue 1600 West Monroe Street Phoenix, AZ 85007 (602) 255-3381
  • Arkansas Department of Finance & Administration 1900 W 7th St, Little Rock, AR 72201 (501) 682-2242
  • California Department of Tax & Fee Administration 450 N St, Sacramento, CA 95814 (800) 400-7115
  • Colorado Department of Revenue 1697 Cole Blvd #200, Lakewood, CO 80401 (303) 205-2300
  • Connecticut Department of Revenue Services 450 Columbus Blvd, Hartford, CT 06103 (860) 297-5962
  • Delaware Division of Revenue Carvel State Office Building, 820 N French St, Wilmington, DE 19801 (800) 292-7826
  • District of Columbia – Office of Tax & Revenue 1100 4th Street, SW, 2nd Floor Washington, DC 20024 (202) 442-4400
  • Florida Department of Revenue 5050 West Tennessee Street, Tallahassee, FL 32399 (850) 487-1395
  • Georgia Department of Revenue 1800 Century Blvd NE # 4235, Atlanta, GA 30345 (877) 423-6711
  • Hawaii Department of Taxation 830 Punchbowl Street, Honolulu, HI 96813 (808) 587-4242
  • Idaho State Tax Commission 11321 W. Chinden Blvd, Boise, ID  83714 (208) 334-7660
  • Illinois Department of Revenue 9511 Harrison St, Des Plaines, IL 60016 (217) 782-6045
  • Indiana Department of Revenue 100 N Senate Ave, Indianapolis, IN 46204 (317) 615-2710
  • Iowa Department of Revenue 1305 E Walnut St Fourth Floor, 0107, Des Moines, IA 50319 (515) 281-3114
  • Kansas Department of Revenue 1883 W 21st St, Wichita, KS 67203 (316) 337-6167
  • Kentucky Department of Revenue 501 High Street, Station 62, Frankfort, KY ​40601 (502) 564-6823
  • Louisiana Department of Revenue 617 N 3rd St, Baton Rouge, LA 70802 (855) 307-3893
  • Maine Revenue Services 51 Commerce Dr, Augusta, ME 04330 (207) 626-8475
  • Comptroller of Maryland 301 W Preston St, Baltimore, MD 21201 (410) 260-7494
  • Massachusetts Department of Revenue 19 Staniford St, Boston, MA 02114 (617) 887-5090
  • Michigan Department of Treasury 41300 Dequindre Rd #200, Sterling Heights, MI 48314 (517) 636-0680
  • Minnesota Department of Revenue 600 Robert St N, St Paul, MN 55101 (651) 556-3035
  • Mississippi Department of Revenue 1141 Bayview Ave, Biloxi, MS 39530 (228) 436-0554
  • Missouri Department of Revenue 301 W High St, Jefferson City, MO 65101 (573) 751-7163
  • Montana Department of Revenue 125 N Roberts St, Helena, MT 59601 (406) 444-6900
  • Nebraska Department of Revenue 1313 Farnam St #10th, Omaha, NE 68102 (402) 471-5862
  • Nevada Department of Taxation 4600 Kietzke Ln # L235, Reno, NV 89502 (775) 688-1295
  • New Hampshire Department of Revenue Admin. 109 Pleasant St, Concord, NH 03301 (603) 230-4359
  • New Jersey Division of Taxation 22-08 Rt 208 South, Fair lawn NJ 07410 (609) 292-6400
  • New Mexico Taxation & Revenue 1200 S St Francis Dr, Santa Fe, MD 87505 (505) 827-0768
  • New York State Department of Taxation and Finance Harriman Campus Rd, Albany, NY 12227 (518) 457-5181
  • North Carolina Department of Revenue 3500 Latrobe Dr STE 300, Charlotte, NC 28211 (877) 252-3052
  • North Dakota Office of State Tax Commissioner 600 E Boulevard Ave Dept 127, Bismarck, ND 58505 (701) 328-3343
  • Ohio Department of Taxation 2079 E 9th St, Cleveland, OH 44115 (855) 466-3921
  • Oklahoma Tax Commission 2501 N Lincoln Blvd, Oklahoma City, OK 73194 (405) 521-3160
  • Oregon Department of Revenue 955 Center St NE, Salem, OR 97301-2555 (503) 947-2560
  • Pennsylvania Department of Revenue 1846 Brookwood St, Harrisburg, PA 17104 (717) 787-8326
  • Rhode Island Division of Taxation 1 Capitol Hill, Providence, RI 02908 (401) 574-8970
  • South Carolina Department of Revenue 1350 Farrow Pkwy #200, Myrtle Beach, SC 29577 (844) 898-8542
  • South Dakota Department of Revenue 445 E Capitol Ave, Pierre, SD 57501 (605) 773-3311
  • Tennessee Department of Revenue 500 Deaderick Street, Nashville, TN 37242 (615) 253-0600
  • Texas Comptroller of Public Accounts 111 East 17th Street, Austin, Texas 78774 (512) 463-4600
  • Utah State Tax Commission 210 N 1950 W, Salt Lake City, UT 84134 (801) 297-3996
  • Vermont Department of Taxes 133 State Street, Montpelier, VT 05602 (802) 828-2865
  • Virginia Department of Taxation 1957 Westmoreland Street, Richmond, VA 23230 (804) 371-0730
  • Washington Department of Revenue 2101 4th Ave Suite 1400 Suite 1400 Seattle, WA 98121 (360) 705-6741
  • West Virginia Department of Revenue 1001 Lee Street East, Charleston, WV 25301 (304) 366-6211
  • Wisconsin Department of Revenue 2135 Rimrock Road, Madison, WI 53713​​ (608) 266-6701
  • Wyoming Department of Revenue 122 W 25th St, Suite E301, Herschler Building East Cheyenne, WY 82002 (307) 777-5200

3. Choose Your Hookah Style and Business Model

Satisfying customer demand and complying with partners.

To establish a successful hookah catering business, it’s essential to decide on the type of hookah you want to offer and the business model that best aligns with your target market and potential partners. By offering the right hookah style and selecting an appropriate business model, you can effectively cater to customer preferences and create a strong foundation for your mobile hookah business.

Hookah Styles:

Electronic hookah:.

Electronic hookahs are modern, battery-powered devices that use e-liquid or vapor pods to produce vapor instead of smoke. They are considered a more convenient and cleaner alternative to traditional hookahs, making them appealing to a wider audience. Offering electronic hookahs can help attract customers looking for a novel, smoke-free experience. Electronic hookahs are also ideal for clients who don’t want charcoal used in their venue or event. For more information on electronic hookahs, check out our article on the best electronic hookah available in the market.

The Best Electronic Hookah

The Best Electronic Hookah.

Traditional Hookah:

Traditional hookahs use charcoal and flavored tobacco (shisha) to produce smoke. They offer an authentic, cultural experience that many hookah enthusiasts prefer. By providing traditional hookahs, you can cater to customers seeking a more classic hookah experience.

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Business Models:

Partnerships with existing bars or nightclubs:.

Collaborate with established venues to provide your hookah catering services. This business model allows you to tap into the venue’s existing customer base while offering an additional service that enhances the overall experience for patrons. Partnering with bars or nightclubs can help you reduce operational costs and increase exposure for your hookah catering business.

When partnering with venues, it’s common to split the sales with the venue. Upscale venues with high ticket prices, where the cost of hookah can range from $150 to $500, typically do a 50%-50% split with the company providing the service. For lower ticket venues, it’s important to negotiate a larger percentage since the risk is higher. In these cases, the percentage can range from 60% to 70% for the company providing the service.

Private event parties:

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Offer hookah catering services for private events such as weddings, birthdays, and social gatherings. This business model enables you to create customized and exclusive hookah experiences for your clients, ensuring a memorable and high-quality service. Private event hookah catering is usually charged as a flat fee, based on an hourly rate with a minimum number of hours and hookahs required.

To enhance your private event hookah catering services, consider offering additional options that can be upsold to clients. These may include:

  • Extra hookahs to accommodate larger guest lists.
  • Decorative elements like LED lights to create a more immersive and appealing atmosphere.
  • Fruit heads, which are visually appealing and can add unique flavors to the smoking experience.
  • Freeze hoses that provide a cooler and more refreshing smoke.

Focus on exceptional customer service, diverse flavor options, and engaging presentations to make your private event hookah catering business stand out. By offering a variety of upsell options, you can create tailored experiences for your clients, adding value to your services and boosting your revenue.

By choosing the right hookah style and selecting a suitable business model, you can create a successful hookah catering business that caters to your target audience and complies with your partners’ expectations.

4. Invest in Quality Supplies

The success of your mobile hookah catering business depends largely on the quality of the supplies and equipment you use. By investing in high-quality hookahs , hoses, bowls, and other accessories, you can ensure a superior smoking experience for your clients and guests.

In our article Essential Hookah Accessories for a Hookah Service in Bars and Nightclubs , we discuss the importance of various hookah accessories and their impact on your business. Some of the key points to consider when investing in hookah supplies include:

  • Choosing the right type of hookahs that are both functional and aesthetically pleasing.
  • Selecting high-quality hoses that are durable, easy to clean, and comfortable to use.
  • Investing in premium bowls that ensure optimal heat management and flavor preservation.
  • Stocking up on essential accessories such as tongs, wind covers, and charcoal trays.

By ensuring that you have top-quality hookah equipment and accessories, you can provide a consistently enjoyable and memorable experience for your clients, ultimately enhancing your reputation and boosting customer loyalty.

hookah rental business plan

5. Marketing Techniques

Effectively marketing your hookah catering business is crucial for attracting customers and growing your clientele. Due to restrictions on advertising tobacco products on platforms like Google Ads, Instagram, and Facebook, you will need to employ alternative strategies to promote your services.

Personal Interactions

Engage with potential clients at events, social gatherings, and industry conferences, and distribute business cards and flyers to promote your business. Building relationships and networking are essential for creating brand awareness and attracting new clients.

Social Media as a Portfolio

Social media hookah

While you may not be able to advertise directly on social media, you can still use it as a portfolio to showcase your services. Share high-quality images and videos of your hookah catering setups, special events, and unique offerings on platforms like Instagram, Pinterest, and TikTok. This will allow potential clients to see the quality and variety of services you provide, while also providing an opportunity for them to share and recommend your business to their friends and followers.

Collaborations with Local Businesses

Partner with local bars, nightclubs, and event venues to offer your hookah catering services at their establishments. This can be an excellent way to reach new clients and build your reputation in the industry. Establishing strong relationships with these businesses can lead to referrals and a steady stream of events to cater to.

Word of Mouth and Customer Testimonials

Satisfied customers can be your best marketing tool. Encourage happy clients to share their experiences with friends and family, and ask them to provide testimonials that you can feature on your website and social media channels. Positive reviews and word-of-mouth recommendations can help attract new customers and establish trust in your brand.

Participate in Local Events and Trade Shows

Participating in local events, trade shows, and industry conferences allows you to directly interact with potential clients, showcase your services, and stay up-to-date with the latest trends in the hookah business. This can help increase your visibility, expand your network, and establish your reputation as a knowledgeable and professional hookah caterer.

Remember, a strong marketing strategy is essential for the growth and success of your hookah catering business. By employing a combination of these techniques, you can effectively promote your services, attract new clients, and build a thriving business.

By following this comprehensive guide, you will be well-equipped to launch and grow a successful hookah catering business, be it a mobile hookah business or a brick-and-mortar hookah lounge. Stay focused, dedicated, and adaptable, and you’ll be on the path to turning your entrepreneurial dream into a reality.

Starting a successful hookah catering or mobile hookah business requires careful planning, dedication, and the ability to adapt to the unique needs of your target market. By focusing on quality products and services, building strong partnerships, and employing effective marketing techniques, you can create a thriving business in this niche industry. As you navigate the challenges and opportunities in the hookah catering world, always prioritize your customers’ satisfaction and strive for excellence in every aspect of your business. This commitment to quality and consistency will help you establish a strong reputation and ensure the long-term success of your hookah catering venture.

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Hookah Lounge Business Plan Sample

JUL.27, 2018

Hookah Lounge Business Plan Sample

Hookah lounge business plan for your own bar business

Do you want to start a hookah bar business? A hookah bar business is undoubtedly one of the most profitable startups, yielding the greatest rate of return as compared to other businesses. A hookah bar is a place where people can come freely and enjoy different flavors of hookahs, drinks, e-liquids, appetizers, cigars and sometimes alcoholic drinks too. Opening a hookah bar will prove a rewarding and profitable business for you, as smoking is banned in public places in many countries.

Before starting it, you need to have a well-structured shisha bar business plan covering even the tiniest bit of details. To help you avoid all the trouble of thinking and making a plan yourself, we are providing a detailed sample hookah lounge business plan for the startup ‘Aladdin Hookah Bar’.

Executive Summary

2.1 the hookah lounge business.

Aladdin Hookah Bar will be a registered hookah bar in Miami at a 10 minutes’ walk from the Bayside Marketplace. Miami is a highly advanced and ordered city; a hookah bar strategically located in the main commercial zone of this populated city will business a lot, as most people and tourists search for a serene place for smoking and relaxing.

The business will be owned and operated by Stephen Gerrard who is well-known in Miami for his reputable catering services operating for the last 15 years.

2.2 Management of Hookah Lounge

Gerrard aims at achieving perfection in hookah bar business by providing an exotic environment and fresh hookah drinks. The business will be managed by Gerrard himself initially and he’ll hire a small team for different tasks.

2.3 Customers of Hookah Bar

Aladdin Hookah Bar will provide fresh fruit hookahs and different types of coffees in a well-designed seductive environment to both permanent and temporary residents of Miami aged 22 and above.

2.4 Target of the Company

If you have decided to open a hookah bar, you must include your targets in your hookah bar business plan to improvise your business at a large scale. Mr. Gerrard’s target is to make his hookah bar’s environment homey and unique by providing a large number of drinks, hookahs, coffees, and teas.

Hookah Bar Business Plan - 3 Years Profit Forecast

Company Summary

3.1 company owner.

Gerrard is famous in Miami for his reputable and distinguished catering service operating for the last 15 years. Due to the individuality of his ideas, he is considered the esteemed choice for managing caterings in events. This year, he wants to start a side business of a hookah bar and is willing to invest both time and money in it.

3.2 Why the Hookah Lounge Business is being started

Due to the policy of WHO to protect non-smokers from passive smoking, smoking is forbidden in public places, and people search for a hookah lounge to smoke. Gerrard is going to launch a hookah bar as he best knows how to open a hookah bar  and how to run a hookah lounge  successfully. In addition to that, he also aims to generate profit from his comfortable and legal smoking place in Miami.

3.3 How the Hookah Bar Business will be started

After analyzing various aspects of this business, Gerard has decided to manage the bar himself, yet he will hire a team for his assistance and for preparing the menu. The startup costs are as follows:

Hookah Bar Business Plan - Startup Cost

The detailed start-up requirements, expenses, total assets, total funding required as forecasted by the company’s analysts are given below:

Services for customers

Before starting a hookah bar, you must be clear about the services you are going to provide to your customers as it will help you to estimate opening a hookah bar cost .

Gerrard has exclusive hookah bar ideas , he aims to make a perfect place for spending a quiet afternoon alone or with friends by adorning the big lounge by dim lights and brick walls combined with comfortable sofas and pillows.

Aladdin Hookah Bar will provide all sort of hookah drinks and coffees to its esteemed customers above age 22. Each one of our offerings will be prepared by maintaining strict health and quality measures.

Besides providing simple drinks, wines, and cigars, our major products will include:

  • Hookah Drinks: We’ll provide fresh hookah drinks of the following flavors, Grape, Lemon, Peach, Cola, Mint, Black Mint, Strawberry, Cherry, Apple Doppio, Mango, Orange, Banana, Pistachio, Vanilla, and Rose. Besides these usual flavors, we’ll introduce a new flavor, Code Blue, which will be a mixture of creamy blueberry with red grape soda and black mint.
  • Teas & Coffees: We’ll provide a wide range of coffees and teas including flat white, espresso, long black, macchiato, Vienna and Irish coffee.
  • Soft Drinks: We will also provide various kinds of soft drinks.
  • Salads : We’ll also provide fresh vegetable cheese salads, bean salads, and fruit salads.

Aladdin Hookah Bar will be open twenty-four hours a day.

Before starting a hookah bar, you must be clear about the services you are going to provide to your customers as it will help you to estimate opening a hookah bar cost.

Market Analysis Summary

The first thing to do before starting a hookah bar  is to research about how to start a hookah bar business  in your state since there are a lot of concerning health regulations in practice. After that, carry out an accurate marketing analysis which will help you to decide the company’s strategies over the next years. It must be incorporated in the initial business plan and all subsequent things must be planned according to it.

Considering its importance, Mr. Gerrard obtained the services of marketing experts to help him develop a hookah bar business plan taking into account the current marketing demands.

5.1 Marketing Trends

If you want to know how much is hookah bar business profitable, you will be glad to know that there are more than 7000 legally registered hookah bars in the US and the number of hookah bars is increasing significantly. According to an IBISWorld report, hookah bars have generated a revenue of more than 900 million dollars in the past few years.

But remember, the success and failure of any business depend upon how keenly you focus on your target customers. A successful marketing strategy can only be developed after knowing the target audience and potential customers.

This sample business plan will help you in defining your target audience, you can take help from this sample business plan even if you don’t know how to start a hookah lounge , In this business plan we have explained how to open up a hookah bar  and run it successfully.

5.2 Marketing Segmentation

The following type of target audience will become the future customers of Aladdin Hookah Bar.

Hookah Bar Business Plan - Market Segmentation

5.2.1 General Traffic: The top category of our target customers will be the general traffic i.e. the people who happen to be near our hookah bar and decides to relax and smoke for some time in the hookah bar. We will be benefited a lot as Aladdin Hookah Bar is situated near the main market of Miami, which is visited by thousands of people daily. The exclusive entrance and dim-light theme of Aladdin Hookah Bar will attract the people who search for a place to sit calmly to smoke or to drink hookah.

5.2.2 Companies and Businesses: This category includes all employees working in the various office, companies, and businesses situated near us. As smoking is not allowed in offices, so the workers who want to drink hookah or cigars in their break time will rush towards. The employees of these companies and businesses will buy hookah drinks, coffees and salads from us on a daily basis.

5.2.3 Local Residents: We also aim to target the local residents residing in nearby areas. We are sure that they will be surely addicted to the solace environment we’ll provide, and whenever they want to have a hookah drink, they’ll approach us.

The detailed market analysis of our potential customers is given in the following table:

5.3 Business Target

Our target is to become the best hookah bar in Miami within the first year of launch. We also aim to recover our initial capital within 3 years of our launch and grow our sales by 30% each year. We’ll achieve our target by providing the best quality drinks and environment and by valuing our customers.

5.4 Product Pricing

Product pricing is the most important factor affecting the sales of a new business. We have priced our items and drinks in the same range as our competitors in the market. But the products which are only provided by us such as Code Blue Hookah will be a little costlier as more effort will be required for its preparation.

After you have understood how to open up a hookah bar you must plan your business strategy , you can take help from this sample business plan on how to open up a hookah lounge .

High Quality Business Plan and Professional Support

It was amazing to work with OGS Capital for our business plan. They promptly responded our enquires and delivered document on time.The document was well organized high quality and content.We succeded with Alex and his team support. We thank you guys again for professional approach and easy communication.

6.1 Competitive Analysis

Aladdin Hookah Bar will have a tough competition because there are thousands of already established hookah lounges in Miami. Moreover, people are always hesitant to try a restaurant business plan that’s why Gerrard has decided that Aladdin Hookah Bar will be decorated in a unique manner, to attract the customers for the first time.

Our biggest competitive edge is our location and the wide parking space for our customers. Lastly, we will provide our customers with the best standard and quality products in a healthy environment where we’ll do proper aeration system to purify the air from the smoke.

6.2 Sales Strategy

For attracting the majority of people in the startup of a business, Gerrard has planned some types of advertisements.

  • We’ll give free hookah drinks and salads till the third day of launch.
  • We’ll ensure that we have a wide range of hookah drinks, cigars, tobaccos, wines, non-alcoholic drinks and salads at all times.
  • We’ll provide an online table reservation facility for those who want to come in the form of a group with friends.
  • We’ll advertise our lounge and menu through our website and social media.

6.3 Sales Monthly

Hookah Bar Business Plan - Sales Monthly

6.4 Sales Yearly

Hookah Bar Business Plan - Sales Yearly

6.5 Sales Forecast

Hookah Bar Business Plan - Unit Sales

Personnel plan

After a great research on how to start a hookah bar business , Gerrard has devised his personnel plan, which is given here for your help.

7.1 Company Staff

Stephen Gerrard will himself act as the Aladdin Hookah Bar Manager and will be responsible for the daily activities. The company will initially hire the following people:

  • 12 Bartenders for arranging glasses and bottles for attractive display and for mixing and serving drinks
  • 2 Cashiers to receive cash from the people
  • 1 Marketing Executive responsible for the marketing and advertising of the restaurant
  • 2 Chefs for making salads
  • 8 Cleaners to clean the dishes and other facilities at the restaurant
  • 2 Security Officers

To ensure the best quality service, all employees will be selected through vigorous testing and will be kept in check for their dealing with clients.

7.2 Average Salary of Employees

The following table shows the forecasted data about employees and their salaries for the next three years.

Financial Plan

You can never estimate how much is a hookah bar business profitable unless you devise its financial plan. As the last step of your business plan, you must prepare a financial plan, to manage your investments and profits.

Aladdin Hookah Bar will be solely financed by Mr. Gerrard and no equity funding or outside loan will be required unless the business expands faster than forecasted.

8.1 Important Assumptions

8.2 brake-even analysis.

Hookah Bar Business Plan - Brake-even Analysis

8.3 Projected Profit and Loss

8.3.1 profit monthly.

Hookah Bar Business Plan - Profit Monthly

8.3.2 Profit Yearly

Hookah Bar Business Plan - Profit Yearly

8.3.3 Gross Margin Monthly

Hookah Bar Business Plan - Gross Margin Monthly

8.3.4 Gross Margin Yearly

Hookah Bar Business Plan - Gross Margin Yearly

8.4 Projected Cash Flow

Hookah Bar Business Plan - Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

Download Hookah Lounge Business Plan Sample in pdf

OGScapital writer specializes in business plan themes such as bouncy castle business plan , business plan for RV park , business plan for bowling alley , golf course marketing strategy , internet radio business plan , business plan for music festival and many others.

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10+ Best & Profitable Hookah Lounge Business Ideas [2023]

Nick

By Nick Cotter Updated Feb 07, 2024

Image of hookah lounge business ideas

Our List of 10+ Best Hookah Lounge Business Ideas:

Trendy cafe-hookah lounge, vape and hookah lounge, hookah pipe rental service, hookah food delivery service, e-hookah bar, hookah catering business, hookah festival organizer, mobile hookah lounge on a bus or truck, online hookah sales business, customized hookah sales business.

Hey there, future entrepreneur! So, you're thinking about diving into the exciting world of hookah lounges, huh? Well, you're in for a treat! In this fast-paced, ever-changing business landscape, finding a niche that's both profitable and enjoyable can feel like searching for a needle in a haystack. But guess what? You might have just found your needle!

Hookah lounges, with their unique blend of social interaction, relaxation, and cultural experience, are rapidly gaining popularity across the globe. And the best part? The business model is as flexible as it is profitable. Whether you're dreaming of a cozy neighborhood spot or a high-end luxury lounge, the possibilities are endless.

So, buckle up and get ready to explore the 10+ best and most profitable hookah lounge business ideas for 2023. We're going to delve into the ins and outs of this booming industry, equip you with some killer business ideas, and hopefully, ignite that entrepreneurial spark within you. Let's get started, shall we?

A Trendy Cafe-Hookah Lounge is a great business idea because it provides customers with an enjoyable atmosphere to relax and socialize, while offering them a unique entertainment experience. Some of the advantages to this business idea include:

  • It's a great way for people to socialize in a relaxed environment.
  • The cafe-hookah lounge allows customers to enjoy different types of drinks and foods, as well as hookah flavors.
  • It offers customers a unique type of entertainment that could make them come back for more.
  • It adds to the local businesses, providing a place where people can hang out and have fun.
  • It's a great way to monetize on the growing trend of hookah smoking in the U.S.

image of a Trendy Cafe-hookah Lounge

A vape and hookah lounge is an establishment that allows patrons to purchase and use vaping products and to smoke hookahs in a social setting. It provides an environment for customers to socialize while vaping and smoking, as well as offering snacks, drinks, and other recreational activities. This business idea can provide a unique experience for those who are looking for a place to relax and have fun with friends.

  • Business can provide a unique experience
  • Allows patrons to purchase and use vaping products and smoke hookahs
  • Atmosphere for customers to socialize
  • Offer snacks, drinks, and other recreational activities

image of ZenBusiness logo

Examples of successful businesses:

Hookah lounges are a popular destination for socializing with friends, and there are many successful companies in the industry that have established successful business models. Some of these include:

  • Desi Vibes Hookah Lounge – Located in Los Angeles, California, Desi Vibes has become a popular destination for locals and tourists alike.
  • The Haven Hookah Lounge – Located in Miami Beach, Florida, The Haven has become renowned for its extensive selection of premium hookahs and flavors.
  • Cafe Hooka – Located in New York City, Cafe Hooka is known for its unique atmosphere and wide variety of flavored tobacco offerings.
  • Hooked up Hookah Lounge – Located in Houston, Texas, this lounge has carved out a niche by offering a wide selection of craft beer to go along with its hookah offerings.
  • The Den Hookah Lounge – Located in Denver, Colorado, The Den is known for its modern decor and hip atmosphere.

A Hookah pipe rental service is a great business idea for those looking to provide an interesting and enjoyable experience for their customers. Rental services provide customers with access to high quality hookahs without having to purchase and maintain costly equipment. Advantages of a Hookah pipe rental service include:

  • Unique and novel experience
  • Easy setup and breakdown
  • Cost-effective compared to purchasing large equipment
  • Variety of flavors available
  • Enhances atmosphere of the venue

More resources:

A Hookah food delivery service is a business that provides customers with prepared meals and other food items to be smoked through a hookah. This type of service would make an excellent business idea because it provides customers with convenience, offers variety, and creates a social atmosphere for customers to enjoy.

  • Convenience: Customers can have the convenience of enjoying their favorite hookah meals from the comfort of their own home.
  • Variety: The service can provide customers with a variety of flavor combinations to choose from, including flavors from around the world.
  • Social Atmosphere: The delivery service can host events for customers to socialize and enjoy the hookah experience together.

An e-hookah bar is a type of lounge that serves flavored vapors that are inhaled through a device called an e-hookah. It's becoming increasingly popular as an alternative to smoking cigarettes or other combustible tobacco products. It offers a healthier and more discreet way to enjoy smoking, its flavors are more diverse, and it doesn't produce any smoke. An e-hookah bar could make an excellent business idea because of the following benefits:

  • It's relatively low-cost to start up and maintain.
  • It could attract a wide range of customers, both casual visitors and regulars.
  • It's a modern concept that could attract younger generations.
  • The variety of products and flavors can be used to tailor the experience to customers’ needs.
  • It presents great opportunities for upselling other products, such as snacks and drinks.

Related business ideas:

A Hookah catering business is a business that provides hookah pipe service for events such as parties, weddings, and corporate events. This type of business involves renting out hookah pipes and providing them with charcoal, tobacco, or other related items. It is a great business idea for those who are looking for an interesting and unique event experience. Here are some of the benefits of a Hookah catering business:

  • Provides a unique and exciting experience for customers.
  • A relatively low cost to set up the business.
  • The potential to earn a large profit margin.
  • No special licensing or certifications needed.

A Hookah festival organizer is someone who plans and coordinates festivals dedicated to the appreciation of hookah. This is a great business idea for a number of reasons, including:

  • The popularity of hookah has been steadily increasing in recent years.
  • The demand for hookah-related events is high among both hobbyists and curious beginners.
  • Hookah festivals offer participants opportunities to learn from experts and explore different varieties of hookahs.
  • There are many potential revenue streams that can be tapped into such as ticket sales, sponsorships, and product sales.

A mobile hookah lounge on a bus or truck is a concept that combines two popular activities – smoking and travel. This allows people to enjoy a hookah experience while traveling long distances, visiting different locations, or attending events. With mobile hookah lounges, customers can enjoy the same relaxing and social atmosphere of traditional lounges without having to stay in one location. Here are some of the advantages of a mobile hookah lounge:

  • It is a unique and creative way to enjoy a smoking experience
  • It helps create a social environment while travelling
  • It allows customers to access different types of hookahs, flavors, and accessories
  • It can be customized with amenities, food, and drinks
  • It is more convenient than having to go out of your way for a traditional lounge

A Online hookah sales business involves selling hookahs and related accessories via the internet. This type of business venture has the potential to generate significant profits with relatively low startup costs. Here are some of the advantages of starting an online hookah sales business:

  • Low upfront cost – You don't need a lot of capital to launch a successful online business.
  • Easy to manage – An online store is easily manageable since you don't have to worry about employee costs, rent or other overhead expenses.
  • Open 24/7 – An online store never closes, giving customers the convenience of shopping at any time of day or night.
  • Reaches more customers – Selling your products online lets you reach a wider audience than traditional brick and mortar stores.
  • Low overhead – Online stores require much lower overhead expenses such as staffing costs and rent.

A Customized Hookah Sales Business involves the sale of custom-made hookah pipes as well as accessories and other products related to hookah smoking. It can provide customers with unique, personalized hookahs - something not offered by traditional retail stores. This type of business is a great way to stand out in a competitive market and offers an excellent opportunity for hookah enthusiasts to purchase their own customized hookahs.

  • Options for customization include personalizing the hookah with multiple colors, shapes, and sizes.
  • Can also offer a wide variety of accessories such as hoses, covers, stands, mats, and charcoal.
  • Create unique marketing opportunities for your business.
  • Offer services such as custom designs or engravings.
  • You are able to offer personalized customer service.

More helpful resources about LLCs:

I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

ProfitableVenture

Hookah Bar and Lounge Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Food Industry » Hookah Bar & Lounge

Hookah Bar Lounge Business

Are you about starting a hookah bar & lounge? If YES, here is a complete sample hookah bar business plan template & feasibility report you can use for FREE .

The truth is that, if you choose to start a business just for the sake of making money, you are likely going to struggle to grow the business.

When the going gets tough as expected, you are likely going to pull out. One business that falls under this category is a hookah bar; you cannot successfully run a hookah bar business if you aren’t a smoker yourself.

The fact that The World Health Organization (WHO), in conjunction with Governments of various Countries are clamping down on smoking in public places just in a bid to protect non- smokers from the harmful effect of smoking makes hookah bar welcome loads of clients who usually love to share their experience with friends ( smoking tobacco with friends ) in a cozy environment.

Right there in the Airports, Cinemas, Shopping Malls and Public places in general, you might have noticed the “ Smoking Not Allowed ” signs hung at various spots informing the general public that the area is a no smoking zone. However, if you took your time to make enquiry, you would find that there are hookah bars and cigar lounges just around the corner.

Banning smoking in public places is actually a blessing in disguise for people with the intention of starting a hookah bar or a cigar lounge.

Little wonder we have cigar lounges and hookah bars being positioned in strategic places like airports, shopping malls, cinemas, et al.

Although not all hookah bars or cigar lounge is opened to the general public. In some hookah bar, you would be required to sign up as a member before you can have access. Below is a sample Hookah Bar business plan template that can help you to successfully write your own with little or no difficulty.

A Sample Hookah Bar Business Plan Template

1. industry overview.

The hookah bar / lounge which is also known as a shisha bar or den, especially in united kingdom and some parts of Canada is an establishment where patrons share shisha from a communal hookah or nargile which is placed at each table.

This is a location where tobacco smokers can purchase and smoke tobacco and cigars freely without the fear of breaking the law of a country or city. Businesses in this industry usually provide limited food and alcohol services as a means of increasing their revenue generation.

According to the American Cancer Society – ACS, hookah basically a flavored tobacco and it is smoked out of a ‘hookah’ water pipe. The tobacco is often called shisha which is a higher grade hookah with only molasses and flavoring added. It is a centuries old practice and most likely originated from india.

Hookah bars are mostly found in college towns and urban areas and are regarded by some as a trendy way to socialize and embrace multiculturalism. Some people of Middle Eastern or South Asian extraction consider them a continuation of their own cultural traditions.

Some hookah bars have well-equipped kitchens and are more similar to wine bars. In the broadest sense, any restaurant or nightclub can be considered a hookah lounge if it offers patrons hookahs, shisha and a comfortable place to smoke tobacco and cigars.

Because of several state anti-tobacco laws, most Hookah bars have made the transition from smoking traditional shisha to smoking herbal shisha because it contains no tobacco or nicotine and is legal indoors in areas specific to the prohibition of tobacco and cigar smoking. Besides, herbs do produce tar when they burn.

In recent time, the Hookah bars cum Cigar Lounges industry has made a strong comeback in the united states over the last five years as a large increase in tobacco consumption has boosted the demand for tobacco related products. In the face of regulatory hurdles in obtaining exemption from state indoor smoking bans, both industry participation and revenue have grown at rapid rates since 2010.

No doubt, as the economy continues to grow and improve over the next five years, more consumers will likely indulge in premium cigars and tobaccos at high-end hookah bars or cigar lounges, helping the industry sustain its growth and widen profit margins. So also, with the United States recent steps toward normalization of relations with Cuba will definitely expand access to the country’s high-end cigars and tobaccos, providing an opportunity for the industry to maximize profits.

The Hookah Bars cum Cigar Lounges industry is indeed a thriving industry in the United States, Canada and in most countries in Europe, Statistics has it that the Cigar Lounges and Hookah Bars  industry in the United States of America, is worth $2 billion, with an estimated growth rate of 11.0 percent.

There are about 7,684 legally registered and licensed cigar lounges / Hookah bars businesses scattered across the United States of America and they are responsible for employing about 17,980 people. The industry is an open industry hence a low level of market share concentration.

In order to invest wisely, you need to carry out a research on the industry or line of business you intend investing in. if you are opening a hookah bar for the first time, it is important you conduct a thorough research so that you can be well informed and guided when making the choices of what you want from the array of options that are available to you.

Researching will open you up to the various opportunities you can leverage on and how you can access them. It’s not compulsory that you must be the one to carry out the research; you can pay professionals to help you garner the needed information.

Any entrepreneur who wants to start a hookah bar business in the US would definitely be confronted with tough competition out there. The truth is that, you will not only compete with hookah bars /smoke shops / cigar lounges in your location or city, but you would be competing with every other entertainment options such as wine bars, night clubs, restaurants, casinos et al where cigars and tobacco et al are retailed and can be freely smoked.

For instance, people go to bars to drink, smoke and socialize and they tend to get more when they go to night clubs or other entertainment hub. In night clubs, people do not only drink, smoke and socialize, but they also dance if they choose to and get entertained.

2. Executive Summary

Purple & Blue Hookah Bar®, LLC is a neighborhood hookah bar cum cigar lounge that will be located on the ground floor of one of the busiest campus communities with a robust international in the United States of America – The University of California – Los Angeles. We have been able to secure a one-year lease of a vacant shop within the campus facility. We are fortunate to secure a facility with an option of renewal for 5 years at an agreed rate that is favorable to us.

We are going to be involved in the sale of traditional shisha, sale of herbal shisha sale of cigars, sale of tobacco-related accessories, sale of other tobacco products, sale of food and drink, mass marketing cigars and cigarillos, sale of premium cigars, providing a cigar-friendly smoking environment, sale of assorted red and white wines, sale of beer and liquor, sale of distilled spirits, martinis and tobacco et al to campus students and visitors in a conducive environment that is specifically designed for socializing and networking and free from all forms of violence.

Purple & Blue Hookah Bar®, LLC is designed and constructed to meet both the health and safety standard as recommended by the local authority. Our customers are going to be treated with good music at all times. We have made provision for live band, karaoke, country side music and jazz et al.  This will be played at the background to create the ambience that our customers will cherish.

We are in business to make profits at the same to give our customers value for their money; we want to give people the opportunity to choose from the wide range of shisha, assorted cigars, tobaccos and drinks that are manufactured both in the United States of America and overseas.

Purple & Blue Hookah Bar®, LLC will go all the way to make available in our hookah bar most of the shisha, tobacco and cigar brands produced in the United States of America and in other parts of the world especially in countries like Cuba, India and Italy.

We aware that hookah bars easily attract intellectuals and business people and we know that the campus community is one of the places where we can easily tie down these people especially when they have to socialize.

We will ensure that all our employees are selected from a pool of qualified and customer centric people in and around Los Angeles – California and also from any part of the United States. We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with other players in the United States and throughout the globe.

Purple & Blue Hookah Bar®, LLC is owned by Clarence Williams and his immediate family members. Clarence Williams has managed several cigar lounges, smoke shops , bars and night clubs in Los Angeles and Las Vegas prior to opening his own hookah bar. He has the magic wand to attract people who go to cigar lounges and hookah bars on a regular basis.

3. Our Products and Services

Purple & Blue Hookah Bar®, LLC is going to operate a standard and health compliance hookah bar in University of California – Los Angeles that will make available shisha, most of the cigar products and accessories that can be found in a standard cigar lounge or hookah bar in the United States.

We will also ensure that we go all the way to make available assorted wines and alcoholic drinks in our smoke hookah bar. These are some of our product and service offerings;

  • Sales of traditional shisha and herbal shisha
  • Sales of cigars
  • Sales of tobacco-related accessories
  • Sales of other tobacco products
  • Sales of food and drink
  • Mass market cigars and cigarillos
  • Premium cigars
  • Providing a cigar-friendly smoking environment
  • Assorted red and white wines
  • Beer and liquor
  • Distilled spirits
  • Sale of E – Cigars

4. Our Mission and Vision Statement

  • Our vision is to establish a standard, health compliance and secured hookah bar in Los Angeles – California that will be the melting pot of all lovers of shisha, cigars, tobaccos, wine, alcoholic and non – alcoholic drinks.
  • Our mission is to establish a hookah bar business that will make available all the brands of shisha, cigars, tobaccos, wine, and alcoholic drinks in the United States and other parts of the world at every given time to our highly esteemed customers and a place where people can network and socialize.

Our Business Structure

Purple & Blue Hookah Bar®, LLC is a business that is established to be a pacesetter when it comes to how standard hookah bar should be run in Los Angeles and even in the United States of America. We have the goal of assembling a team of dedicated workforce who will give our customers excellent customer service at all times, a team that will ensure that we will continue to have repeated customers and a team that will indeed make us the melting pot for smokers and socialites in Los Angeles.

In view of the above, we have been able to follow suits on what is obtainable in standard hookah bars and cigar lounges in the United States and perhaps improve on the structure with time when the need arises. We will work hard to ensure that we only attract people with the right mindset to help us achieve our business goals and objectives in record time.

Below is the business structure that we will build Purple & Blue Hookah Bar®, LLC;

  • Chief Executive Officer (Owner)
  • Hookah Bar Manager
  • Bartender / Baristas
  • Accountants / Cashiers
  • Procurement Officer

Greeters / Customer Service Agent / Table Attendant

Security Officers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization
  • Carries  out staff induction for new team members

Hookah bar Manager:

  • Responsible for managing the daily activities in the hookah lounge
  • Ensures that the facility is in tip top shape and conducive enough to welcome customers
  • Interfaces with vendors
  • Reports to the Chief Executive Officer
  • Attends to Customers complains and enquiries
  • Prepares budget and reports for the organization
  • Responsible for Training and Development in the organization
  • Responsible for procuring of supplies and equipment
  • Handles any other duty as assigned by the CEO

Bartender / Baristas:

  • Makes lists of supplies in conjunction with the hookah bar manager / management
  • Assess customers’ needs and preferences and make recommendations
  • Arranges bottles and glasses to make attractive displays .
  • Serves wine and beer to guests.
  • Prepares alcohol or non-alcohol beverages.
  • Mixes drinks, cocktails and other bar beverages as ordered and in compliance with standard drink recipes.
  • Mixes ingredients to prepare cocktails and other drinks.
  • Checks identification of the guest to make sure they meet age requirements for purchase of alcohol and tobacco products.
  • Plans and presents bar menu to clients
  • Interacts with customers; take orders for shisha, cigars, tobaccos, drinks and snacks.
  • Prepares inventory or purchase requisitions as needed to replenish supplies.
  • Ensures that the assigned bar area is fully equipped with tools and products needed for mixing beverages and serving guests.

Accountant / Cashier:

  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting for one or more properties.
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the company
  • Serves as internal auditor for the company.

Disc Jockey (DJ)

  • Ensures that customers are entertained with the best of music per time
  • Manages the sound system for the hookah bar
  • In charge of music collections
  • Provides music at events.
  • Responsible for developing music playlists.
  • Interacts with public at parties.
  • Responsible for mixing music tracks.
  • Opens door and welcome customers
  • Ensures that customers feel relaxed and at home
  • Handles customers enquiries
  • Assesses customers’ needs and preferences and make recommendations
  • Ability to sell or influence others for up selling and suggestive selling.
  • Provides recommendations and suggestions to guest for choosing Drinks and Snacks.
  • Serves customers in a friendly and helpful manner.
  • Determines when a customer has had too much shisha, cigar and alcohol and if required refusing any further serving on a polite way.
  • Demonstrates a thorough knowledge of shisha, cigar and alcoholic products, menus and Promotions
  • Handles any other duty as assigned by the smoke shop manager
  • Handles and moves objects, such as hookahs, glasses and bottles, using hands and arms.
  • Cleans up after customers and clean work area.
  • Clears ashtrays as and when required.
  • Washes glassware and utensils after each use.
  • Maintains a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.
  • Ensures that toiletries and supplies don’t run out of stock
  • Handles any other duty as assigned by the hookah bar manager.
  • Ensures that the hookah bar facility is secured at all time
  • Controls traffic and organize parking
  • Gives security tips to staff members from time to time
  • Patrols around the building on a 24 hours basis
  • Submits security reports weekly
  • Any other duty as assigned by the smoke shop manager

6. SWOT Analysis

Purple & Blue Hookah Bar®, LLC is established with the aim of becoming the melting point for smokers and socialites in Los Angles which is why we have taken our time to critically analyze and conduct SWOT analysis to be able to identify areas we need to work on if indeed we want to achieve our business goal.

No investor would want to invest his or hard earned money without assessing the risks involved in the venture and also his or her capability to deliver and make profits from the business. The ability to make profits from any business and to favorably compete with competitors in the industry starts with the result you get from your SWOT analysis.

In view of that, Purple & Blue Hookah Bar®, LLC hired a business and HR specialist to help her conduct SWOT analysis for the business and below is a summary of the result that was generated;

Our strength as a company are, excellent and detailed customer service a wide range of assorted shisha, cigars, tobaccos, and alcoholic drinks both from the United States and other parts of the world. Excellent facility, excellent ambience and perfect location for a hookah lounge in metropolitan city like Los Angles.

Our perceived weakness could be that we are new business, and we may not have the financial muscle to sustain the kind of publicity we want to give our business.

  • Opportunities:

There are unlimited business opportunities available to hookah bar businesses in busy communities like University of California – Los Angeles; Los Angeles is one of the cities in the world where social life is at its peak. Besides the campus facility where our hookah lounge is located is one of the busiest in the United States and it is open to loads of opportunities due to the influx of international students especially from India and other Asia countries.

Another opportunity that we stand to leverage on is the fact that we can easily order any brand of shisha, cigar, tobacco, wine and drinks directly from the manufacturer with little or no stress.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new hookah bar, cigar lounge or wine bar in same facility or within same location where our target market exist and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

  • Market Trends

Despite the fact that the hookah bars cum cigar lounges industry has long existed in the United States, it is starting to fall back into fashion. Innovative flavors and different varieties of shisha and cigars have increased demand over the last five years.

Recent data from the Centers for Disease Control and Prevention (CDC) clearly indicated that 40.0 percent of people who try smoking try flavored cigarettes or cigarillos. Consequently, this industry has jumped back into a growth phase.

A close observation of the trends in the industry shows that hookah use has increased dramatically among American and European youth in recent years because of the social atmosphere it creates, and because many young adults believe hookah is a safer alternative to cigarette smoking, for that reason they do not fully understand the health effects that come along with it. In order to remain open, many hookah lounges cannot sell food or beverages. Roughly 90 percent of the cities that have put a ban on smoking in public places have exemptions for hookah bars.

Most hookah bars in the United States have chic or ultramodern elements such as glass tables, plasma televisions, and oxygen bars et al. Most bars in the U.S. require patrons to be at least 18 years of age to smoke shisha and 18 years of age to purchase ( exceptions are Utah, Arizona, Alabama, and New Jersey: 19 years of age to smoke ).

However the laws in some other states require the patron to only be 18 years of age to purchase or possess tobacco, which in a hookah bar, the patron is doing none of these, for that reason one is likely going to find under age teenagers in many hookah bars in the United States

No doubt, the Hookah Bars cum Cigar Lounges industry will continue to improvise on ways to increase sales. They seek to remove the association of shisha, tobacco and cigar with high – end clientele and overwhelming cigar lists and replace it with a more casual and relaxing atmosphere.

Many of these hookah lounges are furnished with nooks and cozy booths encased in rich colors and plush surroundings in hopes their guests will linger. Hookah lounges look to embrace the intellectual stimulation linked to shisha, cigar and tobacco and offer an alternative to the hookah bar scene. The phlegmatic environment lends itself to a good socializing setting with a less crowded feel and more intimate appeal.

In recent time, hookah lounges have begun to incorporate a larger variety of alcoholic drinks and food choices as part of their product offerings. It is obvious that adding these product offerings help in creating alternate source of generating sales and increasing their overall income even if they struggle to sell their shishas, cigars and tobaccos.

8. Our Target Market

Before starting our hookah lounge business in Los Angeles – California, we conducted a market survey and feasibility studies and we are certain that there is a wide range of people who would patronize our hookah lounge on a regular basis.

In view of that, we have created strategies that will enable us reach out to various groups of people who are likely going to become our loyal customer. Below are our target markets;

  • Corporate Executives
  • Politicians
  • Celebrities
  • Taxi Drivers
  • Business People
  • Sports Men and Women
  • Government Officials
  • College Students

Our competitive advantage

We are mindful of the fact that there are stiffer competitions in the hookah bars cum cigar lounges industry in the United States of America; hence we have been able to hire some of the best business developer to handle our sales and marketing.

Part of what is going to be our selling point is the fact that we operate a standard and health compliance hookah bar, in a perfect location (one of the busiest campus facilities in University of California – Los Angeles, the United States) for the kind of business that we run and also the fact that our hookah lounge facility is highly secured.

Another factor that will give Purple & Blue Hookah Bar®, LLC competitive edge is that we have enough parking space to accommodate the numbers of customers our hookah lounge can contain per time. We are not ruling out the fact that we have a dedicated and customer centric workforce that are willing to go the extra mile to give our customers full value for their money and time whenever the patronize our hookah lounge.

We are not ignoring the fact that we are among the few neighborhood hookah lounge in Los Angeles that sells almost all the brands of shisha, cigar, tobacco, and alcoholic drinks available in the United States of America, crafted beers, distilled spirits, liquors et al and obviously, that will surely count towards our advantage in the market place and also the robust experience of our CEO and the hookah bar manager is also a positive for Purple & Blue Hookah Bar®, LLC.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups hookah lounges, wine bars and night club businesses in the United States) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Purple & Blue Hookah Bar®, LLC is established with the aim of maximizing profits in the hookah bars cum cigar lounges industry and we are going to go all the way to ensure that we do all it takes to attract our target market. The sources of income for Purple & Blue Hookah Bar®, LLC are stated below;

10. Sales Forecast

One thing is certain when it comes to hookah lounge business, if your hookah lounge is cozy, relaxing, well stocked and centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Los Angeles California and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.

We have been able to critically examine the hookah lounge market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Los Angeles – CA.

Below are the sales projections for Purple & Blue Hookah Bar®, LLC, it is based on the location of our business and other factors as it relates to hookah bars start – ups in the United States;

  • First Fiscal Year-: $120,000
  • Second Fiscal Year-: $350,000
  • Third Fiscal Year-: $750,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

Top of the list on our marketing and sale strategy document is generating a buzz for our hookah lounge via word-of-mouth and leveraging on road show around UCL campus community.

Despite the fact that our first outlet is located inside University of California Los Angeles, the model of hookah lounge we intend running is a neighborhood bar hence we are not going to rely only on the conventional ways of marketing.

We don’t have the plans to run paid adverts on Local TV stations, local radio stations or even local newspaper but we will sure maximize every other available means to promote our business. Our unique selling proposition is that we have a collections of almost all the brand shishas, cigars and tobaccos produced in The United States in our hookah lounge, we also have assorted alcoholic drinks et al.

In view of that, we are going to adopt the following marketing strategies to ensure that we do not only attract customers but generate repeated sales from them. Parts of the marketing and sales strategies that we will adopt are;

  • Open our hookah lounge in a grand style with a party for all.
  • Introduce our hookah lounge by sending introductory letters alongside our brochure to organizations, households and key stake holders in Los Angeles – California
  • Ensure that we have a wide range of shishas, cigars, tobaccos, wines, beers, liquors, distilled spirits, martinis and non-alcoholic drinks at all times.
  • Make use of attractive hand bills to create awareness and also to give direction to our hookah lounge
  • Position our signage / flexi banners at strategic places all around Los Angeles
  • Position our greeters to welcome and direct potential customers
  • Create a loyalty plan that will enable us reward our regular customers
  • Engage on road shows within our neighborhood to create awareness for our hookah lounge.

11. Publicity and Advertising Strategy

Purple & Blue Hookah Bar®, LLC is a campus hookah bar and we will ensure that we create the buzz that will make people in our area know about us and what we do. We are quite aware that one of the effective ways of promoting our hookah lounge is to create special internal promotions which in turn will help us achieve our aim of leveraging on word of mouth publicity.

Here are the platforms we intend leveraging on to promote and advertise Purple & Blue Hookah Bar®, LLC;

  • Encourage the use of word of mouth publicity from our loyal customers
  • Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook ,Twitter, LinkedIn, Snapchat,  Badoo, Google+  and other platforms (music online forums) to promote our business.
  • Ensure that our we position our banners and billboards in strategic positions all around Los Angeles – CA
  • Distribute our fliers and handbills in target areas in and around our neighborhood
  • Contact corporate organizations, college students, business people, households, landlord associations and political parties by calling them up and informing them of Purple & Blue Hookah Bar®, LLC and the products we sell
  • Advertise our cigar lounge business in our official website and employ strategies that will help us pull traffic to the site
  • Brand all our official cars and vans and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

The prices of our shishas, cigars, tobaccos, wines, beers, and other alcoholic drinks et al will be what is obtainable in the market. In fact we will try as much as we can to sell below the industry’s average so as to attract loads of customers. We also have plans in place to discount our products once in a while and also to reward our loyal customers.

  • Payment Options

The payment policy adopted by Purple & Blue Hookah Bar®, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Purple & Blue Hookah Bar®, LLC will make available to her clients;

  • Payment via bank transfer
  • Payment with cash
  • Payment via credit cards / Point of Sale Machines (POS Machines)
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
  • Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our products.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.

The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a hookah lounge business; it might differ in other countries due to the value of their money.

This is what it would cost us to start Purple & Blue Hookah Bar®, LLC in the United of America;

  • The Total Fee for Registering the Business in Los Angeles, CA – $750.
  • Legal expenses for obtaining licenses and permits as well as the accounting services totaling – $1,200.
  • Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The cost for hiring Consultant – $2,500.
  • Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • The cost of accounting software, CRM software and Payroll Software – $15,000
  • Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of – $105,600.
  • The cost for facility remodeling – $25,000.
  • Other start-up expenses including stationery – $500
  • Phone and utility deposits – ( $2,500 )
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
  • The cost for start-up inventory (traditional shisha, herbal shisha, assorted tobaccos, assorted cigars and alcoholic drinks and non-alcoholic drinks) – $16,027
  • Storage hardware (bins, utensil rack, shelves, glasses case) – $3,720
  • The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
  • The cost for serving area equipment ( glasses, flatware) – $3,000
  • The cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • Office equipment and furniture – $3,600
  • The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
  • The cost of Launching a Website – $600
  • The cost for our grand opening party – $5,000
  • Miscellaneous – $2,500

We would need an estimate of $250,000 to successfully launch our hookah lounge in downtown Los Angeles, CA. This amount includes the salary of all employees and the CEO (Owner) for 3 months.

Generating Funds/ Startup Capital for Purple & Blue Hookah Bar®, LLC

Purple & Blue Hookah Bar®, LLC is a private business that is owned by Clarence Williams and his immediate family members and they intend to finance the business alone. Although they have plans to make the hookah bar manager part owner of the business after 5 or 7 years of services, but that does not stop him from reserving well over 80 percent stake of the business for himself and his family.

Since they are the sole financier of the business, they have decided to adopt the following means to generate start – up capital for the business;

  • Generate part of the start – up capital from his personal savings and sale of his stocks
  • Source for soft loans from family members and friends
  • Apply for loan from my Banks

N.B: Mr. Sleek Davenport and his family have been able to generate $100,000 the breakdown shows that they generated $75,000 from their personal savings and sale of their stocks and they generated $25,000 soft loans from their family members and friends. The balance of $150,000 will be generated as loan facility from the bank.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Purple & Blue Hookah Bar®, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to properly position our hookah lounge, ensure adequate security, availability of various brand of shishas, cigars, tobaccos, alcoholic drinks and excellent customer service et al.

Purple & Blue Hookah Bar®, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

  • Business Name Availability Check: Completed
  • Business Registration: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Securing Point of Sales (POS) Machines: Completed
  • Opening Mobile Money Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Renting of facility and remodeling the facility: In Progress
  • Conducting Feasibility Studies: Completed
  • Generating capital from family members: Completed
  • Applications for Loan from the bank: In Progress
  • writing of business plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Purchase of the Needed furniture, electronic appliances, office appliances and bar accessories: In progress
  • Creating Official Website for the Company: Completed
  • Creating Awareness for the business both online and in the neighborhood: In Progress
  • Health and Safety and Fire Safety Arrangement (License): Secured
  • Opening party / launching party planning: In Progress
  • Establishing business relationship with vendors – suppliers of all our needed shishas, cigars, wine, alcoholic and non – alcoholic drinks, tobacco and small chops et al: In Progress

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The Moscow Intenational Business Center

Moscow-City is an iconic location for life and work in Russia’s capital. Enormous skyscrapers, business centers, the best restaurants and retail spaces – all this is concentrated in one place. The ultramodern Moscow-City towers are truly striking in their outward appearance, and the layout of the apartments inside and the fantastic views that can be seen from the higher floors are nothing short of impressive.

This skyscraper compound, often referred to as Moskva-City, is the Russian take on Manhattan, where businessmen strike multi-million dollar deals daily while ordinary life goes on next door. Its state of the art spaces offer the ultimate convenience. The infrastructure of this business district is so well-developed that anyone can find something interesting for themselves here: from residential apartments to boutiques, clubs, exhibitions and more.

When the foundations for the Moscow-City skyscrapers were laid, a special kind of concrete was used, the properties of which are amplified by many times compared to standard concrete. Even in the event of a plane crashing into one of the buildings, the structural integrity of the towers will be preserved.

The architects of the Moscow-City Business Center have created a unique locality that has integrated into itself the hub of the capital’s business life and a whole ensemble of historical monuments. Anyone can admire the beauty of these skyscrapers from within or without the compound. There are also a number of apartments for sale or rent available in the MIBC itself. But first, let’s have a look at some more interesting facts about the financial core of Russia’s capital.

  • 1 How It All Began
  • 2.1 Moscow-City Central Core
  • 2.2 Tower 2000
  • 2.3 Evolution Tower
  • 2.4 Imperia Tower
  • 2.5 Moscow Tower and St. Petersburg Tower
  • 2.6 Steel Peak Tower
  • 2.7 Federation Tower
  • 2.8 Mercury City Tower
  • 2.9 OKO Tower Complex
  • 3.1 Afimall City Shopping Center
  • 3.2 Bagration Bridge
  • 3.3 Expocentre Fairgrounds
  • 4 Renting and Buying Real Estate in Moscow-City

How It All Began

The history of Moscow-City goes all the way back to 1992. The government of Moscow at the time wanted to bring into existence its own skyscrapers like the ones in London or New York. And the idea caught on. In 1992 the project for the construction of the huge “Moscow-City” MIBC compound was enthusiastically approved, kick-starting the painstaking preparatory works. The original intention was that the skyscrapers would only house office space. However, as time went on, the towers began to welcome in ordinary residents who wanted to live on the territory of this business and finance hub.

Moscow-City is undoubtedly a city within a city. Its grandeur is mind-boggling. It is perfect in every way: from location to infrastructure. And today, anyone can get a feel of the atmosphere of the “capital city” of Russia’s business world – many of the apartments in Moscow-City are available for rent. Any citizen of Russia and even nationals of other countries can make use of these offers.

What It’s Like in 2021

Today Moscow-City is not just a magnificent and fascinating sight, but also a real hub for the work, life and leisure of thousands. Its infrastructure is organized in such a way that there is no need to leave the territory of the “city within a city” at all. This business district contains everything one may need for work and recreation. And if one does decide to venture out into the larger metropolis, the MIBC’s three subway stations make this remarkably simple to do.

Moscow-City stands on the Presnenskaya Embankment . Each of the buildings in the district has a name, which simplifies its identification. Some of the buildings form complexes that are united under one name, such as the Neva Towers and the Naberezhnaya Tower complex of two skyscrapers and one high rise. There are a total of 16 towers in the MIBC, of which the most popular are:

  • Moscow-City Central Core;
  • Tower 2000;
  • Evolution Tower;
  • Imperia Tower;
  • City of Capitals (Moscow Tower and St. Petersburg Tower);
  • Steel Peak Tower;
  • Federation Tower;
  • Mercury City Tower;
  • OKO Tower Complex.

Moscow-City Central Core

This is the most complex building within the MIBC compound. Its total floor area is a whopping 1 476 378 sqft (450 000 m²). It consists of two massive parts, each of which boasts a truly impressive infrastructure. The underground part includes 3 Moscow Metro stations, a parking lot for automobiles and a shopping mall. The aboveground part houses a concert hall and a hotel.

Tower 2000 is a skyscraper having 34 stories. Its total floor area is 200 318 sqft (61 057 m²), most of which is office space. The key feature of this skyscraper is its direct connection to the Bagration Bridge, which has its own shopping arcade. The tower has everything one may need while working here, including a large parking lot and several restaurants.

Evolution Tower

This elegant structure is 836 feet (255 m) high – that’s a whole 54 stories! The total floor area here is 554 462 sqft (169 000 m²). The Evolution Tower’s key feature is that it has its own Wedding Hall. This skyscraper houses large office spaces, a parking lot and several restaurants.

Imperia Tower

MIBC’s Imperia Tower is the undeniable focal point of the MIBC’s business life. Its height is 784 feet (239 m), which means one can hold conferences and resolve key business matters on the 59 th floor! And that really is amazing! The tower has everything: offices, hotels, restaurants and parking lots. But if you want a truly unforgettable experience, visit the viewing platform! It is situated on the 58 th floor and a simply astounding view of Moscow can be seen from it.

Moscow Tower and St. Petersburg Tower

The Moscow and St. Petersburg Towers are the chief representatives of the MIBC. The Moscow Tower has 76 stories and is 990 feet (302 m) high, while the St. Petersburg Tower has 65 stories and stands 843 feet (257 m) tall. Both towers offer fantastic views of the capital city.

Most of the floors of these two skyscrapers are taken up by luxurious sky apartments. There are also several recreational and entertainment centers, office spaces, restaurants, etc.

Steel Peak Tower

Also known as the Eurasia Tower of Moscow-City, this supertall skyscraper has a total of 680 912 sqft (207 542 m²) of floor space. Most of this is taken up by offices, and the rest – by residential quarters (around 65 616 sqft or 20 000 m²). The tower also houses a number of the greatest restaurants, studios and shopping centers.

Federation Tower

The Federation Tower is a complex of two skyscrapers, known as Tower East and Tower West. Tower East is the second highest building in Europe (the first is a skyscraper recently erected in the city of St. Petersburg). Its height is a colossal 1 223 feet (373 m) and that makes 95 stories! Tower West, on the other hand, is noticeably shorter at 794 feet (242 m).

The Federation Tower is a multifunctional complex.

Mercury City Tower

The Mercury City Tower skyscraper is widely known as one of the tallest buildings in Europe. Its height is 1 112 feet (339 m) and it has 75 stories. It is multifunctional by concept, holding within its walls shopping centers, offices and all kinds of other spaces. It is also possible to rent apartments here.

OKO Tower Complex

The OKO Tower Complex consists of two towers – the North Tower (49 stories and 803 ft or 245 m in height) and the South Tower (85 stories and 1 155 ft or 352 m in height).

Each of the MIBC’s tower complexes has its own recreational and entertainment areas, restaurants and parking lots. The top floors of most of these buildings contain luxurious fully-furnished apartments. At night, the towers shine with bright lights, while inside them the panoramic windows reveal astounding views of Moscow. This breathtaking view of the capital of Russia is why visiting Moscow-City is a must!

What Not to Miss

There are many interesting landmarks within the Moscow-City compound, but three of them are truly deserving of special attention:

  • The Afimall City Shopping Center;
  • The Bagration Bridge with two galleries and a shopping arcade;
  • The Expocentre Fairgrounds.

Afimall City Shopping Center

The Afimall City Shopping and Entertainment Center is located in Moscow-City’s Central Core. It is divided into 4 zones, each with its own theme – one for every season of the year. The shopping center houses the biggest indoor fountain found worldwide. The height of this watery wonder is 118 feet or 36 meters.

The shopping and entertainment center contains everything one might expect from one of the largest centers of its kind:

  • Retail brand stores;
  • Exhibitions;
  • Game rooms;
  • and Restaurants.

The main recreational space is roofed with a giant transparent dome, which is an impressive sight to behold.

Bagration Bridge

Bagration Bridge with its upper and lower galleries has a shopping center all of its own and was the first structure to be built as part of the Moscow-City business district. Its lower gallery is a shopping arcade and its upper gallery is an open-air viewing platform with a spectacular view of the MIBC and the Moskva River. The hall of the bridge houses the 23 foot tall sculpture called “Tree of Life”. Having gone through the bridge via either one of its two galleries, a pedestrian would find themselves standing right on the Kutuzovsky Prospekt.

Expocentre Fairgrounds

The Expocentre Fairgrounds exhibition venue is located at the very heart of the capital. The first exhibition held at the Expocentre happened all the way back in 1959, much earlier than the MIBC was erected. Today it is the venue of many interesting events.

Exhibitions with very diverse themes are regularly held at this complex. An up-to-date schedule can be found on the official webpage of the Expocentre. The events can be free or fixed-price entry, depending on their type.

Renting and Buying Real Estate in Moscow-City

Moscow-City is not only a work and business hub, but also a residential neighborhood. Any citizen of Russia can rent or buy apartments or elite sky lounges here. The variety of residential real estate available inside the skyscrapers is impressive, including options for any pocket. The following buildings in the MIBC contain residential blocks:

This skyscraper has a mirror glass façade which reflects the passing clouds. Just imagine how beautiful that looks! Anyone can buy an apartment in the Federation Tower. Such properties are not only a good investment, but also a mark of prestige. The average price of residential real estate here is 45 million rubles for an apartment with a total floor area of 334 sqft (102 m²). The average price of a square meter (3.28 square feet) is in the range of 650 to 700 thousand rubles. There are two- and three-room apartments available in the Federation Tower, each with its own loggia. As for rent, the minimum price of one month’s stay in a three-room apartment in this skyscraper is 300 000 rubles per month.

The Mercury City Tower skyscraper welcomes citizens from all parts of Russia. This building is no less tall than the world-famous Dubai skyscrapers. Living in its apartments is a delight. The minimum cost of an apartment in the Mercury City Tower is 75 million rubles. The average price of a square meter (3.28 square feet) is 800 thousand rubles. And for those looking for a lower price point, some of the properties are also available for rent – in this case you will pay a minimum of 250 thousand rubles per month.

The Imperia Tower is a key cluster of interesting offers. The best options for buying and renting apartments within the MIBC can all be found in this skyscraper. The lowest price of a residential apartment here is 40 million rubles. A square meter (3.28 square feet) in a luxurious apartment in the Imperia Tower currently costs 600 thousand rubles, while the price range of the listings available for rent in this skyscraper is from 350 thousand all the way up to 1 million rubles per month.

This complex, standing on a faceted or “crystal” base, is an architectural engineering project boasting spectacular design. Behind its impressive façades is an abundance of penthouses and apartments having floor areas in the range of 262 sqft (80 m²) to 984 sqft (300 m²). The minimum price of an apartment in the OKO Tower Complex is 40 million rubles (the price of a square meter (3.28 square feet) is 500 thousand rubles). You can rent an apartment here starting from 400 thousand rubles per month.

City of Capitals

The City of Capitals is an exemplary architectural complex. Its sum appearance gives the impression of a huge city. Inside its walls are spacious apartments available for purchase and rent. This complex is considered to be especially prestigious. The prices of apartments here start from 50 million rubles, while the minimum cost of renting is 400 thousand rubles per month.

Please note! The price of real estate available for purchase or rent depends on: the tower, the floor, the total floor area, the furnishings and/or interior design, and other factors.

The key advantages of buying/purchasing real estate in Moscow-City are:

  • Favorable location;
  • Convenient transportation links;
  • Well-developed infrastructure;
  • High safety level;
  • Efficient architecture;
  • Panoramic windows.

Buying real estate in Moscow-City is very much a rational decision, most appealing to those who value the ultimate level of comfort. The residential apartments here boast impressive interior design solutions executed in the contemporary style.

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Hookah Barvikha Lounge Moscow City

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