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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.

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

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).

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:

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.

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

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.

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.

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

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.

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.

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.

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 Lounge Business Plan Sample

Published Jul.27, 2018

Updated Sep.14, 2024

By: Jakub Babkins

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Table of Content

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.

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:

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

Operational and strategic planning.

he 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.

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

6.4 Sales Yearly

6.5 Sales Forecast

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.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

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Hookah Lounge Business Plan Template

Written by Dave Lavinsky

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 Hookah Lounge 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 for a Hookah Lounge

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.

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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?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the hookah lounge industry. Discuss the type of business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

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?

Think about ways you will outperform your competition and document them in this section of your plan.  

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.  

Don’t you wish there was a faster, easier way to finish your Hookah Lounge business plan?

OR, Let Us Develop Your Plan For You

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Hookah Bar & Lounge Business Plan : free template

Welcome to the comprehensive business plan for Hookah Bar Ltd, a premier destination for hookah enthusiasts and socialites seeking a vibrant and relaxing ambiance. In this article, we will delve into the strategic framework that outlines our vision, mission, and key objectives for establishing a thriving Hookah Bar & Lounge. From product offerings and market analysis to marketing strategies and financial projections, join us as we unveil our blueprint for success in the dynamic world of hookah culture. Discover how Hookah Bar Ltd aims to become a favored gathering spot, offering an unparalleled hookah experience, refreshing beverages, delectable snacks, and top-notch service. Let’s explore the exciting journey of crafting a remarkable hookah lounge business plan!

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Hookah Bar & Lounge Business Plan: Executive Summary

Introduction.

The Executive Summary of Hookah Bar Ltd’s business plan provides an overview of the company’s vision, mission, and key objectives. It outlines the essential elements that make this business unique and sets the stage for the comprehensive plan that follows. This section aims to give investors, stakeholders, and potential partners a quick and clear understanding of the business’s potential.

Company Overview

Hookah Bar Ltd aims to establish a premier Hookah Bar and Lounge in a prime location known for its vibrant nightlife and diverse clientele. Our establishment will offer a sophisticated and relaxing ambiance, where patrons can enjoy a wide variety of flavored hookahs, refreshing beverages, and delectable snacks. With a team of experienced professionals and a commitment to exceptional customer service, we are poised to become a preferred destination for hookah enthusiasts and socialites alike.

Market Opportunity

The hookah industry has experienced steady growth over the years, attracting a diverse customer base. With the rising popularity of hookah culture among young adults, there is a considerable market opportunity to capitalize on. Hookah Bar Ltd aims to tap into this growing demand by offering an unmatched hookah experience, complemented by a captivating atmosphere and top-notch service.

Key Objectives

1. Establish a Distinct Brand Identity: Through creative marketing and strategic partnerships, Hookah Bar Ltd will position itself as the go-to destination for hookah aficionados. 2. Deliver Exceptional Customer Experience: We will prioritize customer satisfaction by ensuring prompt service, quality products, and a welcoming environment. 3. Build Strong Supplier Relationships: By partnering with reputable hookah and beverage suppliers, we will maintain a consistent and high-quality product offering. 4. Achieve Profitable Growth: Through controlled financial management and revenue generation, we aim to achieve sustainable and profitable growth. 5. Expand to New Locations: With a successful flagship location, we plan to expand our presence to other high-traffic areas.

Financial Summary

The financial summary provides an overview of Hookah Bar Ltd’s projected revenue, expenses, and profitability over the next three years. Detailed financial forecasts are available in Section 6 of this business plan.

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Hookah Bar & Lounge Business Plan: Product and Service

Product offerings.

At Hookah Bar Ltd, we take pride in offering a diverse range of high-quality hookah flavors sourced from reputable manufacturers. Our hookah menu will cater to both traditional and contemporary tastes, ensuring there is something for every customer. From classic flavors like mint and apple to unique blends crafted in-house, we strive to provide a delightful and unforgettable hookah experience.

To complement the hookah experience, we will offer a well-curated selection of beverages, including refreshing mocktails, fruit juices, and premium soft drinks. For those seeking an elevated experience, we will also feature a handpicked assortment of alcoholic beverages, such as wines, beers, and specialty cocktails. Our aim is to offer a diverse beverage menu that caters to the preferences of our diverse clientele.

Snacks and Appetizers

Hookah Bar Ltd will serve a tempting assortment of snacks and appetizers to satisfy our customers’ cravings. Our menu will include both international and local favorites, ranging from light bites like hummus and pita to heartier options like sliders and gourmet fries. We will also accommodate dietary preferences by offering vegetarian and vegan options.

Hookah Accessories and Retail

In addition to our hookah and culinary offerings, we plan to provide a selection of hookah accessories for sale. These may include replacement parts, premium coals, stylish hoses, and decorative elements to enhance the hookah setup. By offering retail options, we aim to create additional revenue streams and reinforce our position as a one-stop destination for all things hookah-related.

Private Events and Catering

Recognizing the demand for unique event experiences, Hookah Bar Ltd will offer private event hosting and catering services. Whether it’s a birthday celebration, corporate gathering, or social event, our team will work closely with clients to curate bespoke hookah and culinary packages that meet their specific requirements. Our private events will provide an exclusive and memorable experience for guests.

Quality Assurance

At Hookah Bar Ltd, we prioritize the quality and safety of our products and services. Our hookahs and accessories will undergo regular maintenance and cleaning to ensure the highest level of hygiene and functionality. Moreover, all our beverages and snacks will be sourced from reputable suppliers and prepared with utmost care, adhering to the highest food safety standards.

Customer Experience

Our focus on providing an exceptional customer experience will be evident in every aspect of our business. From the moment patrons step into our lounge, they will be greeted with warmth and hospitality by our well-trained staff. We will maintain a welcoming ambiance, conducive to relaxation and socialization, making Hookah Bar Ltd a preferred hangout spot for customers from all walks of life.

Hookah Bar & Lounge Business Plan: Market Analysis

Target market.

Understanding our target market is crucial to the success of Hookah Bar Ltd. Our primary audience consists of young adults and professionals between the ages of 18 and 35, seeking a unique social experience. We will cater to both experienced hookah enthusiasts and individuals curious to explore the hookah culture for the first time. Additionally, our lounge will attract tourists and visitors looking for an exciting nightlife experience.

Market Trends

The hookah industry has witnessed several key trends that will influence our business: 1. Rising Popularity of Hookah Culture: The allure of hookah lounges as social hubs has grown significantly, with an increasing number of people embracing the hookah culture as a way to unwind and socialize. 2. Health-Conscious Customers: Health-conscious consumers are driving demand for organic and natural hookah flavors, leading to an expansion in the market for herbal and tobacco-free options. 3. Unique Flavors and Experiences: Customers seek novel experiences and diverse flavors, prompting hookah lounges to innovate and offer exclusive blends and combinations. 4. Incorporating Technology: Many lounges are integrating technology to enhance customer experiences, such as interactive menus, mobile apps for orders, and ambiance customization.

Competitor Analysis

To remain competitive, Hookah Bar Ltd must understand its rivals in the local market. We have identified several hookah lounges and nightlife establishments in the vicinity that offer similar services. Through a detailed analysis of their strengths and weaknesses, we will develop strategies to differentiate ourselves and carve a unique position in the market.

Location Advantage

The selection of an optimal location is vital for our business success. Hookah Bar Ltd plans to secure a spot in a bustling urban area with high foot traffic, vibrant nightlife, and a diverse demographic. Proximity to colleges, universities, and popular tourist attractions will further enhance our visibility and attract our target audience.

Regulatory Considerations

As a hookah lounge, Hookah Bar Ltd will adhere to all local and state regulations concerning smoking establishments, health and safety standards, and alcohol licensing (if applicable). Compliance with these regulations is paramount to avoid potential legal issues and maintain a positive reputation within the community.

SWOT Analysis

A comprehensive SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis will be conducted to identify internal strengths we can leverage, weaknesses to address, opportunities to capitalize on, and potential threats to mitigate. This analysis will serve as a strategic roadmap for our business.

Hookah Bar & Lounge Business Plan: Marketing & Sales Strategy

Brand positioning.

Establishing a strong brand identity is essential for Hookah Bar Ltd to stand out in the competitive market. We will position ourselves as a trendy and upscale hookah lounge that offers a fusion of traditional and contemporary elements. Our brand will represent sophistication, relaxation, and a vibrant social scene, appealing to young adults seeking a memorable and enjoyable experience.

Targeted Marketing Campaigns

To reach our target audience effectively, we will implement targeted marketing campaigns across various platforms. These may include social media advertising, influencer partnerships, email marketing, and collaborations with local events and organizations. By tailoring our messages to resonate with our audience, we aim to increase brand awareness and drive footfall to our lounge.

Engaging Social Media Presence

A robust presence on social media platforms is vital to connect with our audience and foster a loyal community. We will curate visually appealing content, such as hookah photography, engaging videos, and customer testimonials, to showcase the Hookah Bar Ltd experience. Interactive posts and regular updates will keep our followers engaged and informed about upcoming promotions and events.

Loyalty Programs and Referral Incentives

Customer retention is crucial for sustainable growth. We will implement a loyalty program to reward frequent visitors with exclusive discounts, personalized offers, and early access to new hookah flavors. Additionally, we will introduce referral incentives to encourage satisfied customers to bring in new patrons, expanding our customer base through word-of-mouth marketing.

Collaborations and Partnerships

Collaborating with local businesses, event organizers, and influencers can significantly boost our visibility within the community. We will seek partnerships to co-host events, sponsor gatherings, and participate in social initiatives. By aligning with like-minded entities, Hookah Bar Ltd can tap into new audiences and strengthen its reputation as a community-oriented establishment.

Events and Theme Nights

Hosting special events and theme nights will add excitement and variety to our offerings. We will organize themed parties, live music performances, and hookah-tasting events to create a memorable experience for our customers. Additionally, we will consider hosting corporate events and private gatherings, further diversifying our revenue streams.

Online Reservation System

To enhance convenience for our patrons, Hookah Bar Ltd will implement an online reservation system. Customers can book tables in advance through our website or mobile app, ensuring a seamless experience and reducing wait times during peak hours. The reservation system will also enable us to manage capacity and adhere to social distancing guidelines if required.

Customer Feedback and Reviews

Feedback from our customers will be highly valued. We will actively encourage customers to leave reviews and share their experiences on platforms such as Google Reviews and Yelp. By responding to feedback and addressing concerns promptly, we aim to build a positive online reputation and establish trust with potential visitors

Hookah Bar & Lounge Business Plan: The Management Team

Key management personnel.

Hookah Bar Ltd is fortunate to have a talented and dedicated management team leading the business to success. Each member brings valuable expertise and experience to their respective roles, ensuring the smooth functioning of the lounge and the delivery of exceptional customer experiences.

Founder and CEO – [Founder’s Name]

As the visionary behind Hookah Bar Ltd, [Founder’s Name] brings a passion for hookah culture and a deep understanding of the industry. With a background in business management and entrepreneurship, they are responsible for setting the overall direction and strategy of the company.

Operations Manager – [Manager’s Name]

[Manager’s Name] is a seasoned hospitality professional with years of experience in managing and optimizing restaurant and lounge operations. Their attention to detail and commitment to maintaining high-quality service make them an invaluable asset to the team.

Marketing and Communications Manager – [Manager’s Name]

[Manager’s Name] is a creative and strategic marketing expert responsible for building Hookah Bar Ltd’s brand image and driving customer engagement. With a strong grasp of digital marketing and consumer behavior, they design and execute marketing campaigns that resonate with the target audience.

Head Mixologist – [Mixologist’s Name]

[Mixologist’s Name] is a skilled mixologist with a passion for crafting unique and flavorful beverages. Their expertise in mixology and knowledge of trending flavors will elevate the bar’s drink offerings and contribute to the overall customer experience.

Customer Experience Manager – [Manager’s Name]

[Manager’s Name] is dedicated to ensuring every customer has a memorable time at Hookah Bar Ltd. They focus on customer satisfaction, staff training, and maintaining a welcoming atmosphere to create a positive and enjoyable environment for all patrons.

Financial Controller – [Controller’s Name]

[Controller’s Name] is a finance professional responsible for overseeing the financial aspects of the business. Their expertise in financial forecasting, budget management, and cost analysis ensures the business remains financially healthy and sustainable.

Human Resources and Training Manager – [Manager’s Name]

[Manager’s Name] is responsible for recruiting and training the skilled staff that contribute to the lounge’s success. They focus on creating a positive work environment that fosters teamwork and personal growth, ultimately benefiting both employees and customers.

Advisory Board

In addition to the core management team, Hookah Bar Ltd has assembled an advisory board comprising industry experts and business veterans. The advisory board provides valuable insights, guidance, and support in decision-making, helping the company navigate challenges and identify growth opportunities.

Hookah Bar & Lounge Business Plan: Financial Forecasts or Projections

Financial overview.

The financial forecasts presented below outline Hookah Bar Ltd’s projected revenues, expenses, and profitability over the next three years. These projections are based on thorough market research, industry trends, and the collective expertise of our management team.

Revenue Projections

In the first year of operation, we anticipate moderate growth as we establish our presence in the market and build a loyal customer base. By the end of Year 1, we project total revenues of $X. As our brand gains popularity and word-of-mouth spreads, we expect to see a substantial increase in revenue in Year 2. With a refined marketing strategy and customer retention initiatives, we forecast total revenues of $Y by the end of Year 2. By Year 3, Hookah Bar Ltd aims to become a well-established and sought-after destination, resulting in continued growth and increased market share. Our revenue projections indicate total revenues of $Z by the end of Year 3.

Expense Projections

The expenses associated with operating Hookah Bar Ltd encompass various categories, including rent, staffing costs, inventory, utilities, marketing, and other miscellaneous expenses. In the first year, we anticipate higher initial costs due to setting up the lounge, recruiting and training staff, and launching marketing campaigns. As a result, total expenses for Year 1 are projected to be $A. By Year 2, we expect to optimize operations and achieve economies of scale, leading to more controlled expenses. Total expenses for Year 2 are projected to be $B. In Year 3, as Hookah Bar Ltd enters a mature phase, we anticipate further cost stabilization and increased operational efficiency. Total expenses for Year 3 are projected to be $C.

Profitability and Return on Investment (ROI)

Based on the revenue and expense projections, Hookah Bar Ltd aims to achieve profitability within the first year of operation. As our customer base expands and operational efficiency improves, we expect profitability to increase steadily in subsequent years. Our ROI analysis indicates that the initial investment in launching and operating the hookah lounge will be recouped within [insert number] years, demonstrating the business’s financial viability and potential for long-term growth.

Financial Risks and Mitigation Strategies

While the financial forecasts are optimistic, we acknowledge the presence of certain risks that may impact our projections. These risks include fluctuations in the economy, changes in consumer preferences, and unforeseen industry challenges. To mitigate these risks, Hookah Bar Ltd will adopt a proactive approach, closely monitoring market trends, and adapting our strategies accordingly. We will maintain financial discipline, regularly review our business plan, and implement contingency plans to navigate any potential challenges.

The financial forecasts for Hookah Bar Ltd demonstrate a promising and lucrative business opportunity. With a comprehensive understanding of our target market, a strategic marketing plan, and a dedicated management team, we are confident in our ability to achieve sustained growth and success in the hookah lounge industry

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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.

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

Hookah Lounge Business Plan Template

Written by Dave Lavinsky

If you’re looking to create a hookah lounge business plan, you’ve come to the right place!

Over the past 25 years, the PlanPros team has helped over 1 million entrepreneurs and business owners write business plans….and many of them have started and grown successful hookah lounge businesses. Our hookah lounge business plan example below is sure to help you!

Hookah Lounge Business Plan Example

Below is our hookah lounge business plan template and sample plan created using what we consider the best ai business plan generator :  

I. Executive Summary

Company overview.

At Sapphire Smoke Lounge, located in the heart of Baldwin Park, CA, we offer our customers a comprehensive hookah experience with an extensive selection of hookah pipes, premium shisha, top-notch charcoal, and a variety of beverages and snacks. Our lounge is designed to provide a comfortable and inviting environment for people to relax, socialize, and enjoy the art of hookah smoking. With our founder’s prior experience in successfully running a hookah lounge, we are equipped to understand and cater to the preferences of our clientele. Since our inception on January 5, 2024, as an S Corporation, we have achieved milestones such as creating a distinctive logo, developing our company name, and securing a prime location, setting the stage for becoming Baldwin Park’s premier hookah lounge.

Success Factors

Our ability to craft superior shisha that eclipses our competition, combined with a diverse selection of hookah pipes, positions us as a unique destination for hookah enthusiasts. The expertise of our founder, drawn from previous successful ventures, informs our operations, ensuring customer satisfaction at every turn. Since our establishment, we have reached significant milestones including brand development and securing a strategic location, laying a solid foundation for our journey to become the leading hookah lounge in Baldwin Park and beyond.

Industry Analysis

The Hookah Lounge industry, currently valued at over $400 million in the United States, is experiencing growth thanks to the increasing popularity of hookah smoking among young adults and the acceptance of lounges as social venues. Trends towards upscale experiences, a wider variety of flavored tobacco, innovative menus, and entertainment options align with Sapphire Smoke Lounge’s positioning as a trendy destination in Baldwin Park, CA. Additionally, the shift towards health and wellness, including the provision of organic tobacco and smoke-free areas, presents us with an opportunity to cater to health-conscious customers, positioning us for success in a growing market.

Customer Analysis

We aim to attract a diverse customer base, including Baldwin Park locals seeking a unique social environment, college students from nearby institutions looking for an affordable hangout, tourists exploring the area, and social groups or clubs in search of a venue for gatherings. By catering to these segments with our unique offerings and creating targeted promotions, we will cultivate a loyal clientele and generate steady business through repeat visits and referrals.

Competitive Analysis

Our main competitors include Hookah Lounge, Cafe X2O, and Jasmine Cafe. Each offers a mix of hookah experiences, from traditional and modern hookah sessions to Mediterranean cuisine paired with hookah. Our competitive advantages lie in our superior shisha quality, diverse selection of hookah pipes, attractive lounge ambiance, and excellent customer service. Our strategic location in Baldwin Park, coupled with our founder’s industry experience, sets us apart as the premier destination for hookah enthusiasts in the area.

Marketing Plan

Sapphire Smoke Lounge offers a holistic hookah experience with a variety of hookah pipes, shisha flavors, premium charcoal, beverages, and snacks, all competitively priced. Our marketing strategy includes a robust online presence, email marketing, SEO, and traditional advertising through local media. We will host special events and promotions to attract new customers and implement a loyalty program to encourage repeat business. Collaborations with local businesses and influencers will expand our reach, and focusing on customer reviews and word-of-mouth will enhance our reputation and customer base in Baldwin Park, CA.

Operations Plan

Key operational processes at Sapphire Smoke Lounge include maintaining cleanliness, creating a welcoming atmosphere, managing inventory, and providing excellent customer service. We will adhere to safety protocols and engage with customers to gather feedback. Our milestones include securing our location, obtaining permits, completing interior design, hiring staff, and launching a successful marketing campaign. These steps, along with regular financial and operational reviews, will ensure our lounge’s success and growth.

Management Team

Our management team, led by CEO Eli Gutierrez, brings a wealth of experience from the hospitality and financial sectors. Eli’s prior success in the hookah lounge industry, is instrumental in executing our business plan and establishing Sapphire Smoke Lounge as a leading destination for hookah enthusiasts.

Financial Plan

To achieve our growth goals, Sapphire Smoke Lounge requires $259,000 in funding. This investment will cover capital expenses such as location buildout, furniture, equipment, and non-capital needs like working capital, initial rent, staff salaries, marketing, supplies, and insurance. With this funding, we will secure our foothold in the market and aim for financial sustainability and growth.

Below is an overview of our expected financial performance over the next five years:

II. Company Overview

At Sapphire Smoke Lounge, our offerings include an extensive selection of hookah pipes, premium shisha (Hookah Tobacco), top-notch charcoal, and a variety of beverages to complement your smoking experience. Additionally, we cater to those looking for a light snack or bite with our assortment of snacks and light bites. Our aim is to ensure that every visit is enjoyable, providing everything you need for a perfect hookah session under one roof.

Located in the vibrant city of Baldwin Park, CA, Sapphire Smoke Lounge is perfectly positioned to serve the local community and visitors looking for a high-quality hookah experience. Our lounge is designed to be a welcoming space where people can relax, socialize, and enjoy the art of hookah smoking in a comfortable and inviting environment.

We are uniquely qualified to succeed for several reasons. Our founder brings valuable experience from previously running a successful hookah lounge, ensuring that we understand our customers’ needs and preferences. Furthermore, we pride ourselves on crafting better shisha (Hookah Tobacco) than our competition, offering a wide variety of flavors that cater to all tastes. Our diverse selection of hookah pipes also sets us apart, allowing our customers to choose the perfect pipe for their smoking experience.

Sapphire Smoke Lounge was officially founded on January 5, 2024, and operates as an S Corporation. Since our inception, we have achieved several significant milestones including the creation of our distinctive logo, the development of our company name, and securing a prime location for our lounge. These accomplishments are just the beginning of our journey to become the premier hookah lounge in Baldwin Park and beyond.

III. Industry Analysis

The Hookah Lounge industry in the United States is currently estimated to be worth over $400 million. This market size is driven by the increasing popularity of hookah smoking among young adults and the growing acceptance of hookah lounges as social gathering places. With a steady increase in the number of hookah lounges opening across the country, the industry is expected to continue to grow in the coming years.

One of the key trends in the Hookah Lounge industry is the shift towards offering more upscale and unique experiences for customers. This includes providing a wider variety of flavored tobacco options, creating innovative drink and food menus, and offering entertainment such as live music or themed nights. These trends bode well for Sapphire Smoke Lounge, as it positions itself as a trendy and upscale destination for hookah enthusiasts in Baldwin Park, CA.

Another trend in the Hookah Lounge industry is the increasing focus on health and wellness. Many hookah lounges are now offering organic and natural tobacco options, as well as promoting a smoke-free environment by providing outdoor seating areas. Sapphire Smoke Lounge can capitalize on this trend by offering a range of high-quality, organic tobacco options and promoting a healthy lifestyle for its customers. With the industry expected to continue growing, Sapphire Smoke Lounge is well-positioned to capture a share of the expanding market in Baldwin Park.

IV. Customer Analysis

Below is a description of our target customers and their core needs.

Target Customers

We will target local residents of Baldwin Park who are seeking a unique and relaxing social environment. These individuals will likely enjoy the ambiance of a hookah lounge as a place to unwind after work or during weekends. This group will include both young professionals and established community members.

In addition to local residents, we will also attract college students from nearby universities and colleges. These students will be looking for a trendy and affordable place to hang out with friends. We will offer special promotions and events to draw in this younger demographic.

Tourists visiting Baldwin Park will also be a key target segment. Our unique offering will provide a memorable experience for travelers who are exploring the area. We will ensure our lounge is featured in local travel guides and online platforms to reach this audience.

We will cater to social groups and clubs that are seeking a venue for gatherings and special occasions. By offering group packages and a welcoming atmosphere, we will become a preferred destination for social events. This will create a steady stream of repeat customers and referrals.

Customer Needs

Sapphire Smoke Lounge provides high-quality hookah pipes to residents who desire premium smoking experiences. Customers expect a diverse selection of flavors and blends to satisfy varied tastes. The lounge offers a comfortable and stylish environment for relaxation and socialization.

Customers have access to expert staff who can guide them in choosing the perfect hookah setup and flavors. The lounge ensures a clean and hygienic atmosphere, prioritizing customer health and safety. Sapphire Smoke Lounge also caters to the need for a unique and trendy nightlife option in the area.

Patrons look for an engaging atmosphere where they can unwind with friends or meet new people. Entertainment options, such as music and events, enhance the overall experience. The lounge fulfills the need for a high-quality, enjoyable, and memorable hookah experience.

V. Competitive Analysis

Direct competitors.

Sapphire Smoke Lounge’s competitors include the following companies:

Hookah Lounge

Hookah Lounge offers a variety of flavored hookahs, traditional and modern. They also serve light snacks and beverages, including teas and coffees. Prices range from $15 to $35 per hookah session.

Revenues are estimated to be moderate, with a steady customer base. Located in West Covina, CA, they attract local patrons. Their primary customer segments are young adults and college students, primarily from nearby educational institutions.

Key strengths include a cozy ambiance and excellent customer service. However, they face weaknesses such as limited food options and constrained parking facilities.

Cafe X2O – Monrovia

Cafe X2O offers Mediterranean cuisine along with various hookah flavors. They feature a full-service menu including appetizers, salads, and main courses. Hookah prices range from $20 to $40, while main courses average around $15 to $25.

Their revenues are robust due to the dual attraction of food and hookah. Located in Monrovia, CA, they cater to a wide range of customers. Their customer base includes families, young professionals, and groups of friends.

Strengths include high-quality food and a diverse menu. Their weaknesses are higher price points and occasional long wait times for service.

Jasmine Cafe

Jasmine Cafe specializes in offering a variety of hookah flavors and Middle Eastern snacks. They also serve specialty teas and coffees. Hookah sessions cost between $18 and $30, making it reasonably priced.

Revenues are stable, benefiting from a loyal local following. Situated in Arcadia, CA, they serve a predominantly young adult demographic. The cafe draws customers from the surrounding neighborhood and nearby areas.

Key strengths include a relaxed atmosphere and affordable pricing. Weaknesses involve limited marketing efforts and a smaller seating area.

Competitive Advantages

At Sapphire Smoke Lounge, we pride ourselves on offering superior shisha that stands out from the competition. Our hookah tobacco is meticulously crafted to provide a smoother, more flavorful experience that keeps our customers coming back for more. We invest in high-quality ingredients and employ expert techniques to ensure that every puff delivers a rich, satisfying taste. Additionally, our diverse selection of hookah pipes caters to different preferences, allowing patrons to choose from traditional designs to more modern, innovative options, enhancing their overall smoking experience.

Beyond our exceptional shisha and variety of hookah pipes, we offer a welcoming and stylish ambiance that sets us apart. Our lounge features comfortable seating, ambient lighting, and a relaxed atmosphere perfect for socializing or unwinding after a long day. We also prioritize customer service, ensuring that our staff is attentive, knowledgeable, and ready to assist with any needs or questions. Moreover, our strategic location in Baldwin Park makes us easily accessible to both locals and visitors, giving us a strong foothold in the community. Together, these elements create a compelling value proposition that positions us as the go-to destination for hookah enthusiasts in the area.

VI. Marketing Plan

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products, Services & Pricing

Sapphire Smoke Lounge offers a variety of products and services to create a comprehensive and enjoyable experience for its patrons. Central to its offerings are the Hookah Pipes, which are available in various styles and designs to cater to different preferences. The average cost of a hookah session is $20, providing customers with high-quality and aesthetically pleasing pipes that enhance their smoking experience.

Complementing the hookah pipes is the Shisha (Hookah Tobacco). Sapphire Smoke Lounge prides itself on offering a wide range of shisha flavors, from traditional favorites like mint and apple to more exotic blends. Each flavor is carefully selected to ensure a rich and satisfying smoking session. The average price for a bowl of shisha is $10, making it accessible for both casual smokers and hookah enthusiasts.

Charcoal is another essential component of the hookah experience. Sapphire Smoke Lounge uses premium charcoal to ensure a clean and consistent burn, which enhances the flavor and overall experience. Customers can expect to pay around $5 for a portion of charcoal, which is sufficient for a standard hookah session.

In addition to hookah-related products, Sapphire Smoke Lounge also offers a variety of Beverages to complement the smoking experience. From soft drinks and juices to specialty teas and coffees, the beverage menu caters to a wide range of tastes. Prices for beverages range from $3 to $7, depending on the type and size of the drink.

To further enhance the lounge atmosphere, Snacks and Light Bites are available for customers to enjoy. The snack menu includes items such as hummus and pita, cheese platters, and various finger foods that pair well with the hookah experience. The average price for snacks and light bites is $8, offering a convenient and tasty option for patrons looking to nibble while they relax.

Sapphire Smoke Lounge aims to provide a holistic and enjoyable hookah experience through its carefully curated selection of products and services, all offered at competitive prices to ensure customer satisfaction.

Promotions Plan

To attract customers, we will employ a comprehensive array of promotional methods and tactics. Firstly, we will utilize online marketing to reach a broad audience. This involves creating a user-friendly website and maintaining active social media profiles on platforms such as Instagram, Facebook, and Twitter. By posting engaging content, including photos and videos of our lounge and events, we will build a strong online presence.

Email marketing will also play a crucial role. We will collect email addresses through our website and in-person sign-ups, then send regular newsletters to keep our audience updated on upcoming events, special offers, and new products. This keeps us connected with our customers and encourages repeat visits.

Search Engine Optimization (SEO) will be another key tactic. We will optimize our website with relevant keywords, quality content, and backlinks to improve our search engine ranking. This ensures that when potential customers search for hookah lounges in Baldwin Park, CA, we appear at the top of the results.

In addition to online strategies, we will employ traditional marketing methods. Print advertising in local newspapers, magazines, and community bulletins will help us reach residents who might not be as active online. Additionally, distributing flyers and posters in high-traffic areas will increase local awareness.

Hosting events and promotions will be a significant part of our customer attraction strategy. We will organize themed nights, live music events, and special promotions such as happy hours or discounts for group bookings. These events will create a buzz and draw in new and returning customers.

Collaborations with local businesses and influencers will also be beneficial. By partnering with nearby restaurants, bars, and influencers with a strong local following, we will cross-promote and tap into their customer bases. This mutual support will drive traffic to our lounge.

Finally, we will focus on customer reviews and word-of-mouth marketing. Encouraging satisfied customers to leave positive reviews on platforms like Yelp and Google will enhance our reputation. Providing exceptional service and a memorable experience will naturally lead to word-of-mouth referrals.

By employing these diverse promotional methods and tactics, we will successfully attract a wide range of customers and establish ourselves as a must-visit destination in Baldwin Park, CA.

VII. Operations Plan

Our Operations Plan details:

• The key day-to-day processes that our business performs to serve our customers
• The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of Sapphire Smoke Lounge, there are several key day-to-day operational processes that we will perform:

• Ensure cleanliness and hygiene of the lounge, including regular cleaning of hookahs, seating areas, and restrooms.
• Maintain a welcoming and comfortable atmosphere by adjusting lighting, music, and seating arrangements.
• Prepare and stock a variety of hookah flavors and accessories to offer a wide selection to customers.
• Train and manage staff to provide excellent customer service, including greeting customers, taking orders, and delivering hookahs.
• Monitor inventory levels and order supplies as needed to avoid shortages.
• Handle financial transactions accurately, including cash handling, credit card processing, and maintaining financial records.
• Implement and enforce safety protocols, including proper ventilation and fire safety measures.
• Engage with customers to gather feedback and address any concerns or complaints promptly.
• Market the lounge through social media, local advertising, and promotions to attract new customers and retain regulars.
• Host special events or themed nights to increase customer engagement and drive business.
• Conduct regular staff meetings to discuss performance, upcoming events, and any operational issues.
• Stay compliant with local regulations and health codes related to operating a hookah lounge.
• Regularly review and analyze business performance metrics to identify areas for improvement.

Sapphire Smoke Lounge expects to complete the following milestones in the coming months in order to ensure its success:

• Secure Location:  Finalize a lease agreement for a prime location in Baldwin Park, CA that offers high visibility and foot traffic.
• Obtain Permits and Licenses:  Acquire all necessary permits and licenses required to operate a hookah lounge, including health permits, business licenses, and fire safety certifications.
• Complete Build-Out and Interior Design:  Oversee the interior construction and design to create an inviting and comfortable atmosphere for customers.
• Hire and Train Staff:  Recruit and train qualified staff, including servers, managers, and hookah specialists, to ensure high-quality service and customer satisfaction.
• Launch Marketing Campaign:  Implement a robust marketing campaign, utilizing social media, local advertising, and community events to generate buzz and attract initial customers.
• Launch the Hookah Lounge:  Host a grand opening event to officially launch the lounge, attracting initial customers and building a loyal customer base from day one.
• Implement Customer Feedback System:  Establish a system for collecting and acting on customer feedback to continuously improve the service and experience offered at the lounge.
• Achieve Initial Revenue Target:  Reach $15,000 in monthly revenue within the first six months of operation to ensure financial viability and build a foundation for growth.
• Introduce Loyalty Programs:  Develop and launch a customer loyalty program to encourage repeat business and build a strong, loyal customer base.
• Regularly Review Financial Performance:  Conduct monthly financial reviews to monitor revenue, expenses, and profitability, making necessary adjustments to ensure the lounge remains on track to meet its financial goals.

VIII. Management Team

Our management team has the experience and expertise to successfully execute on our business plan.

Management Team Members

Sapphire Smoke Lounge management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Eli Gutierrez, CEO

Eli Gutierrez has a history of success and has successfully run a hookah lounge in the past. With years of experience in the hospitality and recreational business sectors, Eli understands the intricacies involved in creating a welcoming and profitable environment for customers. His hands-on leadership style and deep knowledge of the industry make him an invaluable asset to Sapphire Smoke Lounge, ensuring that the establishment not only meets but exceeds customer expectations.

IX. Financial Plan

Funding requirements/use of funds.

To accomplish our growth goals, Sapphire Smoke Lounge needs $259,000 in funding. Key uses of this funding will be as follows:

Financial Projections

5 Year Annual Income Statement

5 year annual balance sheet, 5 year annual cash flow statement, what is a hookah lounge business plan.

A hookah lounge business plan is a document that outlines the strategies you have developed to start and/or grow your hookah lounge business. Among other things, it details information about your industry, customers and competitors to help ensure your company is positioned properly to succeed. Your hookah lounge business plan also assesses how much funding you will need to grow your business and proves, via your financial forecasts, why the business is viable.  

Why You Need a Business Plan for your Hookah Lounge Business

A business plan is required if you are seeking funding for your hookah lounge business. Investors and lenders will review your plan to ensure it meets their criteria before providing you with capital. In addition, a hookah lounge business plan helps you and your team stay focused. It documents the strategies you must follow and gives you financial projections you should strive to achieve and against which you can judge your performance.  

How to Start a Profitable Hookah Bar Business [11 Steps]

By Nick Cotter Updated Feb 02, 2024

Business Steps:

1. perform market analysis., 2. draft a hookah bar business plan., 3. develop a hookah bar brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for hookah bar., 6. open a business bank account and secure funding as needed., 7. set pricing for hookah bar services., 8. acquire hookah bar equipment and supplies., 9. obtain business insurance for hookah bar, if required., 10. begin marketing your hookah bar services., 11. expand your hookah bar business..

When embarking on the journey to start a hookah bar, it's critical to perform a comprehensive market analysis. This step helps you understand the competitive landscape, customer preferences, and potential for growth. Here's how you can begin:

• Analyze the local demographic to ensure there's a target audience interested in a hookah bar. Look for age groups, income levels, and social habits that align with your business concept.
• Research competitors in the area to identify what they're offering and how you can differentiate your hookah bar. Consider aspects such as menu, pricing, location, and ambiance.
• Investigate the local regulations and laws related to smoking and tobacco sales to ensure compliance and identify any potential barriers to entry.
• Survey potential customers to gauge interest and preferences in flavors, types of service, and additional offerings like food, drinks, or entertainment.
• Study market trends and industry forecasts to understand the potential growth of the hookah bar scene and to anticipate future changes in consumer behavior.
• Consider the impact of external factors such as economic conditions, cultural trends, and health considerations that may influence the success of your hookah bar.

Are hookah bar businesses profitable?

It depends on a variety of factors, such as location, the cost of hookah supplies and the amount of competition in the local market. Generally, hookah bars can be quite profitable if managed properly.

Creating a comprehensive business plan is a critical step in launching a successful hookah bar. It serves as a roadmap for your business, outlining your vision, goals, and the strategies you'll employ to achieve them. Here's a guide to drafting a robust hookah bar business plan:

• Analyze the market: Research local demand, competition, and customer demographics to understand the potential for your hookah bar.
• Define your concept: Clarify your hookah bar's theme, design, and unique selling propositions that will set it apart from competitors.
• Develop a financial plan: Include startup costs, pricing strategy, revenue projections, and a break-even analysis to ensure financial viability.
• Consider legalities: Address licensing, health regulations, and any other legal requirements specific to operating a hookah bar in your area.
• Plan operations: Outline daily operations, staffing needs, supplier relationships, and inventory management practices.
• Marketing strategy: Craft a marketing plan to build brand awareness, attract customers, and create loyalty programs.
• Risk assessment: Identify potential risks and challenges, and develop contingency plans to mitigate them.

How does a hookah bar business make money?

A hookah bar business makes money by selling food and drinks, charging customers an hourly rate for the use of their hookah, and selling tobacco and other related items. For example, a target audience for such a business would be college students and other young people who are looking for a social gathering place to hang out, relax, and smoke. These people may be more likely to engage with the business due to the availability of food and beverage services as well as the atmosphere created by the hookah bar. Additionally, the business can market itself to those looking for an alternative smoking experience on special nights or occasions.

Creating a compelling brand for your hookah bar is essential in establishing its identity and appealing to your target market. A strong brand differentiates your business from competitors and builds a loyal customer base. Here are some key points to consider when developing your hookah bar brand:

• Define Your Unique Value Proposition: Identify what makes your hookah bar stand out. Is it the exclusive flavors, the ambiance, or perhaps your exceptional service?
• Choose a Memorable Name: The name of your hookah bar should resonate with your target audience and reflect the experience you're offering.
• Design a Striking Logo: Your logo is often the first impression customers have. Make sure it's visually appealing and encapsulates your brand's essence.
• Establish Your Visual Aesthetic: Decide on a color scheme, typography, and overall design theme that align with your brand's vibe and tone.
• Create a Brand Story: A compelling narrative about your hookah bar's origins, values, and mission can create an emotional connection with customers.
• Consistent Messaging: Ensure that all your communications, from marketing materials to social media posts, align with your brand's voice and personality.

How to come up with a name for your hookah bar business?

When choosing a name for your hookah bar business, it's important to select one that communicates the vibe and atmosphere you want to create. First, consider your local area and if there is any inspiration to be found in the surrounding culture. You could also look at regional slang or traditional language to see if there are any interesting phrases that can be played with. Secondly, think of what kind of hookah bar you want to create; is it a casual lounge, or a more upscale experience? Pick a name that reflects this without being too specific. Finally, make sure the name is memorable and easy to say. After coming up with a few ideas, poll family and friends for feedback and see which one resonates most with them. Ultimately, the perfect name should give customers an idea of what your hookah business is all about.

Once you have crafted a solid business plan for your hookah bar and secured the necessary funding, the next vital step is to formalize your business registration. This process legitimizes your business and is crucial for ensuring compliance with all legal requirements. Follow these steps to register your business properly:

• Choose a Business Structure: Decide whether your hookah bar will be a sole proprietorship, partnership, limited liability company (LLC), or corporation. Each has different legal and tax implications.
• Register Your Business Name: Select a unique name for your hookah bar and register it with the appropriate state authorities. If you plan to operate under a trade name or "Doing Business As" (DBA), you'll need to file for that as well.
• Obtain an EIN: Apply for an Employer Identification Number (EIN) from the IRS for tax purposes, especially if you plan to hire employees.
• Register for Taxes: Register with your state's revenue agency to obtain any necessary state tax IDs and understand your sales tax obligations.
• Secure Permits and Licenses: Obtain all required local and state permits and licenses, including a tobacco license, health department permits, and any other specific to your location and business type.
• Comply with Zoning Laws: Ensure your chosen location complies with local zoning laws to avoid legal issues with your hookah bar's operation.

Resources to help get you started:

Explore indispensable resources designed for hookah bar entrepreneurs, featuring insights on market trends, operational best practices, and strategic growth advice:

• Smoke & Vape Business Solutions Magazine: Offers comprehensive insights on industry trends, retail advice, and product news specifically for smoke and vape shop owners, including hookah bars. https://smokeandvape.com/
• Hookah Forum: An online community for hookah bar owners to share experiences, strategies, and advice on managing a successful hookah lounge. http://www.hookahforum.com/
• IBISWorld: Provides in-depth market research reports and analysis, including specific reports on the hookah bars industry covering economic drivers, financial performance, and market trends. https://www.ibisworld.com/
• Nightclub & Bar Media Group: Offers resources, news, and networking opportunities tailored to the bar, nightclub, and hospitality industry, with relevant information for hookah lounge operators. https://www.nightclub.com/
• Bplans: Features sample business plans and resources for hookah bars, helping entrepreneurs plan, fund, and grow their business. https://www.bplans.com/

Opening a hookah bar requires compliance with various regulations to ensure a safe and legal operation. Acquiring the necessary licenses and permits is a critical step in the process. Here's a guide to help you navigate this stage:

• Research Local Laws: Begin by researching your city and state's specific regulations regarding smoking establishments and hookah bars. This will determine the types of licenses you need.
• Tobacco License: Apply for a tobacco license, which allows you to sell tobacco products within your establishment.
• Business License: Obtain a general business license from your local government to legally operate your hookah bar.
• Health Department Permit: Since you’ll be serving food and drinks, a health department permit is often required to ensure your establishment meets health codes.
• Building Permits: If you're constructing a new space or renovating an existing one, you'll likely need building permits before you can open.
• Fire Department Approval: Fire safety is crucial, especially in a smoking establishment. Acquire approval from the fire department for your hookah bar layout and safety measures.
• Music Licensing: If you plan to play music, you may need a music license from performing rights organizations to play copyrighted music.

What licenses and permits are needed to run a hookah bar business?

Depending on your location and the type of business, you may need a variety of licenses and permits to legally operate a hookah bar. Some of the most common include liquor licenses, tobacco permits, food service/restaurant permits, and health department permits.

You may also need to obtain zoning permits or special event permits if you are planning to host events at the bar, or citywide permits to operate in certain areas. Additionally, you may need to register with local law enforcement or the fire department depending on your municipality.

Starting a hookah bar requires careful financial planning, which includes setting up a dedicated business bank account and securing the necessary funding. A business bank account is essential for managing your finances, accepting payments, and keeping your personal and business expenses separate. Securing funding can be achieved through various means, depending on your business needs and resources available. Here's how to tackle these critical steps:

• Research banks that offer business banking services and compare fees, features, and customer reviews to find the best fit for your hookah bar.
• Prepare the required documents to open a business bank account, typically including your business plan, EIN (Employer Identification Number), business license, and ownership agreements.
• Consider starting with a business checking account for everyday transactions and a savings account for your emergency fund or future investments.
• Explore funding options such as small business loans, investors, crowdfunding, or personal savings to gather the capital necessary for startup costs and operational expenses.
• Develop a solid business plan to present to potential lenders or investors, highlighting the market opportunity, financial projections, and competitive advantages of your hookah bar.
• Apply for business credit cards if necessary, to help with cash flow management and potentially earn rewards on business purchases.

Setting the right prices for your hookah bar services is critical for balancing profitability with customer satisfaction. It's important to consider your costs, market rates, and perceived value when determining pricing. Keep these tips in mind to establish a pricing strategy that attracts and retains customers:

• Cost Analysis: Calculate the total cost of goods sold (COGS), including hookah equipment, tobacco, charcoal, and other consumables. Add operational expenses to determine your break-even point.
• Competitive Pricing: Research local competitors to understand the going rate for hookah services. Aim to price your offerings competitively while ensuring you can cover costs and make a profit.
• Value-Based Pricing: Consider the unique experiences or premium products you offer. Price these services higher to reflect the added value they provide to customers.
• Dynamic Pricing: Adjust prices for peak times, special events, or promotions to maximize revenue during high-demand periods and attract more customers during slower times.
• Pricing Tiers: Offer different pricing tiers for various customer segments, such as a premium package for enthusiasts or discounted rates for students.

What does it cost to start a hookah bar business?

Initiating a hookah bar business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $24000 for launching such an business. Please note, not all of these costs may be necessary to start up your hookah bar business.

Starting a hookah bar requires careful selection of equipment and supplies to ensure a smooth operation and an enjoyable experience for your customers. The right equipment will help you maintain a consistent quality of service, while the right supplies will enable you to offer a variety of flavors and products. Below is a list of essential items you'll need to acquire:

• Hookahs: Purchase a variety of high-quality hookahs, including both traditional and modern designs, to cater to different customer preferences.
• Hookah Hoses: Stock up on washable hoses for hygiene purposes and consider offering disposable mouthpieces for individual use.
• Charcoal: Select good-quality charcoal that lights easily and burns consistently to provide a smooth smoking experience.
• Tobacco: Offer a wide range of flavored tobaccos (shisha) to cater to diverse tastes, ensuring you have both popular and exotic flavors.
• Charcoal Burners: Use reliable charcoal burners to light charcoal efficiently and safely.
• Replacement Parts: Keep replacement parts such as bowls, gaskets, and valves on hand to quickly address any equipment issues.
• Decor and Seating: Invest in comfortable seating and ambient decor to create a welcoming and relaxing environment.
• Exhaust System: Install an effective ventilation and exhaust system to maintain air quality and comfort inside your bar.
• Cleaning Supplies: Use proper cleaning agents and tools specifically designed for hookah maintenance to ensure hygiene and longevity of your equipment.
• Other Accessories: Consider additional accessories like tongs, wind covers, and hookah trays to enhance the smoking experience.

List of software, tools and supplies needed to start a hookah bar business:

• Industrial fans – $200 per fan
• Hookahs – $40-$150 each
• Shisha tobacco – $20 per kilo
• Coals – $30 for a box of 40
• Hoses/tubes – $5-$20 per tube
• Bowls – $10-$30 each
• Tongs/Forks - $3-15 each
• Lighting – $30-$200 per fixture
• POS System/Software - $500-$3000
• Inventory Management System - Free-1000 per month

Securing the right insurance for your hookah bar is a crucial step that can protect your business from various risks and liabilities. It not only safeguards your investment but also provides peace of mind. Below are key considerations when obtaining business insurance for your hookah bar:

• General Liability Insurance: This is essential for covering injuries or accidents that may occur on your premises. It can help cover legal fees and settlements if your business is sued.
• Product Liability Insurance: Given the nature of a hookah bar, this insurance helps protect against claims related to the products you sell, such as tobacco or coals.
• Liquor Liability Insurance: If your hookah bar serves alcohol, this insurance is necessary to protect against claims arising from the actions of intoxicated patrons.
• Property Insurance: To protect your physical assets from fire, theft, or other damages, property insurance is vital for your establishment.
• Workers' Compensation: This type of insurance is mandatory in most states if you have employees. It covers medical costs and lost wages for employees who get injured on the job.
• Business Interruption Insurance: If an unforeseen event forces your business to close temporarily, this insurance can help cover lost income and expenses.

Launching an effective marketing campaign is essential for attracting customers to your new hookah bar. By showcasing your unique offerings and creating an inviting atmosphere, you can entice people to experience the relaxing environment of your establishment. Here are some strategies to help you get started:

• Develop a brand identity: Create a logo, color scheme, and aesthetic that reflect the vibe of your hookah bar. Use this branding consistently across all marketing materials.
• Utilize social media: Set up profiles on popular platforms like Instagram, Facebook, and Twitter. Post engaging content regularly, such as events, promotions, and behind-the-scenes looks.
• Offer promotions: Attract first-time visitors with discounts, happy hour pricing, or loyalty programs. Consider creating a referral system to encourage word-of-mouth marketing.
• Host events: Plan themed nights, live music, or cultural events to draw in crowds and provide a unique experience that can't be found elsewhere.
• Collaborate with local businesses: Partner with nearby establishments to cross-promote each other's services and tap into their customer base.
• Invest in local advertising: Place ads in local publications, on radio stations, or outdoor billboards to reach potential customers in your area.

If your hookah bar has gained popularity and built a steady customer base, it might be time to think about expansion. Expanding your business can take various forms, from increasing your location size to diversifying your offerings. Here are some strategies to consider:

• Open new locations: Research potential new markets and consider opening additional outlets to attract more customers.
• Franchising: Develop a franchising model to allow others to open their hookah bars under your brand, which can rapidly expand your business footprint.
• Enhance service offerings: Introduce new flavors, exclusive blends, or premium products to differentiate your business and attract a wider clientele.
• Host events: Organize themed nights, live music, or cultural events to draw in new customers and provide added value to regulars.
• Partner with local businesses: Collaborate with nearby restaurants or cafes to offer combined services or promotional deals.
• Invest in marketing: Ramp up your marketing efforts using social media, local advertising, and loyalty programs to maintain customer interest and attract new patrons.
• Improve customer experience: Invest in comfortable seating, interior upgrades, and technology such as online reservations to enhance the overall customer experience.

Just Business Plan

Hookah Lounge Business Plan Sample Template + PDF

Table of Contents

Executive Summary

Oasis Hookah Lounge is an innovative venture in the heart of Urbanville, designed to offer a sophisticated and relaxing environment tailored for young professionals, cultural enthusiasts, and anyone seeking a unique social experience. The lounge is a modern reinterpretation of traditional Middle Eastern culture, providing patrons with an authentic hookah experience in a contemporary, urban setting.

Urbanville, known for its vibrant nightlife and diverse population, is the perfect location for this type of establishment. Our lounge will feature premium hookah offerings, non-alcoholic beverages like specialty teas and coffees, and a selection of Middle Eastern-inspired snacks, all set within an ambiance that combines traditional aesthetics with modern comfort.

Our mission is to create a community-centric hub where individuals can unwind and socialize in a culturally enriching environment. We aim to establish Oasis Hookah Lounge as the premier destination for hookah enthusiasts, offering not just a product, but an experience that celebrates the rich traditions of Middle Eastern culture while appealing to modern tastes.

The primary objectives of Oasis Hookah Lounge are ambitious but achievable. These goals are designed to establish a solid foundation for the business and ensure sustainable growth:

• Achieve a Monthly Revenue of $50,000 Within the First Year: This goal will be met by leveraging our prime location, offering high-quality products, and delivering exceptional customer service. A combination of competitive pricing, strategic marketing, and a unique customer experience will drive sales and build a loyal customer base.
• Build a Customer Base of 1,000 Regular Patrons by the End of Year Two: We will focus on customer retention through personalized service, a loyalty program, and ongoing engagement initiatives. By the end of year two, we aim to have a solid base of regular patrons who see Oasis Hookah Lounge as their go-to social venue.
• Expand to a Second Location by the End of Year Three: Success at our initial location will pave the way for expansion. By year three, we plan to open a second location in another strategic area of Urbanville or a nearby city, allowing us to reach new markets and further establish our brand.

Oasis Hookah Lounge is dedicated to offering an authentic, enjoyable hookah experience that celebrates Middle Eastern culture. Our mission extends beyond providing a product; we aim to foster a welcoming, inclusive community where people from all walks of life can come together to relax, socialize, and enjoy a unique cultural experience.

The lounge will serve as a bridge between tradition and modernity, blending the rich history of hookah culture with contemporary tastes and preferences. We believe in creating a space that is both culturally authentic and universally appealing, offering an experience that resonates with a diverse audience.

Keys to Success

The success of Oasis Hookah Lounge hinges on several critical factors, each of which will be carefully managed to ensure the business meets its objectives:

• High-Quality Products and Exceptional Customer Service: At the core of our offering is a commitment to quality. We will source the finest hookah tobacco and ingredients, ensuring that every product we offer meets the highest standards. In addition to product quality, exceptional customer service will be a cornerstone of our business. Our staff will be trained not only in the technical aspects of hookah preparation but also in creating a welcoming and engaging atmosphere for customers.
• Strategic Location in Urbanville’s Entertainment District: Location is key to the success of any hospitality business, and we have selected a prime spot in Urbanville’s bustling entertainment district. This area is known for its high foot traffic, particularly among the young professionals and college students who make up our target market. The visibility and accessibility of our location will be a significant driver of footfall and brand awareness.
• Engaging Marketing Campaigns to Attract Diverse Clientele: Our marketing strategy will be multifaceted, leveraging both traditional and digital channels to reach our target audience. Social media will play a significant role in building our brand, with targeted campaigns designed to engage local demographics. In addition to online marketing, we will partner with local universities, cultural organizations, and influencers to promote our lounge and attract a diverse clientele.

Company Description

Business Overview

Oasis Hookah Lounge will operate as a limited liability company (LLC), providing a relaxing and culturally rich environment for hookah enthusiasts. Our lounge is designed to be a modern sanctuary for those who appreciate the tradition of hookah smoking and the cultural significance it represents.

We will offer a wide range of flavored tobaccos, carefully selected to appeal to both traditional tastes and contemporary preferences. In addition to our hookah offerings, we will serve a variety of non-alcoholic beverages, including specialty teas, coffees, and smoothies. To complement the hookah experience, we will also offer a selection of Middle Eastern snacks, such as hummus, falafel, and baklava.

The interior design of the lounge will reflect the fusion of traditional and modern elements, with a focus on creating a comfortable, inviting atmosphere. Our goal is to make every visit to Oasis Hookah Lounge a memorable experience, whether customers are there to relax after work, socialize with friends, or explore a new cultural experience.

Oasis Hookah Lounge will be located in the heart of Urbanville at [Insert Address], a prime spot known for its bustling nightlife and easy accessibility. The location is strategically chosen to maximize exposure and attract a steady flow of customers. Situated in an area with high foot traffic, particularly among our target demographic of young professionals and college students, the lounge will benefit from its proximity to other popular entertainment venues, restaurants, and bars.

The interior of the lounge will be designed to create an ambiance that is both luxurious and welcoming. We will incorporate elements of traditional Middle Eastern design, such as intricate patterns, warm colors, and soft lighting, while also integrating modern touches to appeal to a contemporary audience. The layout will include comfortable seating areas, private booths, and communal tables, catering to both small groups and larger gatherings.

Oasis Hookah Lounge is owned by [Owner Name], who brings over a decade of experience in the hospitality industry. [Owner Name] has a proven track record of managing successful venues and is passionate about creating spaces where people can come together to enjoy good company, great service, and unique experiences.

[Owner Name] is supported by a team of professionals with expertise in various aspects of the business, including operations, marketing, and customer service. This team is committed to making Oasis Hookah Lounge a success and will work closely together to ensure that the business meets its goals.

Market Analysis

Industry Overview

The hookah lounge industry has experienced steady growth in recent years, driven by an increasing interest in cultural experiences and social smoking environments. Hookah lounges have become popular venues for people seeking a relaxed, social atmosphere that differs from the typical bar or nightclub scene. The industry is projected to grow by 5% annually over the next five years, with continued interest from young professionals, college students, and cultural enthusiasts.

Several factors contribute to the industry’s growth, including:

• Cultural Appeal: Hookah smoking is deeply rooted in Middle Eastern culture, and the growing interest in cultural experiences has made hookah lounges popular in diverse urban areas. These venues offer patrons a way to explore and connect with different cultural traditions in a relaxed setting.
• Social Atmosphere: Unlike bars and nightclubs, which can be loud and hectic, hookah lounges offer a more laid-back environment where people can converse and socialize without the distractions of loud music or crowded dance floors. This appeals to a demographic that values social interaction and a more intimate setting.
• Health Consciousness: As more people become health-conscious, there has been a shift away from alcohol consumption. Hookah lounges, which typically do not serve alcohol, provide an alternative social venue for those who prefer non-alcoholic environments.

Target Market

Our target market consists of three primary segments, each with distinct characteristics and preferences:

• Young Professionals (Ages 25-35): This group is seeking a sophisticated alternative to traditional bars and nightclubs. They are likely to appreciate the cultural aspect of the hookah experience and are drawn to venues that offer a more relaxed, upscale environment. Young professionals often have disposable income and are willing to spend on high-quality experiences that offer something different from the norm.
• Middle Eastern Community: Urbanville has a growing Middle Eastern population, many of whom are looking for places to connect with their cultural roots. Oasis Hookah Lounge will serve as a gathering place for this community, offering an authentic hookah experience in a welcoming environment. We will also cater to this group by offering traditional Middle Eastern snacks and beverages that reflect their cultural heritage.
• College Students (Ages 18-24): College students are always on the lookout for new social experiences. Hookah lounges offer a unique alternative to the typical college hangouts, providing a more sophisticated environment where they can relax with friends. This demographic is also highly active on social media, making them an important target for our digital marketing efforts.

Competitive Analysis

Urbanville is home to several established hookah lounges, each with its own unique offerings.

However, Oasis Hookah Lounge will differentiate itself in several key ways:

• Superior Product Offerings: While other lounges may offer a standard selection of hookah flavors, Oasis Hookah Lounge will provide a curated selection of high-quality tobaccos, including exclusive blends that cannot be found elsewhere. Our focus on quality will set us apart from competitors who may prioritize quantity over quality.
• Unique Cultural Ambiance: The ambiance of Oasis Hookah Lounge will be carefully crafted to reflect the rich traditions of Middle Eastern culture while appealing to modern tastes. This blend of old and new will create a unique atmosphere that distinguishes us from other lounges in the area.
• Exceptional Customer Service: Our staff will be trained to provide not only technical expertise in hookah preparation but also exceptional customer service. We believe that the quality of the customer experience is just as important as the quality of the product, and we will go above and beyond to ensure that every patron feels welcome and valued.

Marketing Plan

Product Offering

Oasis Hookah Lounge will offer a diverse range of products, each selected to enhance the overall customer experience:

• Flavored Tobaccos: Our hookah offerings will include a wide selection of flavored tobaccos, ranging from traditional favorites like apple and mint to more exotic blends like mango, rose, and pomegranate. We will also develop exclusive house blends that reflect the unique character of Oasis Hookah Lounge. These blends will be available only at our lounge, giving customers a reason to return for something they cannot get anywhere else.
• Non-Alcoholic Beverages: We will offer a carefully curated selection of non-alcoholic beverages that complement the hookah experience. This will include specialty teas, coffees, and smoothies, with an emphasis on flavors that align with our Middle Eastern theme. For example, we will offer Turkish coffee, Moroccan mint tea, and fruit smoothies inspired by traditional Middle Eastern recipes.
• Middle Eastern Snacks: To round out the experience, we will serve a selection of Middle Eastern-inspired snacks, including hummus with pita bread, falafel, stuffed grape leaves, and baklava. These snacks will be made fresh in-house or sourced from local Middle Eastern bakeries to ensure authenticity and quality.

Pricing Strategy

Our pricing strategy will be designed to offer value while maintaining profitability. We will position our products at a price point that reflects their quality and the overall experience we offer, while still being competitive with other hookah lounges in the area:

• Hookah Sessions: Hookah sessions will start at $15 for a standard flavor, with premium and exclusive blends available at higher price points. This pricing is competitive with other lounges in the area but reflects the superior quality of our offerings.
• Beverages: Non-alcoholic beverages will range from $3 to $8, depending on the type and size. Specialty drinks, such as Turkish coffee or Moroccan mint tea, will be priced at the higher end of this range due to their unique preparation and ingredients.
• Snacks: Our Middle Eastern snacks will be priced between $5 and $12, depending on the portion size and ingredients. We will offer combo deals that pair a hookah session with a beverage and snack at a discounted rate, encouraging customers to purchase multiple items during their visit.

Promotion Strategy

Our promotional efforts will focus on building brand awareness, attracting new customers, and retaining existing ones. We will use a mix of digital and traditional marketing channels to reach our target audience:

• Social Media Campaigns: We will leverage social media platforms like Instagram, Facebook, and TikTok to promote our lounge. These platforms are popular among our target demographic and offer the ability to reach a large audience with visually engaging content. Our social media campaigns will include a mix of organic posts and paid advertisements, highlighting our unique offerings, special events, and promotions.
• Influencer Partnerships: We will partner with local influencers who align with our brand to promote Oasis Hookah Lounge to their followers. Influencers can provide authentic endorsements and help us reach a broader audience, particularly among younger consumers who trust peer recommendations.
• Local Partnerships: We will collaborate with local universities, cultural organizations, and businesses to promote our lounge. For example, we can host events in partnership

with cultural clubs at local universities or offer discounts to students who present a valid student ID. These partnerships will help us connect with key segments of our target market and establish our lounge as a community hub.

• Grand Opening Event: To generate buzz and attract customers, we will host a grand opening event featuring live music, special promotions, and complimentary samples of our products. This event will be heavily promoted through social media, local press, and our community partners to ensure a strong turnout.

As previously mentioned, our lounge will be strategically located in Urbanville’s entertainment district, which is known for its vibrant nightlife and diverse population. The location is key to our success, as it will attract both locals and visitors who are looking for a unique social experience.

The interior design of the lounge will play a significant role in creating the right atmosphere. We will invest in high-quality furnishings and decor that reflect our brand’s cultural roots while providing a comfortable and inviting space for customers. The layout will include a variety of seating options, from cozy private booths to larger communal tables, allowing us to accommodate different group sizes and preferences.

Operations Plan

Daily Operations

Oasis Hookah Lounge will operate seven days a week, from 4 PM to 2 AM. These hours are designed to accommodate the peak times for our target market, particularly young professionals and college students who are likely to visit after work or class.

Our daily operations will be managed by a team of trained professionals, including:

• Hookah Specialists: Our hookah specialists will be responsible for preparing and serving hookahs, ensuring that each session is of the highest quality. They will also be knowledgeable about the different flavors and blends we offer, allowing them to make personalized recommendations to customers.
• Servers: Our servers will handle food and beverage orders, as well as provide general customer service. They will be trained to deliver a high level of service, ensuring that customers have a positive experience from the moment they enter the lounge.
• Management Team: The management team, led by [Manager Name], will oversee dayto-day operations, including staffing, inventory management, and customer service. The management team will also be responsible for implementing our marketing strategies, managing finances, and ensuring compliance with local regulations.

Long-term Goals

In addition to our immediate objectives, we have set several long-term goals that will guide the growth and development of Oasis Hookah Lounge:

• Achieve a 20% Increase in Customer Retention by the End of the First Year: Customer retention is critical to our success, and we will implement several strategies to encourage repeat business. This includes launching a loyalty program that rewards frequent customers with discounts, special offers, and exclusive access to new products.
• Introduce a Loyalty Program: Our loyalty program will be designed to reward customers for their continued patronage. Customers will earn points for every purchase, which can be redeemed for discounts on future visits or exclusive rewards. The program will also include tiered levels, with additional benefits for customers who reach higher levels of loyalty.
• Expand Product Offerings: As we grow, we will continually evaluate our product offerings to ensure they meet the needs and preferences of our customers. This may include introducing new hookah flavors, seasonal beverage offerings, and additional snack options.
• Explore Expansion Opportunities: By the end of year three, we plan to explore opportunities for expansion, either by opening a second location in Urbanville or by franchising our concept to other cities. This will allow us to reach new markets and further establish Oasis Hookah Lounge as a leading brand in the hookah lounge industry.

Management Team

The success of Oasis Hookah Lounge will be driven by a dedicated management team with expertise in various aspects of the business:

• [Owner Name]: As the founder and CEO, [Owner Name] brings over a decade of experience in the hospitality industry, including managing successful bars and lounges. [Owner Name] is passionate about creating spaces that offer unique experiences and is committed to making Oasis Hookah Lounge a success.
• [Manager Name]: [Manager Name] will serve as the Operations Manager, responsible for overseeing day-to-day activities, managing staff, and ensuring that the lounge operates smoothly. With a background in restaurant management, [Manager Name] has the skills and experience needed to lead the team and deliver a high-quality customer experience.
• [Marketing Director Name]: The Marketing Director will be responsible for developing and executing our marketing strategies, including social media campaigns, local partnerships, and promotions. [Marketing Director Name] has a background in digital marketing and is skilled at creating engaging content that resonates with target audiences.
• [Financial Advisor Name]: Our Financial Advisor will provide guidance on budgeting, cash flow management, and financial planning. With experience in the hospitality industry, [Financial Advisor Name] will help us make sound financial decisions and ensure the long-term viability of the business.

Financial Plan

Financial Projections

Our financial projections are based on conservative estimates and reflect our commitment to building a profitable and sustainable business.

The following table outlines the projected financial performance of Oasis Hookah Lounge over the first three years of operation:

These projections are based on careful analysis of market trends, competitive pricing, and expected customer demand. We believe they are achievable given our location, product offerings, and marketing strategy.

Break-even Analysis

Our break-even analysis indicates that Oasis Hookah Lounge will reach its break-even point within the first six months of operation. The break-even point is achieved when monthly revenue reaches $50,000, covering all fixed and variable costs. This analysis is based on the following assumptions:

• Fixed Costs: $25,000 per month, including rent, utilities, salaries, and insurance.
• Variable Costs: 40% of revenue, including the cost of goods sold and other variable expenses.

Funding Requirements

To successfully launch Oasis Hookah Lounge, we require an initial investment of $250,000.

These funds will be allocated as follows:

• Leasehold Improvements: $100,000 for interior design, furniture, and fixtures.
• Equipment: $50,000 for hookah equipment, kitchen appliances, and point-of-sale systems.
• Initial Inventory: $25,000 for hookah tobacco, beverages, and snacks.
• Working Capital: $50,000 to cover initial operating expenses, marketing, and contingencies.
• Marketing and Promotion: $25,000 for the grand opening event, social media campaigns, and local advertising.

We plan to secure this funding through a combination of personal investment, bank loans, and potential investors who share our vision for the business.

Risk Management

Every business venture comes with risks, and Oasis Hookah Lounge is no exception. However, we have identified several potential risks and developed strategies to mitigate them:

• Market Risk: There is always the risk that customer demand for hookah lounges could decline. To mitigate this, we will continuously monitor market trends and customer preferences, allowing us to adapt our offerings and marketing strategies as needed.
• Regulatory Risk: Hookah lounges are subject to various regulations, including health and safety standards, smoking laws, and business licensing requirements. We will work closely with legal and regulatory advisors to ensure full compliance with all applicable laws and regulations.
• Competition: The presence of established competitors in Urbanville presents a challenge. However, our focus on quality, customer service, and cultural authenticity will help us stand out in the market and attract a loyal customer base.
• Operational Risk: The success of our lounge depends on the effective management of day-to-day operations. To mitigate operational risks, we will invest in staff training, establish clear operational procedures, and maintain a strong management team.

Oasis Hookah Lounge is poised to become a leading destination for hookah enthusiasts in Urbanville. Our commitment to quality, cultural authenticity, and exceptional customer service will set us apart from the competition and attract a diverse clientele. With a solid business plan, a prime location, and a dedicated management team, we are confident that Oasis Hookah Lounge will achieve its financial goals and become a staple of Urbanville’s nightlife.

We invite you to join us on this exciting journey as we bring a unique and culturally enriching experience to the community. Whether as a patron, investor, or partner, your involvement in Oasis Hookah Lounge will contribute to the success of a venture that celebrates tradition, fosters community, and offers something truly special.

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Hookah Lounge Business Plan Template

💨 hookah lounge business plan template: crafting the atmosphere of success 🌌.

Ignite Your Vision with Our Tailored Business Plan Template for a Thriving Hookah Lounge!

📄 Template Overview

Introducing our Hookah Lounge Business Plan Template, a comprehensive guide designed for entrepreneurs aspiring to open or expand a hookah lounge. This template is your roadmap to navigating the unique aspects of the hookah lounge scene, blending ambiance creation with savvy business strategies.

🌟 Template Highlights

• Word Document Template A versatile, editable template specifically created to cater to the distinctive requirements of a hookah lounge business.
• Executive Summary A concise and compelling summary that encapsulates the essence of your business plan, crucial for engaging potential investors and clients.
• Company Description A foundation section to outline your hookah lounge’s concept, services, and what sets your establishment apart in this niche market.
• Hookah Lounge Industry Analysis Basic analysis of the hookah lounge related market, providing insights into customer preferences, industry trends, and other dynamics.
• Organizational Structure A clear depiction of your business’s hierarchy, outlining roles, responsibilities, and the management framework.
• Marketing Strategies Customized marketing plans designed to promote your hookah lounge effectively, targeting the right audience and building a strong brand presence.
• Funding Request Guidance on creating a persuasive funding proposal to secure the financial backing needed for your lounge.
• 12-month profit and loss statement.
• 5-year pro forma income statement.
• A user-friendly, customizable Excel File.
• Ability to adjust revenues, costs, and staffing.
• Detailed 12-month Profit and Loss.
• 5-Year Annual Projections.

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Our template is crafted to offer maximum flexibility, enabling you to tailor each aspect to fit the unique vibe and business model of your hookah lounge. The Excel financial model allows for efficient financial management, adaptable to your lounge's growth and changes in the market.

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"Free" Business Plan Templates

• Pretty Cool - Business Plan Structure
• Excellent - Industry-Related Research
• Awesome - Customized Financial Projections for your Industry
• Even MORE Awesome -Template Written by Paul Borosky, MBA.
• - Fill-in-the-highlighted-areas Format
• - Completed Pricing Strategy
• - SWOT Analysis Completed
• - Organizational Chart
• - Funding Request Section
• - Step-by-Step Tutorial for Business Plan Doc.
• - Step-by-Step Tutorial for Financial Projections Model

Quality Business Plan's Hookah Lounge Templates

• Excellent - Bar and Lounge Industry-Related Research ($100 value)
• Awesome - Customized Financial Projections for the bar and lounge Industry ($300 value)
• Even MORE Awesome - Template Written by Paul Borosky, MBA.
• Plus... - Fill-in-the-highlighted-areas Format
• Plus... - Completed Pricing Strategy
• Plus... - SWOT Analysis Completed
• Plus... - Organizational Chart... Done!
• Plus... - Funding Request Section... Yes!
• Plus... - Step-by-Step Tutorial for our Hookah Business Plan Doc.
• Plus... - Step-by-Step Tutorial for Financial Projections Model

Hookah Lounge Business Plan Templates Includes:

• Executive Summary
• Company Description
• Bar and Nightclub Industry Analysis INCLUDED!
• Organizational Structure.
• Funding Request
• 12-month profit and loss statement
• 5-year pro forma income statement
• Basic customizable Excel File
• Ability to change revenues, costs, and labor.
• 12 Profit and Loss
• 5 Yr Annual Projections.

Instructional Video:

(Hookah Lounge video coming soon!)

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For Questions about my template BEFORE PURCHASING or having difficulty downloading it, feel free to call me at:

321-948-9588

Available Monday - Friday from 8 AM to 9 PM EST. (Usually)

IMPORTANT NOTE - I DO NOT OFFER FREE PHONE CONSULTATIONS AFTER PURCHASING THE TEMPLATE.

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Creating a Relaxing Retreat: The Ultimate Hookah Lounge Business Plan Template

Innovating the hookah lounge scene.

Quality Business Plan introduces a specialized Hookah Lounge business plan template, meticulously crafted as a customizable Word document and Excel financial model. This template is essential for entrepreneurs venturing into the hookah lounge industry or those seeking to expand their existing lounge. It offers a focused, industry-specific approach to business planning, crucial for mastering the unique dynamics of the hookah lounge market.

Tailored Blueprint for Hookah Lounges

This comprehensive template covers all the vital elements of running a successful hookah lounge. It includes critical sections such as an Executive Summary, Company Description, Industry Analysis, Organizational Structure, and Marketing Strategies. Each section is designed with the specific needs of a hookah lounge in mind, ensuring a thorough and pertinent business plan.

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Quality Business Plan understands the intricacies of planning a business; hence, they provide easy-to-follow tutorial support. These guides, accessible on their website, walk users through each part of the template, making the planning process manageable and straightforward, even for newcomers to the hookah lounge industry.

Crafting a Marketing Strategy for Community Engagement

Effective marketing is crucial in the hookah lounge industry to build a loyal customer base and establish a solid community presence. The template provides detailed marketing strategies that blend digital and traditional outreach methods, essential for attracting and retaining a diverse clientele.

Financial Strategies for a Thriving Lounge

Financial management is critical to the success of any business. The template offers a structured approach to financial planning, featuring sections for funding requests and extensive financial projections such as 12-month profit and loss statements and 5-year pro forma income statements, all customized for the hookah lounge industry.

Conclusion: The Path to a Prosperous Hookah Lounge

In summary, Quality Business Plan's Hookah Lounge business plan template is more than just a document; it's a comprehensive guide to success in the hookah lounge sector. This template equips entrepreneurs with the tools and insights necessary to launch or expand their hookah lounge, paving the way for a successful, relaxing, and profitable venture in this unique and growing industry.

Date: 12/23

Cigar Lounge Business Plan [Sample Template]

By: Author Tony Martins Ajaero

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

Are you about starting a cigar lounge ? If YES, here’s a complete sample smoke shop business plan template & feasibility report you can use for FREE to raise money .

A cigar lounge or cigar bar is a place where smokers go to buy their preferred cigar and smoke freely without the fear of being embarrassed, arrested or fined.

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In recent times, you might agree that it is now illegal to smoke in public places. 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.

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 cigar lounges just around the corner. The truth is that banning smoking in public places is actually a blessing in disguise for people with the intention of starting a cigar lounge.

Little wonder we have cigar lounges being positioned in strategic places like airports, shopping malls, cinemas, et al. Although not all cigar lounge is opened to the general public. In some cigar lounges, you would be required to sign up as a member before you can have access.

A Sample Smoke Shop (Cigar Lounge) Business Plan Template

1. industry overview.

The Cigar Lounges (Smoke Shop) industry comprises businesses known as smoke shop, cigar bars or lounges, where patrons can purchase and smoke cigars freely with fear or 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.

In recent time, the Cigar Lounges industry has made a strong comeback in the united states over the last five years as a large increase in cigar consumption has boosted the demand for cigar lounges (smoke shops). 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 at high-end smoke shops , 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, providing an opportunity for the industry to maximize profits.

The 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 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 / smoke shops 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 cigar lounge 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 smoke shop business in the US would definitely be confronted with tough competition out there.

The truth is that, you will not only compete with 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 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.

Lastly, it is important to state that as much as starting a smoke shop business can be profitable and rewarding; the success of any smoke shop / cigar lounge business in the United States is not automatic. The chances of new wine smoke shops to struggle within the first 6 months of launching can’t be ruled out.

As a matter of fact, it can take between two to five years before most cigar lounge and similar businesses can recover their initial investment. In order words, just like loads of new businesses, the statistics for cigar lounges do not favor the startups, you just have to have a long term investment plan if you intend starting your bar business.

2. Executive Summary

Sleek Cigar Lounge®, LLC is a neighborhood smoke shop / cigar lounge that will be located on the ground floor of one of the busiest airport facility in the United States of America – The Los Angeles International Airport, California. We have been able to secure a one-year lease of a vacant shop within the airport’s facility.

We are fortunate to secure a facility with an option of renewal for 5 years at an agreed rate. We are going to be involved in the 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.

We will also be involved in the sale of assorted red and white wines, sale of beer and liquor, sale of distilled spirits, martinis and tobacco et al to the people of Los Angeles and visitors in a conducive environment that is specifically designed for socializing and networking and free from all forms of violence.

Sleek Cigar Lounge®, 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 assorted cigars, tobaccos and drinks that are manufactured both in the United States of America and overseas.

Sleek Cigar Lounge®, LLC will go all the way to make available in our cigar lounge most of the cigar brands produced in the United States of America and in other parts of the world especially in countries like Cuba and Italy.

We aware that cigar lounges easily attract intellectuals and business people and we know that the airport is one of the places where we can easily tie down these people especially when they have to wait for their flights et al that is the reason why we have decided to start the first outlet of our smoke shop in Los Angeles International Airport which happens to be the second busiest airports in the whole of the United States of America.

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.

Sleek Cigar Lounge®, LLC is owned by Sleek Davenport and his family. Sleek Davenport has managed several smoke shops, bars and nightclubs in Los Angeles and Las Vegas prior to opening his own smoke shop.

He has the magic wand to attract people who go to cigar lounges and bars on a regular basis. The business will be co – managed by his trusted associate for many years, Moore Sam who coincidentally was recruited and trained by him 5 years ago in downtown Las Vegas.

3. Our Products and Services

Sleek Cigar Lounge®, LLC is going to operate a standard smoke shop that will make available most of the cigar products and accessories that can be found in a standard cigar lounge or 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 shop.

These are some of our product and service offerings;

• 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 and secured smoke shop in Los Angeles, CA that will be the melting pot of all lovers of cigars, tobaccos, wine, alcoholic and non – alcoholic drinks.
• Our mission is to establish a smoke shop business that will make available all the brands of 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

Sleek Cigar Lounge®, LLC is a business that is established to be a pacesetter when it comes to how standard smoke shop 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 cigar lounge 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 Sleek Cigar Lounge®, LLC;

• Chief Executive Officer (Owner)
• Smoke Shop Manager
• Bartender / Baristas
• Accountants / Cashiers
• Procurement Officer

Greeters / Customer Service Agent / Table Attendant

Security Officers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Creates, communicates, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy
• Responsible for providing direction for thee business
• 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.
• Defining job positions for recruitment and managing interviewing process
• Carrying out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Design job descriptions with KPI to drive performance management for clients
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Smoke Shop Manager:

• Responsible for managing the daily activities in the cigar lounge
• Ensure 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 complaints and enquiries
• Prepares budget and reports for the organization
• Responsible for Training and Development in the organization
• Responsible for procuring of supplies and equipment
• Handle any other duty as assigned by the CEO

Bartender / Baristas:

• Interact with customers; take orders for cigars, tobaccos, drinks and snacks.
• Plan and present bar menu to clients
• Check identification of the guest to make sure they meet age requirements for purchase of alcohol and tobacco products.
• Mix ingredients to prepare cocktails and other drinks.
• Mix drinks, cocktails and other bar beverages as ordered and in compliance with standard drink recipes.
• Prepare alcohol or non-alcohol beverages.
• Service Wine and Beer to guests.
• Arrange bottles and glasses to make attractive displays .
• Assess customers’ needs and preferences and make recommendations
• Make lists of supplies in conjunction with the smoke shop manager / management
• Prepare inventory or purchase requisitions as needed to replenish supplies.
• Ensure 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
• Ensuring 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
• Manage the sound system for the bar
• In charge of music collections
• Providing music at events.
• Responsible for developing music playlists.
• Interacting with public at parties.
• Responsible for mixing music tracks.
• Open door and welcome customers
• Ensures that customers feel relaxed and at home
• Handle customers enquiries
• Ability to sell or influence others for up selling and suggestive selling.
• Provide recommendations and suggestions to guest for choosing Drinks and Snacks.
• Serve customers in a friendly and helpful manner.
• Determine when a customer has had too much cigar and alcohol and if required refusing any further serving on a polite way.
• Demonstrate a thorough knowledge of cigar and alcoholic products, menus and Promotions
• Handle any other duty as assigned by the smoke shop manager
• Handle and move objects, such as glasses and bottles, using hands and arms.
• Clean up after customers and clean work area.
• Clear ashtrays as and when required.
• Wash glassware and utensils after each use.
• Maintain a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.
• Ensure that toiletries and supplies don’t run out of stock
• Handle any other duty as assigned by the smoke shop manager.
• Ensure that the facility is secured at all time
• Control traffic and organize parking
• Give security tips to staff members from time to time
• Patrols around the building on a 24 hours basis
• Submit security reports weekly
• Any other duty as assigned by the smoke shop manager

6. SWOT Analysis

Sleek Cigar Lounge®, 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, Sleek Cigar Lounge®, LLC hired a business consultant / 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 is, excellence and detailed customer service. Wide range of assorted 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 cigar lounge in metropolitan city like Los Angeles.

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 smoke chop businesses in busy cities like Los Angeles; Los Angeles is one of the cities in the world where social life is at its peak.

Besides the airport facility where our cigar 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 travelers via the airport. Another opportunity that we stand to leverage on is the fact that we can easily order any brand of 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 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 cigar lounges industry has long existed in the United States, it is starting to fall back into fashion.

Innovative flavors and different varieties of 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.

In the early part of the millennium, cigar lounges especially e – cigar lounges became very popular and started popping up in many metropolitan neighborhoods across major cities in the United States of America. Cigar lounges now compete with the local hangouts such as wine bars, coffee shops and local bars.

The wine bar sensation offers the taste before you buy philosophy. No doubt, the Cigar Lounges industry will continue to improvise on ways to increase sales. They seek to remove the association of cigar with high – end clientele and overwhelming cigar lists and replace it with a more casual and relaxing atmosphere.

Many of these cigar lounges are furnished with nooks and cozy booths encased in rich colors and plush surroundings in hopes their guests will linger.

Cigar lounges look to embrace the intellectual stimulation linked to cigar and tobacco and offer an alternative to the smoke shop scene. The phlegmatic environment lends itself to a good socializing setting with a less crowded feel and more intimate appeal.

In recent time, smoke shops / cigar 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 cigars and tobaccos.

8. Our Target Market

Before starting our cigar 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 cigar 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 is our target market;

• 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 is stiffer competition in the 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 in Los Angeles is the fact that we operate a standard smoke shop, in a perfect location ( one of the busiest airport facilities in the United States ) for the kind of business that we run and also the fact that our cigar lounge facility is highly secured.

Another factor that will give Sleek Cigar Lounge®, LLC competitive edge is that we have enough packing space to accommodate the numbers of customers our cigar 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 cigar lounge.

We are not ignoring the fact that we are among the few neighborhood cigar lounge in downtown Los Angeles that sells almost all the brands of 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 smoke shop manager is also a positive for Sleek Cigar Lounge®, LLC.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups smoke shops, wine bars and nightclub 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

Sleek Cigar Lounge®, LLC is established with the aim of maximizing profits in the 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 Sleek Cigar Lounge®, LLC are stated below;

• Sale of assorted red and white wines
• Sale of beer and liquor
• Sale of distilled spirits
• Sale of martinis
• Sale of tobacco
• Sale of e – Cigars

10. Sales Forecast

One thing is certain when it comes to cigar lounge business, if your cigar 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 cigar 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 projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in Los Angeles – CA.

Below is the sales projection for Crespo and Tina® Wine Bar, it is based on the location of our business and other factors as it relates to wine bars startups in the United States;

• First Fiscal Year-: $75,000
• Second Fiscal Year-: $200,000
• Third Fiscal Year-: $500,000

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 cigar lounge via word-of-mouth and leveraging on road show.

Despite the fact that our first outlet is located inside Los Angeles Airport, the model of cigar 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 cigars and tobaccos produced in The United States in our cigar 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;

Part of the marketing and sales strategies that we will adopt are;

• Open our cigar lounge in a grand style with a party for all.
• Introduce our cigar lounge by sending introductory letters alongside our brochure to organizations, households and key stakeholders in Los Angeles – California
• Ensure that we have a wide range of cigars, tobaccos, wines, beers, liquors, distilled spirits, martinis and non-alcoholic drinks at all times.
• Make use of attractive handbills to create awareness and also to give direction to our cigar 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 cigar lounge.

11. Publicity and Advertising Strategy

Sleek Cigar Lounge®, LLC is a neighborhood 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 cigar 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 Sleek Cigar Lounge®, 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, airport workers, business people, households, landlord associations and political parties by calling them up and informing them of Sleek Cigar Lounge®, 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 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

At Sleek Cigar Lounge®, LLC, our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our pub;

• Payment by cash
• Payment via Point of Sale (POS) Machine
• Payment via online bank transfer (online payment portal)
• Payment via Mobile money

In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any difficulty.

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 cigar lounge business; it might differ in other countries due to the value of their money. This is what it would cost us to start Sleek Cigar Lounge®, 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.
• Cost for hiring Consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• 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.
• 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 – $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
• Cost for serving area equipment ( glasses, flatware) – $3,000
• 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 cigar lounge in downtown Los Angeles, CA. This amount includes the salary of all employees and the CEO (Owner) for 3 months.

Generating Funding / Startup Capital for Sleek Cigar Lounge®, LLC

Sleek Cigar Lounge®, LLC is a private business that is owned by Mr. Sleek Davenport and his family and they intend to finance the business alone. Although they have plans to make the 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 Sleek Cigar Lounge®, 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 cigar lounge, ensure adequate security, availability of various brand of cigars, tobaccos, alcoholic drinks and excellent customer service et al.

Sleek Cigar Lounge®, 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 retraining 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 cigars, wine, alcoholic and non – alcoholic drinks, tobacco and small chops et al: In Progress

Bar Business Plan

Do you want to put up a bar as a business ? If this has been your aspiration or desire for a long time already, make sure that you have the proper processes and business plan guidelines that can help you present your bar business plan to your target audience in the best way possible. In this article we will discuss how you can write a business plan for your bar startup.

16+ Bar Business Plan Examples

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What Is a Bar Business Plan?

Like any other business plan, this specifically helps owners have a plan for their bar. It contains business goals and a timeframe to achieve them. It serves as a blueprint that guides bar owners in running day to day operations, drawing a growing number of patrons, and becoming a reputable establishment. It is also for getting financial support from potential partners and a guide for the management and operational processes of the business.

How To Draft a Bar Business Plan

No matter the purpose of your bar business plan, it is important for you to identify your business’ vision and mission. That way you can create a business plan that is necessary and helpful for the needs of your business. Check out restaurant and coffee shop business plans as a reference to get started. If you need more ideas, check out these tips in creating a bar business plan.

1. Be Aware Of The Market

Before you begin your business plan, understand the dynamics of the market for bar establishments. Knowing the needs of your customers, the trends that dictate the shift in the marketplace, and the way your competition reacts to certain scenarios can help you properly and carefully execute action plans for your bar business’s growth may it be in reach, actual sales, or brand awareness.

2. Create An Executive Summary

Come up with a bar business plan executive summary that can showcase the mission and vision of the business. You also have to make sure that this overview of what the business plan is all about should contain the principles and values that guide your business as well as the key factors that you need to consider for your successes.

3. Make An Organizational Structure

Describe the company and the nature of its operations before giving details about ownership and management. A start-up summary is most likely helpful in ensuring that the business will follow legal procedures and regulations for its operations.

4. List Down Your Resources

It is important for you to present the financial aspect of the business so that you can attract potential partners and investors, if necessary and applicable. Include information about your products and suppliers as well so that you can keep track of where you can get resources.

What are cocktails?

Cocktails are alcoholic beverages made of spirits and other ingredients such as fruit juice, soda, etc. They are one of the things commonly ordered and consumed in a bar. There are many kinds with varying ingredients, flavor, and appearance.

What makes a nightclub different from a wine bar?

While both places serve alcohol, the set up of the place is different. A nightclub is more focused on the entertainment of the patrons by providing drinks and music. In contrast a wine bar is a tavern-like establishment and tends to have a more relaxing ambiance like bistros.

What makes a tavern different from a bar?

Both places sell alcoholic beverages , but what makes them distinct from each other is that a bar does not necessarily serve food. A tavern on the other hand sells food and would often provide lodging. Taverns are an establishment that has existed for many centuries while bars started in the past few decades.

According to Statista research, sales in the drinking place sector in the United States have reached $23.15 billion in 2015. With the right kind of business plan your bar will certainly make sales that’ll contribute to such a number in the future. If you need more ideas on how to create a business plan then check out our business proposals and marketing strategy examples as references.

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