Hookah Business Question

[JustinTyme]

Hello everyone!!

I'm interested in starting a Hookah Cafe with another business partner, but I am concerned about all the smoking bans that states have been coming up with. I noticed that many states that have banned public indoor smoking have allowed hookah cafes to stay opened.

My question is.... for how long?

I'm afraid to get too involved in this business venture and then a year or two down the line have the government tell me I have to shut down.

Any thoughts?

-Justin Tyme Edited June 5, 2007 by JustinTyme

[hookah hippie]

Here's a thought have a membership for your cafe charge $0.01 that way your cafe is a private establishment and you could permit smoking inside

[JustinTyme]

Here's a thought have a membership for your cafe charge $0.01 that way your cafe is a private establishment and you could permit smoking inside

Thanks for the quick reply!

I thought about that too, but there is a problem with doing it that way. Many laws define a "private establishment" as NOT having any employees.

I have heard however that in California, some hookah cafes have made their employees part owners of the establishment in order to manipulate a loophole in the anti smoking laws. Don't know how that would work though.

Good idea nonetheless.

[The King]

Here's a thought have a membership for your cafe charge $0.01 that way your cafe is a private establishment and you could permit smoking inside

Thanks for the quick reply!

I thought about that too, but there is a problem with doing it that way. Many laws define a "private establishment" as NOT having any employees.

I have heard however that in California, some hookah cafes have made their employees part owners of the establishment in order to manipulate a loophole in the anti smoking laws. Don't know how that would work though.

Good idea nonetheless.

Sell stock, just a bit to employees, then they therefore own a portion of the company

[hookah hippie]

Just throwing it out there trying to help

[Scheetz]

My question is.... for how long?

If you are asking how long those laws will be around. Simple, long after you and I have passed away. This government is focused on socializing medicine. Therefore they have to remove a drain on the money for it. Cancer is the biggest one. Stop smoking you stop alot of cancer cases. Same thing Europe is doing.

[Øskorei]

I don't know about the business law over there is the US, but in Oz I would be investigating the option of a Co-Operative setup. Here it needs to be a members thing, and 'not-for-profit', but there is still a provision for paid senior staff of the organisation - ie if it takes $100k a year to find the right directors to run a 'not for profit' co=op, then that's what you'de put on your tax returns

In NSW, Australia, we're into 'stage 2' of smoking bans and it means no indoor area smoking AT ALL as of 1st July. Is presently designated small areas, but that'll be over soon, and it will be outdoors only.

[Jamal]

In the U.K, I know of 2 business's setting up hookah rigs outside undershade though and converting the rest in to a resturant, although I know of another place starting membership up of the shisha cafe.

[hookahlife]

Hey JustinTyme,

I'm not familiar with every states smoking bans so I don't know how well this applies to you, but, In Chicago you can have a hookah lounge under 2 conditions.[b]

[b]1) You don't serve food (only prepackaged foods) and no alcohol (BYOB is ok, depending where you open)
2) Your sales consist of 65% tobacco and 35% others, to be eligible.

Right now there are a few establishments that are "grand-fathered" in, so they are still able to serve food and liquor (they'll be phased out by next year). Currently the state legislature is trying to pass a state wide smoking ban that would speed up the phase out process, this will make it a lot more difficult to open an establishment that has anything in addition to hookah.

If your state/city is going through the same process, I recommend you either get rolling on your permits/paperwork, or plan on opening up as private members establishment.

on a personal note: I think its very disappointing that these bans are having such a large impact on the hookah community. I understand the ban for bars & restaurants, since people don't go there for the smoking experience, but there should be some kind of guidelines for hookah establishments...I mean your not going to go to a hookah lounge for the food and liquor, you might like the food there, but your going there to smoke and eat and drink in addition to that; if you want to eat and drink, you'll go to a restaurant. Just my 2 cents. [/b]

Justin, I really hope your able to open up your lounge

Hope this helped [/b]

[mushrat]

well, here in tobacco country they just defeated the law that would have restricted tobacco use in Restaurants and Bars.

[hookahlife]

well, here in tobacco country they just defeated the law that would have restricted tobacco use in Restaurants and Bars.

Congrats on the victory Mushrat!! Althought the battle has been won, my feeling is that the war isn't over! (corny analogy, I know, but you get the point)

[JustinTyme]

Thanks for the show of support Hookahlife.

It is sad that more states don't have an exemption to the smoking bans for hookah lounges. I live here in Cleveland, Ohio (Go CAVS) but am considering moving to Atlanta, Georgia to open my business. There are already a few hookah bars and cafes in Georgia, so I am assuming that there is some type of exemption in the smoking bans for hookah lounges.

I realize that exemptions for hookah bars and cafes do exist in states that have banned indoor smoking. I think I'm more concerned about the government lifting the exemptions in the future. I don't want to invest my hard earned money in a business venture without some assurance that I can continue to serve my hookah smoking customers for many years to come.

And I don't want to hop from state to state to do it either.

I guess this is one of those things where you just have to try it and see what happens.

[L'Oignon]

Its a pretty big gamble. I think the 'long after we're dead' thing is a little optimistic. Ontario swooped in and banned public smoking really really quickly I thought. Its no trouble for me though, I rather like eating in restaurants that dont smell like ash, though you hookah bar owners have to keep watching over your shoulders. Edited June 5, 2007 by L'Oignon

[Øskorei]

Sorry to get a bit off-topic....but.... hookahlife, you are really great in your support of others, despite having your own business interests. I have noticed this in other threads as well. Seriously mate, 5-thumbs-up. It's good to read about someone within a community who is acting selflessly and supports other's potential future business interests. It's a damn shame you don't have the pipes I want, otherwise I'd buy from you in an instant.

*hugs*
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