I Need Advice On Opening My Hookah Bar....any Advice Is Welcome!

[markc]

hello, I am trying to open my hookah bar and I am not sure exactly how to estimate the number of people I expect to serve each day or estimate the amount of tobacco I am going to have to buy or the amount of coals and such. I need all of this information to help me estimate my projected monthly sales so that I can finish my business plan. There aren't any resources online giving information on other hookah bar revenue so this makes it really difficult to estimate and i need this infor to get a business loan. ANY hookah bar owners out there who can help me? and help me with any questions I have that may arise. I would appreciate this very much! Thank you!

[Victim026]

Where are you going to be located? How much competition is around? How many people are you going to be able to seat in you place and how many chairs to the average table? Price per hookah?

[Click]

Not a hookah bar owner, but I think one of the first things is too look at your maximum capacity and assume 1/4 to 1/2 capacity during weekday nights and close to full during weekends. Assuming word about your hookah bar gets around town. That will help people who own hookah bars on the forums to give you a better estimate.

[Victim026]

Click brings up good points, one thing I forgot to ask was where are you intending to get these loans from? If it's from a bank you should prolly work on the fact that they are going to deny you because your a tobacco based business. I was planning for the past year to open a hookah bar, and got turned down by every bank due to that fact. Private investors are a different story and hopefully within the next year I'll have my place all ready to go but I'm not holding my breath over it.

[Exile]

I'd like to hear some opinions myself- as I am also interested in opening a hookah bar in the future.

I would assume opening a hookah bar is very similar to opening a restaurant. The best way to get an idea of how much product you'll be pushing is to keep score. By this I mean, buy the product- then record sales. Then you can do the math. You can find the frequency of flavors smoked, most common brand smoked in your shop, etc.

Doubtful that there's any way to predetermine or anticipate business without trial and error.

[Click]

Another good way to estimate how many hookahs will be out at any given time, therefore how much coal and shisha is to make a hookah to person ratio. Like for every 4 people at a table at least one hookah. So if you expect 100 people that's at least 25 hookahs. ~750g of shisha. Assume they smoke that bowl for 45 mins to and hour. Just a thought. Edited May 26, 2008 by click

[mjdx88]

what do you do at a hookah bar? and what is this thing called a hookah.......you talk about.


Eh im just being a smart ass been dealing with customers at work all day and dumb questions that I couldnt give a smart ass response to.

Not that your question is dumb. There are a few guys that own/work at hookah bars and I will let them speak for themselves, bump the tread if you dont get any more answers, you in the right place. Welcome to the Board.

Mike

[guyt]

You should go to the nearest hookah bar and do some research. Just take a yellow pad and some pens and start writing numbers down. Write how much they charge per bowl, about how long the average group sits there, how many people per hookah does the place allow, etc... Just write everything. Then when you have all the raw data you can calculate how much you need to spend on supplies, how much revenue you'll get. Just don't forget to include the price of permits and the fact that you might need to install a very large very expensive vent system.

[boulderkid303]

PM mushrat, im sure he'd be happy to help you out.

[liquidglass]

To answer your questions here are a few thoughts from what I've looked into:

In the end though MUSH and some of the other lounge owners can help you more than I can, esp Mush since he just celebrated his first year! woohoo. I haven't opened one yet just looked into it lol.

1) Coal wise, go with naturals, much cheaper. Plan on about 2 finger coals per bowl or certain time period.

2) Let's say you have the capacity for 30 people max. Friday and saturday nights (especially around universities) you'll probably stay close to that
- Other nights I would say you'll get a few customers here and there so average 10-15 people a night.

-most of it depends on your location


3) tobacco wise: We can guess each bowl will hold 15-25 grams of shisha. Average that with how many bowls you expect to spend. Plus the quality of shisha. Tangiers more expensive than Nahkala for example.


Here's some thoughts that I had to consider when I was going through opening a lounge

But TRY not to stress too much about the below information, it's just a few things I considered. Worry about your business plan first then the rest of this later.








Well I've looked into the prospect of opening a bar plenty so a lot of it just depends on what you want it to be like.

A) do you want to serve food/drinks
- If so find out the limitations in your state for food/drinks without a license (licenses are usually hassles)
look into proper ventilation so people can come hang out with friends that smoke (be friendly to everyone, you'll end up with more people, b/c everyone wants to try it once )

C) Do you want to be exclusively hookah, or would you be willing to sell cigars and ciggarettes? (again where proper ventilation comes into play)
- cigg companies will PAY YOU to sell their ciggs. so beyond the profit you make on the sales you get paid for displaying it

D) There are certain places to buy "bulk hookahs" when I was looking into it I think I was going to get like Ten 32" egyptians (with accessories) for $355 + shipping. Which isn't a bad deal overall.
-Then you need to consider washable hoses, non washable, hoses for different strong flavors, bowl types, etc

[mushrat]

email me at bliss@hookahbliss.com I can help you out or call me at the bar tues through saturday between 4-7 pm EST I can give you some pointers. (919)-967-3066.

Ask for mushrat...

[Dereksd]

off topic but mush your beer selection is amazing

[Bulldog_916]

I'd look for a hookah bar going out of business, there are a few in the central cali area. Do a search on craigslist or a little research on the internet. I'm sure there's info there. I've seen 3 in the last few months, most of them going for between 90 and 120,000 dollars.

[GypsyLotus]

Click brings up good points, one thing I forgot to ask was where are you intending to get these loans from? If it's from a bank you should prolly work on the fact that they are going to deny you because your a tobacco based business. I was planning for the past year to open a hookah bar, and got turned down by every bank due to that fact. Private investors are a different story and hopefully within the next year I'll have my place all ready to go but I'm not holding my breath over it.

How do you find a private investor? I am in the early stages of opening a tea & coffee lounge that will provide hookahs.-- that's why I was wondering which teas go best with hookahs in another post-- I was wondering if banks would frown upon it-which thanks to you I now know they will. Do investors prefer existing locations or new construction?

[Victim026]

I sourced my private investors through friends of friends. All it takes is finding one good family friend or friend of a friend with some money to blow. As long as you can prove the investment is worthwhile. I've got my investors in place for the most part, now I just need the right time to roll around to get it off the ground. Hopefully this fall although spring is way way way more likely for me.

[GypsyLotus]

http://www.youngentrepreneur.com/forum/f7-...-bar-10870.html


site on the young entrepreneur website. didnt't read it. but maybe there will be some stuff you might find interesting.

[Tom1]

Ask for mushrat...

BAMF. Edited May 27, 2008 by Tom16689

[10ryno]

Make sure your place has good ventilation. Everyone I've been to has had poor ventilation and the longer you stay in the place, the harder it is to see. And it ruins the whole experience.

[GypsyLotus]

BTW, other than good ventilation, get a good AC system, the bigger the better...cuz I have been to some lounges whose AC just didn't cut it! It gets hot when a bunch of people are smoking-especially down here in tampa..it was a mess!

[mushrat]

off topic but mush your beer selection is amazing

Thanks. it changes almost weekly.

[mushrat]

I sourced my private investors through friends of friends. All it takes is finding one good family friend or friend of a friend with some money to blow. As long as you can prove the investment is worthwhile. I've got my investors in place for the most part, now I just need the right time to roll around to get it off the ground. Hopefully this fall although spring is way way way more likely for me.

My investor was an old friend who believed I could actually do it. The rest was all the money we had saved for about a year plus a massive CC.

[HKJON]

I say just go for it and keep in mind I also operate a successful lounge. Between Bliss and I you can have a daily consultant team right here. You can't fail!

[mushrat]

heh..im glad someone has that much faith in me and my place...

Hows your place going jon?

[bob's hookah lounge]

This is exactly where I'm at in my 'business'. I'm located here in Stillwater, Oklahoma and a Hookah Bar would be very profitable I'm sure. Any more advice? It's good so far, heard some new stuff here. I am about to purchase this business plan from www.hookahbusiness.com. Has anyone bought this or have taken a look?

[mushrat]

This is exactly where I'm at in my 'business'. I'm located here in Stillwater, Oklahoma and a Hookah Bar would be very profitable I'm sure. Any more advice? It's good so far, heard some new stuff here. I am about to purchase this business plan from www.hookahbusiness.com. Has anyone bought this or have taken a look?

DON'T! people have gotten that before and complained that it bullshit.