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Turning A Restaurant Into A Hookah Lounge


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The business would be located in Louisville, KY... a few of us have been throwing back the idea of pitching turning a restaurant, where we used to work and is struggling, into a restaurant and a hookah lounge...

We would like to know what we would need to do to go about looking up information and pitching it to the owners, they already have all the furniture, tables, kitchen supplies, bar, etc.

How would we go about being able to smoke hookahs in the building, since there is a law regarding smoking in public places, but there are hookah bars that are allowed to have people smoke inside, do you have to have a certain percentage of alcohol sales or any help on this would be greatly appreciated

We currently have around 5 hookahs we could use as the start-up venture, and I know that southsmoke.com has a business catalog where you can buy shisha in large quantities

Any help would be appreciated, we view this as an opportunity for us as a way to start a hookah lounge and help a struggling local business

Also if we cant get around the smoking ordinance, if we used Herbal Tangiers wouldn't that be okay? There is no tobacco
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QUOTE (Astro @ Jun 22 2009, 07:58 PM) <{POST_SNAPBACK}>
The business would be located in Louisville, KY... a few of us have been throwing back the idea of pitching turning a restaurant, where we used to work and is struggling, into a restaurant and a hookah lounge...

We would like to know what we would need to do to go about looking up information and pitching it to the owners, they already have all the furniture, tables, kitchen supplies, bar, etc.

How would we go about being able to smoke hookahs in the building, since there is a law regarding smoking in public places, but there are hookah bars that are allowed to have people smoke inside, do you have to have a certain percentage of alcohol sales or any help on this would be greatly appreciated

We currently have around 5 hookahs we could use as the start-up venture, and I know that southsmoke.com has a business catalog where you can buy shisha in large quantities

Any help would be appreciated, we view this as an opportunity for us as a way to start a hookah lounge and help a struggling local business

Also if we cant get around the smoking ordinance, if we used Herbal Tangiers wouldn't that be okay? There is no tobacco



I'm gonna go out on a limb and say you have ALOT of research to do based just on the fact that you think there is Herbal Tangiers. I don't have more time to be of help but I would say use the search engine, it's filled with info on lounge startup.
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Unsure why I actually said Tangiers, sorry about that... I dont even use Tangiers, right now mainly using Pharaohs right now, Tangiers is about as far off as herbal as you could get...

But couldnt one use herbal shisha, unsure how good it actually is since I have never used it, to get around a smoking ban if we couldnt get an exemption
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QUOTE (momatik @ Jun 22 2009, 10:05 PM) <{POST_SNAPBACK}>
I don't have any personal experience with it, but I have heard the Black Label stuff is pretty good.


Thanks I just saw that, I mean its a worse case scenario, because there are other hookah lounges here, but I've searched for 2 hours trying to find out what the qualifications are for exemptions and still nothing... plus I figure if I did have to go that route, it would stop a lot of people getting angry that I'm tainting the youth

Just mainly looking for a few articles and such to present to the owners, see if they are interested then come up with a business model... everything is in place, the restaurant does decent business on Friday but thats really it, it's mainly regulars that keep coming back... the problem is those regulars are all middle-aged to elderly, so I'm not sure how receptive they would be to hookahs, I see a lot of potential in this, plus the fact there are around 30 or 40 tables, a bar, kitchen, since it is already a restaurant, I could see it turning out very well... the first step is to convince the owners of the change
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Fly me out to KY and i'll be your hookah consultant, but on a serious note pitch them what they want to hear, that's how you sell something. Bring up that their restaurant is failing and you have a solution, and that solution is introducing hookah to the restaurant. The pitch in how hookah is booming, how other local hookah bars are succeeding then give them the demographic info then find out your cost and the profits that will come.
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Do a lot of research locally and def. get the in's and out's on the laws in your area, maybe consult a lawyer/gov't person about that area. Lots of demographics, like speel stated, to see if this would even be profitable or worthwhile venture. Run some scenario numbers to see what you're looking at, best to do a median, ideal and bad outlook then some deviations from those numbers, just to have the bases covered for unseen circumstances. You have lots of prep to do before even thinking about taking to the current owner IMO... good luck, hope it all works out for you Edited by Jeff_T
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QUOTE (Astro @ Jun 22 2009, 07:03 PM) <{POST_SNAPBACK}>
Unsure why I actually said Tangiers, sorry about that... I dont even use Tangiers, right now mainly using Pharaohs right now, Tangiers is about as far off as herbal as you could get...

But couldnt one use herbal shisha, unsure how good it actually is since I have never used it, to get around a smoking ban if we couldnt get an exemption

Actually I believe tombac is even further away from herbal than Tangiers wink.gif. But ya, you may look at the threads Mush has started about trying to keep his lounge open in NC. I can't remember the specifics, but I don't think you can have alcohol and tobacco in the same building. One or the other. UNLESS you start manufacturing the baccy, then you might be able to, not exactly sure. I also know that, like hookah hippie said, a certain percentage of your earnings have to be from food and certain has to be from baccy. I can't remember the exact numbers or whether they mean profit or revenue (big difference). I know the exceptions I remember are becoming a baccy shop that happens to let the customer smoke the product as well, and the enclosed building part. An enclosed building is defined as a structure with a roof and an adjoining wall, so if you get rid of your walls you are in good shape, lol. Last, if you manufacture the baccy you are safe, BUT in all the cases, the smoke cannot travel to adjoining buildings, the smoke has to be contained in your establishment.

Sorry I couldn't be of more help, I can't remember the specifics and don't really feel like reading all the stuff again.
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You searched 2 hours and couldn't find anything?

http://lmgtfy.com/?q=kentucky+smoking+exemptions
QUOTE
Exceptions to this ordinance include private homes, bars with food sales that total less than 25%, private clubs, retail tobacco stores, tobacco warehouses, horseracing tracks, designated smoking areas and hotel/motel guest rooms designated for smoking.
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I'm curious about the local demographics as well as actual location and what the place looks like right now. There is not a one size fits all unfortunately.
What do you think is the main reason they are struggling right now? Food quality/quantity/prices/service, bad location, poor local economy or tough competition? Do the locals know they're even there? If so what seems to be the general consensus of the place?
There may be other things that need to be addressed before you try a hookah bar.

Good food no matter how simple the menu, good prices, and really cute waitresses always works for me. If it's closer to businesses than homes then shoot for the lunch crowd and have really good drink prices for the after-work crowd.

Best of luck. It sounds like you're hearts in the right place and it sounds like they need some fresh ideas.
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QUOTE (Scalliwag @ Jun 23 2009, 12:25 PM) <{POST_SNAPBACK}>
I'm curious about the local demographics as well as actual location and what the place looks like right now. There is not a one size fits all unfortunately.
What do you think is the main reason they are struggling right now? Food quality/quantity/prices/service, bad location, poor local economy or tough competition? Do the locals know they're even there? If so what seems to be the general consensus of the place?
There may be other things that need to be addressed before you try a hookah bar.

Good food no matter how simple the menu, good prices, and really cute waitresses always works for me. If it's closer to businesses than homes then shoot for the lunch crowd and have really good drink prices for the after-work crowd.

Best of luck. It sounds like you're hearts in the right place and it sounds like they need some fresh ideas.


It's off a main road, very busy road actually, the quality of the food is pretty good, it's mainly a seafood restaurant but they have chicken, beef, and other things, most people know it is there if you say something but due to not being able to advertise they are struggling, the main reason it stays in business are regulars who have been going there for 15+ years, the drinks are cheap, $1 for a bottle beer, not sure how expensive their mixed drinks are... the menu is pretty cheap, which was a problem that I noticed awhile ago, I suggested raising prices but they did not want to alienate the regulars they said...

I could see the place doing well if they could save up money to advertise more heavily and raised the prices a bit, they are as cheap as Captain D's and Long John Silver's for actual fish that is prepared on site

Since they wont advertise or raise prices thought running the hookah idea by them may be an option, could stay open late, have hookah's after 9, when they close normally, only have 1 or 2 people in the kitchen, or I could even do that, and serve alcohol, hookah and food when they normally would be closed, after a few hookahs and food it would pay for itself then the rest of the money for the night is a plus
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I think it's something like if 60% of your sales comes from tobacco then smoking it is legal, if you served alcohol then 60% of your sales wouldnt come from tobacco. And I only know this because I asked my hookah bar why they don't sell alcohol.
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QUOTE (Astro @ Jun 23 2009, 09:15 PM) <{POST_SNAPBACK}>
QUOTE (Scalliwag @ Jun 23 2009, 12:25 PM) <{POST_SNAPBACK}>
I'm curious about the local demographics as well as actual location and what the place looks like right now. There is not a one size fits all unfortunately.
What do you think is the main reason they are struggling right now? Food quality/quantity/prices/service, bad location, poor local economy or tough competition? Do the locals know they're even there? If so what seems to be the general consensus of the place?
There may be other things that need to be addressed before you try a hookah bar.

Good food no matter how simple the menu, good prices, and really cute waitresses always works for me. If it's closer to businesses than homes then shoot for the lunch crowd and have really good drink prices for the after-work crowd.

Best of luck. It sounds like you're hearts in the right place and it sounds like they need some fresh ideas.


It's off a main road, very busy road actually, the quality of the food is pretty good, it's mainly a seafood restaurant but they have chicken, beef, and other things, most people know it is there if you say something but due to not being able to advertise they are struggling, the main reason it stays in business are regulars who have been going there for 15+ years, the drinks are cheap, $1 for a bottle beer, not sure how expensive their mixed drinks are... the menu is pretty cheap, which was a problem that I noticed awhile ago, I suggested raising prices but they did not want to alienate the regulars they said...

I could see the place doing well if they could save up money to advertise more heavily and raised the prices a bit, they are as cheap as Captain D's and Long John Silver's for actual fish that is prepared on site

Since they wont advertise or raise prices thought running the hookah idea by them may be an option, could stay open late, have hookah's after 9, when they close normally, only have 1 or 2 people in the kitchen, or I could even do that, and serve alcohol, hookah and food when they normally would be closed, after a few hookahs and food it would pay for itself then the rest of the money for the night is a plus


cute waitresses in little pirate wench outfits would spark a lot of interest. They get tipped well so after word gets out if the food is good and the beer is cheap the place would do well. Put a couple of cuties out by the road when traffic is peaking holding signs stating dollar beer night and whatever food special is going on.
I'm not suggesting they get really tacky, just a little edgy like Hooter's. Good food, cold beer and girls showing a bit has made that business huge. So that is a proven concept.
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QUOTE (Astro @ Jun 22 2009, 06:58 PM) <{POST_SNAPBACK}>
The business would be located in Louisville, KY... a few of us have been throwing back the idea of pitching turning a restaurant, where we used to work and is struggling, into a restaurant and a hookah lounge...

We would like to know what we would need to do to go about looking up information and pitching it to the owners, they already have all the furniture, tables, kitchen supplies, bar, etc.

How would we go about being able to smoke hookahs in the building, since there is a law regarding smoking in public places, but there are hookah bars that are allowed to have people smoke inside, do you have to have a certain percentage of alcohol sales or any help on this would be greatly appreciated

We currently have around 5 hookahs we could use as the start-up venture, and I know that southsmoke.com has a business catalog where you can buy shisha in large quantities

Any help would be appreciated, we view this as an opportunity for us as a way to start a hookah lounge and help a struggling local business

Also if we cant get around the smoking ordinance, if we used Herbal Tangiers wouldn't that be okay? There is no tobacco


Laws are different wherever you live, here in AZ if you have a hookah bar, you CANNOT serve any food or drink, I believe prepared drinks are alright like bottled soda but thats it.

You can't really do much with only 5 hookahs, you will need to really plan this as it is a real business and can take months to plan and open.
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1. Almost all areas with smoking bans have prohibitions against smoking in restaurants. Some states don't observe the rules, but its a matter of problems, to be sure if you wanted to allow smoking inside.

2. A retail tobacco store, to be exempt, would have to be primarily tobacco sales, restaurant sales would have to be far smaller in proportion...which makes the combination less feasible.

3. Rents on restaurant-ready establishments are considerably higher than a bare bones retail space, making the whole combination less feasible. That may be why the restaurant isn't doing that well to begin with. The rents are frequently unreasonable.

4. There is no smoke from a standard modern hookah if you refrain from using zaghoul, Tombak or Jurak. So, technically, it might be an exemption. Getting the government to believe it, on the other hand might be a costly battle.
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