Making money of flavored air. Hookah cafe business plan from Runumber: amount of investments – $9k, payback period – 1.5 years, return – 70%.
Overview of Hookah Cafe Business
Hookah has not taken deep roots in Western Europe and the United States, although at the beginning of the last century hookahs weren’t a rare thing there. However, they were most often used for smoking opiates at that time. After the prohibition of drug-containing mixtures in most countries of the world, hookah popularity declined rapidly. As a result, smokers in Europe and the United States got accustomed to smoking a pipe, cigars and cigarettes. Hookah smoke seemed too light for them and not allowed to feel the full taste of tobacco.
Hookah bars are very popular in the Middle East, where hookah is a traditional equipment for smoking tobacco blends. The world-famous Farsha Cafe is located in Sharm El Sheikh and exists since the start of the tourist boom in Egypt.
In our country, the ban on smoking in public places contributed to the growing popularity of hookahs. Hookah clubs became the only venues where people could smoke inside. At the same time, heavy fines are imposed for smoking tobacco. So it it would be appropriate to form the offers by interesting smoking blends.
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Peculiarities of Hookah Business
As a rule, hookah cafes should be comfortable and spacious. Experts recommend considering premises with the area exceeding 100 square meters with a separate entrance. Closed smoking clubs should not create any inconveniences to the residents of the neighboring houses. First of all, it’s necessary to equip the rooms with a powerful hood, an emergency exit, and fire protection equipment.
It’s important to buy a powerful extractor hood to remove smoke instantly, thus avoiding creating discomfort for clients. The owners of the hookah business advise to use the “fast” Egyptian hookahs, because they are easier and faster to prepare. Such devices reduce the time of order preparation. In general, the cost of a hookah varies from $10 to $20. The expenses of the cafe also include disposable mouthpieces and smoking mixtures.
Equipment for Hookah Cafe
Since the cooking of food and drinks in a closed hookah club is forbidden, expenses on kitchen equipment are not included into hookah cafe business plan.
The minimum set of hookah equipment is as follows:
- hookah (the amount depends on the number of seats);
- coal (stock for a period of two weeks);
- tobacco blends (stock for a period of two weeks);
- bowls and tubes (spare ones, 2-3 pcs per hookah);
- several spare flasks;
- burners for coal;
- brushes for cleaning the flask;
- disposable mouthpieces (minimum 200 pcs);
- tweezers (minimum 20 pcs);
If you plan to serve coffee or tea, you have to purchase a coffee machine, teapot and utensils. As a rule, the hall furniture includes soft sofas and low tables. In general, the investments in equipment, furniture and repair of premises for 15-20 seats amount to $9,000.
Peculiarities of Advertising Hookah Cafe
Since the advertising of tobacco smoking is prohibited, advertising of smoking clubs in mass media is also undesirable. Consequently, in order to attract a client, it is necessary to create a pleasant and relaxing atmosphere. Expenses on music, light and hall design must be described in hookah cafe business plan.
It is worth considering some entertainments for the clients like broadcasting sports events, board games, evenings of live music, etc. It’s undesirable to use game consoles, since a person who is too keen on the game can scream or talk loudly, which other visitors may consider pretty annoying. As usual, pages in social networks allow to inform regular customers about the events or promotions and form the fan zone of the cafe.
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