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Old January 19th, 2008, 03:01 PM
Hajo Flettner
Status: Offline
Hookah Legend
Join Date: May 2007
Posts: 4,746
Default Re: Throwing around the idea of creating a hookah lounge

I'd be very cautious about getting into this line of business. You need to keep in mind that start up costs are pretty substantial ( in my case 100K) and that you must be able to operate at a loss for several months and often for over a year while still meeting all of your personal bills. We should remember that while narghiles are presently very trendy it could cease being hip any time and business can decline in any area do to increased competition, tax increases, new anti-smoking laws or a decline in the local economy. In Albuquerque, not too far from me, it's impossible to keep a record shop open even when it's a block from a university which shows the local economy is shit. You should note that in some places in order to allow smoking in a retail establishment you need to generate upto 80% of your revenue from tobacco products. For a lot of lounges that simply is not possible as selling drinks and snacks is a major source of revenues. When I had a narghile cafe I had a record shop in the same space which helped a lot in paying the bills and that simply is not an option in a lot of places.

Still, if you have carefully researched everything, have means to get the money on decent terms and know something about running a cafe by all means give it shot. Just be ready to opperate at a loss for a year or more.
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