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hookah lounge + restaurant

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  #1  
Old November 23rd, 2008, 03:41 PM
CPill
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Default hookah lounge + restaurant

Don't worry, i'm not trying to post ANOTHER "i'm opening a hookah lounge and i need tips" thread. I've read them all and i've got the idea...

but i had a question to people who know more about business/law of hookah lounges and what not..

Many states have a law roughly stating "for an establishment to allow indoor smoking, 80%(or whatever it may be) of the sales must be tobacco related"...

well i was wondering:

If in the same building, could you have one business that was SOLELY the smoking portion and then have another business name for all of the food/alcohol part... but STILL keep it in the same building?

I was just curious if anyone on the forums knew about this at all, before i ask a lawyer/commercial broker about it.
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  #2  
Old November 23rd, 2008, 04:12 PM
TheHookahStore
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Default Re: hookah lounge + restaurant

Interesting question. I was recently at a hookah lounge/cafe in Oregon where there are laws that say no smoking in any building open to the public and no smoking in any building where there are employees. I asked the guy how he got around those laws.

His answer was, he has outdoor shisha smoking all the time as he has tables outdoor as well as a special members only time when they have shisha smoking inside. When they have shisha smoking inside they are not open to the public, but open to members only. They charge a one time membership fee costs $10 which is the same amount you would spend on one smoking session. Then they give you one free smoking session when you sign up for membership.

Then I asked, but what about the smoking where there are employees? He says all his employees are family which makes him exempt.

Oregon is one of the most strict states there is when it comes to smoking in public places.
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  #3  
Old November 23rd, 2008, 04:20 PM
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Default Re: hookah lounge + restaurant

Quote:
Originally Posted by TheHookahStore View Post
Interesting question. I was recently at a hookah lounge/cafe in Oregon where there are laws that say no smoking in any building open to the public and no smoking in any building where there are employees. I asked the guy how he got around those laws.

His answer was, he has outdoor shisha smoking all the time as he has tables outdoor as well as a special members only time when they have shisha smoking inside. When they have shisha smoking inside they are not open to the public, but open to members only. They charge a one time membership fee costs $10 which is the same amount you would spend on one smoking session. Then they give you one free smoking session when you sign up for membership.

Then I asked, but what about the smoking where there are employees? He says all his employees are family which makes him exempt.

Oregon is one of the most strict states there is when it comes to smoking in public places.
Wow lol. that was actually quite informative. I guess i'll have to check out the exact AZ law about how it's stated to try and "get around" it
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Old November 23rd, 2008, 04:44 PM
Hajo Flettner
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Default Re: hookah lounge + restaurant

When I was in that business I ran the private club angle and I had 2 legally separate businesses (shisha cafe & book/record shop) with adjoining property. In order to make it work the two businesses needed to be legally separate and have different store fronts. It worked out just fine but in the end I sold it because the hassle and time consumed didn't justify the profits. The guys that bought it from from me ran in into the ground in about a year.
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  #5  
Old November 23rd, 2008, 05:23 PM
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Default Re: hookah lounge + restaurant

The hookah lounge i go have gone to for my supplies locally (corvallis, or) has smoking indoors... i will have to ask next time i am in there abotu how they do it.... I know they have a designated section for smoking which is far away from the counter where the clerk stays....

they actually have dance parties..... with hookahs being used at teh same time.... sounds like BAD idea, but i guess they pull it off. haha
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  #6  
Old November 23rd, 2008, 06:15 PM
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Default Re: hookah lounge + restaurant

i think you could do the 2 business in one place thing but you may have to keep the sales separate. you would have to have 2 fictitious name filings probably one for the smoking and one for the food, both would be under your main name

you could also have a shop area or a joined unit in a strip mall and sell all under one name so that the shops sales boost your sales

-matt
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  #7  
Old November 23rd, 2008, 06:38 PM
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Default Re: hookah lounge + restaurant

Quote:
Originally Posted by tbonesown View Post
Don't worry, i'm not trying to post ANOTHER "i'm opening a hookah lounge and i need tips" thread. I've read them all and i've got the idea...

but i had a question to people who know more about business/law of hookah lounges and what not..

Many states have a law roughly stating "for an establishment to allow indoor smoking, 80%(or whatever it may be) of the sales must be tobacco related"...

well i was wondering:

If in the same building, could you have one business that was SOLELY the smoking portion and then have another business name for all of the food/alcohol part... but STILL keep it in the same building?

I was just curious if anyone on the forums knew about this at all, before i ask a lawyer/commercial broker about it.

theres a hookah lounge in my area and one part of the building is medina kabob where they have food and what not then you go thru double doors and its called magik lounge but its the same owners and everything just different sections
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  #8  
Old November 24th, 2008, 02:41 AM
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Default Re: hookah lounge + restaurant

I looked up the exact statue's wording on the subject and kinda get an idea figured out... kinda similar to persianpimp's recollection.

i appreciate all of the feedback guys.
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