business plan for a hookah bar

Hookah Lounge Business Plan Template

Written by Dave Lavinsky

Hookah Lounge Business Plan

You’ve come to the right place to create your Hookah Lounge business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Hookah Lounges.

Below is a template to help you create each section of your Hookah Lounge business plan.

Executive Summary

Business overview.

Hookah Haven Lounge is a startup hookah lounge experience for patrons located in Chicago, Illinois. The company was founded by Constantine Vassilis, a former restaurant and bar owner who has determined that the new business opportunity will bring former customers to a new, exciting experience that appeals to young and old customers alike.

Constantine Vassilis owned the Blue Lagoon restaurant and bar for over twenty years, where the patrons were served traditional seafood and fish meals and the atmosphere was one of the ocean and tropics. While the business brought profitability and a strong following of loyal patrons, Constantine began to look for a new venture in 2020, and founded the new Hookah Haven Lounge as a way of reaching all generations, particularly younger college students, with experiences that are fresh and exciting.

Product Offering

The following are the services that Hookah Haven Lounge will provide:

• Unique, upscale experience in midtown Chicago
• Relaxing and enjoyable environment
• Multiple shisha flavors from which to choose
• Disposable hookah mouth tips
• Rich, comfortable, and private seating arrangements
• Low key social atmosphere
• Alcohol and appetizer menus

Customer Focus

Hookah Haven Lounge will target residential customers within Chicago and the surrounding regions. They will target university and college students. Hookah Haven Lounge will target shisha aficionados. They will also target small groups who are looking for a total experience of shisha, alcohol and appetizers. They will target patrons who enjoy appetizers and alcohol. They will also target potential customers who are seeking an event venue for special experiences.

Management Team

Hookah Haven Lounge will be owned and operated by Constantine Vassilis. He recruited his former restaurant manager, Deane Moore, to be his Restaurant Manager and help oversee the office and operations overall.

Constantine Vassili is a former restaurant and bar owner who has determined that the new business opportunity will bring former customers to a new, exciting experience that appeals to young and old customers alike. As he has invited many former patrons to the new hookah experience, he has built a following who have agreed to visit and are spreading the word of the new hookah lounge experience.

Deane Moore has been in the restaurant business for over twenty years, most recently as the restaurant manager for the Blue Lagoon, Constantine’s former restaurant and bar. She will take on the new role of Restaurant Manager for the Hookah Haven Lounge, where she will oversee all operations of the hookah, bar, and appetizer servings for customers.

Success Factors

Hookah Haven Lounge will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly-qualified team of Hookah Haven Lounge
• A wide array of shisha flavors, guaranteeing a variety of experiences for those who enjoy hookah.
• Exceptional appetizers available for purchase to serve small groups of 6-10 hookah patrons.
• Wide assortment of alcoholic beverages, including beer, wine and cocktails.
• Plush, comfortable seating and decor, designed to offer privacy for groups of 2 to 10 hookah patrons.
• Hookah Haven Lounge offers the best pricing in Chicago. Their pricing structure is the most cost effective when compared to the competition.

Financial Highlights

Hookah Haven Lounge is seeking $200,000 in debt financing to launch its Hookah Haven Lounge. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:

• Office space build-out: $20,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph outlines the financial projections for Hookah Haven Lounge.

Company Overview

Who is hookah haven lounge.

Hookah Haven Lounge is a newly established, full-service hookah lounge in Chicago, Illinois. Hookah Haven Lounge will be the most reliable, cost-effective, and efficient choice for residents in Chicago and the surrounding communities. Hookah Haven Lounge will provide a comprehensive array of shisha flavors for hookah and a comfortable, plush furnishings for small group social occasions. Their full-service approach includes a comprehensive bar and upscale appetizer selections.

  Hookah Haven Lounge will be able to serve 50 to 75 patrons at the same time. The team of professionals are highly qualified and experienced in providing hookah experiences and in serving beverages and appetizers, as well. The Hookah Haven Lounge removes all headaches and of the workday or weekend, as it ensures all issues are removed while patrons enjoy the best customer service and the easiest, most relaxed conversations.

Hookah Haven Lounge History

Since incorporation, Hookah Haven Lounge has achieved the following milestones:

• Registered Hookah Haven Lounge, LLC to transact business in the state of Chicago, Illinois.
• Has a contract in place to set up its office space of 5,000 square feet.
• Reached out to numerous contacts to include Hookah Haven on their “must try” list.
• Began recruiting a staff of ten and office personnel to work at the Hookah Haven Lounge.

Hookah Haven Lounge Services

The following will be the services Hookah Haven Lounge will provide:

Industry Analysis

The hookah lounge and bar industry is expected to grow over the next five years to over $15 million. The growth will be driven by an increased number of younger patrons who seek social interaction via hookah lounge experiences The growth will be driven by event planners seeking new event venues The growth will be driven by the number of patrons seeking a relaxing experience The growth will be driven by an increased supply of shisha in new varieties of flavors The growth will be driven by a larger demographic looking for bar, food and alcohol environments Costs will likely be reduced as prices for shisha are lowered and the supply is increased Costs will likely be reduced as more hookah lounges are opened

Customer Analysis

Demographic profile of target market.

Customer Segmentation

Hookah Haven Lounge will primarily target the following customer profiles:

• Residents of the city of Chicago and surrounding communities
• University and college students
• Shisha aficionados and those who enjoy smoking
• Patrons seeking a total experience: atmosphere, of alcohol, appetizers, and hookah

Competitive Analysis

Direct and indirect competitors.

Hookah Haven Lounge will face competition from other companies with similar business profiles. A description of each competitor company is below.

Mediterranean Hookah Bar

The Mediterranean Hookah Bar, located in Rosemont, Illinois, is owned by brothers Amid and Apollos Ajax. Amid and Apollos founded the Mediterranean Hookah Bar after they spent their university years enjoying a similar bar and found the target market in the Rosemont area was without competition. They used private loans and credit cards to start the business in 2020 and it became profitable as of late 2022. They employ six team members, three of whom serve at the bar and three who set up and serve hookah.

The Mediterranean Hookah Bar offers a wide range of alcoholic beverages, including mixed cocktails, fine whiskey, and several types of beer. The emphasis of the bar is one of relaxation and, in a portion of the bar, sports to follow via an interactive screen. Seating is arranged in groups of 4-6 patrons and snacks are available on the weekends only.

Azure Gold Line Hookah

Formed in 2018, the Azure Gold Line Hookah lounge features brand name shisha, including their most popular brand, Azure Gold Line Hookah. The lounge is located in Lake Forest, Illinois about twenty miles from Chicago, and offers a full flavored series of hookah for patrons who seek quiet, comfortable surroundings. The Azure Gold Line Hookah lounge is small and intimate, with private seating for two patrons and it includes live music on the weekends with a distinctive Mediterranean sound. Patrons are encouraged to try all flavors of shisha by engaging in the “Shisha Tastings” that are offered on Wednesday evenings. Twelve varied flavors of shisha are offered to patrons to determine are the favorites of the evening. The winning shisha is then offered to each patron in the “Shisha Tasting Club” when they return. This creates a social club of about twenty-five patrons and encourages conviviality among the single patrons. The Azure Gold Line Hookah offers single-use mouth tips to encourage hygienic habits, while also offering a buffet on Saturday evenings that include Mediterranean favorites.

The Chicago Rose Smoking Lounge

The Chicago Rose Smoking Lounge is situated adjacent to the Magnificent Mile in Chicago. Opened in 1939, the wood-patterned walls and roomy leather furnishings speak of several generations ago, when men sat and smoked their tobacco as women finished their meals in fancy restaurants nearby.

With the popularity of smoking tobacco on the decline in Illinois, the Chicago Rose Smoking Lounge began a hookah service that included four hookah bowls and leather sofas, along with distinctive flavors of shisha, that could be offered to those who are shisha aficionados. This brought in younger generations of patrons and increased the business, while retaining the flavor and atmosphere of the old-world Chicago Rose Smoking Lounge. The hookah portion of the environment remains somewhat small in comparison to the areas for cigarette and cigar smokers.

Competitive Advantage

Hookah Haven Lounge will be able to offer the following advantages over their competition:

• Hookah Haven Lounge offers the best pricing in Chicago. Their pricing structure is the most cost effective when compared to the competition

Marketing Plan

Brand & value proposition.

Hookah Haven Lounge will offer the unique value proposition to its clientele:

Promotions Strategy

The promotions strategy for Hookah Haven Lounge is as follows:

Word of Mouth/Referrals

Constantine Vasilis has built up an extensive list of contacts over the years by providing exceptional service and expertise to the patrons of his former restaurant and bar. Those patrons will follow him to his new company and help spread the word of Hookah Haven Lounge.

Social Media Promotions

Using popular social media platforms, a part-time marketing employee will announce the launch of the Hookah Haven Lounge and discounts will be offered during the first month of business. Reminders, updates and announcements will be sent regularly through all social media channels, with special promotions directed to university and college students.

Website/SEO Marketing

Hookah Haven Lounge will utilize their website extensively. The website will be well organized, informative, and list all the services that Hookah Haven Lounge provides. The website will also list their contact information and list their shisha flavors, including special flavors of the day. The website presence will employ SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Hookah lounge” or “Hookah near me”, Hookah Haven Lounge will be listed at the top of the search results.

The pricing of Hookah Haven Lounge will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for Hookah Haven Lounge. Operation Functions:

• Constantine Vasilis will be the Owner and President of the company. He will oversee all staff and manage client relations. Constantine has spent the past year recruiting the following staff:
• Deane Moore will take on the new role of Restaurant Manager for the Hookah Haven Lounge, where she will oversee all operations of the hookah, bar, and appetizer servings for customers.

Milestones:

Hookah Haven Lounge will have the following milestones completed in the next six months.

• 5/1/202X – Finalize contract to lease office space
• 5/15/202X – Finalize personnel contracts for the Hookah Haven Lounge
• 6/1/202X – Finalize potential patron list for Hookah Haven Lounge
• 6/15/202X – Begin networking at association events
• 6/22/202X – Begin moving into Hookah Haven Lounge
• 7/1/202X – Hookah Haven Lounge opens its doors for business

Financial Plan

Key revenue & costs.

The revenue drivers for Hookah Haven Lounge are the fees they will charge to customers for the products and services offered.

The cost drivers will be the overhead costs required in order to staff Hookah Haven Lounge. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

Hookah Haven Lounge is seeking $200,000 in debt financing to launch its hookah lounge. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Customers Per Month: 1,120
• Average Revenue per Month: $22,400
• Office Lease per Year: $100,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Hookah Lounge Business Plan FAQs

What is a hookah lounge business plan.

A hookah lounge business plan is a plan to start and/or grow your hookah lounge business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Hookah Lounge business plan using our Hookah Lounge Business Plan Template here .

What are the Main Types of Hookah Lounge Businesses? 

There are a number of different kinds of hookah lounge businesses , some examples include: Hookah Lounge, Hookah Bar, and Hookah Cafe.

How Do You Get Funding for Your Hookah Lounge Business Plan?

Hookah Lounge businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Hookah Lounge Business?

Starting a hookah lounge business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Hookah Lounge Business Plan - The first step in starting a business is to create a detailed hookah lounge business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your hookah lounge business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your hookah lounge business is in compliance with local laws.

3. Register Your Hookah Lounge Business - Once you have chosen a legal structure, the next step is to register your hookah lounge business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your hookah lounge business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Hookah Lounge Equipment & Supplies - In order to start your hookah lounge business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your hookah lounge business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful hookah lounge business:

• How to Start a Hookah Lounge

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Hookah Lounge

Back to All Business Ideas

How to Start a Hookah Lounge

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on May 31, 2022 Updated on June 5, 2024

Investment range

$23,550 - $48,100

Revenue potential

$200,000 - $502,000 p.a.

Time to build

1 – 3 months

Profit potential

$60,000 - $150,000 p.a.

Industry trend

A hookah lounge, or shisha lounge, is a relaxing place people visit to smoke tobacco through a water pipe. Hookah lounges have been popping up across the US and around the globe, with the global hookah industry set to double by 2030. 

If you’re a hookah fan, or just enjoy providing a chill environment, it could be a great time to get in on the action and start your own hookah lounge. You can have fun, help others have a great time, and make good money.

But before you fire up the pipes, you’ll need to know the business launch process. Luckily, this step-by-step guide will expand your knowledge and put you on the path to hookah success.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a hookah lounge has pros and cons to consider before deciding if it’s right for you.

• Fun Lifestyle – Meet lots of people that share your hookah passion
• Growing Market – The hookah market is set to double in the next decade
• Additional Revenue Opportunities – Sell food and alcohol and make more money
• Smoking Bans – Some areas of the country have put restrictions on hookah lounges
• Licensing Headaches – Stringent licensing and regulatory requirements

Hookah lounge industry trends

Industry size and growth.

• Industry size and past growth – The global hookah tobacco industry was worth $824.8 million in 2020.(( https://www.alliedmarketresearch.com/hookah-tobacco-market-A06663 ))
• Growth forecast – The global hookah tobacco industry is projected to more than double by 2030 to reach nearly $1.7 billion. 

Trends and challenges

Trends in the hookah lounge industry include:

• Mint-flavored hookah tobaccos are growing in popularity, and fruit flavors are another favorite.
• Hookah is so trendy that companies have started making hookah merchandise, such as T-shirts with hookah-related phrases, which present a revenue opportunity for hookah lounges.

Challenges in the hookah lounge industry include:

• Many areas of the country are passing laws to limit what hookah lounges can offer.
• Hookah lounges are receiving a lot of negative press due to the health hazards of smoking hookah.

How much does it cost to start a hookah lounge business?

Startup costs for a hookah lounge range from $23,000 to $48,000. Costs include the space rental, space preparation, and hookah equipment and supplies. They also include a liquor license and liquor inventory.

You’ll need a handful of items to successfully launch your hookah lounge business, including: 

• Hookah pipes and gear
• Tables and chairs
• Tobacco and flavors

How much can you earn from a hookah lounge business?

Hookahs are usually priced at about $20 an hour. Your profit margin after all costs should be about 30%. 

In your first year or two, you might serve 20 hookahs a day and serve $15 in alcoholic beverages to 10 people, bringing in $200,000 in annual revenue. This would mean $60,000 in profit, assuming that 30% margin. As your hookah lounge gains popularity, you might serve 50 hookahs a day and beverages to 25 people. With annual revenue of $502,000, you’d make a healthy profit of $150,000.

What barriers to entry are there?

There are a few barriers to entry for a hookah lounge. Your biggest challenges will be:

• The startup costs of renting the lounge space and getting it ready for business
• Meeting license and permit requirements

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Step 2: hone your idea.

Now that you know what’s involved in starting a hookah lounge, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research hookah lounges in your area to examine their products, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a hookah café that serves liquor or a shisha bar that offers food. 

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as herbal shisha or flavored tobacco.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products and menu

You’ll want to create a hookah menu with different flavor mixes. You could also serve liquor with the proper licensing. If you put in a kitchen, you could offer food as well. 

How much should you charge for hookah?

Hookah prices range from $15 to $25 per hour. Check prices in your area to make sure you’re competitive. Your profit margin after supplies, rent, and overhead should be about 30%.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be Hookah smokers, which are likely to be a younger crowd, so you should focus your marketing on TikTok and Instagram.

Where? Choose a hookah lounge location

Choosing the right location for your hookah lounge is crucial for attracting customers and ensuring its success. Look for a spot in a high-traffic area with good visibility, such as a busy nightlife district or a college town.

Consider accessibility and convenience, ensuring that the location is easily reachable by public transportation and has ample parking. Additionally, assess the competition in the area and aim to differentiate your hookah lounge by offering unique flavors or a relaxing and comfortable atmosphere.

By strategically choosing the right location, you can establish a profitable and popular hookah lounge that offers a unique and enjoyable experience for customers and stands out in the competitive hospitality industry. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

Step 3: Brainstorm a Hookah Lounge Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “hookah” or “shisha lounge”, boosts SEO
• Name should allow for expansion, for ex: “The Puff Palace” over “The Outdoor Hookah Lounge”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Hookah Lounge Business Plan

Here are the key components of a business plan:

• Executive Summary: A concise overview of your hookah lounge business, highlighting key elements such as mission, goals, and financial projections.
• Business Overview: Detailed information about your hookah lounge, including its location, concept, and any unique selling points that set it apart in the market.
• Product and Services: Clearly outline the variety of hookah flavors, drinks, and any additional services offered in your lounge.
• Market Analysis: A comprehensive examination of the hookah lounge industry, target market demographics, and trends to identify opportunities for growth.
• Competitive Analysis: Evaluate other hookah lounges in your area, assessing their strengths and weaknesses to position your business effectively.
• Sales and Marketing: Detail your strategies for promoting and selling your hookah lounge services, including online presence, promotions, and partnerships.
• Management Team: Introduction of key individuals involved in running the hookah lounge, emphasizing their qualifications and roles.
• Operations Plan: Outline the day-to-day activities and logistics of running the hookah lounge, covering staffing, hours of operation, and supplier relationships.
• Financial Plan: Provide a detailed breakdown of the costs, revenue projections, and financial forecasts for the hookah lounge, demonstrating its financial viability.
• Appendix: Include any additional documents or information that supports your hookah lounge business plan, such as permits, licenses, or relevant research.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to hookah lounges. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your hookah lounge will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a hookah lounge business. You might also try crowdfunding if you have an innovative concept. 

Step 8: Apply for Hookah Lounge Business Licenses and Permits

Starting a hookah lounge business requires obtaining a number of licenses and permits from local, state, and federal governments. For starters, you’ll need a tobacco license as well as a liquor license if you serve alcohol. 

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your hookah lounge business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as  Restaurant365 ,  lightspeed , or  toast  to manage your menus, inventory, schedule, and invoices.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Here are some powerful marketing strategies for your future business:

• Professional Branding — Ensure your branding reflects an exotic, luxurious, yet comfortable atmosphere through a distinctive logo, engaging signage, and the interior design of your lounge.
• Website Optimization — Develop a visually appealing website showcasing the ambiance of your lounge, menu items, and special events.
• Local SEO  — Regularly update your Google My Business and Yelp profiles to strengthen your local search presence. Optimize for local SEO to target searches related to hookah lounges, nightlife, and local entertainment.
• Social Media Engagement — Leverage platforms like Instagram and Facebook to display the unique atmosphere of your lounge, promote special events, and interact with your audience through engaging posts, images of events, and customer testimonials.
• Content Marketing — Maintain a lifestyle blog discussing hookah culture, tips for enjoying hookah, and related lifestyle content. Create video content that captures the essence of your lounge’s atmosphere and special events.
• Direct Outreach and Networking — Connect with local college campuses, clubs, and groups to introduce them to the hookah lounge experience. Offer group discounts and host special events to draw in these demographics.
• Email Marketing — Send regular newsletters to keep patrons informed about upcoming special nights, live music events, and new flavor introductions.
• Experiential Marketing — Host themed nights, cultural events, and special gatherings to continually attract diverse customer groups and keep the lounge experience dynamic and exciting.
• Local Partnerships and Collaborations — Collaborate with local artists, musicians, or DJs to host unique events. If food is not served at your lounge, partner with nearby restaurants for food delivery options.
• Customer Loyalty and VIP Programs — Implement a loyalty program that rewards regular visitors with discounts or special offers. Offer VIP memberships that include perks like reserved seating or discounts on special nights.
• Targeted Advertising — Utilize local advertising in nightlife guides, university newspapers, and online platforms frequented by your target demographic.
• Influencer Collaborations — Engage with local influencers or personalities who can promote your lounge to their followers, expanding your reach and adding credibility to your venue.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your hookah lounge meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your hookah lounge business could be: 

• Skip the tobacco – come enjoy our herbal shisha bar
• Exotic hookah flavors and unique signature cocktails
• Bring your friends and share a hookah over a bottle of wine

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a hookah lounge business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in hookah lounges for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in hookah lounges. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a hookah lounge business include:

• Hookah Makers – prepare hookahs
• Bartender – make cocktails
• Servers – serve hookah and drinks
• General Manager – scheduling, ordering, accounting
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.

Step 13: Run a Hookah Lounge – Start Making Money!

Hookah lounges have been common in the Middle East for centuries, and recently made their way to the United States. The hookah market is taking off, expected to double in the next decade. If you’re a hookah lover and want to share your passion with others, now is the right time to launch your own hookah lounge. You could help people enjoy their evenings out and make a good living at the same time. 

Your business knowledge is fired up now, so it’s time to start buying water pipes and getting your successful hookah lounge off the ground. 

• Hookah Lounge Business FAQs

Yes, a hookah lounge can be profitable. You’ll need to design an interesting hookah menu and create a great atmosphere, and you can be successful.

To differentiate your hookah lounge business from competitors, you can focus on providing a unique atmosphere or ambiance that sets your lounge apart. This can include offering a diverse selection of high-quality shisha flavors, creating a comfortable and inviting space with unique decor or lighting, or providing exceptional customer service. 

It would be very difficult to start a hookah lounge on the side unless you have limited hours, which could seriously affect your ability to make a profit.

The music and entertainment you offer in your hookah lounge business will depend on your target audience and the atmosphere you want to create. Some popular options include playing ambient or chill-out music, hosting live performances or DJs, or offering karaoke or open mic nights. 

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Hookah Lounge Name
• Create a Hookah Lounge Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Hookah Lounge Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Hookah Lounge - Start Making Money!

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Hookah Lounge Business Plan Sample

Published Jul.27, 2018

Updated Apr.23, 2024

By: Jakub Babkins

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Table of Content

Hookah lounge business plan for your own bar business

Do you want to start a hookah bar business? A hookah bar business is undoubtedly one of the most profitable startups, yielding the greatest rate of return as compared to other businesses. A hookah bar is a place where people can come freely and enjoy different flavors of hookahs, drinks, e-liquids, appetizers, cigars and sometimes alcoholic drinks too. Opening a hookah bar will prove a rewarding and profitable business for you, as smoking is banned in public places in many countries.

Before starting it, you need to have a well-structured shisha bar business plan covering even the tiniest bit of details. To help you avoid all the trouble of thinking and making a plan yourself, we are providing a detailed sample hookah lounge business plan for the startup ‘Aladdin Hookah Bar’.

Executive Summary

2.1 the hookah lounge business.

Aladdin Hookah Bar will be a registered hookah bar in Miami at a 10 minutes’ walk from the Bayside Marketplace. Miami is a highly advanced and ordered city; a hookah bar strategically located in the main commercial zone of this populated city will business a lot, as most people and tourists search for a serene place for smoking and relaxing.

The business will be owned and operated by Stephen Gerrard who is well-known in Miami for his reputable catering services operating for the last 15 years.

2.2 Management of Hookah Lounge

Gerrard aims at achieving perfection in hookah bar business by providing an exotic environment and fresh hookah drinks. The business will be managed by Gerrard himself initially and he’ll hire a small team for different tasks.

2.3 Customers of Hookah Bar

Aladdin Hookah Bar will provide fresh fruit hookahs and different types of coffees in a well-designed seductive environment to both permanent and temporary residents of Miami aged 22 and above.

2.4 Target of the Company

If you have decided to open a hookah bar, you must include your targets in your hookah bar business plan to improvise your business at a large scale. Mr. Gerrard’s target is to make his hookah bar’s environment homey and unique by providing a large number of drinks, hookahs, coffees, and teas.

Company Summary

3.1 company owner.

Gerrard is famous in Miami for his reputable and distinguished catering service operating for the last 15 years. Due to the individuality of his ideas, he is considered the esteemed choice for managing caterings in events. This year, he wants to start a side business of a hookah bar and is willing to invest both time and money in it.

3.2 Why the Hookah Lounge Business is being started

Due to the policy of WHO to protect non-smokers from passive smoking, smoking is forbidden in public places, and people search for a hookah lounge to smoke. Gerrard is going to launch a hookah bar as he best knows how to open a hookah bar  and how to run a hookah lounge  successfully. In addition to that, he also aims to generate profit from his comfortable and legal smoking place in Miami.

3.3 How the Hookah Bar Business will be started

After analyzing various aspects of this business, Gerard has decided to manage the bar himself, yet he will hire a team for his assistance and for preparing the menu. The startup costs are as follows:

The detailed start-up requirements, expenses, total assets, total funding required as forecasted by the company’s analysts are given below:

Services for customers

Before starting a hookah bar, you must be clear about the services you are going to provide to your customers as it will help you to estimate opening a hookah bar cost .

Gerrard has exclusive hookah bar ideas , he aims to make a perfect place for spending a quiet afternoon alone or with friends by adorning the big lounge by dim lights and brick walls combined with comfortable sofas and pillows.

Aladdin Hookah Bar will provide all sort of hookah drinks and coffees to its esteemed customers above age 22. Each one of our offerings will be prepared by maintaining strict health and quality measures.

Besides providing simple drinks, wines, and cigars, our major products will include:

• Hookah Drinks: We’ll provide fresh hookah drinks of the following flavors, Grape, Lemon, Peach, Cola, Mint, Black Mint, Strawberry, Cherry, Apple Doppio, Mango, Orange, Banana, Pistachio, Vanilla, and Rose. Besides these usual flavors, we’ll introduce a new flavor, Code Blue, which will be a mixture of creamy blueberry with red grape soda and black mint.
• Teas & Coffees: We’ll provide a wide range of coffees and teas including flat white, espresso, long black, macchiato, Vienna and Irish coffee.
• Soft Drinks: We will also provide various kinds of soft drinks.
• Salads : We’ll also provide fresh vegetable cheese salads, bean salads, and fruit salads.

Aladdin Hookah Bar will be open twenty-four hours a day.

Before starting a hookah bar, you must be clear about the services you are going to provide to your customers as it will help you to estimate opening a hookah bar cost.

Market Analysis Summary

Operational and strategic planning.

he first thing to do before  starting a hookah bar   is to research about  how to start a hookah bar business   in your state since there are a lot of concerning health regulations in practice. After that, carry out an accurate marketing analysis which will help you to decide the company’s strategies over the next years. It must be incorporated in the initial business plan and all subsequent things must be planned according to it.

Considering its importance, Mr. Gerrard obtained the services of marketing experts to help him develop a  hookah bar business plan  taking into account the current marketing demands.

5.1 Marketing Trends

If you want to know how much is hookah bar business profitable, you will be glad to know that there are more than 7000 legally registered hookah bars in the US and the number of hookah bars is increasing significantly. According to an IBISWorld report, hookah bars have generated a revenue of more than 900 million dollars in the past few years.

But remember, the success and failure of any business depend upon how keenly you focus on your target customers. A successful marketing strategy can only be developed after knowing the target audience and potential customers.

This sample business plan will help you in defining your target audience, you can take help from this sample business plan even if you don’t know how to start a hookah lounge , In this business plan we have explained how to open up a hookah bar  and run it successfully.

5.2 Marketing Segmentation

The following type of target audience will become the future customers of Aladdin Hookah Bar.

5.2.1 General Traffic: The top category of our target customers will be the general traffic i.e. the people who happen to be near our hookah bar and decides to relax and smoke for some time in the hookah bar. We will be benefited a lot as Aladdin Hookah Bar is situated near the main market of Miami, which is visited by thousands of people daily. The exclusive entrance and dim-light theme of Aladdin Hookah Bar will attract the people who search for a place to sit calmly to smoke or to drink hookah.

5.2.2 Companies and Businesses: This category includes all employees working in the various office, companies, and businesses situated near us. As smoking is not allowed in offices, so the workers who want to drink hookah or cigars in their break time will rush towards. The employees of these companies and businesses will buy hookah drinks, coffees and salads from us on a daily basis.

5.2.3 Local Residents: We also aim to target the local residents residing in nearby areas. We are sure that they will be surely addicted to the solace environment we’ll provide, and whenever they want to have a hookah drink, they’ll approach us.

The detailed market analysis of our potential customers is given in the following table:

5.3 Business Target

Our target is to become the best hookah bar in Miami within the first year of launch. We also aim to recover our initial capital within 3 years of our launch and grow our sales by 30% each year. We’ll achieve our target by providing the best quality drinks and environment and by valuing our customers.

5.4 Product Pricing

Product pricing is the most important factor affecting the sales of a new business. We have priced our items and drinks in the same range as our competitors in the market. But the products which are only provided by us such as Code Blue Hookah will be a little costlier as more effort will be required for its preparation.

After you have understood how to open up a hookah bar you must plan your business strategy , you can take help from this sample business plan on how to open up a hookah lounge .

High Quality Business Plan and Professional Support

It was amazing to work with OGS Capital for our business plan. They promptly responded our enquires and delivered document on time.The document was well organized high quality and content.We succeded with Alex and his team support. We thank you guys again for professional approach and easy communication.

6.1 Competitive Analysis

Aladdin Hookah Bar will have a tough competition because there are thousands of already established hookah lounges in Miami. Moreover, people are always hesitant to try a restaurant business plan that’s why Gerrard has decided that Aladdin Hookah Bar will be decorated in a unique manner, to attract the customers for the first time.

Our biggest competitive edge is our location and the wide parking space for our customers. Lastly, we will provide our customers with the best standard and quality products in a healthy environment where we’ll do proper aeration system to purify the air from the smoke.

6.2 Sales Strategy

For attracting the majority of people in the startup of a business, Gerrard has planned some types of advertisements.

• We’ll give free hookah drinks and salads till the third day of launch.
• We’ll ensure that we have a wide range of hookah drinks, cigars, tobaccos, wines, non-alcoholic drinks and salads at all times.
• We’ll provide an online table reservation facility for those who want to come in the form of a group with friends.
• We’ll advertise our lounge and menu through our website and social media.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

After a great research on how to start a hookah bar business , Gerrard has devised his personnel plan, which is given here for your help.

7.1 Company Staff

Stephen Gerrard will himself act as the Aladdin Hookah Bar Manager and will be responsible for the daily activities. The company will initially hire the following people:

• 12 Bartenders for arranging glasses and bottles for attractive display and for mixing and serving drinks
• 2 Cashiers to receive cash from the people
• 1 Marketing Executive responsible for the marketing and advertising of the restaurant
• 2 Chefs for making salads
• 8 Cleaners to clean the dishes and other facilities at the restaurant
• 2 Security Officers

To ensure the best quality service, all employees will be selected through vigorous testing and will be kept in check for their dealing with clients.

7.2 Average Salary of Employees

The following table shows the forecasted data about employees and their salaries for the next three years.

Financial Plan

You can never estimate how much is a hookah bar business profitable unless you devise its financial plan. As the last step of your business plan, you must prepare a financial plan, to manage your investments and profits.

Aladdin Hookah Bar will be solely financed by Mr. Gerrard and no equity funding or outside loan will be required unless the business expands faster than forecasted.

8.1 Important Assumptions

8.2 Brake-even Analysis

8.3 Projected Profit and Loss

8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 Business Ratios

Download Hookah Lounge Business Plan Sample in pdf

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How to Start a Hookah Lounge

Starting a hookah lounge can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful hookah lounge.

Importantly, a critical step in starting a hookah lounge is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

14 Steps To Start a Hookah Lounge :

• Choose the Name for Your Hookah Lounge
• Develop Your Hookah Lounge Business Plan
• Choose the Legal Structure for Your Hookah Lounge
• Secure Startup Funding for Your Hookah Lounge (If Needed)
• Secure a Location for Your Business
• Register Your Hookah Lounge with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Hookah Lounge
• Buy or Lease the Right Hookah Lounge Equipment
• Develop Your Hookah Lounge Marketing Materials
• Purchase and Setup the Software Needed to Run Your Hookah Lounge
• Open for Business

1. Choose the Name for Your Hookah Lounge

The first step to starting a hookah lounge is to choose your business’ name.  

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your hookah lounge:

• Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing . Come up with a name that reflects the desired brand and/or focus of your hookah lounge.

2. Develop Your Hookah Lounge Business Plan

One of the most important steps in starting a hookah lounge is to develop a detailed hookah lounge business plan . The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your hookah lounge.
• Company Overview – this section tells the reader about the history of your hookah lounge and what type of hookah lounge you operate. For example, are you a traditional hookah lounge, cafe hookah lounge, or a bar hookah lounge? 
• Industry Analysis – here you will document key information about the hookah lounge industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target market are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing products or services like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer 
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your hookah lounge? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your hookah lounge make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

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3. choose the legal structure for your hookah lounge.

Next you need to choose a legal structure for your hookah lounge and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the hookah lounge owner and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small business owners. It is an agreement between two or more people who want to start a hookah lounge together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a hookah lounge include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a hookah lounge is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your hookah lounge, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

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4. Secure Startup Funding for Your Hookah Lounge (If Needed)

In developing your hookah lounge business plan , you might have determined that you need to raise funding to launch your business. 

If so, the main sources of funding for a hookah bar to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage hookah businesses. Angel investors typically will invest in a hookah lounge that they believe has high potential for growth.

5. Secure a Location for Your Business

There are a few things to consider when looking for a location for your hookah lounge or hookah cafe. First, you’ll want to make sure that the space is big enough to accommodate your guests. Find a place that is quiet and has a relaxing atmosphere. You’ll also need to find a business location that is allowed to host smoking lounges.

Another thing to keep in mind for your hookah den is the availability of parking. You’ll want to make sure there is plenty of parking available for your guests. Finally, you’ll want to find a space that is close to public transportation, as this will make it easier for your guests to get to your lounge.

6. Register Your Hookah Lounge with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your hookah lounge’s name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your own hookah lounge to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

There are a number of requirements to open a hookah lounge. The licenses and permits you need to start a hookah lounge depend on your location. You may need a business license, a tobacco license, and a permit to sell tobacco products. Local laws may require that your hookah lounge be smoke free or allow smoking shisha. You should contact the local government to find out what what permits you need to start a hookah lounge and how much does a hookah license cost.

10. Get Business Insurance for Your Hookah Lounge

The type of insurance you need to operate a hookah lounge will depend on the state in which you reside.

Business insurance policies you should consider for your hookah lounge include:

• General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
• Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
• Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
• Professional liability insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.

11. Buy or Lease the Right Hookah Lounge Equipment

You will need a few pieces of equipment to run your hookah lounge. Some of the essentials include hookah pipes, coals, and tobacco. You will also need space to set up your lounge, tables, chairs, and ashtrays.

12. Develop Your Hookah Lounge Marketing Materials

Marketing materials will be required to attract and retain customers to your hookah lounge.

The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your hookah lounge. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website : Likewise, a professional hookah lounge website provides potential customers with information about the products and/or services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your hookah lounge.

13. Purchase and Setup the Software Needed to Run Your Hookah Lounge

You will need a point-of-sale (POS) system to run a hookah lounge. This software will help you keep track of your inventory, sales, finances, and reservations. You will also need software that can handle administrative aspects of the business and track customer data.

14. Open for Business

You are now ready for opening a hookah lounge. If you followed the steps above, you should be in a great position to build a successful business and know everything you need about how to open a hookah lounge. Below are answers to frequently asked questions that might further help you.

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How to Start a Hookah Lounge FAQs

Is it hard to start a hookah lounge.

No, it's not hard to start a hookah lounge or a shisha bar . In fact, it's a fairly simple process. You'll need to find a location for your lounge, obtain the necessary permits, and stock your lounge with hookahs and other supplies. You may also want to create a marketing plan to attract customers to your lounge.

How to set up a hookah with no experience?

If you're looking to start a hookah lounge with no experience, the best way to do so is by doing your research. Learn about the global hookah market , what's popular in terms of flavors and styles, and what kind of atmosphere you want to create. You may also want to speak with experienced hookah lounge owners for advice.

What type of hookah lounge is most profitable?

According to sales figures from hookah suppliers, cafe style lounges are the most profitable.  Cafe style lounges combine the relaxing atmosphere of a coffee shop with the socializing aspects of a bar. The soothing ambiance created by dim lights and background music allows customers to unwind after a stressful day.

How much does it cost to start a hookah lounge?

Opening a hookah lounge costs anywhere from $10,000 to $50,000. This will cover the costs of things such as the construction of the lounge, the purchase of hookahs and tobacco, and the hiring of employees.

What are the ongoing expenses for a hookah lounge?

The ongoing expenses for a hookah bar business can include the cost of rent, employee salaries, inventory, and other miscellaneous costs. Depending on what state you are located in, there can be additional expenses related to licensing and taxes.

How does a hookah lounge make money?

There are many ways hookah bars make money. Some of the most common are by selling food and drinks, charging an admission fee, and selling hookah products. They can also rent out rooms for private parties.

Is owning a hookah lounge profitable?

To open a hookah lounge, the cost of starting and operating the business is relatively low. Thus, if planned and managed well, it can be profitable. Additionally, a hookah lounge is a unique business that may be new to many people. Since it is not a common business, people may be intrigued and want to visit the lounge. 

Why do hookah lounges fail?

Many hookah lounges and shisha bars fail for a variety of reasons that can generally be grouped into seven categories:

• Unreasonable pricing for the clientele. 
• Unreasonable expectations from customers and employees. 
• Inability to keep up with competition. 
• Lack of training, skills, and experience in management. 
• Inadequate financial resources. 
• Inappropriate marketing strategies.
• Underestimating running costs or overstating profits.

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How to Start a Hookah Lounge and Simplified Hookah Bar Business Plans

You've visited lounges, you love hookah, and you think it would be amazing to have your very own Hookah Lounge. I was in your shoes a few years back and through hard work turned that dream into a reality.  Here are a few things I learned in my journey that I hope can help you along the way.

So You Want To Open A Hookah Lounge?

Seems simple enough. Hookahs, Shisha, a few couches, some nice decor and presto! Success! If only it were that easy.  Opening a hookah lounge takes planning, organization, not to mention more money than expected. That is the first major hurdle. How to pay to get things going? The truth is it takes cash, and a lot of it. Banks don't look to fondly when it comes to loans for a hookah lounge, it's not a business with decades of proven success here in the states, so don't be surprised if the bank staff ask you what a hookah is. They probably don't know or understand the business, so it's a risky investment for most traditional institutions. That means you'll need to come up with  a good amount of money or get that savings account going strong. Once that is out of the way you just need to free up all your time to get things going.

Creating a Hookah Business Plan - Fail to plan then plan to fail

Business plans can come in a variety of formats and styles, so don't get hung up on the perfect business plan template that will impress a bank, investor or just your parents. What matters is the information inside. If you open your lounge without considering your monthly costs against your projected revenue, you might find out you opened a business that is impossible to sustain. Here is quick version of the math involved to make sure your new venture is even feasible.

First - How much money do you want to make? Opening a business with the blind hopes of making a profit is bad. Since your paycheck is the profit, find a profit number you are happy with and start planning from there. Here is a very brief and basic example of how to start planning with the financials in mind.

Profit  - The money left over after all your expenses are paid, so to make $4000 a month, let's look at this example:

Revenue  - The money you collect from people

Fixed Costs / Overhead  - The bills you pay every month regardless of how much money you bring in, such as rent, insurance, utilities and labor

Variable Costs  - The costs of the products and taxes you sell that will increase when you are busy and be lower when you are less busy

Here is very simplified version of the financial planningof a fictional lounge  that hopefully helps you get started.

$14,000 Revenue

Then Subtract:

$7500 (Fixed Costs - Rent, Labor, utilities, etc) 

$2500 (Variable costs - Your shisha, replacement hookahs, mouth tips, sales tax, etc)

$4000 - Boom! Now you know how much money you need to bring in to make the profit you want to make.

Now I go back and look at the revenue.

$14000 divided by $20 hookah rentals = 700 rentals

700 Rentals divided by 26 days a month (Trust me, you should close at least 1 day a week until you are rock solid and can pay more staff to keep it open 7 days a week. Don't burn yourself out!)

You need to average 27 hookahs per night.  Now your job is to find a viable location that you can lease, staff, heat and insure for $7500

Finding a Location

One of the hardest parts of the process is finding a location. It took me 3 months to finally settle on a spot. Hookah is a lot of times an after thought for people so you need to be somewhere that will be seen. Check areas near other night businesses like bars and nightclubs or the popular areas near college campuses and even military bases can provide a good source of customers. Many landlords will be reluctant to lease to you as unfortunately a lot of Hookah Lounges that are hastily opened can fail. Plus many landlords fear the fire risk, don't want a tobacco based business, or just don't like the sound of it. You will then need to make sure the city will allow the business and the laws there will allow indoor smoking.

Getting the Proper Licenses and Permits

You need to check with the city for any permits you might need.  Some municipalities have special taxes, after hours permits, tobacco permits, construction permits, and other restrictions you might need to get approved. The state also has it's own list of permits and requirements as well. Do your homework, because the last thing you want is a government official showing up and asking for the permits you never applied for. Short cuts may be tempting but in the long run they can sabotage your business.

Building Out Your Location to Make It Your Own

So you finally have the money and a killer location.  Time to get to work!  This will probably be your biggest up front expense, depending on the level of customization.  You can go cheap here and use an existing layout, but a custom built lounge will look and feel much more exciting which gives you the leverage to charge more for your hookah rentals. Find the balance that is right for your budget and business plan.  Flooring, Lighting, layout, and design are just a few of the things that will need to happen. Personally I did most of the build out myself with the help of some fantastic friends, but even working 15 hours a day 7 days a week it took me over a month to get it ready.  Be prepared for roadblocks. Whether it be from construction delays to building inspectors dragging their feet, always assume it will happen.

Furniture and Decor - Don't Cheap out Now, Your Almost There

Now is the time to fill the place with seating. You're going to want something comfortable that fits whatever theme you're looking for.  One important thing to keep in mind is that you will probably have to replace pieces periodically. ( Coals burn things and accidents do happen ) try getting furniture that will be available in the event you need to replace. If your lounge looks professionally decorated you can charge more for the experience and you will attract higher end clientele than if your lounge looks like you added hookahs to someone's craigslist ad. 

Hookahs and Supplies:

This is pretty much the last step apart from staffing. Here is where many people make a mistake. Many people get stuck on finding the perfect hookahs and want to test the flavors before they do anything. The hookahs are the easiest, cheapest and fastest part of the whole business. We can help you find the perfect hookah set ups to meet any need you have and have them there ready to smoke in a matter of days. Picking a menu is fun as well, you want to carry the standards that all hookah smokers will know and love but don't overlook bringing in new and unique brands to help set you apart from the rest. We can help you build out the right menu for your location, but please, please, please don't try to set up a lounge with over 100 flavors.  You will have 75 flavors that no one smokes and you will get stuck with all that slow moving inventory! 

We look forward to helping you in this great new adventure!

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Hookah Lounge Business Plan Template [Updated 2024]

Hookah Lounge Business Plan Template

If you want to start a hookah lounge business or expand your current hookah lounge business, you need a business plan.

The following Hookah Lounge business plan template gives you the key elements to include in a winning Hookah Lounge business plan.

You can download our Ultimate Business Plan Template (including a full, customizable financial model) to your computer here.

Example Business Plan For Hookah Lounges

Below are links to each of the key sections of a sample business plan for a successful hookah lounge business.

I. Executive Summary – The Executive Summary provides an overview of your business opportunity and summarizes the business plan.

II. Company Overview – The company overview includes information about your business concept, hookah lounge services and legal structure.

III. Industry Analysis – The industry analysis includes market research that supports your business and provides insights into market trends and the hookah lounge industry.

IV. Customer Analysis – The market analysis provides an overview of your target market and customer segments.

You can download our business plan template (including a full, customizable financial model) to your computer here.

V. Competitive Analysis – The competitive analysis should identify your direct and indirect competitors and highlight your competitive advantage.

VI. Marketing Plan – The marketing plan includes your marketing strategy, pricing strategy and search engine optimization plan.

VII. Operations Plan – The Operations Plan includes information on your company’s day to day operations and processes.

VIII. Management Team – The management team section includes a profile of the business owner and business management, their experience and company responsibilities.

IX. Financial Plan – The financial plan includes financial projections, a cash flow statement, profit and loss statement and balance sheet.

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Hookah Lounge Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

How to Start a Profitable Hookah Lounge Business [11 Steps]

Business steps:, 1. perform market analysis., are hookah lounge businesses profitable, 2. draft a hookah lounge business plan..

Creating a business plan is a crucial step in establishing a successful hookah lounge. It will serve as a roadmap, helping you to navigate through the complexities of your business and to secure funding or investors. The following points should be meticulously detailed in your business plan:

How does a hookah lounge business make money?

3. develop a hookah lounge brand., how to come up with a name for your hookah lounge business, 4. formalize your business registration., resources to help get you started:, 5. acquire necessary licenses and permits for hookah lounge., what licenses and permits are needed to run a hookah lounge business, 6. open a business bank account and secure funding as needed., 7. set pricing for hookah lounge services., what does it cost to start a hookah lounge business, 8. acquire hookah lounge equipment and supplies., list of software, tools and supplies needed to start a hookah lounge business:, 9. obtain business insurance for hookah lounge, if required., 10. begin marketing your hookah lounge services., 11. expand your hookah lounge business..

How To Write a Business Plan for Hookah Bar in 9 Steps: Checklist

By henry sheykin, resources on hookah bar.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan
• Bundle Business Plan & Fin Model

Are you considering opening a hookah bar? You're not alone! With the growing popularity of this unique establishment, now is a great time to enter the market. In fact, according to recent statistics, the hookah bar industry is expected to reach a market value of $4.38 billion by 2027, with a Compound Annual Growth Rate (CAGR) of 9.3%. That's some impressive growth!

To capitalize on this booming industry, it's essential to have a well-thought-out business plan in place. A meticulously crafted plan will not only help you navigate through the initial stages of starting your hookah bar, but it will also set a strong foundation for long-term success.

So, how do you create a business plan for your hookah bar? In this blog post, we'll walk you through a comprehensive nine-step checklist to help you get started. From conducting market research and identifying your target market to securing necessary permits and licenses and establishing partnerships with suppliers, we've got you covered.

Ready to take the first step towards opening your own hookah bar? Let's dive right in!

Conduct Market Research

Before embarking on any business venture, conducting thorough market research is vital. This step allows you to gain a deep understanding of the industry and identify opportunities and challenges that may arise. Here are some important aspects to consider during your market research:

• Target Audience: Determine who your target market is and what their preferences and needs are. This will help you tailor your offerings to appeal to your ideal customers.
• Competition: Identify and analyze your competitors to understand their strengths, weaknesses, and unique selling points. This information will help you differentiate your hookah bar and develop effective strategies to stand out.
• Market Trends: Stay updated on current market trends, such as the popularity of hookah bars, the demand for different flavors, and the preferences of your target audience. This knowledge will guide your decision-making process and enable you to adapt to changing customer needs.
• Location: Determine the best location for your hookah bar based on demographic factors, foot traffic, and proximity to your target audience. Research the zoning regulations and any potential restrictions that may impact your choice.
• Financial Viability: Assess the financial viability of your business idea by analyzing the potential revenue and profit margins in the hookah bar industry. This will help you set realistic financial goals and develop a successful business plan.
• Utilize online resources, such as industry reports, market data, and survey platforms, to gather reliable information about the hookah bar industry.
• Take advantage of social media platforms and online forums to engage with potential customers and gain insights into their preferences and expectations.
• Consider conducting focus groups or surveys to gather direct feedback from your target audience.
• Network with other industry professionals and attend relevant events and trade shows to stay updated and connected with the hookah bar community.

Identify Target Market And Competition

Identifying your target market and understanding your competition is essential for the success of your hookah bar. By conducting thorough market research, you can gain insight into the needs and preferences of your potential customers, as well as assess the competitive landscape in your area.

When identifying your target market, consider factors such as age, interests, income level, and geographic location. Determine whether your hookah bar will cater to a specific demographic, such as college students or young professionals, or if you aim to attract a broader customer base. This information will help you tailor your marketing strategies and offerings to appeal to your target audience.

• Conduct surveys or focus groups to gather feedback from your target market.
• Consider partnering with local event organizers or organizations that cater to your target market to increase your visibility.
• Offer promotions or discounts exclusive to your target market to attract and retain their business.

Additionally, it is crucial to assess the competition in your area. Research existing hookah bars or similar establishments to understand their offerings, pricing, and customer base. This information will help you identify gaps in the market and differentiate your hookah bar from competitors.

Take note of the strengths and weaknesses of your competition and use this knowledge to refine your business concept and develop unique selling propositions. Consider ways to stand out, such as offering a wider selection of tobacco flavors, incorporating innovative technology, or providing exceptional customer service.

• Visit competitors' establishments to experience their offerings firsthand and observe customer preferences.
• Stay updated on industry trends and emerging technologies to stay ahead of the competition.
• Analyze online reviews and ratings of competitors to gain insights into customer experiences and areas for improvement.

By thoroughly identifying your target market and analyzing the competition, you can develop a strategic plan to differentiate your hookah bar and attract your ideal customers. This step is crucial for creating a business plan that aligns with market demands and sets you up for success.

Determine Initial Startup Costs And Funding Options

Once you have conducted market research and identified your target market and competition, it's time to determine the initial startup costs of your hookah bar and explore funding options. This step is crucial in planning for the financial aspect of your business.

Calculating your startup costs:

• Equipment: Determine the cost of purchasing or leasing necessary hookahs, hoses, bowls, coal burners, and other equipment required for your hookah bar.
• Furniture and decor: Estimate the cost of furnishing your hookah bar with seating, tables, lounge areas, lighting, and any Middle Eastern-inspired decor elements.
• Renovations and interior design: If you plan to modify the layout or design of the chosen location, consider the expenses involved in renovations, painting, flooring, and creating a comfortable and visually appealing atmosphere.
• Permits and licenses: Research the cost of obtaining permits and licenses required for operating a hookah bar in your area.
• Inventory: Estimate the cost of purchasing initial stock of tobacco flavors, charcoal, food items, drinks, and other consumables.
• Marketing and advertising: Budget for promoting your hookah bar through online and offline marketing channels, including creating a website, social media campaigns, printed materials, and paid advertising.
• Utilities and operational expenses: Consider monthly expenses such as rent, utilities (electricity, water, internet), insurance, cleaning services, and staff wages.
• Research and compare prices from different suppliers to find the best deals on equipment, furniture, and inventory.
• Consider purchasing used equipment or furniture in good condition to reduce initial costs.
• Explore financing options such as small business loans, personal savings, or seeking investors to cover the initial startup costs.
• Create a contingency fund to account for unexpected expenses or emergencies.
• Consult with an accountant or financial advisor to ensure your budget is realistic and comprehensive.

By determining your initial startup costs and exploring funding options, you will have a clearer understanding of the financial requirements for launching your hookah bar. This step is vital in developing a solid business plan and securing the necessary funds to turn your vision into a reality.

Create A Detailed Financial Plan And Budget

Creating a detailed financial plan and budget is an essential step in setting up a successful hookah bar. It allows you to assess the financial viability of your business idea and make informed decisions about your operations.

To begin, start by estimating your startup costs. This includes expenses such as lease or purchase of suitable premises, renovation and decoration, hookah equipment, furniture, inventory, marketing, licenses, and permits. Be sure to research and include any additional costs specific to your location and business model.

Once you have determined your startup costs, you can move on to developing your budget. A budget helps you allocate funds for different areas of your business and ensures that you have a clear understanding of your expected income and expenses.

Here are some important considerations when creating your financial plan and budget:

Research Market Prices:

Track and control costs:, forecast revenue:, consider variable and fixed costs:, budget for marketing:, prepare for contingencies:.

Remember, your financial plan and budget should be periodically reviewed and adjusted to reflect changing market conditions and business performance. Regularly track and compare your actual financial results against your budgeted targets to identify areas where improvements can be made.

A well-developed financial plan and budget will not only guide your day-to-day financial decisions but also serve as a critical tool when seeking investment or financing for your hookah bar.

Develop A Unique Business Concept And Branding Strategy

Developing a unique business concept and branding strategy is crucial for the success of your hookah bar. This step involves defining what sets your establishment apart from competitors and creating a strong brand identity that resonates with your target market.

When developing your business concept, consider the atmosphere, ambiance, and overall experience you want to create for your customers. Are you aiming for a trendy and modern hookah bar or a more traditional and authentic setting? Think about the decor, music, and lighting that will appeal to your target demographic.

Tip 1: Conduct market research to understand the preferences and expectations of your target market. This will help you tailor your business concept to meet their needs and desires.

Your branding strategy should reflect the unique character of your hookah bar. It should convey your values, mission, and the overall experience customers can expect when they visit your establishment. Your brand name, logo, colors, and messaging should all align with your business concept.

Tip 2: Consider hiring a professional graphic designer or branding agency to help create a visually appealing and impactful brand identity for your hookah bar.

Furthermore, developing a unique business concept and branding strategy involves considering the services, products, and experiences you will offer. Apart from the hookah itself, think about the range of tobacco flavors, food, and drinks that will enhance customer satisfaction. You could also incorporate special events, live music, karaoke, or themed nights to attract more customers and build a loyal following.

Tip 3: Be sure to differentiate your hookah bar by offering unique features or experiences that competitors may not have. This could be themed decor, signature tobacco flavors, or exclusive partnerships with popular brands.

Remember, your business concept and branding strategy should be consistent across all touchpoints, including your website, social media presence, and marketing materials.

Tip 4: Use social media platforms, online advertising, and local partnerships to promote your unique business concept and branding strategy. Engage with your audience and encourage them to share their experiences to increase brand awareness and attract new customers.

Secure Necessary Permits And Licenses

When starting a hookah bar, it is crucial to secure the necessary permits and licenses to operate legally and ensure compliance with local regulations. Here are the key steps you should take:

• Contact your local government: Reach out to the appropriate government agencies in your area to inquire about the permits and licenses required for operating a hookah bar. This may include health department permits, food service licenses, and tobacco permits.
• Research specific requirements: Each jurisdiction may have its own set of regulations and guidelines for hookah bars. Make sure to fully understand and comply with these requirements to avoid any legal issues or penalties.
• Obtain a business license: Apply for a business license from your local government, which grants you the legal authority to operate your hookah bar. Ensure that all the necessary documentation and fees are submitted promptly.
• Consider health and safety permits: Depending on your location, you may need to obtain additional permits related to health and safety. This could include a food service permit if you plan to serve food.
• Apply for a tobacco license: If you intend to offer tobacco products at your hookah bar, you will typically need to apply for a tobacco license. This license ensures that you are complying with all the regulations and age restrictions relevant to tobacco sales.
• Adhere to zoning regulations: Ensure that your chosen location meets the specific zoning regulations for hookah bars. Some areas may have restrictions on where you can operate this type of business, so familiarize yourself with the local zoning ordinances.
• Check for any other permits or licenses required by your state or city, such as music licenses if you plan to host live events.
• Keep track of expiration dates for permits and licenses to ensure timely renewal and avoid interruptions in your business operations.
• Consult with an attorney or a legal professional who specializes in licensing and permits to ensure that you have covered all necessary requirements and are operating within the law.

Find A Suitable Location For The Hookah Bar

Finding the right location for your hookah bar is crucial to the success of your business. Here are some important factors to consider:

• Target Market: Research your target market and choose a location that is easily accessible to your desired customer base. Consider factors such as population density, demographics, and proximity to colleges or universities.
• Competition: Evaluate the presence of other hookah bars or similar establishments in the area. While some competition can be beneficial, too much can make it challenging to attract customers. Look for a location that has a healthy balance.
• Foot Traffic: Look for a location with high foot traffic. A busy street or a popular shopping center can help attract potential customers who may be enticed by the ambiance and offerings of your hookah bar.
• Space and Layout: Assess the available space and ensure it can accommodate the necessary seating arrangements, hookah stations, and any additional amenities or event areas you plan to offer. The layout should allow for a comfortable and enjoyable experience for your customers.
• Accessibility: Consider the accessibility of your location in terms of parking options, public transportation, and proximity to major roads or highways. Customers should be able to easily reach your hookah bar without inconvenience.
• Health and Safety Regulations: Familiarize yourself with local health and safety regulations regarding smoking establishments. Ensure that the location meets all necessary requirements, such as proper ventilation systems and adherence to fire safety codes.
• Lease Terms: Carefully review lease agreements and negotiate favorable terms, such as lease duration and rent costs, to ensure long-term sustainability and profitability for your hookah bar.
• Consider conducting a feasibility study to assess the potential demand and profitability of your hookah bar in different locations.
• Visit potential locations during different times of the day to evaluate the atmosphere and level of customer activity.
• Engage in discussions with local business owners and residents to gather insights and feedback about potential locations.
• Create a checklist of your location requirements and prioritize them to narrow down your options.

Build A Team Of Experienced Staff Members

When it comes to running a successful hookah bar, having a skilled and knowledgeable team is essential. Your staff members will be the face of your business and will directly interact with customers, so it's important to invest time and effort into building a team of experienced individuals.

1. Define Roles and Responsibilities: Before hiring staff members, clearly define the roles and responsibilities they will be expected to fulfill. This will help you determine the specific skill sets and qualifications you need in your team.

2. Advertise Job Openings: Use traditional and online platforms to advertise job openings for your hookah bar. Tap into local community resources, such as job boards and social media groups, to reach potential candidates.

3. Conduct Thorough Interviews: When interviewing candidates, ask relevant questions that will help you assess their experience, knowledge, and ability to work in a fast-paced environment. Look for individuals who have previous experience in the hospitality industry or who possess strong customer service skills.

4. Provide Comprehensive Training: Once you have selected your team members, provide them with comprehensive training on hookah preparation, customer service, safety protocols, and other necessary skills. This will ensure that everyone is on the same page and can provide consistent service to your customers.

5. Foster a Positive Work Environment: Creating a positive work environment is crucial for employee satisfaction and retention. Encourage open communication, provide regular feedback, and recognize and reward exceptional performance.

6. Emphasize Teamwork: As a hookah bar is a collaborative environment, emphasize the importance of teamwork among your staff members. Encourage them to support and assist each other to ensure a seamless customer experience.

Tips for Building a Strong Team:

• Look for candidates with a genuine interest in hookah culture and the ability to educate customers about it.
• Consider conducting trial shifts or offering internships to assess candidates' suitability for the role.
• Offer competitive wages, incentives, and opportunities for growth and advancement to attract and retain top talent.
• Stay updated on industry trends and innovations to provide ongoing training and development opportunities for your staff.

By building a team of experienced staff members who are passionate about hookah culture and customer satisfaction, you can create a welcoming and enjoyable experience for your customers, ultimately contributing to the success and growth of your hookah bar.

Establish Partnerships With Suppliers And Wholesalers

Establishing strong partnerships with suppliers and wholesalers is essential for the success of your hookah bar. These partnerships will ensure that you have a consistent supply of high-quality tobacco, flavors, and other necessary products to meet the demands of your customers. Here are some important considerations when establishing these partnerships:

• Research and identify reputable suppliers and wholesalers in the industry. Look for companies that have a proven track record of supplying hookah bars with the products you need. Read customer reviews and testimonials to gauge their reliability and customer satisfaction.
• Contact potential suppliers and wholesalers to discuss your needs and inquire about their pricing, delivery options, and minimum order requirements. Compare their offerings to find the best fit for your business.
• Consider partnering with multiple suppliers and wholesalers to ensure a diverse range of products and competitive pricing. This will also provide a backup in case one supplier is unable to fulfill your order.
• Establish clear communication channels with your suppliers and wholesalers. Maintain regular contact to stay informed about product availability, new flavors or products, and any changes in pricing or terms.
• Negotiate favorable terms and pricing with your partners. Consider bulk purchasing or long-term contracts to secure better deals. However, always ensure that the quality of products remains consistent.
• Build strong relationships with your suppliers and wholesalers. Show appreciation for their partnership by paying invoices promptly, being responsive to their inquiries or concerns, and providing feedback on their products.
• Regularly evaluate the performance of your suppliers and wholesalers. Monitor the quality and consistency of their products and services, and be open to exploring new partnerships if necessary.
• Attend trade shows, exhibitions, and industry events to discover new suppliers and wholesalers, and stay updated on the latest trends and innovations in the hookah industry.
• Consider joining professional associations or networks within the hookah industry. These platforms can provide valuable resources and connections to reputable suppliers and wholesalers.

By establishing strong partnerships with suppliers and wholesalers, you can ensure a steady supply of high-quality products for your hookah bar. This will contribute to customer satisfaction and help drive the success of your business.

In conclusion, creating a successful business plan for a hookah bar involves careful research, planning, and strategy. By taking the time to understand the market, identify the target audience, and develop a unique concept and brand, entrepreneurs can position themselves for success in this growing industry.

A well-thought-out financial plan, along with securing necessary permits and licenses, will ensure a smooth startup process. Finding a suitable location, building a strong team, and establishing partnerships with suppliers are also crucial steps in setting up a thriving hookah bar.

By offering a variety of tobacco flavors, food, and drinks, as well as hosting engaging events and implementing customer loyalty programs, hookah bar owners can attract and retain customers, driving revenue and growth.

Overall, with careful planning and execution, a hookah bar can provide a unique and enjoyable experience for customers while also being a profitable business venture.

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How to Write a Hookah Lounge Business Plan

How to write a hookah lounge business plan or template.

In the fascinating world of hookah lounges, a tradition that traces back hundreds of years to its origins in India, our hookah lounge business plan writer has observed a cyclical pattern of popularity over time. The industry seems to be experiencing another upswing, evidenced by the growing number of startups. As the competition intensifies with more lounges entering the market, establishing a competitive advantage becomes crucial. A well-crafted and comprehensive business plan is one powerful tool to set a hookah lounge apart. Whether it's a strategic plan or a business plan template, having a clear roadmap can be the key to success. To help entrepreneurs gain a competitive edge in this vibrant industry, our business plan writer has compiled many tips and tricks on structuring and writing an effective hookah lounge business plan or template. By following these insights, aspiring hookah lounge owners can navigate the complexities of the market, attract investors, and build a strong foundation for their venture's prosperity (7/23).

CHECK OUT OUR HOOKAH LOUNGE BUSINESS PLAN TEMPLATES!!!

Executive Summary for a Hookah Lounge Business Plan.

The executive summary for a hookah lounge business plan provides a concise overview of the business and its revenue generation model. It begins with essential business information, such as the company's name, address, and a brief description of the envisioned business model for the hookah lounge.

Our expert hookah lounge business plan writer and template writer recommend that business owners in this industry also highlight how revenues will be generated. Some hookah lounges generate their primary revenue through liquor and beer sales, with hookah rentals as a secondary source of income. On the other hand, other hookah lounges focus on renting hookahs and selling shisha as their primary revenue generator. By including this critical aspect in the executive summary, potential investors and stakeholders understand the hookah lounge's core business model and revenue streams. This level of transparency demonstrates a strategic approach and thoughtful planning, enhancing the credibility of the business plan.

Incorporating these elements into the executive summary sets the tone for the entire hookah lounge business plan, giving readers a glimpse of the business's vision and revenue potential. By following this approach, entrepreneurs in the hookah lounge industry can better attract investors, lenders, and partners to support their venture's growth and success.

Company Information and Location .

In the Company Information and Location section of a hookah lounge business plan, it is essential to provide specific details about the planned location of the lounge. Clearly state the address and city where the hookah lounge will be situated. If the exact location has not been finalized, mention the preferred city and state where you intend to establish the lounge.

If the location is still under consideration, describe the required parameters and criteria that must be met for the ideal location. Factors like proximity to downtown areas, sporting arenas, tourist attractions like beaches or state parks, or other commercial establishments can significantly impact the lounge's visibility and foot traffic. By elaborating on the thought process behind the location selection, readers of the hookah lounge business plan gain insights into the business owner's strategic decision-making and market analysis. This enhances the plan's credibility and showcases a well-informed approach to positioning the lounge in a prime and promising location.

Including specific information about the location and its strategic significance adds clarity to the business plan and demonstrates a comprehensive understanding of the market and the potential customer base, setting the foundation for a successful and thriving hookah lounge.

Need Help Writing a Hookah Lounge Business Plan?

Call or Text Paul, Doctoral Candidate, MBA.

321-948-9588

Email: [email protected]

Hours of Operation: 7 Days a week, 8 am to 9 pm EST.

Our business plan writer is located in Orlando, FL.

CLICK HERE TO CONTACT US TODAY!!!

Service Description and Competitive Advantages

In the Service Description and Competitive Advantages section for a hookah lounge, it is essential to provide a detailed overview of the services offered by the establishment. This may include specific details on the types of hookahs available for rental, the variety of flavored tobacco or Shisha options, and any additional amenities offered to customers.

Furthermore, business owners should outline complementary services they plan to provide, such as a full liquor bar and a diverse food menu. Justifying the inclusion of these additional services is crucial to showcase their relevance and value to the overall hookah lounge experience. For instance, a well-crafted explanation of the liquor bar can emphasize how it enhances the social ambiance and provides customers with a more complete entertainment experience. Similarly, highlighting the food menu can showcase how it complements the hookah experience and encourages customers to spend more time at the lounge.

Business owners can support their pricing strategies and other operational decisions by providing these justifications and describing the services offered. This detailed analysis will attract potential customers and position the hookah lounge as a unique and attractive destination within the competitive market. Demonstrating a clear understanding of customer preferences and needs in the Service Description section helps establish the hookah lounge's competitive advantages. By aligning services with customer demands, entrepreneurs can build a loyal clientele and differentiate their establishment from other hookah lounges.

Target Market for a Hookah Lounge Business Plan Template.

When writing the Target Market section for a Hookah Lounge Business Plan Template, it is crucial to identify the demographic the lounge aims to attract, which can be influenced by its location.

Consider the geographical location of the hookah lounge and analyze the surrounding area to determine the most suitable target market. For instance, if the lounge is in a bustling downtown area, the target market could be tourists and young adults aged 21 to 35, as this demographic often frequents bars and lounges in urban settings. On the other hand, if the hookah lounge is located in a strip mall or residential area, the target market might be local hookah enthusiasts residing within a five to seven-mile radius. Understanding the preferences and characteristics of this target market is crucial for tailoring the lounge's ambiance, services, and promotions to meet their specific needs.

By defining the target market, hookah lounge owners can design their facility and create marketing campaigns that align with their audience's preferences and interests. This targeted approach increases the lounge's appeal and ensures its offerings resonate with potential customers, setting the stage for a thriving hookah lounge business.

Industry Research for a Hookah Lounge Business Plan

When conducting Industry Research for a Hookah Lounge Business Plan, gather relevant data on the hookah lounge industry in the United States. Look for statistics and market insights that provide an overview of the industry's size, growth trends, and projected future performance. For instance, analyzing reports from reputable sources like Market Watch can reveal valuable information, such as the total sales in the US for a specific year and projected market growth over a certain period.

Once the overall industry analysis is complete, delve into the local market and identify competitors in the area. This includes other hookah lounges, traditional lounges, and potential vape or smoke shops offering similar products or services. Assessing the competition allows hookah lounge owners to understand their strengths, weaknesses, and unique selling points compared to other establishments. Since the hookah lounge industry is a niche market, consider supplementing the research with related industries' statistics, such as data from traditional lounges or smoke shops. This broader approach provides a comprehensive understanding of the market landscape and helps make informed business decisions.

By conducting thorough industry research, hookah lounge business owners can identify market opportunities, anticipate challenges, and develop strategies to position their lounge for success. Armed with valuable insights, they can create a unique and competitive hookah lounge business plan that resonates with potential customers and investors alike.

Owner and Management Section.

In the Owner and Management Section of a hookah lounge business plan, it is crucial to showcase the business owner's qualifications, educational background, and passion for the venture. Start by highlighting the owner's relevant professional experience managing traditional lounges, bars, or smoke shops. This experience demonstrates the owner's understanding of the industry and its operations.

Next, include details of the owner's educational history, such as business management degrees, attended seminars, or completed online training. These qualifications demonstrate the owner's commitment to continuous learning and staying updated with industry trends and best practices. Incorporate a paragraph discussing the owner's motivation for starting the hookah lounge. Whether it's a passion for hookah culture or a desire to provide a comfortable setting for socializing professionals, this personal touch adds depth to the business plan. It showcases the owner's dedication and commitment to the venture's success.

Additionally, include an employee job description segment outlining the various roles within the hookah lounge, such as bartender, barback, hookah attendant, and CEO. Provide a clear description of the responsibilities and duties associated with each position. For example, a bartender's responsibilities may include collecting payments, preparing mixed drinks following management recipes, and providing information about the beverage menu. The owner and management section becomes a critical part of the hookah lounge business plan by showcasing the owner's qualifications and motivations and detailing job responsibilities. This section demonstrates the owner's understanding of the industry and establishes the lounge's organizational structure and operational function, instilling confidence in potential investors and stakeholders.

Funding Request for a Hookah Lounge Business Plan

In the Funding Request section of a hookah lounge business plan, it is crucial to provide a clear and detailed breakdown of the funding needed to start operations. Begin by explicitly identifying the specific dollar amount required to establish the hookah lounge. Startup costs for a hookah lounge vary widely, ranging from $50,000 to $75,000 for smaller ventures to $300,000 to $500,000 for more extensive and upscale establishments.

Once the total funding amount is determined, allocate the funds into different categories, such as lounge buildout, working capital, inventory, furniture and décor, and advertising. This itemization allows potential investors and lenders to understand how the funds will be utilized and help assess the venture's feasibility and financial planning. To ensure sufficient financial coverage and accommodate unforeseen cost overages, allocating extra funds to each category is prudent. This contingency allowance demonstrates a thoughtful and realistic budgeting and project management approach.

At the end of the Funding Request section, total the startup costs to match the expressly stated dollar amount at the beginning. This consistency reinforces the clarity and accuracy of the funding request, leaving no room for ambiguity or misunderstanding. By providing a well-structured and comprehensive funding request, hookah lounge business owners can present a professional and compelling case for financial support. This section instills confidence in potential investors, lenders, or partners, ultimately increasing the likelihood of successfully securing the necessary funds to launch and grow the hookah lounge.

Financials and Financial Projections for a Hookah Lounge Business Plan Template.

When creating the Financials and Financial Projections for a Hookah Lounge Business Plan Template, develop a financial model tailored explicitly to the hookah lounge industry. Identify the leading revenue generators for the lounge, such as vase rentals, flavored shisha, liquor, wine, and beer sales. Estimate the daily sales, the number of customers anticipated to visit the lounge daily, and their average spending per visit.

Next, determine the average variable costs for each item, representing the expenses incurred to purchase shisha, liquor, beer, and wine. Deduct this variable cost percentage from the anticipated average customer spending to calculate the gross margin for each customer.

With the gross margin per customer determined, multiply it by the estimated number of customers expected to visit the hookah lounge. This will provide the projected daily revenue for the lounge. To develop a comprehensive financial projection, consider growth averages, seasonal variations, and special events that may impact revenue. Use this data to estimate monthly and annual profit and loss projections, factoring in rent, utilities, staff wages, advertising, and other operational costs.

Calculate the break-even point to determine the point at which the hookah lounge's total revenue equals total expenses. This crucial metric helps gauge the business's sustainability and profitability. By using accurate and realistic financial projections, hookah lounge owners can gain insights into the potential financial performance of their businesses. These projections provide a foundation for making informed decisions, securing funding, and planning for long-term success.

Hopefully, these insightful tips and tricks for writing a business plan were helpful.  Email or call us if you need help with a business plan or financial projections. 

Author: Paul Borosky, Doctoral Candidate, MBA., Author

Owner of: Quality Business Plan  and  Quality Business Consultant.

Date: 7/2/2023

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• Queer Table

What Are We Wearing to the Gayborhood Now, Philly?

At Level Up Bar & Lounge, a Black-owned LGBTQ club in Philadelphia, nightlife brings out comfortable couture, vintage pieces from elders’ closets, and Michael Kors accessories

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Welcome to Best Dressed , an Eater series where restaurant diners show and tell what they’re wearing out to dinner, from the small details to the splashy pieces — and how they approached getting dressed for each spot’s specific scene. How do we dress to go out these days? Want to see what diners are wearing in London, Paris, Philly, Boston, and Brooklyn? See all of our Best Dressed series here .

The Place: Level Up Bar & Lounge Location: Gayborhood in Midtown Village Concept: Cocktail and hookah bar/nightclub Menu Highlights: 17 flavors of wings (such as cajun dry rub, honey hot drizzle, mango habanero, Thai chile, and garlic buffalo), loaded crab fries, meat lovers flatbread pizza, and sweet potato tots; to drink, flirty cocktails like Lloyd’s Blue Cosmo (vodka, blue Curacao, triple sec, lime and cranberry juice), Bussy Bully (Hennessy, passionfruit puree, mango puree, sweet and sour, and cranberry), and Rum Breeze (rum, mango puree, passionfruit puree, orange juice, and cranberry juice).

The only Black queer-owned bar in Philadelphia’s Gayborhood, the city’s social hub for LGBTQ venues and nightlife, Level Up is known for its themed parties (including zodiac parties and margarita day parties), inclusive drag shows, and lively karaoke nights. On a typical night, customers can expect to find stellar saucy wings and inventive cocktails, served alongside hip-hop and R&B hits. At the time of its grand opening in 2021, proprietor Ken Lowe Jr. told the press that the hot spot’s mission is “making sure no matter who you are or how you identify, we at least have something once a month that you can come to and feel safe.”

On a breezy Saturday night during Memorial Day weekend, a gaggle of Gayborhood regulars and D.C. Black Pride transplants — including a birthday girl looking for relaxation after a hectic dinner, and a trend-setting duo — headed to Level Up, all glammed up in the likes of mesh tops, vintage Lacoste, and sentimental threads from their grandparents’ closets.

Brandon Vinson, 34, business manager from West Philly

Eater: Did you dress specifically to come out here tonight?

Brandon Vinson: Not really, I would consider this straight-from-work wear. I’m a regular here, so I just came here comfortably.

Really? You have on ripped jean shorts, Nikes, and a mesh-top. Where do you work?

I’m the business manager at Toast Café, a dope brunch spot in West Philly. We can dress like this.

So how else would you describe your fit?

Pretty in pink. I got the mesh from Boohoo online. It’s from last year’s collection. Tonight, I’m feeling easy, beautiful, cute, sexy, and fun.

Is that a Michael Kors watch?

Yes, the gold one. You can never go wrong with a Michael Kors accessory, no matter the location.

What brought you out straight from work in this look?

It’s one of the few Black gay spots in the city where you can just be. I kind of stumbled in tonight with this outfit, but it’s the perfect place to come as you are, be who you are, smoke hookah, and vibe out.

Izaiah Contreras, 26, socialite from Philly

Izaiah Contreras: Yes. My mom’s out in Miami for the Bad Bunny concert, so I wanted to go out for Memorial Day weekend.

How would you describe your outfit?

I just turned 26, so I’m getting older and want to carry myself differently. I used to go out with barely a shirt, but now my aesthetic is more elegant. This is definitely an upgrade for me.

I see you have a Michael Kors bag. He seems to be popular at this bar tonight. What made you wear this?

Oh, I got this out of my mom’s closet since she’s away. I also got these pants from her and other pieces. It’s become a thing.

You’re in all white. Any particular reason for the color choice?

I wore this exact outfit a few weeks ago for the memorial of my family, Daelicious O’hare Mizani, who was taken away from us at only 23 years old. We celebrated their life and legacy at Franky Bradley’s bar and I wore this there, too. Everytime I wear these pieces, I think about them.

That’s deep.

Yeah, but it’s life. And Daelicious would want me to keep living my life with style.

Stephan Moore, 43, educator from Miami

Stephan Moore: Yes. I’m in town from Miami, visiting D.C. for their Black Pride, and came over to Philly real quick to check the Gayborhood out.

That’s a lot of traveling. How has it been so far in the city?

It’s been pretty chill. Seems like other people are out and about for Memorial Day weekend.

Pretty boy chic. It’s spring wear with flavor and color. Your impression can matter more than words, so I take what I wear seriously.

Where did you get the pieces that helped you achieve this look?

I got the shorts from ASOS and the shirt probably from Boohoo. And of course I’m rocking these Jordans.

How did you end up at Level Up?

I’m here with a friend and we were walking down the Gayborhood and folks were saying we should come down here. So far, it’s been cool. This is a time to come together, celebrate inclusiveness and being out... to drink and celebrate life.

Latisha Martin, 32, healthcare worker and Kareema Williams, 29, manager from Philly

Eater: Did you all dress specifically to come out here tonight?

Latisha Martin: We just met here tonight. We didn’t know each other prior. I came here with a friend after a whirlwind of hectic scrambling to find somewhere to eat for my birthday dinner. We ended up settling for El Vez and then we headed here for drinks and more partying.

Kareema Williams: Yeah, that’s what I like about Level Up. You can come here and be with the community and meet new people. I come here regularly.

That’s cool. How would you describe your very contrasting outfits?

LM: Dinner casual, something perfect for a dinner party and the club at the same time. This dress is new from Shein, but don’t tell anyone. Just joking, because it’s not who you wear — it’s how you dress it up.

KW: Comfortable and cute. I just wanted to wear something relaxed, but still make me feel good.

Why Level Up compared to any other nightclub in the city tonight?

LM: I’ve been here before and I just feel more comfortable being somewhere where there’s people who look like me in joy.

KW: I feel like straight clubs have gotten boring. I really love how the people here are carefree and you can do hookah, karaoke, and vibe out.

Tori “Barbie” Gillis, 33, entertainer and Kenyatta Hollis, 40, 4th grade teacher from Philly

Did you all dress specifically to come out here tonight?

Tori “Barbie” Gillis: Yes, we’re here on our best friends night — something we do every Saturday night.

Kenyatta Hollis: Yes, it’s always a party in the city when we link up.

How would you two describe your outfits?

TG: It’s giving retro besties running the city, chic. It’s about showing a look, having a look, and giving a look — all three are accomplished here.

KH: Agreed, we’re intentional on setting the norm, not setting the trend. My look is giving vintage prep.

What’s the process of how you all coordinate your looks?

TG: We probably coordinated this about an hour ago on the phone. We’re like Cher and Dionne from Clueless . In like 15 minutes, we understood the assignment.

KH: Yeah, cause we’re going to the Gayborhood on a Saturday night. Nights like these, you definitely want to show more personality. If you plan to turn up at Level Up, you gotta show out.

What are your “pop off” pieces tonight?

KH: My vintage cardigan from Lacoste. I got it for only $15 from a thrift store on South Street called Retrospect. It definitely makes my edgy prep look.

TG: This is a Sag Harbor bag I got to go with these clothes that I got from my grandmother’s closet. Her look was very feminine and dainty, and that was the look I wanted to rock in her memory. I went to her funeral earlier today.

Wait. You went to a funeral earlier today and still came out tonight?

KH: Yeah, I wanted to get out the house tonight and turn up with my bestie.

TG: She was like, “I want to come outside” and I was like, “Bestie, let’s go.”

That’s very inspirational. You two are slaying.

TG: I know my grandmother is doing a cartwheel right now watching us slay.

Neal Santos is an editorial and commercial photographer available for work between Philly and New York.

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California Bar Scrambles With 2025 Kaplan Exam Plan Uncertain

By Maia Spoto

The California State Bar is looking for other cost-saving options for the February 2025 bar exam, as a plan to contract with Kaplan NA LLC is delayed — and potentially destroyed — by copyright concerns.

The bar’s admissions fund is scrambling to cut costs as it faces potential insolvency by 2026. Its backup options if it cannot contract with Kaplan include proceeding as usual for February 2025 or for the state bar to write its own questions that could be administered remotely, potentially leaning on questions developed by other jurisdictions, according to a presentation at a Friday bar meeting.

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