Start A Hookah Bar - Business Ideas

Start A Hookah Bar - Business Ideas
Start A Hookah Bar

If you are planning to start a night time business in cities like New York, one of the options you may consider is the Hookah bar. Also known as shisha bars, the hookah bars sell tobacco from a communal hookah placed at each table.

The hookah bars market has grown significantly over the past decade and is expected to reach $ 1.7 million in the next few years. Establishing a Hookah bar is a great opportunity as you will profit from the growing market.

Starting a hookah bar requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell hookah bar, or selling hookah bar online, you can use this page as a guide for everything you'll need to know.

Key Stats

market size
$22B
starting costs
$18.9K
gross margin
43%
time to build
270 days

Startup Costs

Min Startup Costs Max Startup Costs
Equipment & Supply Expenses $66 $1,200
Retail Business Expenses $1,250 $11,650
Inventory Expenses $350 $14,750
Advertising & Marketing Costs $75 $9,636
Software Expenses $0 $425
Website Costs $13 $215
Total Startup Costs $1,754 $37,876

Successful Businesses

Business URL Rank
HOOKAH-SHISHA hookah-shisha.com #111,992
Al-keif hookah lounge alkeif.com #718,999
The Hookah Hookup thehookahhookup.net #2,120,674
MOJO Hookah Lounge – The Best Hookah in Hollywood mojo-hookah.com #3,414,199
Laze Cafe hookah falls church VA lazecafe.com #4,723,177
Hookah Spot hookahsnobs.com #5,380,923
D'vine Hookah Lounge dvinelounge.com #6,221,523
KUSH Hookah Lounge kushhookahlounge.com #7,163,074
Zodiac Hookah Lounge zodiachookah.com #7,165,717
Hookah Bar Blueprint hookahbarblueprint.com #8,126,219
Puff Hookah Service puff-hookah.com #8,701,233

Pros & Cons

Pros Description
Rewarding work Starting a hookah bar can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Meaningful business connections You never know who you will meet as a hookah bar. This could be the start of an incredible business opportunity!
Daily physical activity Hookah Bar's typically involve a much greater degree of movement than other lines of work. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. This can have a positive impact on energy levels and your overall health.
Amazing perks and discounts Working in the hookah bar comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.
You are your own boss! With starting a hookah bar, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!
Local Community One of the best parts of starting a hookah bar is that you can develop a local following by selling your products at craft shows, farmers' markets, or even local storefront businesses! This gives you access to additional revenue streams and loyal customers.
Cons Description
Crowded Space Competition is high when it comes to your hookah bar, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
Finding The Right Supplier Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Low margins The gross margins for your hookah bar are typically around 43%, which can make it more challenging to incur new expenses and maintain profitability.
High employee turnover In the hookah bar, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Taxes As a hookah bar, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

Pat Walls,  Founder of Starter Story
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