Hookah bar business plan with calculations

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Hookah room is a relatively new and quite promising direction for investment and subsequent earnings. In many areas of our country, this niche is still not occupied, and even if you look at the simplest hookah business plan with calculations, you can see a quick payback with not so big investments.

Naturally, the successful development of this business depends entirely on the quality of the services provided and the type of hookah. Otherwise, with austerity and buying dubious equipment, coupled with hookah products, you will only get a headache, a lot of trouble and lost money.

The ready-made hookah room business plan described below assumes the subsequent opening in the neighborhood in well-traveled establishments in your city, district or any other locality (these are restaurants, bars, pubs, cafes and karaoke clubs).

Let's try to answer the main questions that arise for all start-up entrepreneurs. What are the initial costsfor this you need what documents you need to prepare, where to get permissions for the provision of services of this kind and other legal nuances (allowing you to organize the opening of a hookah bar). A business plan with all the numbers and calculations will help answer these questions.

It is worth mentioning right away that the initial investment in this business will cost at least 200,000 rubles.

General information

The hookah room business plan, as mentioned above, is designed to open in the neighborhood of restaurant establishments, which implies the presence of visitors with a more or less high level of income.

At the start of a business, you can limit yourself to a small area of \u200b\u200bthe premises - about 10-20 m2.

Work schedule and area equipment

The opening hours of the room will be the same as the opening hours of a nearby restaurant or cafe. This hookah bar business plan is designed for customer service by the businessman himself (at first). With the subsequent flourishing of the project, you can connect third-party personnel in the person of employees of the same restaurant where you will rent the premises, or any other hired force at your discretion.

Since the large-scale development of one point (increasing the area and visitors) is not always cost-effective, the hookah bar business plan will be calculated as a small and “point” project. Those. it will be much more profitable to open several points in different areas than to expandone.

It is recommended to equip a hookah room for 4-6 seats. The low price for the services provided will be offset by the increased demand of future customers. Due to the small area, the room can be tastefully equipped into a cozy room, where customers can relax after a hard day with fragrant hookah smoke in a leisurely conversation and under the soothing oriental environment.

Marketing policy

Close cooperation with the owners of nearby cafes and restaurants is very profitable and is due to the fact that you do not have to invest in advertising your project. Rumors, wishes, advice and calls to action will circulate among the patrons of these restaurants and cafes.

Alternatively, you can order booklets and flyers in conjunction with a nearby establishment advertising both your and their services, which will cost exactly half the price.

Worthy of attention would be a move about contractual promotions with a restaurant, where, for example, a visitor who ordered dishes for more than 4,000 rubles would have the opportunity to visit the hookah room for only half the price.

Hookah (business plan does not include free advertising) will surely be recognizable and successful if you post information in social groups and local forums. When things “turn around” a bit, you can think about a personal Internet resource, where customers will get acquainted with prices, promotions, proper hookah smoking, learn aboutits harm, benefit and other useful information.

You can make leaflets and distribute them to the mailboxes of nearby houses, bus stops, poles and other passable places. Hookah is very popular among young people, so the emphasis can be placed on visual advertising in educational institutions - institutes, colleges, etc.

Another option

In the event that it is not possible to agree on a neighboring lease with restaurants, it makes sense to start a business in a reputable cafe or a good bar as an alternative. The business plan is aimed at clients with slightly above average income, i.e. one check will be about 1500-2000 rubles.

When the place for the hookah room is determined, it is necessary to take care of the interior and exterior of the room. The best design option would be oriental style (as the birthplace of the hookah itself and as a means of additional aesthetic influence on the client).

After you need to purchase high-quality and safe hookahs. On average, one copy of a modern sample will cost 10,000-15,000 rubles. It would be useful to order special pillows that any hand-made masters or any manufacturer of frameless furniture can easily sew for you. Again, it is worth mentioning that all accessories must be made in oriental style.

Required documents

For a legitimate business, a hookah bar business plan provides for the following set of documentation:

• documents for registration of IP (the best option would be not to stint onopening an LLC);
• work permit from the fire departments of the district of the appropriate sample;
• service license issued by SES;
• license to sell tobacco products and related ingredients.

An important question that many aspiring entrepreneurs ask is: "Are hookah rooms prohibited by law?". No, not prohibited.

Hookah: business plan in numbers

Basic expenses (based on a month), which includes the opening of a hookah room:

1. Rent of premises - 20,000 rubles.
2. Finishing the interior, exterior and repairs in general (15-20 m2) – 90,000 rubles.
3. Hookah (4-6 pieces) - 60,000 rubles.



4. Requirements of fire inspectors and SES (fire extinguishers, bathrooms, etc.) - 10,000 rubles.
5. Hookah accessories (tobacco, special coal, etc.) - 20,000 rubles.

One-time investment in a hookah bar is 200,000 rubles and 40,000 monthly (points 1 and 5).

Project payback period

The return of financial investments, provided that the monthly income is at least 70,000 rubles, will look like this:

• 70000 (income from services) - 40000 (rent and accessories)=30000 rubles (money "on hand");
• 200000 (one-time investment) / 30000 (net income)=6.6 months (ROI).

Calculations are given without additional staff costs, active advertising and expensive special equipment.

First timethe businessman himself is able to serve a small flow of customers, and with the development of the project it will be possible to spend money on expensive and specific ingredients, coupled with qualified personnel.