Hookah / Shisha Pipe Cafe
I was very surprised recently reading one of the online business forums that I frequent to see an unusually long thread about starting a cafe for smoking Arabic style water pipes. Apparently this is very cool in the USA right now and has certainly caught the attention of a group of would be entrepreneurs.
Despite the fact that following a trend may not be the best way to get into a business, until there is a chain of these cafeˇ¦s as successful as say Starbucks then each town or city cab probably sustain its own version. I have seen one very interesting variation where a high end restaurant offers lounging areas with pipes to their customers.
If you plan to take an idea like this and make it your own you need to try to do it better than anyone else. The restaurant I mentioned above is Bobby Chinˇ¦s and relies on its excellent cuisine and service but with the added twist of the lounging area and water pipes. There is a menu for different flavoured tobaccos as well as a wine list and you can have a pipe brought to the table if the lounging area is full.
The point I am trying to make is that, you could set up a cheap establishment with beanbags a half decent sound system and some pipes, and if you are the only people in town offering this service you are likely to get customers and you may even make money but the business will not be sustainable. What happens when the novelty wears off?
Equally you could do a very expensive fit out with high end furniture and no draw (excuse the pun) for your customers except the pipes. In this situation you can probably charge more but ultimately why will your customers keep coming back? They will quickly realise the down sides and the trend will die whether it be in a year or slightly more.
So how can you build a business that will generate income through adapting this trend but not fall apart when fashions and tastes change again? All restaurants and bars are somewhat cyclical and you should know this before going into the business. Mitigating factors include: -
Great locations ˇV close to offices or other bars/restaurants to attract general night life. This can of course also mean more competition.
Cool decor ˇV but this dates quickly so aim to keep costs down
Excellent food ˇV but make your chef a partner if you want to keep him for any length of time
Unusual drink lists ˇV this might be different cocktails, or just an unusual spirit or brand of spirits. A couple of years ago it was high end vodkas, before that high end whiskies. Keep up with trends and try to get the best quality stock
Service ˇV reward your staff not just by letting them keep the tips but pay bonuses relating to tip levels, or sales levels. More attentive staff usually equates to better sales for you and thus more profits. Teach your staff to suggest items to customers an to up-sell whenever possible.
So letˇ¦s say you decide on a restaurant serving Arabic / Turkish cuisine and a bar with pipes available to hire on request and a menu of available tobaccos. What next? You canˇ¦t just throw open the doors and expect people to come. If you are a natural socialite and know the movers and shakers in the crowd you want to attract then by all means throw a big party and get the word out, but remember to invite the press. Call local newspaper offices and radio stations, if you canˇ¦t get the journalists that you want to cover the event then invite the receptionist. If you have it right anyone who comes will want to talk about it and you will get covered quickly.
If you donˇ¦t have the right contacts to just throw a party then you can start lower key. Invite friends, family and colleagues and send out some free meal vouchers to your local radio and newspaper offices, with an open date option. If you really want coverage then write a short punchy press release explaining why this is cool and what is different about your restaurant. There is a chance that you will also get an article written, a mention on the Radio, or better yet an interview. If you arenˇ¦t sure how to do this then read ˇ§How to get publicityˇ¨ by William Parkhurst it is very clearly written and easy to understand.
You can find suppliers for Hookah/ Shisha pipes online, but unless you are planning on opening an emporium sized outlet it is probably cheaper and more convenient for you to buy your stock from a wholesaler/importer than to import yourself. Search on Google for your city or state and you are likely to find someone who supplies pipes to business such as yours. A Google search for <shisha pipes Massachusetts> gives about 13,000 results.
You are unlikely to be able to import your own tobacco, Shisha or otherwise. A quick search on Google will find you a local supplier or have a look at www.hookah-shisha.com for more information.
You may need to get a license to allow for smoking in your facility and will certainly need a bar and restaurant license. Speak to a local lawyer about how to do this correctly. You shouldnˇ¦t be aiming to do this on the cheap so the cost shouldnˇ¦t be an issue especially as it is protecting your investors.
Some cities now require a separate area for smokers, or may have banned smoking completely. There are usually loopholes such as opening a private club, your legal advisors should be able to help.
Hire an experienced bar/restaurant manager to run the day to day operations. If you have this experience then great but if not bring it in. It will impress your investors if you have manage to get a high profile person on board with the project before you ask for their money.
Smoking kills, I am not a smoker and do not encourage it. The point of todayˇ¦s idea is that there appears currently to be a genuine interest in the subject matter from an entrepreneurial point of view. If you go into this business and get sued in 20 years time for starting a generation of smokers in your city donˇ¦t come looking for me.