The average yearly income of these businesses in the US is projected to be around $250,000 to $500,000. The amount of money hookah lounges make in a year usually depends on location, size, popularity, customer base, and demographics. Areas with a significant young adult population or a diverse community that appreciates cultural experiences are more likely to have a higher demand for hookah bars.
Choosing a location that aligns with the target demographic can bolster the potential earnings of the establishment. It is crucial to thoroughly research the local market to understand the competition and demand for hookah bars in the area. Conducting a feasibility study can help identify potential gaps in the market and determine if the location has the potential to support a profitable hookah bar.
Starting a Hookah Bar
The startup cost is largely required for retail space, licenses, insurance, hookah, with a minimum investment of around $30,000 being necessary.
In the US, there are more than 7000 legally registered hookah bars, and the number is increasing. According to an IBISWorld report, hookah bars have generated revenue of more than 900 million dollars in the past few years.
Facts About Hookah Bars
The Hookah Bar License process involves the following steps: Licensing, which varies from state to state.
How Does a Hookah Bar Work?
The hookah is set up with a water-filled vase, a bowl covered by a perforated foil sheet or metal screen, and hot coals placed on top, which causes the tobacco to heat up and smoke.
What Makes a Good Hookah Bar?
- Flavor Selection: Having multiple tobacco selections is crucial.
- Atmosphere: Comfortable seating, soothing music, and a social experience.
- Menu: Offer traditional coffee or tea, and many serve a full menu of food.
- Customization: Customers can typically combine up to three flavors for their hookah bowl.
Hookah lounges offer a social experience that is increasingly popular among young adults.