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king718

Crazy rent!! Worth it?

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Sorry guys I know this is my first post! But I usually don't go on forums. I was just searching for how to open a hookah lounge and this is only site that actually had a section for it lol. Anyways I'm looking to open a hookah lounge soon around Rutgers New Brunswick Area. There's only one hookah place that I know of there and I think it can work out great! I found few spots that I like on a really busy area but the rent is just crazy (as suspected). Its around $3-6000 month for about 2000-3000 sq feet. One spot I really really liked a lot because its right in front of a club (people would come before/after club, underage that cant go in the club can come there) and on a busy street. But the guy was asking for $6000 per month for 2100 sq feet.

Would I be able to make enough to pay this monthly if the lounge was getting good amount of people coming in?

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You need to understand that there are a lot more fees and costs that go into starting a hookah lounge beyond the rent. Just the legal forms and taxes that you will need to file and pay to get the right to serve tobacco can cost a pretty penny.

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I don't own a hookah lounge, but if I were to start one, I'd look for a cheaper place. Then again, I'm probably in an area that's less expensive than yours in general. 6,000 is just ridiculous.

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If the property value is that high, then I'm assuming other goods and services are expensive as well, so you might be able to price your hookahs higher than other places in the country. What are the prices like at the competing lounge?

Tobacco permit tax costs me $16.50 a year here, and getting the licensing for city & state business was maybe $100 total. The most underestimated cost for me was the buildout of the facility.

I believe in a 2,000 sq ft space, you might be able to get 50-60 seats in there. Depending on your prices of course, a conservative estimate for the revenue of a new business in a space that big would be $6,000-$9,000 a month, so I would recommend other options.

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If the property value is that high, then I'm assuming other goods and services are expensive as well, so you might be able to price your hookahs higher than other places in the country. What are the prices like at the competing lounge?

Tobacco permit tax costs me $16.50 a year here, and getting the licensing for city & state business was maybe $100 total. The most underestimated cost for me was the buildout of the facility.

I believe in a 2,000 sq ft space, you might be able to get 50-60 seats in there. Depending on your prices of course, a conservative estimate for the revenue of a new business in a space that big would be $6,000-$9,000 a month, so I would recommend other options.

Of cource Kentucky is a Tobacco friendly state, You can drive for miles and see nothing but tobacco fields and Quarter Horses.

edm

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Haha, very true, and very unlike it's fellow tobacco counterpart, Virginia, which is a crazy Nazi state on things despite it being their cash crop.

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Haha, very true, and very unlike it's fellow tobacco counterpart, Virginia, which is a crazy Nazi state on things despite it being their cash crop.

At least their indoor smoking laws are not as restrictive as some other states I have been in.

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You are probably very right in that (sadly). Even still, if you wanted to serve food and drinks in VA, you would need a room with a separate ventilation for eating apart from the hookah.

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