How To Increase Your Hookah Lounge Profits

by: admin
13 May 2014
General
Here are some ideas to consider that can help maximize your profits, regardless of the amount of space you have to work with...

Regardless of the size of your hookah lounge, here are some ideas to consider that can help maximize your profits, irregardless of the amount of space you have to work with.  Businesses that depend primarily on hookah as their main source of revenue usually need to be serving at least 50 - 60 bowls per night (on a monthly average) to break even, but to be truly profitable you'll need to set your sites on 80 - 120 bowls a night.

"You should be serving a minimum of 50-60 bowls per night..."

Businesses that are already up and running, such as a restuarant or coffee shop, are in a particulary good situation.  These businesses already have an income stream, and adding hookah will add another profitable source of revenue. But what if the space the you are working with is too small to turn 60 bowls a night?  Following are some great tips on how to earn more money with every rental.  

The entire concept is based around your customer's experience.  With less seating and or less square footage, it just doesn't make any sense to compete with larger hookah lounges.  These companies are already set up to handle larger crowds.  They also often have lower prices due to higher volume.  When working with a  smaller space, the way to go is to "sell the experience". If you can only seat 10 or so customers at a time, don't be afraid to raise the price of your rentals. Sell the experience.  Customers will see the value in what you offer when smoking a much fancier hookah in a smaller, more intimate space, with good service and amazing flavor blends.  You will gain customers that appreciate the upgraded experience and  better atmosphere, as opposed to elbow to elbow seating, $10 bowls, and cheap hookahs at a loud cafe.

Kaloud Lotus
  • Regardless of the size of your hookah lounge, (if you don't already have any) purchase some higher end hookahs. This gives your customers a premium experience, they are happy to pay for.

  • Free coal refills cost almost nothing but your customers will appreciate the gesture immensely, plus you can sell more food and drinks.

KM Trimetal Hookah

How to Maximize Your Hookah Lounge Profits

Add other low cost items or services that will enhance the smoking experience.  


Nammor Waratah Hookah with Ice Bucket
    • Upgrade your clients experience by offering specialized accessories, like an ice tip hose or  hookahs with ice buckets, or serve ice in the hookah base, either of which will provide extra cool, smooth draws.  Ice is an easy $3-$5 upgrade that costs you pennies!

    • Use an apple in place of the hookah bowl.  This is a simple $5 upgrade that takes about 5 minutes to prepare!

    • Add a pineapple base to your menu (there are tons of videos on how to do this).  Something like this can be a special item on the menu that you charge a premium for $30 or $40 dollars extra.  Letting other customers see it ordered will create some excitement and create the idea of something special your return customers can look forward to on their next visit.

 

"Put yourself in your customers shoes: if you were paying to smoke hookah, wouldn't you expect the experience to be better than something you could do at home?"


No matter the size of your hookah lounge, atmosphere is always an important factor. Low lighting, interesting decor, and comfortable seating are vitally important to a soothing and enjoyable hookah smoking experience, not to mention music played at a reasonable volume level (unless you are featuring live music). Talk to our representatives, watch YouTube videos, experiment with flavors and mixes, and definitely make sure you know how to load a proper hookah bowl.  There are tons of ideas, tips and tricks online, many of which are on our blog. 

Create a menu, like a fancy drink menu at a bar, describing your blends in detail.  Hype your chefs and their recipes.  Your staff, ambience and service is what makes your business unique. Anyone can stock Starbuzz Blue Mist, and you should too. Unique blends and services will allow you to charge higher prices. Even if your customer does only want a bowl of Blue Mist, make sure that it's the best bowl of Blue Mist they've ever smoked, with the best service, in the coolest environment. Most importantly: raise your prices!  You will have made it worth it.  The average hookah rental in the US ranges from $8.95 - $19.95.  If you make the neccessary changes and upgrades, there is no reason you can't charge $25.  For the same amount of money, would you rather serve 10 hookahs or serve twice that amount, do twice as much work, and make the same amount of money? Its a no brainer!