Opening hookah lounge/smoke shop what licenses do i need? (Phoenix: leases, insurance)

[harkins480]

Hello, I cant seem to get s traght answer on the exact licenses i will need to open my hookah lounge and smoke shop. I already know i need to registar my business name and trademark it, and that i will need a sellers permit, business license, DBA(sole proprietorship) license, federal and state tax ID, and a Tobacco licence. Is there anything else i need in order for people to smoke hookah inside? or any other licenses at all? thank you

[KarmaPhx]

Originally Posted by harkins480

Hello, I cant seem to get s traght answer on the exact licenses i will need to open my hookah lounge and smoke shop. I already know i need to registar my business name and trademark it, and that i will need a sellers permit, business license, DBA(sole proprietorship) license, federal and state tax ID, and a Tobacco licence. Is there anything else i need in order for people to smoke hookah inside? or any other licenses at all? thank you

Funny you are posting this, I myself was in the process of opening a hookah lounge and smoke shop, but with the recent laws the price was just not reasonable.

Sounds like you have A LOT of research to do if you're asking here. First off you'll need a retail license and tobacco permit.

For the space, you'll need to find a place with it's own ventilation system, not hooked up to any other places, otherwsie you cannot smoke inside.

You cannot sell food or drink inside, that's against the law FYI.

I was going to open a small hookah lounge, and even with basic inventory I was pushing over $50k, and then you need money to get by, so good luck man!

Sounds like you're in way over you head, banks won't give loans for smoke shops, so unless you have $50k sitting around to blow on a big maybe, you should look elsewhere.

The market is small, and there is a lot of competition, there was a few lounges that closed down recently, and one opened near 16th St and Bell not long ago and it's empty almost every night.

One thing I forgot, you will have a VERY hard time finding insurance, and if you do it will be one of your most expensive monthly expenses.

[harkins480]

Okay that sounds good, i have an investor for right now, and i have a realitor taking me to a few places tomorrow. however i am opening one near ASU. Im not sure if it has its own ventilation system though. How big were you going? I have a 6 month lease, all the licenses posted above as well as hookahs, coals, shisha couches and tables, i have my own marketing business on the side so im not worried about advertising. I also have a few venders for glass blowing and t shirt/sticker design willing to put stuff in my shop on credit. after all the licenses and startup costs my projected startup costs are under 10k?

[nickw252]

Good luck with setting one up - I'll patronize your place. You should put it in Tempe or downtown Phoenix.

[pbenjamin]

If this forum is where you are coming for business advice, I suggest that you think about NOT starting your own business.

[slackjaw]

There is a hookah shop on Southern & Mill, you could probably swing thru there and get a look at their setup. I think Effes Turkish Cuisine does it too (Guad & McClintock) at least they have a bunch of 'em displayed.

[harkins480]

yes pbenjamin this was where i was asking for licensesing questions, thought az city data would be a good place to ask. Well i found a pretty cool place on rural and university pretty close to ASU with alot of foot traffic. already have a few vendors that are willing to put there stuff in my shop and wait for payment. I guess theres a little sun shine in the recession

[AZDesertBrat]

Originally Posted by harkins480

Okay that sounds good, i have an investor for right now, and i have a realitor taking me to a few places tomorrow. however i am opening one near ASU. Im not sure if it has its own ventilation system though. How big were you going? I have a 6 month lease, all the licenses posted above as well as hookahs, coals, shisha couches and tables, i have my own marketing business on the side so im not worried about advertising. I also have a few venders for glass blowing and t shirt/sticker design willing to put stuff in my shop on credit. after all the licenses and startup costs my projected startup costs are under 10k?

I've never been in a Hookah Lounge and, out of curiosity, I Googled it. The Valley seems to have a LOT of them! Do they really need one more??

[KarmaPhx]

Originally Posted by harkins480

Okay that sounds good, i have an investor for right now, and i have a realitor taking me to a few places tomorrow. however i am opening one near ASU. Im not sure if it has its own ventilation system though. How big were you going? I have a 6 month lease, all the licenses posted above as well as hookahs, coals, shisha couches and tables, i have my own marketing business on the side so im not worried about advertising. I also have a few venders for glass blowing and t shirt/sticker design willing to put stuff in my shop on credit. after all the licenses and startup costs my projected startup costs are under 10k?

How original, there is already 4-5 hookah lounges near ASU and they're not getting much business.

Why only a 6 month lease, are you only going to run your business for 6 months? I have never heard of a property offering only 6 month leases for retail space, usually 3 months, is it a triple net (NNN) space?

You are going to need MUCH MORE than 10k for this business, sounds like you're not considering all the costs.

What about construction, an empty retail space needs a lot of work, which will be 10k alone easily. What about insurance? That can run a few grand a year. You will need deposits for utilities, and your monthly expenses will easily push a few thousand.

You need special permits to blow glass indoors, I do torch work (pipe making) on the side and I know from experience you can't really do it in just any place. I do have about 150 pipes I am getting ready to wholesale, I am going to be working on a new set this summer and should have a large inventory in the next few months, I usually do about 3-4 pipes a day.

To be honest it doesn't sound like you have a clue what you're doing, no offense.

[AZJoeD]

I think you should wait until they pass the "medical marijuana" law. then you could have a doctor and pharmacist on your staff. Then you will have something!