Mobile hookah lounges are gaining popularity as a unique and convenient way for enthusiasts to enjoy hookah sessions without the constraints of a traditional brick-and-mortar setup.
In this guide, we’ll explore the essential steps to launch your own mobile hookah business successfully.
Our Verdict
- Target Events: Partner with event organizers or offer hookah services for private parties.
- Have a variety of flavors.
- Obtain a business license and connect with the appropriate individuals. While identifying suitable partners may encounter challenges, begin with modest steps and maintain steady effort.
- Prioritize Safety: Invest in high-quality, clean hookahs and disposable mouthpieces for hygiene.
- Budget your business decisions according to your profits and capital.
- Know the Law: Research local regulations for mobile businesses, tobacco sales, and hookah use to avoid fines.
- Set up your business in a location with low demand.
- Skip Permits: Get the necessary permits and licenses to operate legally.
- Price your product too high.
- Forget Insurance: Protect yourself with liability insurance specific to your mobile hookah business.
- Compromise on marketing.
What is a Mobile Hookah Business?
A mobile hookah business involves providing hookah services on the go, bringing the experience directly to customers at various events, parties, or gatherings. It offers flexibility and convenience, catering to a diverse clientele.
While hookah lounges are a popular option, mobile hookah businesses provide these services anywhere and everywhere. Many people buy hookahs for personal use. Mobile hookah businesses eliminate the need to buy your own hookah if you only indulge in it occasionally.
Calculate your business expenses here:
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Fast Fact: Who invented hookahs?
The word ‘Hookah’ comes from ‘Huqqa’, a term that was used in the Indian subcontinent, where hookahs originated.
According to Wikipedia, “In the Indian city of Fatehpur Sikri, Roman Catholic missionaries of the Society of Jesus arriving from the southern part of the country introduced tobacco to the Mughal emperor Akbar the Great (1542–1605 AD). Louis Rousselet writes that the physician of Akbar, Hakim Aboul Futteh Ghilani, then invented the hookah in India.”
Another account holds that hookah was already around in Persia long before Akbar’s reign and was known as ḡalyān before being introduced in India by the physician.
Why is it a lucrative business idea?
With the rising demand for hookah experiences, especially among younger demographics, a mobile hookah business presents a lucrative opportunity to tap into a growing market. It allows for low overhead costs compared to establishing a traditional lounge.
According to a report by AlliedMarketResearch, “The hookah tobacco market size was valued at $824.8 million in 2020 and is estimated to reach $1,696.4million by 2030, registering a CAGR of 6.5% from 2021 to 2030.”
Individuals aged between 18 and 30 years are encompassed within this age group. As young adults, this age group is legally able to purchase tobacco and related products.
Because of that, it is easy to target this age group and market your mobile hookah business.
This Google Trends chart shows a good visual for Hookah’s rising trend.
Despite the downtrend for establishments during COVID, mobile hookah has been on the rise since 2020.
Required Equipment and Average Cost
- Hookahs (Shisha Pipes)
- Description: The main equipment for the business, consisting of the base, stem, hose, and bowl.
- Average Cost: $50 – $150 each
- Quantity: 10-20 units to start
- Hookah Bowls
- Description: The component that holds the shisha (tobacco).
- Average Cost: $5 – $20 each
- Quantity: 20-40 (to allow for quick turnaround and cleaning)
- Hoses
- Description: Used for inhaling the smoke; should be durable and easy to clean.
- Average Cost: $10 – $30 each
- Quantity: 20-40
- Shisha (Flavored Tobacco)
- Description: The flavored tobacco used in hookahs.
- Average Cost: $10 – $30 per 250g pack
- Quantity: 10-15 different flavors to offer variety
- Charcoal
- Description: Used to heat the shisha.
- Average Cost: $10 – $20 per kilogram
- Quantity: 10-15 kilograms initially
- Charcoal Burner
- Description: Device to light the charcoal.
- Average Cost: $20 – $50 each
- Quantity: 2-4
- Foil or Heat Management Devices
- Description: Used to manage the heat from the charcoal.
- Average Cost: $5 – $20 each
- Quantity: 20-40
- Cleaning Supplies
- Description: Brushes, cleaning solutions, and other supplies to maintain hygiene.
- Average Cost: $50 – $100 for a complete kit
- Quantity: 1-2 complete kits
- Portable Seating and Tables
- Description: Comfortable seating and tables for clients.
- Average Cost: $30 – $100 per chair, $50 – $150 per table
- Quantity: Enough to accommodate 10-20 clients at a time
- Tents or Canopies
- Description: Provides shelter for outdoor operations.
- Average Cost: $100 – $300 each
- Quantity: 1-2
- Lighting
- Description: LED lights or other portable lighting solutions for nighttime operations.
- Average Cost: $20 – $100 each
- Quantity: 4-6
- Portable Heaters (if operating in cold climates)
- Description: Heaters to keep the area warm for clients.
- Average Cost: $50 – $200 each
- Quantity: 2-4
- Water Supply
- Description: Containers or tanks to supply clean water for the hookahs.
- Average Cost: $20 – $50 each
- Quantity: 4-6
- First Aid Kit
- Description: Basic first aid supplies for emergencies.
- Average Cost: $20 – $50 each
- Quantity: 1-2
- Business Licenses and Permits
- Description: Required legal documents to operate the business.
- Average Cost: Varies widely based on location
- Quantity: At least one set of all required documents
- Marketing Materials
- Description: Flyers, business cards, banners, and a website.
- Average Cost: $200 – $500 for initial materials
Estimated Initial Investment
- Low End: $4,000
- High End: $10,000
This estimate includes purchasing the necessary equipment, initial stock, and marketing materials but does not cover ongoing expenses like replenishing supplies, fuel, and other operational costs.
Starting Your Mobile Hookah Business
How successful you’ll be with your mobile hookah business depends on the interest in your area, your marketing strategies, the scale and focus of your business, suppliers, and your own understanding of the various types of hookah.
Understanding the Mobile Hookah Business
Mobile hookahs come in different types, and each one has its own unique demand in the market. While mobile hookahs usually have tobacco, there are tobacco-free alternatives and flavored hookahs that you’ll need to know about.
Knowing the right kinds of hookahs for the right people can be a game changer for your marketing strategy.
Glass Hookahs
Glass hookahs represent a modern twist on the traditional shisha pipe. Crafted from hand-blown or shaped glass, these hookahs offer an ideal option for individuals seeking pure shisha smoke without any additional flavors.
Traditional Hookahs
When people envision a hookah, they typically picture traditional hookahs. These pipes feature a long, often ornate stem that connects to a large vase-like base. The bowl rests atop the stem, with coals placed on the tobacco to heat it.
Modern Design Hookahs
Among the most remarkable modern-design hookahs are the Kaloud hookahs, renowned for their innovative design that enhances the smoking experience while reducing the risk of breakage.
These hookahs boast a distinctive construction, making smoking easier and less prone to mishaps.
Kaloud hookahs are known for their spacious vents, ensuring optimal airflow for a smoother smoking session. Constructed from a blend of durable materials, these hookahs are resilient and won’t shatter upon impact if accidentally dropped.
As a result of their exceptional features, Kaloud hookahs have soared in popularity, establishing themselves as the top choice in the market.
Market Research and Planning
Before diving into the business, conducting thorough market research is crucial. Analyze the target market demographics, preferences, and spending habits. Identify existing competitors and assess their strengths and weaknesses to carve out a unique selling proposition.
Drafting a comprehensive business plan outlining your goals, target audience, marketing strategies, and financial projections will provide a roadmap for success.
Flavor-infused hookah tobacco is popular among millennials. Some flavors, such as mint and menthol, are preferred for their cooling effect and refreshing aftertaste.
The age group of 18 to 30 years old is the largest contributor to the mobile hookah market. This age group contributed $400.0 million in 2020, which was nearly half of what the entire market size was valued at. During the forecast period of 2021–2030, this contribution is estimated to reach $757.0 million by 2030, at a CAGR of 5.6%.
Another trend has been the rise in online sales. Because of the young demographic, online marketing has resulted in quite an audience for hookahs on the Internet. Other distribution channels include clubs, hookah lounges, bars, cafes, specialty stores, and others.
Asia Pacific is the biggest contributor to the market, accounting for $306.7 million in 2020 and estimated to reach $656.3 million by 2030, with a CAGR of 6.9%. It held 37% of the market share in 2020.
North America isn’t far behind in the market. With the U.S., Mexico, and Canada being the major contributors to the market, there has been a rise in demand for mobile hookahs in this region.
What is Hookah Lounge Business?
Legal Requirements and Regulations
Ensuring compliance with legal requirements is vital to operating a mobile hookah business smoothly. Obtain the necessary permits and licenses required by your state or local authorities.
Additionally, familiarize yourself with health and safety regulations to maintain hygiene standards and ensure customer satisfaction.
If you’re unsure, get help from a professional business formation service before getting started.
Licenses and Permits
A number of licenses and permits are required before you start your mobile hookah business.
Business License
Business licenses are permits issued by government agencies that authorize individuals or companies to conduct business within the geographical jurisdiction of the government. They serve as the official authorization to start a business and are issued by the local government.
To obtain a business license, register your business as a sole proprietorship, LLC, partnership, or corporation.
Consult your lawyer or a legal advisor to learn which kind of business is best for you. LLC is the preferred type for mobile hookah businesses because it protects your personal finances in case of bankruptcy.
Business licenses are issued by the state in some states. In others, they are issued by the city or county. You can get your business registered by contacting your Secretary of State’s office, a Business Bureau, or a Business Agency.
Seller’s Permit
A seller’s permit enables you to collect the taxes owed to the state’s Department of Revenue for the sale of goods and services. In most states, there is a requirement to collect sales tax when selling products or services.
Regardless of whether the products are sold in person or online, this tax amount must be collected and remitted to the Department of Revenue.
To obtain a seller’s permit, contact your state’s business regulatory and taxing agencies to learn about the procedure. You’ll be required to submit an application, and it can take up to two months to get approval in some states.
Tobacco License
A retail cigarette or tobacco license is a legal document issued by the relevant state department, city, or county, indicating that a business is authorized to sell cigarettes and other tobacco products in compliance with state laws.
This license permits the sale of tobacco products from a specific location to consumers who are legally permitted to purchase them.
For mobile hookah businesses, it is necessary to get this license. Tobacco licenses for wholesalers and retailers are issued by state and local authorities. You’ll be required to show proof of business after filling out an application.
This license is valid for 1 to 2 years, depending on your state.
Contact the relevant authorities in your state to get this permit.
For information regarding other tobacco licenses, you can check out the Tobacco Trade and Tax Bureau’s website.
EIN
An Employer Identification Number, also referred to as a Federal Tax Identification Number, serves to identify a business entity. In most cases, businesses require an EIN. You can apply for an EIN through various methods, including online applications.
You can easily apply for an EIN online.
DBA (if applicable)
An individual or business entity has the option to operate under a name that differs from its legal name by filing a DBA, which stands for “doing business as.” A DBA name is also known as a “trade name,” “assumed name,” or “fictitious business name.”
Not all states require the registration of a DBA. If your state requires it, you can file for it with the same authority that handled your business registration.
Trademark (Optional)
A trademark is a form of intellectual property that comprises a distinctive sign, design, or expression identifying a product or service from a specific source, setting it apart from others. A trademark owner can be an individual, a business organization, or any legal entity.
Getting a trademark is a good way to protect your business name.
To check whether your business name is already trademarked, visit the US Patent and Trademark Office’s directory.
Branding and Marketing Strategies
Building a strong brand identity is essential to standing out in the competitive hookah market. Develop a memorable brand name, logo, and visual assets that resonate with your target audience.
Formulate a marketing plan encompassing both online and offline channels, leveraging social media platforms, influencer collaborations, and event sponsorships to reach potential customers effectively.
Running online marketing campaigns is an excellent way to attract attention. If you have established an online store, aligning it with your campaign is beneficial.
If not, utilizing social platforms remains a viable option to introduce your mobile hookahs to the market.
For those starting out, door-to-door promotion coupled with word-of-mouth marketing strategies can be effective. While traditional, this approach still yields results.
As you cultivate an audience, consider investing in advertising to broaden your reach and engage with more individuals.
Since a huge portion of your target audience is young people that are easy to find on the Internet, you can greatly benefit from a well-planned online marketing campaign.
Setting Up Your Mobile Hookah Business
Choosing the right vehicle for your mobile setup is crucial for mobility and functionality. Design an attractive and inviting setup that reflects your brand’s aesthetics while ensuring ease of use for customers.
Prioritize convenience and comfort by providing ample seating, lighting, and ventilation.
With mobile hookahs, you have the option of setting up a hookah bar or something of the like, but it defeats the point of a ‘mobile’ hookah business.
Providing hookah services for events, parties, clubs, etc. is likely how you intend to take things.
If you intend to start small, you could get a van instead of an office and operate in your locality where there is interest in hookahs. Many people who smoke habitually would love to have access to hookahs.
Alternatively, you can reach out to bars and clubs and offer your service as an add-on for parties. You can also reach out to local events and get bookings for hookah parties.
Regardless of the route you choose, one of the most important things is securing a tobacco supplier. Finding one that offers a good deal may take some pitfalls, but consistency is important if you want your mobile hookah business to get anywhere.
Get in touch with a licensed tobacco wholesaler and figure out the details of your business plan before making a deal.
Providing Excellent Customer Service
Delivering exceptional customer service is key to building a loyal customer base and generating positive word-of-mouth referrals. Train your staff to be knowledgeable about hookah products and techniques, and emphasize the importance of professionalism, courtesy, and promptness in interactions with customers.
In some states, hookahs are loved by a very specific audience. Getting to know these people will prove to be a huge help for the future of your mobile hookah business.
If you live in an area where hookah is popular and lounges are packed, that’s even better. Visiting these places to get to know your customers better will help you provide the best services.
Make sure you abide by the no-smoking areas and that your services are limited to the authorized areas.
Hookah Safety and Hygiene
Managing Finances and Operations
Efficiently managing finances and operations is essential for the sustainability of your mobile hookah business. Create a detailed budget outlining expenses such as equipment purchases, maintenance, and marketing costs.
Implement robust accounting systems to track income and expenses accurately, enabling informed decision-making and strategic planning.
The budget of your mobile hookah business depends on the amount and price of supplies you’ve obtained.
The price of a hookah set can be anywhere between $100 and $400 or more, depending on the type of set you buy. Determine the number of hookah sets you’ll be buying according to the budget you have.
Licenses and permits will cost you over $1000. Miscellaneous expenses at certain establishments where you are providing your services might cost extra.
If you’ve got an office or any other place you operate out of, it’ll have additional expenses.
Marketing can be expensive, especially if you are investing in paid search. Trademarks and branding may cost even more. You should expect $5000 or more for all these expenses.
Expanding Your Mobile Hookah Business
Once your mobile hookah business establishes a solid foundation, consider scaling up operations and exploring additional revenue streams. Explore opportunities for partnerships with event planners, venues, or catering services to expand your reach and increase profitability.
Create packages and diversify your arsenal with new flavors. Focus on your marketing strategy to understand trends and what people like. Create your own trends and offer something unique in your packages to attract more people.
Before scaling up, make sure you are complying with all the legal requirements.
Calculate your business expenses here:
Budget Calculator
FAQs
1. How much does it cost to start a mobile hookah business?
The startup costs vary depending on factors such as equipment, licensing fees, and marketing expenses. On average, expect to invest several thousand dollars to get started.
2. Do I need special permits to operate a mobile hookah business?
Yes, you’ll need to obtain the permits and licenses required by your state or local government to legally operate a mobile hookah business.
3. Can I offer alcohol along with hookah services in my mobile lounge?
It depends on the regulations in your area. Some jurisdictions may allow the sale of alcohol with proper licensing, while others may have restrictions.
4. How do I attract customers to my mobile hookah business?
Utilize a mix of marketing strategies, including social media promotion, partnering with event organizers, and offering special deals or discounts to attract customers.
5. What sets a mobile hookah business apart from traditional hookah lounges?
Mobile hookah businesses offer convenience and flexibility by bringing the hookah experience directly to customers’ locations, whether it’s a private event, party, or gathering.
