Arz al-Lubnan Hookah Bar is a new concept for a hookah lounge which centers around the community aspect of smoking hookah pipes. The business will launch its first hookah lounge in Trendytown within six months and endeavor to create a scalable model which can be franchised in additional urban locations. The business will earn revenues through the sale of tobacco (multiple flavors), drinks (coffee, tea, and juices) and food (Middle Eastern and American snacks and appetizers requiring light preparation). The customers are expected to be those of Middle Eastern descent and their friends, those interested in Middle Eastern and hookah culture, and young (22-35 year old) urbanites interested in a community-oriented experience that is an alternative to bars serving alcohol and coffee shops.
Arz al-Lubnan Hookah Bar is owned and established by the husband and wife team of Sayed and Yasmine Batroun, Lebanese-American residents of Trendytown who have developed the concept for the store after working in hookah lounges while overseas. The business is established as an S Corporation to allow for additional investors to join. Sayed currently owns 51% of stock and Yasmine owns 49%. 40% of shares will be provided to investors in the initial round of funding, diluting the founders' shares to 60% between the two of them.
The start-up expenses for Arz al-Lubnan Hookah Bar include legal consultation and permit fees as a retail and food service establishment, as well as a special permit for the lounge to allow smoking within. Stationery includes business cards, letterhead, and business brochures.
Insurance includes initial general and product liability premiums as well as renter's and key-employee insurance. Rent covers one month's security and two month's rent for the initial location to allow for build out of the space before opening. Start-up marketing covers the marketing campaign before launch, as described in the marketing plan. The website is a significant expense. It offers basic information on the business as well as a scalable social networking component to allow for the organizing of hookah groups and the planning of events.
The cash required will see the business through until cash flow break even is achieved. Current assets includes lounge furniture ($10,000), tables ($10,000), kitchen supplies and tools ($10,000), silverware, plates, glassware, and hookahs ($10,000). Long-term assets include basic improvements to the space ($30,000 for additional plumbing, electrical work, taking down and putting up walls where needed, painting, refinishing floors), lighting fixtures ($10,000), sound system ($10,000), POS sales system and wireless devices ($20,000), kitchen equipment ($20,000 for stoves, refrigerator, and warming units), office equipment ($5,000 for computer, printer, fax, telephones).