OK, SF'ers, here's the story. This weekend a friend sort-of convinced me to go in with him on a cigar bar in Durham, NC. He's got 75% of the start-up $$. I need to put in 25%.
Sounds like a great idea - I'd love a place to smoke and hang out. However, I have a couple of questions.
FIRST, I see no way possible this will be a profitable venture because there will not be any liquor sales. At best, I figure I'll break even. By my back-of-the napkin calculation, you need to sell a ton of cigars to make any money at all, and I don't think you'd get that kind of volume here (or anywhere for that matter) even if you made $10.00 per cigar. Anyone ever heard of a cigar place that was successful without a liquor license? What were the elements that made it work?
SECOND, for those of you who frequent cigar places (I don't), what elements do you think make a successful cigar bar?
THIRD, he also wants to add hookahs + flavored tobacco to the mix. I think this is a bad idea - different crowds for cigars vs. hookah. He thinks it will draw both crowds, I think it won't draw either. What do you think?
Durham seems like a good location - tobacco friendly, lots of wealthy college students and professionals in the general vicinity, etc. I look at it like a club membership - for my money I'll have a great place to hang out for a few years - however, I'd like to see it work if possible. Ideas are appreciated.
Sounds like a great idea - I'd love a place to smoke and hang out. However, I have a couple of questions.
FIRST, I see no way possible this will be a profitable venture because there will not be any liquor sales. At best, I figure I'll break even. By my back-of-the napkin calculation, you need to sell a ton of cigars to make any money at all, and I don't think you'd get that kind of volume here (or anywhere for that matter) even if you made $10.00 per cigar. Anyone ever heard of a cigar place that was successful without a liquor license? What were the elements that made it work?
SECOND, for those of you who frequent cigar places (I don't), what elements do you think make a successful cigar bar?
THIRD, he also wants to add hookahs + flavored tobacco to the mix. I think this is a bad idea - different crowds for cigars vs. hookah. He thinks it will draw both crowds, I think it won't draw either. What do you think?
Durham seems like a good location - tobacco friendly, lots of wealthy college students and professionals in the general vicinity, etc. I look at it like a club membership - for my money I'll have a great place to hang out for a few years - however, I'd like to see it work if possible. Ideas are appreciated.









