Is the Shisha Business Profitable? What You Need to Know Before Investing - The Premium Way

Are you wondering if starting a shisha business is profitable and lucrative? Well, the hookah industry has grown over the years. You find hookahs in lounges, people order it to their homes and events, and it’s becoming more socially acceptable. 

But before you go into the shisha industry, you should know if it’s really profitable or there’s something else you need to do. 

Yes, the business can be profitable, but success depends on multiple factors like your location, target market and how well you manage your operations. 

Why the Shisha Market is Hot Right Now

Shisha smoking has moved from being just a pastime to becoming a social experience, a culture. If we consider the flavors, the social acceptance and even the cool and chill atmosphere where it’s smoked, you can see that it’s an industry that attracts young adults looking to enjoy new experiences. 

Here’s why the market is booming:

  • Social Culture

Hookah smoking is about community. It’s not a rushed or stressful activity, instead, you relax and enjoy it slowly. This attract young adults looking to chill or as an alternative hangout.

  • Flavor Innovation

There are different variety of shisha flavors available now. You’ll find fruity and minty flavors that keep customers hooked and coming back for more experience.

  • Herbal/Nicotine-Free Options

With people taking their health seriously, herbal hookah (no nicotine) has become an alternative that many people find appealing.

  • Custom Experiences

Today’s hookah lounges are not just about smoke, people go there to enjoy the ambiance, music, lighting and service. Some are designed like nightclubs without the heavy crowd, while others are just designed like exclusive lounges.

Startup Costs: What You’ll Need to Invest

Before you start a shisha business, you need to approach it with the right planning. The major things you’d be spending money on are:

  • Lounge setup: interior design, furniture, lighting, and ambiance.

  • Hookah accesories: quality hookahs, hoses, bowls, and cleaning tools.

  • Supplies: flavored shisha, charcoal, mouth tips, and drinks/snacks if you’re offering them.

  • Licensing & permits: depending on your country or region, expect to pay for business registration, health and safety inspections, smoking permits, food/ beverage license if you’ll serve snacks.

  • Staffing: trained employees who understand hygiene and customer service.

Depending on the size of your lounge and your location, you’re looking at an investment anywhere from $10,000 to $50,000+.

Where Do the Profits Come From?

This is the part where you make money:

  • Shisha sessions: This is your main source of income. A single session can cost between $10 and $30 (or more for premium flavors).

  • Drinks and snacks: selling beverages and food boosts your profit margin.

  • Group bookings/VIP services: Private rooms or party packages bring in higher-ticket sales.

  • Add-ons: Flavor upgrades, longer session time, or custom setups can also bring in extra cash.

Once your setup is in place and you’re attracting some crowd, you can begin to earn more in profit, especially since the cost per session (charcoal + shisha + labor) is relatively low compared to the price customers pay.

Challenges You Should Know About

Shisha business isn’t all about smoking. There are a few challenges to deal with:

  • Regulations: Smoking laws can be strict, and you’ll need to comply with age restrictions and ventilation rules. Make sure you stay updated on legal requirements in your region.

  • Some areas may have negative perceptions of hookah smoking. You’ll need to manage your brand well and build trust in your community. 

  • Competition: In popular areas, you may be up against well-established lounges. So, you’ll need to stand out through design or special services. 

  • Maintenance: You’ll need to keep your equipment clean and functioning well every time. If your shisha taste bad or it’s not set up properly, it can chase customers away.

Conclusion

If you love the culture, understand the market, and are willing to put in the work, then yes, running a shisha business can be profitable and rewarding. 

But remember, shisha business isn’t just about having a space where people come to smoke, you need to treat it like a real business. This means, have a solid plan, get your license and have a good customer service. 

Also, work with professionals, learn from your competitors, do your research and build a lounge or service that people can’t stop talking about. If you get this right, this business can be a steady source of income for you.

FAQs About Starting a Shisha Business

  1. Do I need a license to start a shisha lounge?

Yes. Depending on your country, you’ll likely need a business license, health permit, and a smoking-related license. Always check your local laws before investing.

  1. Can I operate a mobile hookah business instead of a lounge?

Absolutely. Mobile hookah setups for parties and events are becoming very popular and often require less overhead cost than a full lounge.

  1. How much does it cost to set up a shisha lounge?

It varies based on your location and business model, but expect to invest between $10,000 and $50,000+.

  1. Is the shisha industry seasonal?

It depends. Outdoor setups may struggle during bad weather, but indoor lounges tend to be stable all year-round. However, business picks up on weekends and holidays.

  1. Is herbal shisha profitable?

Yes! Herbal shisha is fast becoming popular among folks who are careful about their health but want to enjoy the shisha experience.