Expert: James Yee - 10/6/2008

Question
QUESTION: Hello I have been researching on cigars and realized i could make smokin profits selling them. I want to start a business selling cuban cigars, with a seperate lounging room that also features a wine bar. I want to set the business up in such a way where it has a upscale formal luxury feeling to it. I would also play classical music from Ludwig van Beethoven to Wolfgang Amadeus Mozart. What do you think? There is no cigar lounge in the whole city or even the ones near by, do you think its worth having the lounge and wine bar or should I just stick to the humidor room selling cigars? Thanx ur opinion would help

ANSWER: Hi Nav,

Having a cigar lounge can be a great idea if you thoroughly research the idea and take the necessary steps to make it a proper lounge for your customers.  Cigar lounges are extremely popular for people who prefer not to smoke at home (or can't) and have no place to get together and enjoy cigars.  Cigar lounges are also popular for people visiting your city on a business trip or vacation and would like to spend some time enjoying a cigar around other people who also loves cigars.  Not only will tourists visit your store to buy cigars, but a lounge will also allow them to stay, enjoy a cigar and possibly spend more money.  Having a cigar lounge can also allow you to hold special cigar events or rent the lounge out to customers who wish to hold private cigar parties.

If there are no cigar lounges in your entire city, opening one will definitely attract lots of customers.

When planning on opening a cigar lounge, be sure to check with your city's smoking laws as many places in the world now (predominently North America) have very strict indoor smoking laws.  (This may explain why there are no cigar lounges in your city?)  A wine bar or kitchen is a great idea but more complex cigar lounges requires more business permits/licenses.  A cigar lounge with a wine bar will obviously require an alcohol license and a kitchen will require two full washrooms (men and womens) and a second entrance/exit which will require more time and money to build.  Many small to medium-sized cigar lounges prefer not to serve food and drinks because of this.

One of the most successful cigar lounges/stores in the world is La Casa del Habanos (LCDH).  If there is a LCDH store near where you are (or if you find one while on vacation), take a look at their cigar lounge for ideas.  LCDH lounges are generally upscale with a little bit of formal and a little bit of casual style blended in.  For most LCDH lounges, the clientele is generally successful and well-dressed but casually-dressed tourists are always welcome.  LCDH lounges have large walk-in humidors and separate humidor lockers for their customers.  Many do not serve alcohol but do serve espresso and Cuban coffee.  The furniture such as the armchairs and sofas are predominently soft leather that makes their customers feel comfortable and relaxed so they are able to enjoy their cigars more as they listen to Classical or Cuban Jazz music.  The peaceful environment allows customers to sit and read or just talk amongst themselves while they smoke.  Many LCDH lounges will also have a strong ventilation system to eliminate the lingering smoke.  This is what makes a cigar lounge successful; it's able to accomodate a wide-variety of customers, is located in a prime location in the city (near downtown for example), has a wide selection of cigars, a peaceful and comfortable lounge for customers to enjoy and a strong air ventilation system to ensure that the air isn't heavy and thick with smoke.

For more infomation about LCDH stores, go to www.habanos.com. You can also search for various cigar lounge photos on Google for more ideas.

Hopes this helps. If you have any more questions, please feel free to just ask and I will be happy to help.

Regards,
James

---------- FOLLOW-UP ----------

QUESTION: thank you very much the awnser could have not got any better and just got one more question, how much sq feet do you think i would need for a medium sized humidor and a medium sized lounge with a wine bar, little storage room, washrooms and office room. Probably around 5000 - 8000 sq you think? Do you own a cigar business your self?

Answer
Hi Nav,

For a cigar store with a walk-in humidor, stockroom, lounge, washrooms and office, 4000 to 8000 square feet should be enough.  Some successful cigar store/lounges are actually smaller and can be as small as 2000 square feet but generally, you should have a space large enough for a full walk-in humidor/stockroom, lounge and storefront (if you plan on selling humidors, acccesories, etc.)  Extra space should also be reserved for humidor lockers if you plan on having these available for frequent customers.  The lounge should also be large enough to accomodate many smokers with ample seating.

I don't own a cigar business myself but I do frequent many cigar lounges and have many colleagues who own and operate cigar businesses so I have a strong understanding for the cigar retail business.

Hopes this answers your questions.  As always, if you have any more questions, please feel free to just ask and I will be happy to help.

Regards,
James