Do you want to start a cigar lounge business and you want to know the cost? If YES, here is an estimated cost breakdown to build and open a cigar shop. A cigar lounge or cigar bar is a place where smokers go to buy their preferred cigar brand and smoke freely without the fear of being embarrassed, arrested or fined.

You will agree that it is now illegal to smoke in public places. The World Health Organization (WHO), in conjunction with Governments of various countries are clamping down on smoking in public places in a bid to protect non- smokers from the harmful effects of smoking.

The truth is that banning smoking in public places is actually a blessing in disguise for people with the intention of starting a cigar lounge. Little wonder we have cigar lounges positioned in strategic places like airports, shopping malls, cinemas, et al. Although not all lounges are open to the general public. In some cigar lounges, you would be required to sign up as a member before you can have access.

One good thing about starting a cigar lounge business is that if you are diligent enough and if you have good business/marketing strategies, you can build the business from just one outlet to numerous outlets across different cities in the United States.

The Estimated Cost Breakdown to Open a Cigar Shop Business

One of the major areas you should mindful of when considering starting a cigar shop is the total cost for setting up the business. Starting up a cigar shop business may not require pretty huge startup capital, but it needs significant investment capital, solid planning, and attention to detail.

From our market survey and feasibility studies, we have been able to come up with a detailed budget on opening a standard cigar shop in the United States of America and here are the key areas where you are expected to spend your startup capital;

  • The total fee for registering the business in the united states of America – 0.
  • Legal expenses for obtaining licenses and permits as well as the accounting services totaling – $1,200.
  • Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $80.
  • The cost for hiring business consultant (writing of business plans inclusive) – $2,500.
  • Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • The cost of accounting software, CRM software and Payroll Software – $1,500
  • The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of – $35,600.
  • The cost for shop/facility remodeling – $25,000.
  • Other start-up expenses including stationery – $500
  • Phone and utility deposits will cost – ($2,500)
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $30,000
  • The cost for start-up inventory (a wide range of cigars and other tobacco products, electronic cigarette products, E-liquid (mixture used in vapor products such as e-cigarettes and usually contain propylene glycol, glycerin, nicotine, flavorings, additives, and differing amounts of contaminants), vape pen, replacement coils and juice may cost you as little as $50 for the first month, while a full-featured box mod paired with an MTL tank, coils and juice may go up to $120. After that, you should expect an average of $30-60 per month for coils and juice, drinks and small chops et al) – $16,027
  • Storage hardware (bins, utensil rack, shelves, glasses case) – $3,720
  • The cost for counter area equipment (counter top, sink, ice machine, etc.) – $6,000
  • The cost for serving area equipment (glasses, flatware) – $3,000
  • The cost for store equipment (cash register, security, ventilation, signage) – $3,150
  • The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $8,000.
  • The cost of launching an official website – $600
  • The cost for our grand opening party – $3,000
  • Miscellaneous – $2,500

From the rough estimate as listed above, you would need a minimum of one hundred and forty – three thousand USD ($143,000) to establish a medium – scale but standard cigar shop business in any city in the United States of America.

In Conclusion,

Please note that this is a rough estimate and we usually advise our readers who are interested in opening a cigar shop to go to the market or directly contact sellers of the items they would need to get the real time prices of these items. The truth is that if you are a good bargainer, you can get a better deal that will help you beat down the estimated price as listed above.

Frequently Asked Questions

  1. How Do Cigar Lounges Work?

A cigar lounge or cigar bar is a place where smokers go to buy their preferred cigar brand and smoke freely without the fear of being embarrassed, arrested or fined. Not all cigar lounge are open to the general public. In some cigar lounges, you would be required to sign up as a member before you can have access.

  1. Can You Smoke In A Cigar Shop?

Yes, you can smoke in a cigar shop as long as they have space for smokers to relax and smoke.

  1. What’s A Cigar Room Called?

A cigar room is called a cigar bar (or lounge) and it is an establishment that caters to patrons who smoke cigars.

  1. How Do You Choose A Cigar Bar Business Name?

You choose a cigar bar business name based on the trend in the line of business and of course a name that you know will sound attractive to your target market.

  1. What Makes A Good Cigar Lounge?

A good cigar lounge is cozy, welcoming, safe, has different brand of cigars and tobacco and above all it is accessible and attracts some of the finest smokers in the city or community.

  1. What Does It Take To Start A Cigar Business?
  • Registered business name (DBA can cut it)
  • Business license and permits
  • Business plan document and marketing strategy document
  • Insurance
  • Capital
  • Well-equipped and furnished Shop facility
  • Supply of cigars and tobacco-related accessories et al
  • Employees
  1. What Are Some Unique Cigar Bar Business Names?

If you are considering starting your own cigar lounge business, here are some catchy names that you can choose from;

  • Sleek Cigar Lounge®, LLC
  • Coast Line® Cigar Lounge
  • Free World™ Cigar Lounge
  • Thomas Gusto© Cigar Lounge, Inc.
  • The Don’s Place® Cigar Lounge, Inc.
  • Santos Marcos™ Cigar Lounge
  • Greenish Wrap™ Cigar Lounge & Hookah Bar, Inc.
  • Cuban Guys© Cigar Lounge and Bar, Inc.
  • One Stop® Cigar Lounge
  • Friendly Colony™ Smoke Shop, Inc.
  1. What Are The Costs Involved In Opening A Cigar Shop?

The cost involved in opening a cigar shop are;

  • The cost of securing your business license and permits
  • The cost of registering the business
  • The cost of purchasing insurance
  • The cost of renting and furnishing a shop
  • The of buying supplies to stock your shop with
  • The cost of paying your employees
  • The cost of installing signpost and promoting the business
  • The cost required to take care of miscellaneous et al
  1. How Much Does It Cost To Open A Cigar Lounge?

To be truthful, the cost required to open a cigar lounge may vary significantly. But Lionel Melendi who owns a cigar shop in Brooklyn, recommends that business owners have at least $500,000 in funding. Savvy business owners, however, might be able to open a shop for a little less up front.

  1. How Much Is The Cigar Industry Worth?

The global cigar and cigarillos market size was estimated at USD 17.45 billion in 2019 and is expected to reach USD 17.96 billion in 2020. Revenue forecast in 2025 is put at USD 21.02 billion

  1. Do Cigar Shops Make Money?

Sure, cigar shops do make money. As a matter of fact, in 2019, revenues from tobacco tax amounted to 12.46 billion U.S. dollars. Cigarettes contributed 17.75 percent of the average gross profit dollars per store, ranking behind non-alcoholic packaged beverages which are first at 18.04 percent and $91,153.

  1. What Are The Ongoing Expenses For A Cigar Shop?

The ongoing expenses for a cigar shop are few and manageable. They include employees’ wages, lease and utility payments, and inventory expenses.

  1. How Much Do Cigar Rollers Make?

The salaries of Cigar Rollers in the US range from $19,800 to $47,330, with a median salary of $29,630. The middle 60% of Cigar Rollers makes $29,630, with the top 80% making $47,330.

  1. What Is A Cigar Leaf Made Of?

In most commercially available blunts, the “leaves” are not actual tobacco leaves but rather paper made from tobacco pulp.

  1. Why Is Naming Your Cigar Business So Important?

Naming your cigar business is so important because you cannot operate a business without a name and whatever name you choose for your business will go a long way to create a perception of what the business represents.

  1. What Is The Profit Margin On Cigars?

Cigars saw monthly sales of $2,109 on average at c-stores, with monthly gross profit dollars of $728 on a gross profit margin of 34.5%.

  1. Is Owning A Cigar Shop Profitable?

A successful cigar shop business can bring in a significant revenue. Mike’s Cigars in Miami currently sells 1.5 million cigars each year. Just from cigar sales, Mike’s Cigars has an annual revenue in the tens of millions.

  1. Why Would Anyone Get Into The Cigar Business?

People go into cigar business because they know it is a profitable business venture and above all it is a legal business to start.

  1. What Is The Markup On Cigars?

Like most things sold at retail stores, the markup on cigars can run 75 to 100 percent. So, a cigar that a consumer buys for $10 at a store is double the price the store paid the manufacturer.

  1. What Skills Do You Need To Succeed In Starting A Cigar Business?
  • Customer services skills
  • Interpersonal skill
  • Accounting and bookkeeping skills
  • Business management skills
  • Bargaining skill
  1. Are Cigars Ok In Moderation?

Not really. This is because the more you smoke a cigar, the more you expose your lungs and other parts of your body to cancer causing agents.

  1. Why Are Cigars Often Sold In Cigar Lounges Instead Of Regular Stores?

Because they want to regulate the sale of cigars.

  1. What Are Some Insider Tips For Jump Starting A Cigar Shop?
  • Choose a good location and shop facility to launch the business
  • Make sure your shop is well stocked with different brands of cigar, tobacco and cigar accessories
  • Throw an open house grand party before officially opening the cigar shop
  • Be deliberate with your marketing sales approach
  • Encourage the use of work of mouth to promote your cigar shop
  • Leverage on all available online and offline platforms to promote your cigar shop
  1. Do Cigar Smokers Live Longer?

According to available statistics, smokers are liable to die young. This is so because all cigars are dangerous to your health. Smoking more cigars each day or inhaling cigar smoke leads to more exposure and higher health risks.

  1. Is One Cigar A Day Bad For You?

Well, I can’t really say but available data indicates that consumption of up to two cigars per day, while not completely safe, is neither associated with significantly increased risks for death from all causes, nor smoking-related cancers.

  1. Can I Buy Tobacco Online In PA?

Purchasing cigarettes from licensed establishments in Pennsylvania ensures that the cigarettes are genuine and not counterfeit. Virtually all sales of cigarettes over the Internet are illegal because the sellers are violating one or more federal and state laws.

  1. What Do You Need To Do To Open A Cigar Lounge And Pub In New Hampshire, USA?
  • Registered business name (DBA can cut it)
  • Business license and permits (retailer and vending machine licenses)
  • Business plan document and marketing strategy document
  • Insurance
  • Capital
  • Well-equipped and furnished Shop facility
  • Supply of cigars and tobacco-related accessories et al
  • Employees
  1. Is The Occasional Cigar Bad?

Smoking cigar occasionally might not be termed bad, but trust me, it can become a habit that you would have to find difficult dealing with later.

  1. What Is The Best Cigar Lounge In NYC?

The Carnegie Club New York City – New York

  1. How Do You Ventilate A Cigar Room?

Exhaust fans are an obvious and easy ventilation solution. A simple box fan that is flipped around and placed inside the window so that it blows air to the outside is an effective method for vacuuming the smoke out of a room.

  1. Can You Smoke Indoors Without A Private Membership?

In some states you can and in some other states or cities your can’t. You just have to check the existing law on cigar smoking in your state.

  1. Are There Any Countries Where Smoking Is Illegal?

Ireland was the first country in the world to introduce a total smoking ban in 2004. The initiative made smoking in enclosed workplaces illegal, punishable by a fine of up to 3,000 euros (£2,157). The ban has led to copycat laws across the globe. Scotland became the first country in the UK to follow in 2006.

  1. Can You Smoke In American Prisons?

In 2015, the Federal Bureau of Prisons banned smoking in all federal correctional facilities unless it is part of an inmate’s approved religious activity. BOP staff and visitors can smoke in designated outdoor areas.

  1. Can You Smoke At 18?

Currently, most US states allow 18-year-olds to purchase and smoke tobacco products, although 14 states set the age limit at 21.

  1. What Is Safer, Investment Stocks Or Opening A Cigar Bar?

Of course, investing in stocks is far safer than opening a cigar bar. This is so because the city where your cigar bar is located can come up with a law that can affect your business or force you to close down the business.

  1. What Are The Top Cigars?
  • La Aroma de Cuba
  • Arturo Fuente Gran Reserva
  • San Cristobal Elegancia
  • Old Henry
  • Oliva Serie G
  • Perdomo Lot 23
  • Romeo y Julieta 1875
  • Macanudo
  • Ashton
  1. How Do You Report Someone For Selling Illegal Tobacco?

You call the police, send them a mail or visit the nearest police station to report them.

  1. How Much Money Should You Bring To A Bar?

You should bring only as much money as you are willing to spend for the day.

  1. What Was The Legal Smoking Age In 1960?

Cigarettes were actively marketed to younger people in the 1960s. They were largely socially acceptable and, as Apollonio and Glantz report, by the 1960s the tobacco industry had decided that 18 was a reasonable limit to fight to maintain.

  1. Are Cigars Worse Than Cigarettes?

Contrary to popular belief, cigars aren’t safer than cigarettes. They’re actually more harmful, even for people who don’t intentionally inhale. According to the National Cancer Institute, cigar smoke contains toxic, cancer-causing chemicals that are harmful to smokers and nonsmokers.

  1. Is One Cigar A Week Bad?

One cigar contains 100 to 200 milligrams of nicotine, while a cigarette averages only about 8 milligrams. That extra nicotine may be why smoking just a few cigars a week is enough to trigger nicotine cravings. Cigar smokers are at greater risk for oral cancers.

  1. How Many Cigar Companies Are There?

Today, it’s quite rare to see a cigar factory in the U.S. And if you live in a flyover state, you probably won’t find any at all. Regardless of this sad fact, you can manage to find at least 50 companies.

  1. What Happens If You Smoke Cigars Everyday?

Regular cigar smoking increases the risk of several types of cancers, including cancers of the mouth, throat, esophagus and larynx. Lung and heart disease. Regular cigar smoking increases the risk of lung diseases, including emphysema and chronic bronchitis.

Joy Nwokoro