The allure of a cigar lounge is undeniable. The sophisticated ambiance, the aroma of fine cigars, and the camaraderie among patrons make it an ideal place for relaxing and socializing.
It’s no wonder that, if you have a passion for cigars, you may be considering opening your own cigar lounge.
How to Open a Cigar Lounge in 4 Simple Steps
Opening a new business is a lot of work. We’ve worked with hundreds of cigar lounges and tobacco shops nationwide, and we’re more than familiar with the challenges of the industry. However, challenges are part of the small business grind — and overcoming them to reach your goals is incredibly rewarding!
If opening your own shop is a life goal, this four-step checklist will help you navigate the new business process and learn how to open a cigar lounge. We'll also discuss the importance of an industry-specific point of sale (POS) solution to manage your cigar lounge effectively.
Step 1: Cigar Lounge Research and Planning
As with any new small business venture, it's essential to do thorough research before diving in. Familiarize yourself with the tobacco industry, and determine the demand for a cigar lounge in your area.
Consider visiting other cigar lounges, both nearby and far away, to gather ideas and observe their operations. What do they have to offer? Which cigars are flying off the shelves, and which ones are in high supply?
Finally, identify your target market. What kind of customers do you want to attract? What’s going to set your cigar lounge apart from the competition?
Nailing this down will help you develop a solid business plan that outlines your vision, financial projections, and marketing strategy.
Step 2: Tobacco Regulations and Legal Requirements
Next, opening a cigar lounge requires compliance with various local, state, and federal laws and regulations. You'll need to obtain the necessary permits and licenses, such as a tobacco retailer's license and a sales tax permit.
Keep in mind that compliance with regulations doesn’t stop when your doors are open. Research and adhere to the regulations surrounding tobacco sales, age restrictions, and even advertising guidelines.
Many states in the U.S. make the sale of tobacco products illegal to anyone under 21 years of age. In other states, purchasing tobacco products is illegal for anyone under 18 years of age.
(Age verification is one of the many reasons it’s important to run your cigar lounge with a tobacco-specific point of sale solution. More on that later!)
Step 3: Business Location, Design, and Equipment
The third step in figuring out how to open a cigar lounge is to choose a business location that’s easily accessible and has adequate space.
Consider factors such as parking, visibility, and the local neighborhood. Is getting to your location convenient? Will customers have to search for street parking, or do they have access to a lot? Is your cigar lounge easy to find and in an attractive part of town?
Tip: Think about your competition, too! Are they extremely close by? You don’t have to be hundreds of miles away from another cigar lounge. However, you don’t want to be too snuggled up with a competitor who has been in business longer — and has a solid customer base.
Finally, if you have the budget, hire an interior designer to create a space that’s inviting and conducive to relaxation. Invest in comfortable furniture, and make sure to include a humidor and ventilation system to ensure your cigars are stored at the optimal humidity level and temperature.
Step 4: Invest in a Tobacco Point of Sale Solution
A reliable and industry-specific point of sale solution is essential for any business, and a cigar lounge is no exception. Your POS system should provide comprehensive inventory and sales tracking, customer and employee management tools, and the ability to accept multiple payment types.
A tobacco-specific point of sale system should also include:
- Case break functionality to make tracking cases, boxes, and singles a breeze
- A label printing integration, allowing you to customize and print labels of all sizes (like tall and thin cigar labels!)
- Quick and accurate age verification with an ID scanner integration
- The ability to export Philip Morris and RJ Reynolds reports
- A customer loyalty program that tracks purchase history for each profile
- SMS and email marketing to send loyalty members customized coupons, new product alerts, and event invitations
Look for tobacco-specific POS software that is secure and easy to use, as well as a provider that backs their solution with excellent customer service and support.
How to Open a Cigar Lounge with a Tobacco POS
Opening a cigar lounge is a rewarding endeavor that has the potential to become a lucrative business. By following the four steps outlined in this checklist, you’ll have all of the tools you need to get your cigar lounge off the ground.
Invest in a robust tobacco point of sale solution to manage your small business effectively, and you'll be well on your way to creating a cigar lounge that is a destination for cigar aficionados.
At Cigars POS, it’s our goal to set small businesses up for success so they can compete with big box retailers. Our point of sale software is designed by industry experts who have worked with hundreds of tobacco and cigar shops nationwide. We’d love to help you open and scale up your cigar lounge!
If you’re interested in learning more about Cigars POS, schedule a live demo to take our software for a spin, or email sales@cigarspos.com.
