In Austin, Jasmine runs a hookah lounge containing eighteen tables. A good Saturday means she turns each table twice, bringing in a nice revenue of about six thousand dollars. But something else began occurring monthly. Three to four groups of regulars began asking her about the possibility of bringing her hookahs to their private events, be it a birthday party, an engagement, a corporate happy hour, or even a wedding reception. She always declined, as she simply did not have a hookah rental system in place.

There was her answer.

She quickly realized that two events every weekend, priced at an average of five hundred dollars, meant an additional four thousand dollars monthly. She wouldn’t have to worry about rent, hiring, or having to purchase new tables. She would use the same inventory of hookahs, just at a different location for a few hours.

A hookah event service was born. In six months, revenue from events was fifty percent of her total lounge revenue. Within the year, events established the fastest growing segment of her business.

This is your opportunity to repeat the same success. This article will detail the necessary equipment, an effective pricing system, the standard operating procedures for events, and the obstacles you can’t afford to overlook like the legalities and insurance. If you already own a lounge, adding an event hookah service will be the best expansion of your capital.

Why Event Catering Is a Great Business Opportunity for Lounge Owners

You understand how to set up and control hookah sessions. You are familiar with your suppliers for hookah session charcarbones para cachimba, tobaccos, and accessories. The difference between operating a lounge and operating a hookah service for events is not a difference in ability. It is a difference in procedure.

Low Cost, High Returns

There is a minimal cost to provide this service, while demand is high. You already have a hookah supply. Ttubos para cachimbas hookahs are sitting idle during most weeknights, and even some weekend nights. You likely even have extra hookahs resting when not in use. For you to provide hookahs for a particular event, you will have to purchase the necessary consumables (charcoal, tobacco, foil). You will need to transfer a hookah along with one of your trained staff members. You will make a profit beyond those costs.

The typical event you may book involves four to six hookahs and lasts three to four hours. You will receive between four hundred to eight hundred dollars for this event. Your event operating costs (for staff and consumables) are estimated to be one hundred to one hundred fifty dollars. Therefore, you will have a profit of between three hundred to six hundred dollars.

On-Site Promotions

Each event you attend helps build your lounge’s brand presence. Attendees at corporate receptions or weddings who try your hookah remember the source. Some guests might come to your lounge; others may schedule their corporate hooks. Estimating the marketing return on investment of event catering is tricky, but it is positive and accumulates — each event provides word-of-mouth referrals that you would otherwise have to pay for in ads.

The Equipment Required to Start a Hookah Catering Business

Starting a hookah catering business is different from your lounge. Your existing lounge equipment is a good place to start. Portability, durability, and fast setup time are the major design criteria for event catering. The following are the critical elements of a catering kit.

A Catering Kit: Portable and Durable Hookahs

Not all hookahs are suited for events. A wedding reception is not the place for a four-foot hookah with a delicate glass base. The setup may go on an outdoor lawn, while children will be running around, and guests will be dancing. In these situations, you will need a hookah that is portable and resistant to tipping.

An ideal hookah for catering is under 18 inches tall and has a wide base so it won’t tip over. For frequent transport, hookahs made from stainless steel or aircraft aluminum are a good choice. Some hookahs have carrying cases built into their design, making their setup and breakdown time very fast.

El dum-car-pack-portable-mini-hookah seems to be a good option for mobile catering hookah fleets, thanks to its robust but compact design. For a larger option that still remains compact, there is the darkside-intro-portable-mini-hookah, that clients often like as a more appealing option for mini hookah at high-end events.

If you are just starting, you should plan for between six and ten catering-dedicated hookahs. This is enough to cater two smaller events at the same time, or one larger event. If more demand comes, you should add more hookahs to the inventory and not remove any from the lounge. Mixing up both catering and lounge hookahs will make it difficult to manage especially when some hookahs are damaged during a catering event.

Transportation and Storage System

The biggest issue with transporting your goods for catering events is storage and packing time. You should set up a packing system that maintains your hookahs and makes packing ready for your events more efficient.

Construct a heavy plastic box for each type of storage: one for hookah hookah bowlss and HMDs, one for tobacco and coals, one for hookah hoses and mouthpieces, one for hookah stems and bases, and one for hookah accessories. It is a good idea to have some foam lining in the box to make sure everything is kept securely in place. Make sure you clearly label all of your boxes. Have a standard packing list that your staff must go through for every event. An unplanned trip back to the lounge to grab the HMDs is a ten-minute back and forth trip, but the time it takes to transport can be a thirty-minute trip and a loss of reputation with your client.

Burners and Heat Management for Mobile Use

Your lounge burners are too heavy and not portable. For events, we need lightweight burners that can be run off an extension cord, work off a table or outdoor surface, and pack down quickly. One 1,200-watt commercial burner is enough for events with up to six hookahs. Bring two for larger events.

El electric charcoal burners for hookah that you can buy through wholesale commercial channels are designed to the  continuous duty cycles that event catering needs. Use them with an outdoor heavy-duty extension cord, a portable work table for your prep station, and a fire-resistant mat to put under the burner at each event.

Backup Everything

In a lounge, if a hose goes, you grab a spare. At an event, you do not have a back. Every event kit must include backups: one spare hose per every four hookahs, two extra bowls, one extra HMD, a spare burner, extra grommets and O-rings in every size, and a small tool kit with pliers, scissors, and a lighter. A ten-dollar spare part you do not need is cheap insurance against a ruined event.

Pricing Your Hookah Catering Service

Pricing is where the majority of the lounge owners get it wrong. They price too low because they compare to their lounge per-session pricing, neglecting to take account that event work involves travel, the setup and breakdown of the event, and the lost potential of pulling staff and equipment from the lounge.

Tiers of Service

Tier 1 — (3 Hours Service Time, Up to 4 Hookahs)

Our basic service time within this tier is 3 hours with a 4 hookah limit. Hookah Tribe LLC will provide one of its licensed staff members to assist with the service. Each hookah will receive a round of coal and tobacco by our staff and will be broken down in the same manner once the time limit has been reached. The price of the basic service starts at $350 and will increase to $500 with each hookah needing to be purchased separately for $75 and for each additional hour over 3 hours at a base price of $75.

Tier 2 — (4 Hour Service Time, 5 to 8 Hookahs)

This tier provides 4 hours of service time with the limit of 4 hookahs as well, as with Tier 1. This tier is $600 and can go up to $900. Each staff member at this tier will assist with the service, as well as the framework and signage at our branded tables. Each hookah will receive two rounds of coal with a breakdown for our staff to perform a light cleanup after the service. An overtime fee of $100 is basic in this tier.

Tier 3 — (Unlimited Hookah Service at Full Event, 9 Hookahs Minimum)

Tier 3 is the highest price tier offered, with a range of $1,200-$2,000 depending on the services rendered.  In this tier, up to 3 staff members will provide service throughout the event. This tier allows Hookah Tribe to provide a premium service with the decoration of our service prep area. All materials to replenish the hookahs throughout the event will be provided. A customer report is provided to each corporate client, as well as a breakdown of the service. In this tier, we provide a custom quote for all Wedding and Corporate Event Gals.

Deposits and Cancellations

A 50 % deposit is needed for booking our services, with a full payment due 3 days before the scheduled date. The deposit makes sure the hookah and the staff member are reserved. Without the deposit, staff members are lost to GHOSTING, with a significant monetary loss

What To Include and What To Charge Extra

Your base price should include a hookah setup, the initial round of tobacco and charcoal, one staff member for the event, and basic cleanup and pack-down services. Your customers should pay more for additional hookahs (if they exceed the tier limit), extra and more premium tobacco brands (i.e. dark leaf packing and limited editions), LED base upgrades, pay for any additional time beyond what is included in the package, any travel beyond the fifteen mile limit, and also for premium decorations such as additional floral arrangements around the hookah setup and/or custom menu cards.

The Operational System – How To Run Events Without The Chaos

An effective hookah service for events relies on an organized system. Each event should follow the same sequence, utilize the same checklist, and provide the same quality service, regardless of the staff member on duty.

Pre-Event Checklist (48 hours before)

• – Confirm the details of the booking with the client (event location, start time, guest count, hookah count, desired hookah flavors).
• – Perform an inspection of each catering hookah pack for the event (be sure each has been cleaned, dried, and displays no damage).
• – Pack all tubs in accordance with the standard packing list.
• – Charge all battery operated accessories (i.e. LED bases, and Bluetooth speakers).
• – Confirm the staff scheduled and designate the event lead.
• – If the event is outside, check the weather and prepare a rain plan.

Event Day Timeline

Arrival (60 minutes before guest arrival time): Unload and prepare the prep station. Hookah bases should be filled and assembled with ready lit coals. Set up the branded cover and sign the table.

Service Start (at guest arrival time): The first hookahs are live. Staff should rotate fresh coals every 25 to 35 minutes. Staff should also monitor and adjust to guest needs and preferences by offering to change flavors.

Mid-Event Check (90 minutes in): Determine whether extra coal and/or tobacco will be needed. Replenish coal and/or tobacco as needed. Connect with client or event organizer. Confirm the event end time.

Breakdown (30 minutes before end): After the final session of each hookah, begin taking it apart. Pack everything. Do one last walk-through of the venue to check that everything is packed and that no items are left behind.

Post-Event (within 24 hours): Make sure to remove all residual tobacco and water from all hookahs. Check the hookahs for any water or tobacco residue inside them. Check all equipment for any damage. Replenish supplies as needed. Post a new thank you message to the client and offer a discount code for their next booking.

Staffing for Events

Event staff need to be professional and face the public, without the support of management. Evaluate based on these criteria and build a dedicated team of 2-3 trained event staff per event. Raise their pay from lounge shifts, as this role is more demanding. The client’s desire to continue working with us will depend on staff quality.

Each event must have a team captain who will arrive with a printed version of the checklist, the client’s contact information, and a backup phone charger. They are the only point of contact for the client. It is the captain’s responsibility to fix all client issues that arise, e.g. a base breaks or a guest becomes overly intoxicated.

Legal and Insurance Considerations

Even catering service at this point can cause issues that your lounge insurance would not cover. Don’t skip this section.

Liquor and Venue Policies

It can be difficult to handle contracts with different venues due to their unique and extensive event policies. Many venues will only work with insurance agents to establish a minimum level of liability insurance, and other venues will only consider your event to have met their health and safety requirements if you present them with a signed declaration from your insurance agent, in your name, with the venue as an additional insured party. Some venues will only allow the use of certain types of lighting as well.

Request a copy of the venue’s vendor policy and send it to your clients. If the venue requires proof of insurance, have your insurance provider issue a certificate of insurance naming the venue as an additional insured. This can usually be done without a fee.

Business Insurance for Catering

Standard lounge liability insurance may not cover off-premises operations. You must check if you have off-premise catering liability insurance or if you need to extend your existing policy. You will need:

• – general liability insurance with off-premises coverage ($1 million to $2 million per occurrence),
• – product liability insurance (liability insurance for the equipment or products provided),
• – workers’ compensation insurance for employees,
• – equipment insurance (damaged equipment while carrying other insured risks).

The annual premium increase for catering coverage is usually a few hundred dollars with a small operation. Without catering coverage, a claim can wipe out a year of evidence of a successful catering operation.

Contracts and Waivers

A service agreement is compulsory for every event client. The agreement must state:

• – The service description
• – The total cost and payment terms
• – The terms for cancellations
• – The obligations of the client
• – The waiver of liability clause
• – Equipment remains the property of your company, and guests can’t supervise hookahs.

Draft how you would like it designed and how you would like it worded, and take it to a lawyer for a final stamp of approval. Be warned against using a readily available template. As someone within the legal profession would explain to you, the laws that govern contracts differ from one geographical location to another. A waiver poorly constructed, may have serious negative implications.

Marketing Your Hookah Catering Service

Your most valuable customers when starting your catering service are your established lounge customers. Place advertising for your hookah catering service on your lounge menus, on the bottom of your receipts for services, and in your numerous advertising slots over your social media pages. Any staff that work on the lounge floor should have a standing instruction to ask, “Are you planning a party? We can bring hookahs to your venue, when a customer says that they are celebrating a special occasion.

Create a one page PDF with text to cast various catering options, pricing and illustrative images, and send it to local event, corporate, and wedding planners. Appreciate that these professionals want to recommend your service to enhance the variety of available options when planning their client’s events.

Compile a collection of event images. For every event you cater, photograph the space before the guests arrive. In the future, this collection of images will serve as a portfolio of your work. Photos of your hooks and displays at steady events are the best way to advertise your catering service.

Conclusion

When Jasmine started her hookah catering service, she took on smaller events and learned how to improve her service. She started by charging $200 to set up three hookahs at a friend’s birthday party. This taught her many lessons through the mistakes she made — she learned she needed to bring more grommets, an extension cord for the hookahs, and that setting up a hookah on grass takes a long time. She kept the mistakes in mind to create a better system and took on bigger events.

After a year and a half, her hookah catering service became an automated and effortless source of income for her. It was the best addition to her business because it required no additional space or costs to her business.

Every other lounge owner who has the same resources and knowledge as Jasmine should definitely add a hookah catering service to their business. The resources are already invested, the knowledge is there, and the demand is already coming in. The only thing needed is the right system to focus on the service.

Jasmine built the system, priced the service, and covered it with the correct insurance to guarantee her hookahs would generate income at events outside the business.

Linkup Hookah has a wholesale catalog on everything you need to build a catering fleet. This includes portable mini hookahs like the Dum Car Pack, electric charcoal burners, and accessories that will help you run your events seamlessly.