OUR STORY
TOP FLOOR CO. started in 2020 by two best friends, Kenneth Williams and Camryn Sinclair, both hookah connoisseurs and owners of two film production companies. Since 2015, the two frequently visited hookah lounges throughout California in search of a great hookah experience, but would never leave truly satisfied. There was always something missing that could improve the overall experience. Because of their ability to create fine hookah experiences within their own personal settings, Williams and Sinclair became popular amongst their peers. They became determined to provide this experience throughout the hookah community. Sereiatha Norng obtained her Business Marketing degree at California State University of Long Beach. She had always wanted to take the entrepreneurial route towards success. The three wanted to use this as an opportunity to grow into a brand, something legendary that would drastically shift the hookah industry and entertainment world.
MISSION & VISION STATEMENTS
Mission Statement: "Top Floor Hookah Lounge’s mission is to become the established leader in its market by providing a comfortable, yet entertaining experience, using only the best, high-quality products. We seek to provide not only an unforgettable experience, but an atmosphere that is sought after but not fulfilled in the hookah industry."
Vision Statement: "Create a new atmosphere in the hookah industry that raises the standards of a hookah lounge as well as the overall experience of guests."
TARGET MARKET
- Men and Women
- 21+
- Common Traits: Entertainment, Outgoing, Social/Night Life, and Vibes
- Income Bracket: $20,000 - $250,000
BUSINESS MODEL
Top Floor Hookah Lounge will have a strong lounge identity, creating a comfortable and relaxed ambiance for the consumers, providing them with high quality products and entertainment. After establishment, Top Floor Co. will implement monthly memberships. This will create an atmosphere of exclusivity. Furthermore, Top Floor Co. will seek out liquor licenses as well as entertainment licenses to be able to provide open mic nights, movie nights, and other theme nights for entertainment purposes to fill a niche that is currently not being met in the industry in the Los Angeles County area.
| Normal Hookah: $35 / $15 Refills
| Glass Hookah: $60 / $25 Refills
| Ice Tips: $5
PROJECTED SALES
Top Floor Hookah Lounge projects at the minimum to reach 3000 monthly customers spending on average $47. Before expenses, this will gross $1.6M in revenue yearly. After establishment and incorporation of monthly memberships, alcohol sales and entertainment nights, this number is expected to increase exponentially.
MARKETING STRATEGY
- 40% Social Media Promotion: Create reels and compelling visuals for social media, promoting the atmosphere and ambiance of the hookah lounge. Partnerships with well-known instagram influencers.
- 25% Word of Mouth: Talk of the town! Everyone will want to bring and tell their friends about the new experience at our hookah lounge. This will be the hottest hookah lounge to go to in all of California.
- 15% FiveStar Point System: Targeting returning customers by offering them amazing rewards! The more they spend, the more rewards they receive.
- 20% Paid Advertisement: Paid advertisement will help us to reach customers we otherwise wouldn't have been able to reach. Promoting us as the top hookah lounge people see on Google and Yelp, etc.
FiveStar Point System (further explained..)
- REGISTRATION: Each guest registers with us through FiveStar. We keep all customers in our database.
- POINTS: Guests gain points for each visit. The more points, the more rewards. This keeps guests coming back.
- RELATIONSHIP: We create a long relationship with all of our guests, inviting them to bring other guests, and keep coming back.
MARKETING OBJECTIVES
Establish an online presence by developing a website and utilize popular social media platforms (Instagram, TikTok, Facebook).
Use of social media influencers (inviting them to the lounge, user-generated content, content creation paid for by the company
PROBLEMS
Long Beach, CA has a lack of exceptional hookah lounge locations. We believe that a successful lounge consists of a welcoming, comfortable and relaxing ambiance, top quality products, and excellent customer service practices. We feel that the local competition lacks one or more of these factors that halters them from creating the finest experiences for guests.
COMPETITION
Local competitors include Xscape Lounge, Karma Hookah Lounge, and Twins Hookah Lounge. They all have little to no information on their websites and very little amount of reviews on their Yelp pages to vouch for their credibility. Besides their online appearance, after personally smoking hookah at these lounges, we have gathered that they have a lack of comfortable seating, moody lighting, and an overall atmosphere that the urban community desires. Moody lighting and an ambient atmosphere matters. This is what keeps customers at your facility. We want to give them an experience that they can crave every time they think of smoking hookah.
SOLUTION / THE LOUNGE
Our goal is to target the highly populated area of Downtown Long Beach, fulfilling their lack of a high-quality hookah lounge experience. This starts with the shisha. We will provide the best smoking and tasting hookahs in the city through our expertise. Our lighting, ambiance and lounge setting will set the tone. We want guests to feel at home and on vacation at the same time. Comfortable seating, relaxing music, and unmatched customer service will set us apart. Better service, better hookah = More money and returning customers.
Top Floor Hookah Lounge will be designed around a moody and fun atmosphere. Here at Top Floor, we love the atmosphere that plants give. We would like to incorporate a lot of plants in the floor plan, so that the ambient lighting can bounce off of them. Comfortable seating is a must. Couches that make customers lose track of time as well as flat screen televisions throughout the lounge playing relaxing visuals will complement the mood. The Company seeks to have an immersive sound system that captivates and instills a vibe in the room the second someone walks inside. Top Floor Hookah Lounge will not be like a normal hookah lounge. This lounge will feel like a resort; somewhere to get away and relax and end the night.
SWOT ANALYSIS
Strengths: Strong relationship with shisha connoisseurs and smoke shops in industry. Strong backgrounds in entrepreneurship, marketing and customer service.
Weaknesses: Established hookah lounges in area. New business so building clientele from ground-up.
Opportunities: Industry partnerships. Improved lounge experience. Franchiseable.
Threats: Rising industry taxes. Tobacco laws constantly changing especially in California. New entrants to the market
START-UP EXPENSES
Normal Hookahs (30ct): $1,350-$2,200
Glass Hookahs (20ct): $2,000-$3,600
Hookah Supplies (Bowls, Gromets, Pokers, Ice Tips): $2,500
Shisha (40 Kilos): $1,800
Coals (10,000): $650
Coal Heating System (2ct): $400
Furnishings (Couches/Tables/Chairs/Televisions): $10,000 - $17,000
Renovations (Paint/Flooring/Booth Fixtures): $10,000
Square POS System (2ct): $3,000
Office Computers/Tablets/Phones: $10,000
Advertising: $5,000
Licensing: $5,000
Property Rent (1 Year Lease): $60,000 - $120,000
Insurance: $5,000 - $6,000
Security System: $2,500
Lighting (LED/HUES/Lamps): $2,500
Receptionist Desk: $1,850
LED Signs / Outdoor Sign: $6,000
Sound System: $3,500
Total Funding Needed: $140,000 - $200,000
EXPANSION PLAN
Management plans to implement various marketing tactics that will effectively target individuals within the target market and potential individuals (ex: college student looking for Saturday night plans or night goers looking for the after party).
REGISTERED NAME AND CORPORATE STRUCTURE
Top Floor Hookah Lounge. The company is registered as a corporation in the state of California.
INVESTOR EQUITY
We are looking for potential investors by offering a 25% return on investment. Payments would begin after the 1st year of opening and will occur quarterly over 1 year.
MANAGEMENT EQUITY
Kenneth Williams, Camryn Sinclair, and Sereiatha Norng own 100% of Top Floor Hookah Lounge.
EXIT STRATEGY
If the business is very successful, the Company will seek to open up in other viable locations within California. Once Top Floor Hookah Lounge becomes a franchise, the Company may seek to sell the business to a third party for significant earnings.