Fine Tobacco Lounge

215 North Court Street, Montgomery, AL 36104

Hours of Operation:Monday – Wednesday: Noon to 11pmThursday – Saturday: Noon to 2amSunday: Store Front Noon to 5pm, Lounge will

be open for special events only.

Our MissionOwners and OwnershipExecutive SummaryGoalsProducts and Services OfferedVIP MembershipMarket SegmentationSWOTFinancialKeys to SuccessConclusion

The mission of The Upper Room is to provide a casual, comfortable environment, sometimes relaxing and sometimes energetic and stimulating, around which those who love tobacco smoking, as well as new converts, can come together. The environment will draw on elements of the historical detail of the physical location as well as the culture of the local environment.

Owners:Ryan FrankCharles GrayJustin GrayPhil Hughes

The Upper Room is owned and established by the persons listed above. The business is established as an S Corporation to allow for additional investors to join.

The Upper Room is a new hookah/cigar and tobacco lounge concept that will focus on a combination of respectable professional and working class customers over 19 years in age to offer a more mature alternative to tobacco and cigar lounges frequented by less sophisticated customers. The first lounge will be established in downtown Montgomery, AL, and managed by the business founders. The business will generate revenue through the sale of loose flavored tobaccos, fine cigars, hookahs and other smoking accessories. Additional revenue will be generated by the sale of VIP memberships. The business projects to become profitable in its first year with good profit from strong sales. Sales will triple by the third year of operation. Net profit of sales will be respectable due to the high margin on the products sold.

To establish a community of hookah smokers/ cigar enthusiasts who contribute programming, events, and ideas to The Upper Room resulting in 50 events or programs held in its third years of operation.

To successfully advertise using social media and to maintain a Facebook Fan Page/ Twitter followers of 5,000 individuals by the end of the third year.

To become profitable in its second year through the sale of tobacco, accessories, food, and drinks.

To establish a franchise model for tobacco lounges and initiate fundraising and planning for franchising by its fifth year of operation. 

Hookah:Definition:

Noun – An oriental tobacco pipe with one or multiple long, flexible tubes that draws the smoke through water contained in a bowl.

TobaccoHookahs and Pipes

There is a $5 per hour charge for hookah tables.Flavored tobacco for hookahs will be sold for $15

for the first round and $12 for subsequent rounds. The flavors will include, but will not be limited to:

Apple Banana Blackberry Candy Cherry Cola Grape Jasmine Lebanese Blend

TobaccoLoose tobacco for hand rolling or pipesCigars

Walk-in humidor. A number of fine quality cigars will be offered.

Other TobaccoPremium quality cigarettes

Accessories HookahsTobacco PipesCigar CuttersLightersCleaning supplies, etc.

MenuFood and Drinks

The Upper Room will provide simple beverages such as soft drinks, water, coffee, and hot tea, along with prepackaged, individually sealed snacks. The Upper Room will maintain close relationships with local caterers to provide premium food and beverages for on-site special and corporate events.

Other ServicesEntertainment

The Upper Room will offer two spacious private areas equipped with large high definition televisions, premium sound systems, and gaming consoles, ideal for private parties.

Each booth and seating area with be equipped with a medium-sized high definition television. This will allow for guests to enjoy their choice of television programming at their location.

A large high definition television will be placed convenient to the general seating area that will feature the major programming event(s) that day.

Punch CardNon – VIP Members will be able to use a “frequent

guest” punch card. After five punches, the customer will be given a free hour of table time.

Gold ($360/year or $35/month)Free table for each visit.10% discount on all products. Invitation and free admission to special events.Cigar of the Quarter.

Platinum ($500/year or $45/month)All of the benefits of the Gold Membership plus the

following:Free cigar unique to the specific special event.First opportunity to view and purchase new inventory.Cigar of the Month.

The Upper Room has determined the following market segmentation for potential customers: College age residentsYoung professionalsMiddle-aged professionals Retired seniorsTouristsActive Duty Military Personnel

Advertising:Social Media

FacebookTwitterGoogle AdSenseOther Search Engine Optimization (SEO) methods

Flyers and BrochuresProviding local areas and businesses with flyers and

brochures including coupons and discounts.Special Relationships

Renaissance HotelBiscuits BaseballDreamland BBQLocal caterersOther downtown businesses

Strengths: Comfortable, inviting environment for customers, allowing for customer feedback and customer-driven activities.

Weaknesses: Targeting a more sophisticated clientele. Quality of products and services offered may alienate less affluent potential customers.

Opportunities: To be able to expand the market of premium tobacco in the Montgomery area.

Threats: Prattville Cigar Company, Prattville, AL (only cigars and pipe tobacco.)Havana Dreamin’, Montgomery, AL (only cigar and pipe tobacco.)

Create a comfortable environmentProvide high quality tobacco and smoking

accessoriesEstablish a loyal core clienteleExpand the market of fine tobacco to smokers

in the Montgomery, AL areaEnergize the customer base to generate their

own culture and events at The Upper Room

The Upper Room is a new concept for a hookah lounge/cigar and fine tobacco dealer that centers around the community aspect of smoking tobacco products. The business will launch its first lounge location in downtown Montgomery, AL within six months and endeavor to create a scalable model which can be franchised in additional urban locations. The business will earn revenues through the sale of loose tobacco, hookah tobacco rounds, fine cigars, specialty cigarettes, hookahs, and other smoking accessories. Additional revenue will be generated through the sale of VIP memberships. The customers are expected to be those of middle to upper class status and their friends, those interested in fine tobacco consumption and hookah culture, and urbanites interested in a community-oriented experience that is an alternative to traditional bars and coffee shops.