Primings Cigar Lounge and Bar, LLC.
Life is fast, slow down and enjoy the finer things.
Objective: Primings Cigar Lounge & Bar, LLC (also referred to as “Primings Lounge” or “the Company”) is a unique and engaging Cigar Lounge experience meant to appeal to the most demanding cigar connoisseurs. Primings Cigar Lounge & Bar will cater to a more refined clientele. Primings will serve the customer seeking an upscale cigar lounge combined with first-class ambiance, unparalleled service, and competitive pricing. This will all be done by offering luxury seating and a comfortable atmosphere that will appeal to anyone looking to enjoy a premium cigar. Primings Cigar Lounge & Bar will offer the highest quality of hand-rolled cigars, cigar-related entertainment and events, as well as private membership and locker storage opportunities. The objective of this business plan is to identify the future target clients, explain the marketing and operational strategy, and outline the best growth strategy to promote sustained profitability for this unique and exciting opportunity.
Problem: Primings Cigar Lounge & Bar will be a one-of-a-kind cigar lounge and bar that intrigues both to those who want a private club or just a comfortable and relaxing place to enjoy one of life’s pleasures. Presently, in Downtown Nashville, there is not an exclusive cigar lounge and bar that is similar to whatPrimings will be in offering in terms of knowledgeable service, product selection, and exclusive membership offerings.
Solution: Cigar lover and passionate businessman Chase Lyle will openPrimings’ philosophy is: Life is fast, slow down and enjoy the finer things.Cigars are one of life’s finer necessities, and it takes time to smoke and enjoy them. Smoking cigars in the presence of other enthusiasts is a truly bonding experience. A drink, whether on the rocks or perfectly mixed, in addition to a first class ambiance, makes for a truly pleasurable encounter.
Primings is entering the Cigar Lounge industry at a time when it is experiencing significant growth. This industry has made a strong comeback in the United States over the past five years. According to the US Alcohol and Tobacco Tax and Trade Bureau, cigar consumption in the United States increased 122.0% between 2000 and 2014. Additionally, according to the American Cancer Society, sales of large cigars increased 233.0% between 2000 and 2011. Cigars are perceived to be less harmful than cigarettes and face fewer regulations. Currently, cigars are taxed at a lower rate, and the rate decreases with the size of the cigar. Additionally, cigars are exempt from federal laws regarding promotion, underage sales and flavoring; however, all 50 states prohibit tobacco sales to minors. The increased popularity of cigars has developed a strong cigar lounge culture in the United States. Consequently, IBISWorld expects industry revenue to increase at an annualized rate of 11.0% to $1.8 billion over the five years to 2015. Revenue is expected to increase 10.3% in 2015 alone due to the normalization of relations with Cuba and decreasing restrictions on the transport of its tobacco products into the United States.A large increase in cigar consumption has also increased demand for cigar lounges. Although indoor consumption of tobacco products is banned in many states, cigar lounges can gain exemption from these laws by obtaining a license. Each state has different laws regarding cigar bars or lounges; however, all states require that they be completely enclosed, specifically designated and have an exhaust system that filters the air separately from the rest of the establishment, if applicable. Despite these regulatory hurdles, the increasing popularity of cigars is expected to boost the number of industry enterprises at an annualized rate of 10.3% over the five-year period to 7,684 in 2015.
As US relations with Cuba improve over the next five years, this industry is expected to continue growing. Additionally, younger consumers are switching from cigarettes to cigars and as they gain greater buying power, cigar consumption will increase further. Additionally, as the economy continues to improve, people are expected to have a greater income to indulge in premium cigar consumption at high-end lounges, which is expected to increase industry revenue at an annualized rate of 11.1% over the next five years to $3.0 billion by 2020.
 (IBISWorld Industry Report OD4392 May 2015 Cigar Lounges in the US)