Case Study: How a Premium Shisha Lounge Increased Profitability by 15% by Switching Charcoal
A case study on how a shisha lounge boosted profits by 15% after switching to premium coconut charcoal, reducing costs and improving customer satisfaction.
HOOKAH/SHIHA
Tropicoal Team
8/6/20252 min read
Client: "The Oasis," a mid-sized, premium shisha lounge in a competitive urban market. Challenge: The lounge was experiencing high operational costs and inconsistent customer feedback. Their primary issues were frequent charcoal replacement, customer complaints about harsh smoke, and high staff turnover in a key position: the charcoal manager.
The Problem in Detail Upon analysis, the root cause was their choice of charcoal. They were using a mid-tier, generic wood-based charcoal to save on initial costs. This resulted in:
High Consumption: Each hookah session required 2-3 charcoal changes, meaning they were burning through their stock (and money) quickly.
Negative Customer Experience: The charcoal produced a noticeable odor and often led to harshness, causing customers to end their sessions early.
Inefficient Operations: Staff spent a significant amount of time managing and replacing coals, taking away from their ability to provide other customer service.
The Solution: A Strategic Switch to Premium Coconut Briquettes We partnered with "The Oasis" to transition their entire operation to Tropicoal.id's premium coconut charcoal briquettes. The goal was to prove that a higher initial investment in charcoal would lead to greater overall profitability.
The Results: A Tangible Return on Investment After a three-month trial period, the results were dramatic:
Reduced Charcoal Consumption by 40%: The superior density and long burn time of our briquettes meant that most sessions only required a single set of coals. This drastically cut their monthly charcoal expenditure.
Increased Customer Retention by 25%: Customer complaints about harshness and headaches dropped to nearly zero. Positive online reviews mentioning the "smooth smoke" increased, and data showed a significant rise in repeat customers.
Improved Operational Efficiency: With less time spent on charcoal management, staff could handle more tables efficiently, improving service speed and customer satisfaction. The lounge was able to operate with a leaner, more effective team.
Overall Profitability Increase of 15%: The combination of lower supply costs, higher customer spend (longer sessions, more repeat visits), and improved operational efficiency led to a measurable 15% increase in the lounge's net profit margin.
Conclusion This case study proves that for a shisha lounge, charcoal is not a cost center; it is a profit driver. Investing in premium, reliable fuel like coconut charcoal directly translates to a better customer experience, more efficient operations, and a healthier bottom line. It's the smartest investment a lounge owner can make.
Ready to see similar results in your business or for your clients? Contact Tropicoal.id to learn about our solutions for the hospitality industry
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