Need advice on Partnering with a Steak House

[REV]

I work in a local shop here, and a local higher end steak house thats fairly new is wanting to partner with us to "install a humidor" at their place. We're about a 2 blocks away, so thats not an issue there (ie:time/distance), but I'm trying to figure out how this should be worked between the 2 businesses, because there's a caveat. Its something they're not sure about fully doing yet (permanent humidor, as opposed to me bringing some in from time to time) aside from the parties.

On certain occasions, the steak house would like me there to be the in house tobacconist. It would realistically only be for big parties and planned out ahead, and not like every weekend. Heres my thoughts:

Option 1: Set them up with a humidor and some nice cigars, and come in to maintain it once a week. Sell the cigars at discount (yet still a profit) to Steak House as needed. Attend the big events that are planned well ahead to not interfere with Cigar Shop schedule.

Option 2: Setup the humidor, put cigars in on "commission" and get paid as they sell.

OR

Option A: Attend parties with portable humidor (herfador type) full of nice cigars, have patrons pay for cigars as they go

Option B: Attend parties with herf, have the Steak House buy my stock (either at the end of the night, with a total sold or add the price to the guest bill)

Im at a loss right now, my boss is letting me run with this but it has to be profitable for both parties, and not be annoying.


While I have your attention, riddle me this. If you went to a Steak House and found out you could have a cigar right out back on the patio, would you rather see them have the same brand cigar but different profiles (ie: the Montecristo line) or have only a couple of several different types of premiums (like some Monte's, some Padron's, etc...)

Thanks all.

[AlohaStyle]

Not sure what kind of set up is best, but a couple opinions... Don't attend parties with Herfador, have some kind of nice humidor. You want a nice presentation for a wow factor, not some piece of plastic where the noob wont even look cuz it looks cheap. Regarding the type of cigars, go for a variety of Marcas, not just different vitolas of one marca.

[REV]

the herf would be a backup supply mostly in addition to the cigars at the place already, kinda tailoring it to the party and bring in some specials.

i have an idea now after talking to some friends about this, so well see when i meet up with the owners tomorrow what they think.

[hammondc]

I like option 1. Once stocked, the sell is done. You guys make a small easy profit. You may offer to maintain the humidity as well as stock. Show up for parties as requested-perhaps with different cigars on consignment.

[DaBear]

Originally Posted by hammondc

I like option 1. Once stocked, the sell is done. You guys make a small easy profit. You may offer to maintain the humidity as well as stock. Show up for parties as requested-perhaps with different cigars on consignment.

This is more or less our set up with Amra's at work. Amra's gets to keep their smoking license as a bar(NC requires a bar's sales to be 25% tobacco to allow smoking) and they get the draw of being one of a handful of smoking bars left in the state, we make our profit on the sticks. Its a win-win. For our events we will typically organize an afterparty down at Amra's since its only ~10 miles from the main shop, and every once in a great while we're asked to come down there to run a sampling or feature a particular cigar during one of their whisky tastings. All the pricing there is identical to ours, but there's a 4% bar tax tacked on at the register, so all said and done after taxes, people are paying maybe 10 cents more a stick to have it at a bar than in the shop.

[the jiggler]

I would vote for Number one. A piece of advice. We have a grocery chain here in Charlotte called Harris Teeter which recently opened a high wine and craft beer specialty store called 401 Central. They have a humidor which I believe is stocked by the Tinder Box, a local B&M with several locations. Their selection is nice but focuses mainly on big names like Davidoff, Macanudo, R&J, etc. Not my cup of tea but I check it out every time I am there. Here's the advice...

Every time I have been in there there have been several people who have never purchased a cigar before and have no idea what they are looking at. From chatting them up it seems that they are more comfortable checking this humidor out rather than stopping by a B&M. I think if you could merchandise your product in such a way that it is as novice friendly as possible you will sell more. Maybe figure out a way to include some sort of explanation as to flavor and strength or ratings or something. When I talk to people, they usually buy something. When I don't it seems most get overwhelmed and leave. Just my $.02 worth.

[DaBear]

Yea, you'd want to set up a menu of sorts for the best results, a small little thing they can hand out at the table if someone wants a stick. I'd suggest just breaking it down into Mild, Medium, and Full, and indicating the country of origin in parentheses.

[sikk50]

Option 1 is what my local shop does for a couple of the higher quality restaurants in town.

[Brlesq]

Originally Posted by DaBear

Yea, you'd want to set up a menu of sorts for the best results, a small little thing they can hand out at the table if someone wants a stick. I'd suggest just breaking it down into Mild, Medium, and Full, and indicating the country of origin in parentheses.

^^ This with option 1. Also have a few different price points, including 1 or 2 super premiums (like Davidoff). That will make it appealing to all tastes and wallets.

I like Option 1 and then perhaps show up for special events with special sticks...

as for the selection... that really depends on the size of the humidor they will have in house... but I would say alternate between both heavy and mild pallets in both value and premium categories...

If I had 2 shelves I would put my light sticks from value to premium up top then have their darker cousins below... then whoever is selling them at the restaurant who might not even smoke will have a basic idea of how to talk to the customer through the selection and might even allow for upselling...

[polligy]

Nothing ruins a good steak dinner like a bad steak. A lot of places sell poor quality meat, so make sure you choose a reputable supplier so you know you are getting your money’s worth. I always find premium quality steaks online. By law, all meats are inspected for wholesomeness so no one is selling you meat that will kill you, but grading is a voluntary system. Meats are graded on several categories, including the marbling of fat and the amount of connective tissue. Sure, it may be fit to eat but do you want to eat it? Prime is the highest quality, followed by choice and select. Choice meats are very high quality steaks and the most common steak used in the restaurant industry.

[ninjavanish]

Just some advice from an old tobacconist... No matter which way you end up going, the steakhouse should always ALWAYS pay for you or your employee's time to attend any of their events. IF it is an event that you initiated then obviously you'd be paying that, but if it's something they want to do then they would be responsible for the employee pay.

Secondly, put together proposals for the restaurant for each event. You can have a separate discussion about putting a humidor on premise. There are several ways you can do that. Think about how many people you will be sampling to, consider ticketed events which would include 3 cigars, etc.

As for on premise humidors, make that a deal that is mutually beneficial, but do your homework. The rules for tobacco in a tobacco shop, where the assumption is that only age 18 and up should be entering, are very different for a restaurant where all ages have access. You'll definitely need something that is lockable and controllable. You don't want a 7 year old getting curious and opening an unlocked humidor and wandering around in a public place with your product.

I have run deals like these before with hotels and restaurants. They're a lot of work to say the least. But they can constitute a good segment of business for you if you keep it at it and do it right.

Shoot me a PM for some info on setting them up with a humidor.

[pnoon]

Originally Posted by polligy

Nothing ruins a good steak dinner like a bad steak. A lot of places sell poor quality meat, so make sure you choose a reputable supplier so you know you are getting your money’s worth. I always find premium quality steaks online. By law, all meats are inspected for wholesomeness so no one is selling you meat that will kill you, but grading is a voluntary system. Meats are graded on several categories, including the marbling of fat and the amount of connective tissue. Sure, it may be fit to eat but do you want to eat it? Prime is the highest quality, followed by choice and select. Choice meats are very high quality steaks and the most common steak used in the restaurant industry.

Thank you, Mr. Wizard.

[jjirons69]

David, being from Charleston, I know the no smoking policy is pretty stiff downtown. Club Habana was the last cigar bar and when they wanted/needed to move, the city wouldn't let their grandfather clause go with them, so they were done. Silly question, has this steak house researched the laws in the city. I don't see how they're going to make themselves out to be a cigar smoking establishment. I'm not certain about what constitutes "no smoking", i.e. if it also covers smoking outside on the streets or sidewalks of said establishment. Certainly make sure all the bases are covered before you waste any more time or energy on this project. I'd hate for the whole thing to be a bust because city council puts their foot down.

[Don Fernando]

Here's what we do with our store in Rotterdam and some restaurants in the neighborhood. We give them a humidor and they buy cigars from us with a 15% discount. They sell for full retail and make a 15% profit on the cigars.

Things do work a little different in The Netherlands though with the fixed prices.

[crgcpro]

I think Option 1 would be the cleanest and easiest.

As for choices, since it's an upscale place, I would put in some Davidoff, Padron, Opus, Liga Privada, and maybe something less expensive like Kristoff, RYJ, and Monte.

[hotreds]

Just make sure everybody is on the same page- get everything down in writing- and make it clear so there can be no "what I thought this meant"s.

[CigarNut]

Originally Posted by hotreds

Just make sure everybody is on the same page- get everything down in writing- and make it clear so there can be no "what I thought this meant"s.

Hugh is wise! Best advice ever!

I think these guys have it all covered provided you consider all of their advice. (Especially checking the local legal statutes.)