Hookah bars always seemed like an odd business to me. In this day and age when everyone is trying to quit smoking, truth ads on the tv everyday, it just seems that so many people are automatically against your business before you even open the doors. Old people wont get the part about flavored tobacco, they are going to see smoking, and what appears to them to be weed smoking. No matter what crowd comes through the door, everyone in your area will know of your place, and have an opinion. And old people usually are the ones making the laws
You'll have a college crowd, and i would think that like most other businesses in a service industry, you can't really build it around just one thing, like smoking. So that means you'll have to make it a restraunt/diner/headshop w/a hookah bar on the side.
If you make it a food place as well, now you need food license, cook(s), more equipment unless you plan on making for food that you can just warm up in a microwave. Not really something i see going with a hookah bar and depending on your local laws you may or may not need a food license, which means more cost and state health inspectors. A coffee shop may or may not be the same, but i would think that for a coffee shop to do well, its not like you can just go buy a coffee pot and a couple cans of folgers. People can get that at home so you'll have to buy specialized coffee
I don't know about where you are, but here headshops are coming under file by local moral police who use the tact of if drugs are illegal how can a shop that sells paraphernalia be legal? And no matter what you say the items you sell are SUPPOSED to be used for, the local old folks in charge are going to see weed smoking tools being sold by college kids.
Do these kinds of places draw a lot of cops? I've never seen one around here, i would just think that college kids in a place with hookahs would draw a lot of attention from cops who want to make sure there is nothing illegal going on.
But ultimately it comes down to what YOU know about your area. If you see that the local hookah shop is doing well, so well in fact that they have to turn people away, then you have a need that needs to be filled.
To me a hookah bar just feels like something that is a fringe business, something like an all tofu restraunt or something. Something that if people's fickle tastes change...which they do often, that it wouldnt take much for the local hot hookah bar to drop out of favor fast.
If you're serious about opening a business, don't focus so much on a business you want to open, but look around for a business that needs to be opened in your area. What is it people are always bitching about not having, or always bitching that they have to drive far to get to.