44 TOBACCO BUSINESS | MARCH / APRIL | 22 Expanding the Vision This is where Blend’s story deviates from that of many other tobacco retail establishments. The three men didn’t want Blend just to be a cigar lounge or even a bar—they wanted Blend to become a corporation. “We had expansion on our minds even before we opened Indianapolis, but we wanted to test our concept in Indy before we expanded,” Holden explains. “We had a clean sheet of paper and we said, ‘OK, what do we think we need to be successful with this type of a concept?’ It involved design, air handling equipment ... all the way down to fabrics, design of furniture, the design of the bar, the humidor. “We worked with a female design firm because we felt like there was an opportunity to broaden the appeal of a cigar bar to not only men but also women. We knew if we could attract the ‘significant other’ of cigar smokers then they may indeed spend a longer time in the lounge maybe having two cigars and a few cocktails. And their significant other would want a nice glass of wine or a cocktail martini. We really went about it with the mindset of expanding the market. We did a lot of research on the cigar industry, and the research showed us that though there was about a $1 billion industry in the U.S. in terms of the cigar lounge industry, we could expand that beyond an oldschool cigar bar.” Working with the female-led design firm gave Blend the edge it needed to not only compete but dominate in the Indianapolis area. Today, nearly 30 percent of Blend’s clientele are women, well above the typical industry average. Just as they’d hoped and planned for, women often will come in with their boyfriends or husbands and even with other groups of friends, attracted by the colors and design choices used throughout the bar. They also oftentimes comment on Blend’s bathroom, which is so popular among its women clientele that it has its own Instagram following. An important feature of Blend that is appreciated by all of its patrons is its ventilation system that was a major investment but something that differentiates it from other cigar establishments in Indianapolis and beyond. “Even people that don’t smoke come in and leave without smelling like cigars,” Johnston proclaims. “It’s not a smoky environment. Fortunately, our $300,000 system, which is really an advanced system, removes the smoke and replaces the air eight times an hour. That’s been one of the biggest things that people are just blown away by—that it’s not smoky in Blend and it doesn’t smell like smoke. It’s become a big factor for all four of our stores.” A recent industry research report published in December 2021 by IBISWorld Industry showed Blend Bar withDavidoffCigars had the largest market share in the highly fragmented $800 million cigar lounge industry in the year of 2021. This report served as a recent confirmation that the Blend concept and the corporate principles that drive its business are working. With reports like these over the years showing that Blend was a success, the three entrepreneurs behind Blend have been working on expansion plans in recent years. They had faith in their business model and knew Blend could easily work in other markets outside of Indianapolis. They tasked their real estate broker to look around the country for some other future Blend locations. This search involved research into legislation that was on the books or in the works within big cities before a final list for consideration was compiled. “I gotta tell you, it was a labor to look and find places to go,” says Johnston. “We had to look at separate cities that fit our model and what we were trying to achieve. I think that was the huge challenge, especially with the regulations, smoking bans and things of that nature. We found a lot of great places around the country, but the landlords didn’t care for our intended use. We were very fortunate to come across some good landlords and we did a lot of homework, and things have worked out very well for the four cities we’re currently in.” Corey Johnston, president of Blend Bar with Davidoff Cigars
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