After being open for three years, a Campustown fixture has finally earned its long-held nickname.

The Chicha Shack, 2418 Lincoln Way, long known as “the hookah bar,” acquired a license to serve liquor July 31 and began serving drinks from its bar Wednesday.

When the Chicha Shack first opened on Welch Avenue, no alcohol was served. After moving to its current location a year ago, a small selection of beers was offered.

The current bar features Budweiser, Bud Light and Michelob Amber Bock on tap, as well as an ample selection of liquor.

Owner and manager Mohamed Ali said he made the decision to offer an expanded bar to help cover the higher costs of running the new location.

Ali said he thought the bar would provide more options for his patrons.

“I just want this to be a good place for people to hang out,” Ali said. “This is a place for people to chill out and have fun.”

Because alcohol sales represent less than half of the lounge’s business, the Chicha Shack is one of few nightspots in Campustown open to those under 21 – although patrons must still be at least 18 to enter. Ali estimated that this younger crowd represented 70 percent of his customers.

The Chicha Shack also contains a Mediterranean-style restaurant that accounts for more than 40 percent of sales.

Beer sales accounted for only 12 percent of business in the last year.

Even with the addition of liquor sales and the increased alcohol revenue, Ali said the focus of the business won’t change.

“My hookah is my top seller,” he said.

The tobacco

The most notable characteristic of hookah tobacco is its flavor &#8212 the leaves are soaked in a sweet syrup, adding a pronounced flavor to the smoke. The Chicha Shack offers several fruit flavors, as well as caramel, rose and licorice.

Ali said mixing flavors is also very popular.

The standard tobacco used, the Al Nakhla brand, is imported from Egypt. Recently, a higher-quality brand, Al Fakher, imported from United Arab Emirates, has been introduced. Ali said this tobacco has fewer impurities and a stronger flavor.

The belly dancer

Beginning this semester, belly dancer Inna K. will be dancing at the Chicha Shack every Thursday night. Additionally, she will be teaching a belly dancing class each Thursday before the lounge opens.

Ali said information about the classes will be available on www.chichashack.com.

IDs

The Chicha Shack has never been cited for selling either tobacco or alcohol to minors, despite fears that arose shortly after the shop first opened in 2004.

Ali has received several letters from the Ames Police Department and the Office of the Governor congratulating him for not selling tobacco to their undercover officers.

Several times, Ali has removed minors from the premises for smelling of alcohol, as well.

With the expanded drinking opportunities at the Chicha Shack, IDs will now be checked at the main door, and wristbands will be used to identify who is of age to drink.

Ali said he takes complying with the law very seriously.

“No ID, no service. Definitely,” he said.

Future and expansion

Ali said the Chicha Shack’s business has been growing ever since the shop moved to its current location. After he finishes the current expansions, he said he plans to open a second shop in another city in Iowa.

So far, he has considered Cedar Falls, Des Moines, Iowa City and Sioux City.

Ali attributes his success in business to his education at Iowa State.

“Without the classes I took, I would not have taken these risks,” he said.

Ali opened the Chicha Shack in 2004, while he was a student in management. As a student, he presented his business ideas in his classes before implementing them in real life.

Ali is also considering more live entertainment. He said several Des Moines bands have asked to play at the Chicha Shack, but he hasn’t decided what to offer yet.

He said that he will “definitely” host some special events.

Hookah pricing

The price of a hookah, which can be smoked for about an hour, depends on the number of people sharing it and the grade of tobacco.

Up to three people: $12

Each additional person: $4

Al Fakher tobacco: +$1/person.

Because of this price setup, it is cheaper for groups of six or more to purchase a second hookah, paying for two smaller groups, than to share a single hookah.