Which US city has five universities in close proximity to one another? The cities that come to mind are huge (NYC, Philly, Boston) and surely have a few hookah bars. Is it actually one major university, then some professional schools, and commuter and community colleges in your town?
I live in a town with 230k residents, one college, a couple of trade schools. I'm right next to a 1,3m resident city. I have a hookah place near by, two if you count the Lebanese restaurant that advertises it as available, though I never saw any in use.
I did hang out enough at the hookah place to get a decent idea of traffic and demography, college students are the cliché crowd but there seemed to be a healthy amount of young people, all situations of life mixed. A decent bloc of older gentlemen of various Arabic descent was there regularly too. A town with a decent amount of young people should hold the required client base, baring local and cultural issues. Might not seem relevant, but in a town with a strong anti-Arabic/Islamic sentiment or whatever ass backwards prejudice the flavour of the month is, a decent plan might fail spectacularly for no good reason. This is more of a risk analysis thing though, I'm getting ahead of myself.
I will say though that like a lot of other entertainment venues, you could hear crickets during the first half of the week, and even after that the real traffic was seen after 5PM. I used to pretty much squat the place non-stop to study during the after-noon, my record being something like 35 days straight, but I stopped when I realised they essentially stayed open just for me. Felt appreciated but kinda bad lol.
I did end up helping them get enough traffic to warrant opening up again in that time slot, but that came with a new set of requirements like an enterprise level internet access, a solid networking backbone and a projector. The service was initially offered per hour, but rapidly made more sense as a loss-leader for beer sales, with a 4 hour voucher offered with purchase. You might not want to go that route, but bundling it with something with a high margin like pistachios or fresh fruit smoothies might fit well.
Taking on a more diversified mission like operating as a non-smoking café or restaurant during the day might make more sense, even if you previously said you wanted to stick to packaged food. Non-smoking would allow you to fetch a more broad customer base, cracking the business crowd at lunch would bring in decent revenue. As much as I appreciate the smoke, no way I'm bringing that back on me back to the office. If you have outside space you could offer that there during the day.
You might not want to take that on, but you might want to partner up with someone more interested in the food side of the business. That would allow you to divest some of the hookah-centric responsibilities to them as well, but that comes with other responsibilities as well.
tl;dr smaller towns are a possibility.