Thanks to a new state law, cannabis retailers can turn their businesses into venues that serve food and beverages and even offer live music and other attractions to bring in new customers. The new law will also allow entrepreneurs to open café-type spaces like those many Californians have spent time in while visiting the Netherlands.
An executive for one chain of marijuana stores says, “Expanding these opportunities to cannabis retailers with on-site consumption is a win for both businesses and consumers across the state, fostering community engagement and growth.”
This comes a year after Gov. Gavin Newsom vetoed similar legislation out of concern for workers who would be exposed to second-hand smoke. The new law requires employers to provide masks and take other measures to protect employees.
How the law will affect cannabis lounges and dispensaries
While under current law, California does provide licenses for marijuana “consumption lounges,” they aren’t allowed to serve food or drinks unless they partner with restaurants or other vendors. The new law should help entrepreneurs expand these lounges, which here in Southern California are mostly located in West Hollywood.
Because cannabis retailers typically haven’t been allowed to offer on-site cannabis consumption, the new law would also allow customers to “sample” products before buying. This is likely to improve sales.
Preparing for the change in the new year
The law is set to take effect on Jan. 1, 2025. It could be subject to local regulations in some areas.
The regulated marijuana market in California is a complex and ever-changing one. While this new law goes a long way toward making cannabis consumption a more open, social activity, ensuring that you have the appropriate licensing and are following state and local regulations is crucial. With sound legal guidance, you can make the most of the new business opportunities available.