CANNABIs Cafe . Social Club. Lounge
How to start a successful licensed Cannabis Consumption Lounge
the story
Idea
After visiting Cannabis Cafes in Amsterdam, we thought 'why isn't there something like this in L.A.?'
Problem
No cannabis lounge licenses existed in 2017. Laws prohibit Cannabis use while in public, while driving or in a parked vehicle, at parks or beaches, restaurants and bars, indoors, or inside your leased apartment.
Solution
We hosted a curated pop-up activation for cannabis novice & connoisseurs to explore new brands, and enjoy cannabis-infused food & drinks on March 9, 2017. We sold out, so we created a place for ourselves.
History
The first pre-cannabis licensing physical location was launched by us on March 31, 2017. Alchemy Lounge was downtown L.A.'s first Cannabis Lounge, for adults 21+ to safely and legally consume their cannabis. A first of its kind unique concept combining a custom members only social club, vape lounge, smokers lounge, smoke shop, snack shop, art gallery, retail and event space - all with City of L.A. business licenses.
Then came Hitman Coffee (7 days later), Lowell's Cafe (2 1/2 years later) and Cannabis Cafe (3 1/2 years later).
THE news
The Team
Mskindness B. Ramirez
Mskindness B. Ramirez
Mskindness B. Ramirez
Professional Educator (22 yrs) CEO (10 yrs)
Cannabis Industry Advocate (10 yrs)
J.C. Diaz
Mskindness B. Ramirez
Mskindness B. Ramirez
Tech Marketer. Festival Producer (24 yrs)
Hospitality & Nightlife Industry Advocate
Raul Ayala
Mskindness B. Ramirez
Raul Ayala
Nightlife Venue Owner / Operator (24 yrs)
Dispensary Manager / Investor (15 yrs)
the industry
We enhanced the hospitality + cannabis lounge concept
Only a few states have legalized cannabis consumption lounges, and even in those states, local governments can still prohibit the opening of such venues in their jurisdiction.
The states with provisions for on-site consumption licenses include:
- Alaska: No cannabis lounges are open yet
- California: Cannabis lounges already operate.
- Colorado: Allows cannabis lounges at a local level, in certain municipalities.
- Illinois: Allows cannabis lounges, but without edibles.
- Massachusetts: Allows cannabis “cafes.”
- Nevada: Allows cannabis lounges
- New Jersey: Has provisions for cannabis consumption areas.
- New York: Has provisions for cannabis lounges
- Oregon: Cannabis lounges already operate.
- Pennsylvania: There is only one cannabis lounge, open for medical card holders
Cannabis lounges are a win-win proposition, minimizing public consumption for the state and providing a safe and comfortable space for cannabis lovers to enjoy their favorite products.
Cannabis tourists will be drawn to social consumption lounges, and will help boost the economy with nightlife. Cannabis is a much safer alternative than being publicly drunk on alcohol, and it prevents cannabis from being exposed to underage kids on the streets.
Consumption lounges may differ in what they offer customers. Some may offer food and non-alcoholic drinks, while others may only offer a legal place to consume your cannabis. Some cannabis lounges may even double as dispensaries, providing visitors with a large selection of cannabis products to enjoy. The legal operating framework that each state has put forward for these establishments, determines what a cannabis lounge can or can not offer.
With the help of progressive state regulations, advocates and cannabis entrepreneurs, cannabis consumption lounges will become the norm just like your local hookah bar.
Our Business Model Works
We took insight from the Amsterdam Cafes and the World Famous Cannabis Cafe (2009-2016) in Portland, Oregon and expanded it.
We set up a mocktail menu, DJ & live music nights, comedy nights, movie nights, games, painting, yoga, speaking engagements, competitions, infused tastings, cannabis brand launch parties and after parties for conferences - and ran it just like a bar, nightclub and restaurant.
Even if your state doesn't have legislation allowing for Cannabis Consumption Lounges, our clients have set up vape lounges, CBD cafes, and Delta 8 dab bars.
the resources
It’s tough to plan, design, build, and operate an ideal facility, but the facility is crucial to the success of a cannabis lounge. It creates the ambiance, sociability and entertainment.
- Bylaws and Rules & Regulations
- Business operations
- Security Plan
- Licensing
- Waste Handling & Disposal
- Environmentally Sustainable Practices
- Community Relations
- Employee Training
- Approval from local municipality
- Must either own the premises or have a written lease for at least as long as the license’s original duration
- Employees will require a smoke-free place
- Ventilation system that sends smokey air to the outside of the building
- FOH & BOH training for upper and lower level employees
- Lounge & Hospitality Terminology
- Steps of Service for F&B / Cannabis
- Intended channels for customers to obtain cannabis at the facility.
- Illicit cannabis sales or distribution within the establishment
- Supervise use at the facility
- Underage access
- Standard Operating Procedures
- Protocols & Procedures for Overconsumption
- POS Integration & Setup
- Floor Management & Reservations
- Ticket Order Systems
- Work Sheets & Pre-Shift Templates
- Anticipating Guest Behavior
- Buy-Outs & Large Party Templates
- Invoicing & Cash Handling
- Cannabis Waste Disposal
- Ancillary Device Management, Sanitation, and Use
- Suggested hours of operation
- Education Materials for Products and Menu Offerings
- Personnel training and Job Descriptions & Duties
- Employee Testing and Continued Education
- Building, Construction, and Zoning details
- Inspectors and inspections
- Building and fire safety evaluation
- No negative impact on nearby businesses and residents.
- Legacy Certification
- A signed release authorizing background checks
- A conditional land use approval that references the use of marijuana
- A business plan
- Financial Documentation
- Copy of State’s prequalification
- Chief Executive Officer (Owner)
- General Manager
- Bartender / Baristas
- Accountants / Cashiers
- DJ
- Greeters / Customer Service Agent /
- Servers / Table Attendant
- Cleaners
- Security Officers
- Fresh and dried hemp/marijuana
- Hemp or Cannabis-infused baked goods such as hash cookies, pot brownies, and space cakes
- Hemp or Cannabis-infused drink
- Capsule containing THC or CBD
- Hemp or Cannabis tincture
- Hemp or Cannabis oil
- Hemp or Cannabis-infused butter
- regular non-infused Food and drinks
- Product Activation during event
- Co-Branding on event marketing materials
- Prominent Event signage recognition
- Logo Placement on wristbands
- Pre/Post digital marketing inclusion
- Lead list of attendees with contact information
- Step and Repeat
- Formal Invitations
- Program Inclusion
- Fee for registering the business in Los Angeles, CA – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services totaling – $1,200.
- Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- Hiring a business consultant – $5,000.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $5,400.
- Accounting software, CRM software and Payroll Software – $15,000
- Rent for 12 months at $1.76 per square feet in the total amount of – $105,600.
- Facility remodeling – $25,000.
- Other start-up expenses including stationery – $500
- Phone and utility deposits – ($2,500)
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
- Start-up inventory (fresh and dried marijuana, cannabis-infused drink and food and alcoholic drinks and non-alcoholic drinks) – $20,027
- Storage hardware (bins, utensil rack, shelves, glass case) – $5,720
- Counter area equipment (counter top, sink, ice machine, etc.) – $9,500
- Serving area equipment (glasses, flatware) – $5,000
- Store equipment (cash register, security, ventilation, signage) – $13,750
- Furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $14,000.
- Website – $600
- Grand opening party – $15,000
- Miscellaneous – $5,500
Grand Total $250,000
the opportunity
NOVICE $30
30 Minute Video intro education on consumption lounges.
+ 30 Minute Discussion on a market-specific project.
1 Hour consultation add $100
Intermediate $300
The Cannabis Lounge Business Plan Template will help you create a professional business plan and prepare for a pitch deck meeting with potential investors.
Advanced $3,000
We will walk you through the start-up process to determine the most lucrative path for you to open a compliant and functional cannabis consumption lounge.
the meeting
Let us help you get started
We love our customers, so feel free to contact us during normal business hours to discuss your project.
Cannabis Lounge
Copyright © 2017-2022 Cannabis Lounge - All Rights Reserved.
Personal information submitted to this site is not used by any party except the licensees. Offers, prices, activities and promotions are subject to change without notice. State and local taxes are added to all products including those made using special offers, discounts, coupons, rebates and store credit transactions. Keep all medical marijuana and medical marijuana products out of reach of children and animals. Intoxicating effects of marijuana and marijuana products may be delayed up to two (2) hours. Use of marijuana while pregnant or breastfeeding may be harmful. Consumption of marijuana and marijuana products impairs your ability to drive and operate machinery, please use extreme caution. Although this website, other electronic communications may provide information regarding the medical marijuana and medical marijuana products, such Information should in no way be construed as medical advice. Always consult your primary care physician or other qualified healthcare provider prior to using medical marijuana or a medical marijuana product. WARNING: Products smoked with Marijuana can expose you to chemicals which are known to the State of California to cause cancer and to cause birth defects or other reproductive harm. For more information go to P65Warnings.ca.gov. See posted warnings at each location.
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