Heightened Destinations
The first time I visited a dispensary was when I walked into Grey Area in Amsterdam - one of that city's infamous "coffee shops" that don't sell coffee - in 2009. It was small, crowded, and had walls plastered with stickers hand-placed by euphoria-seeking tourists. The music was loud, the staff friendly, and the product (so I'm told) exceptional. As cannabis laws in the US became more relaxed and dispensaries began popping up in states that would allow them, the Grey Area model seemed to be the de facto standard for decor and ambiance. Hyper-sensory stimuli are thrown around a building of questionable cleanliness. These locations had their main product sold among low-quality t-shirts featuring problematic representations of Jamaicans, and posters of every band that knew how to jam for 25 minute-long songs. All of this fits well within the needs and wants of their supposed target demographic. But what about everyone else?
Marijuana use was often discussed with hush tones among close friends, trusted associates, and, rarely, colleagues. As time moved on, marijuana restrictions shrunk, and acceptance grew, I was surprised to discover just how many "atypical" cannabis users were out there. Friends who were c-suite level executives, heads of Fortune 500 companies, doctors, consultants, and teachers all admitted their use, and some, their daily use, of cannabis. But walking into most dispensaries, you won't find these places catering to a, shall we say, six-figure clientele.
And that, my friends, presents an opportunity.
The Idea
In short, build the Starbucks of dispensaries. Take a page out of Howard Shultz's playbook and create a national, upscale, retail brand that is welcoming to daily consumers who don't want to be bombarded with Grateful Dead tunes (as great as they may be), strange smells, and even stranger sales associates. Place these retail establishments in up-and-coming neighborhoods, make them destinations, and staff them with people who want to educate the consumer not just on the uses and potential benefits of the product, but on the history and cultivation of the product.
Additionally, make the product approachable. Instead of throwing a strange name and oddly-designed label on the product, show consumers where it was grown. Introduce them to the farmers via in-store messaging. Discuss why one region produces certain types of cannabis, while another region specializes in something else. Take the consumers on a journey while showcasing the environmental benefits of the crop. Above all, let your consumers form a connection not just with the product, but with the brand.
Consumers crave this connection. They want to have ownership of a brand. And when they walk out of the shop, they want to proudly show their love of the brand in the form of a well-labeled bag, or, in Starbuck's case, their now-iconic white paper cup. Further, they want to know that when they travel, they can get the same quality and experience that they do at home.
According to the CDC, there are 22.2 million marijuana users each month, and that number is growing. In fact, a majority of Americans support the legalization of marijuana along with the repeal of outdated and, frankly, racist laws. And while 22.2 million is small when compared to the 150 million Americans who drink coffee each month, it's still a strong number that will only grow once more states relax their laws. In other words: the consumers are there, and they're ready to bring repeat business.
The Execution
Serra, a small chain out of the Pacific Northwest is the closest example I've seen of this type of establishment. Welcoming, clean, and well-curated, Serra has removed both the stigma and brash environment of typical dispensaries and replaced them with a joyful and well-designed experience. Using Serra's stores as a blueprint, this idea should set up shop (literally) in welcoming high-traffic areas such as New York, San Francisco, Denver, and Boston. Set up a consumer base, build awareness through strong social media marketing, and slowly expand to secondary markets surrounding those hub cities.
Because these are designed to be destinations, and because most states won't allow consumption within a retail location, sell products that keep consumers in-store. Each store should have a small café, hemp-related clothing, and wares, along with a selection of tasteful tools used for smoking. (Sorry skull-shaped bongs.)
Each store should serve two purposes: 1. to sell cannabis products and associated wares and 2. to educate the consumer. That's why these stores should take a page out of Apple's retail locations and create an in-store "Genius" to answer questions and provide recommendations.
The Downside
Marijuana is not allowed under federal law meaning that, until it is, these businesses can't use banks. (Banks don't like to aid and abet or face money laundering charges, so they stay away from cannabis-related ventures.) So, it's a cash-only business. This isn't the end of the world, especially with retail outlets only selling small quantities, but it still creates a nuisance for consumers and potential security issues for sales representatives. There are, however, a number of cryptocurriencies devoted solely toward the transactions involved in these businesses. I expect, with the current administration, to see a further relaxing of marijuana laws on a federal-level, and imagine a few banks will slowly join the world of cannabis retail.
The Conclusion
Someone out there is already hard at work trying to make the McDonald's of marijuana. But the crux of my idea is to elevate it beyond a fastfood-like experience and create retail destinations that are enjoyable to visit. The cannabis business is a multi-billion dollar industry that's adding zeroes to that number with each passing year. The opportunity to cash in on the venture and create a global retail brand is ready for the taking ... so who wants to take the first hit?
