Cannabis Lounges Finally Coming to California

Industry experts predict that cannabis lounge ventures will expand exponentially over the next few years. The number of lounges currently operating in California is limited to around a dozen, with most clustered in San Francisco and Oakland. Only a few other places across the nation, such as Las Vegas, have introduced sit-down style pot consumption spots.

In California, a growing number of municipalities have recently issued permits for operators to launch cannabis consumption venues, including in Southern California and the Central Valley. It's expected that up to twenty or thirty new locations will be ready to open in these areas in the following years. 

New cannabis consumption lounges should open in National City in San Diego County, Desert Hot Springs and Palm Springs in Riverside County, Port Hueneme in Ventura Country and Coalinga in Central Valley, among others. 

Officials at Desert Hot Springs have even taken a step further, permitting cannabis entertainment facilities and retail of cannabis products at hotels. 

Cannabis Lounges Can Push Forward the Sector

The expansion of consumption lounges across the nation has so far been marred by slow growth. Many operators have expressed concern about whether lounges could really bring extra profits. But they also believe that this is something that can pump new blood into the industry. 

"Consumption lounges are a very crucial part of pushing the industry forward and normalizing cannabis use," says in a statement Lauren Fontein, co-founder of The Artist Tree, a West Hollywood cannabis retailer that recently launched The Studio Lounge. 

West Hollywood is currently the new hotspot for the consumption lounge industry. City authorities issued 16 licenses in 2018, eight per edibles only and eight for smoking, vaping or ingestion. This far, The Studio Lounge is the single licensee of the 16 to have launched into business.

What can you expect at a venue such as The Artist Tree? Sit on a nice patio terrace and bogart a big fat joint with a friend. Or you can also order a glass bong as you enjoy the pretty spot in a vibrant area of the city (Artist Tree is just south of the famed Sunset Strip). During the week, guests can attend live music and concerts at the venue. They can also choose between extravagant drag queen brunches and soul-fulfilling types of activities such as yoga, painting classes and sound baths. 

What's stopping California from having more beautiful places like this? The answers might sound familiar. Consumption lounges are subject to a long list of restrictions. Even more so than other cannabis business operators. 

It's Legally More Difficult to Run Consumption Lounge

Just to note down a few of the restrictions in place, an owner of a consumption lounge has fewer allowances than growers or manufacturers. They need to secure the property within approved zoning at the local level. They also must pursue retail permits at the state level since there is no such thing as specific consumption lounge retail license. 

Perhaps the most painstaking realization once you are in the cannabis lounge business is that you basically can't make extra cash from serving food and beverages to guests at the premises. Due to the retail distinction, Californian cannabis consumption venues are bound to source food and drink from third-party providers and deliver them to lounge patrons, which means potentially lost revenue in every sale. In addition, on-site cannabis is priced the same as if you are selling it in a dispensary. 

These limitations can be particularly harsh for smaller operators who are not integrated with big industry. If a small business wants to take the benefit of positioning early in the cannabis lounge sector, it would be a lot more challenging and there's little that can change that. Like always, California is dreamin' for better cannabis laws and regulations. The Golden State needs that change for the entire market, including lounges. 

Also read on Soft Secrets:

- How Consumption Lounges Can Change Cannabis? 

- California Weed Sales Decline

- Nevada Completes Licensing for Cannabis Lounges