What To Expect When Cannabis Consumption Lounges Become More Common


CannaLounge is a new type of cannabis consumption lounge that allows people to legally consume marijuana in a safe and convenient atmosphere in which they can socialize with friends. The lounge is a series of specially-designed rooms that allow guests to consume marijuana in an atmosphere that is similar to a bar. On the other hand, the lounge’s atmosphere is not intended to be a place where people use drug consumption as a social activity.

Since the legalization of marijuana in some states, the legal cannabis industry has opened back up, with dispensaries sprouting up all over the place. Some of these dispensaries offer medicinal marijuana to patients that need it, while others are more geared toward recreational use.

Seventeen states have legalized cannabis for adult use, although most states still prohibit its use in public or rented spaces. For years, cannabis lounges were kept on the sidelines, although recently legislation to support lounges has been gaining traction in the legal cannabis market. Some cities, such as Ann Arbor, National City and Las Vegas, are already experiencing flooding. New York has included cannabis club licensing in its recently passed adult-use cannabis legalization law. While there are still uncertainties about regulations and revenue estimates, many are optimistic. Photo: LordHenriVoton/Getty Images word-image-17875

What led to this increase?

Cannabis operators in the U.S. say the holdouts are the result of a maturing market and increased demand. Tim Wright is the CEO of Shasta Management, which plans to open the largest consumer lounge in the U.S. in Imperial County, Calif. in late May. Above all, he trusts the public. Just like in bars and restaurants, people want to be able to hang out with friends while consuming cannabis, Wright said. David Farris, vice president of sales and marketing at Planet 13 Holdings Inc. (OTC:PLNHF), said the continued legalization of marijuana is leading to market development. With the right approach, scholarships can not only benefit the community, but also the state coffers at all levels by creating jobs and generating additional tax revenue, Farris said. Mr. Farris thanked Las Vegas for its commitment to this emerging industry and noted that the city needs consumer destinations for tourists. Harold Sims, Denver-based chef and winner of Netflix Inc (NASDAQ:NFLX)’s Cooking with Cannabis, emphasized the need for consumption spaces as legalization becomes more prevalent. He noted that 17 states have legalized cannabis for adults, although most still prohibit its use in public places or rental properties. Photo Israel_Patterson/Getty Images word-image-17876 It is in this gray area that cannabis lounges have found their market, according to Sims. He noted that lounges can have multiple benefits, such as giving people a place to consume and reducing resistance to public consumption and the odors associated with it. Ultimately, it will provide an economic boost to the surrounding community, Sims said.

Uncertain market development, supported by expected opportunities

Shasta Management COO Mai View said the company does not expect to make an immediate profit, but at the same time is focused on creating an enhanced customer experience for guests. It is important that we provide our customers with a safe, comfortable and – in the desert – cool space to enjoy their products and try out new ones, May View said. Many in the New York entertainment industry see a great opportunity in the Big Apple’s hotel industry, legislation permitting. Photo: Adam Jaime via Unsplash word-image-17877

What about alcohol?

Although cannabis rooms are often compared to bars, one wonders if the legislature will ever allow these two establishments to operate together. Early indications are that this will not be the case. In 2019, California regulators required Lowell Cafe and seven other licensees to split their business into a restaurant and a retail cannabis business to meet regulatory requirements. Under California law, cannabis lounges cannot sell food or drink. Chief Sims, on the other hand, is optimistic. He says Las Vegas will be the main beneficiary when cannabis consumption sites come up. He cited the bars, the nightlife and the smoking ban in Sin City (limited to workplaces other than hotels) as attractions.

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