This post was originally published on this site.
Verdi officially opened its doors on Jan. 26, becoming the first legal adult-use dispensary in Manhattan’s Chelsea neighborhood.
In its first couple of months, business at the shop hasn’t met expectations, said owner Ellis Soodak. However, he said, they’re just getting started.
In a Q&A with NY Cannabis Insider, Soodak answered questions about what customers are buying, transitioning from the liquor store business to the cannabis industry and challenges in New York’s legal weed industry.
About how much revenue are you seeing on weekdays and weekends? How does that compare to your projections before opening?
It is very weather dependent right now as most of our customers are coming in through foot traffic. We are seeing about $7,000 on slow days and up to $12,000 on busier days. This is quite a bit below our initial projections, but we are just getting started. A big impediment is that we are not showing up on Google Maps when people search “Dispensary near me.”
How many full-time and part-time workers do you employ?
We have about 15 employees.
What kinds of products are selling the most?
Flower, and prerolls make up the biggest chunk, with over 40% of sales. flower, prerolls , vapes and edibles totals over 90% of sales. Interestingly, accessories account for approximately 4% of our sales.
What brands are selling the most?
Our top five brands are MFNY, Ayrloom, DANK, Edie Parker, and Jack Bear Farm.
Which demographics do you see as your target market?
People on their daily commute, especially office workers.
Can you describe your business experience outside of cannabis?
My family has operated liquor stores in Manhattan for over 60 years.
How does that experience translate to running a cannabis dispensary?
In some ways, it translates very well. We are used to operating in a licensed industry. In other ways, they’re totally different. For example, liquor takes up much more space for storage and accrues value over time, whereas cannabis has a small footprint but has an expiration date. This difference affects everything from demand for delivery, average order size, and how much inventory we can buy at a time.
How much of a problem do illicit cannabis shops present to your business?
A big problem. The illicit shops make advertising much more costly because we are competing for the same eyeballs.
Are you worried about competing with adult-use dispensaries owned by ROs?
Not really. Most of them have chosen to locate in upstate New York, shying away from the hustle and bustle of New York City. I am much more worried about my competitors who are on the same block, not paying taxes, and importing flower from all over the country.
Can you tell us about your long-term plans for your store?
I would like to expand to several locations around the city, especially towards Brooklyn. We are also about to launch delivery as well as expanding our hours.
What state cannabis policies/regulations do you think are the most helpful to your business?
In theory, the location protection should be very helpful. If we could actually be the only cannabis business within 1,000 feet of our store, that would help a lot.
What state cannabis policies/regulations do you think present the most challenges to your business?
The fact that enforcement for unlicensed stores comes from the state/Albany, rather than the local precincts makes enforcement an unwinnable game of whack-a-mole. If this were the liquor industry, these unlicensed stores would be shut down within a week, let alone after months.
Can you describe how you’re hiring and training employees?
We hired mostly people with prior cannabis experience, which made training much less costly. We also do weekly budtender trainings, so our team is always up to date with the latest industry info.
What advice would you give to other entrepreneurs planning on opening dispensaries?
Make sure you spend time hiring the right people! The best team wins.