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After years of planning, Coss Marte and partners opened CONBUD in Manhattan’s Lower East Side on Oct. 19 as a legal cannabis dispensary focused at providing employment opportunities for formerly incarcerated people.
Marte has been outspoken about issues that illicit shops and strict marketing regulations are causing for licensed dispensaries. CONBUD is heavily outnumbered by illegal stores in the neighborhood, and isn’t allowed to promote itself in the ways illicit shops do.
But despite seeing fewer customers than anticipated, and adhering to tight regulatory restrictions, Marte said CONBUD is already planning to expand by opening a second location in coming months. In a Q&A with NY Cannabis Insider, Marte answered questions about competing with illicit shops, expansion plans and more.
About how many customers are you seeing per day? How does that compare to your projections before opening?
We’re seeing, on average, 100 to 175 people per day. On weekdays it’s closer to 100, and weekends it’s closer to 150. We’re seeing half the number of people we anticipated, based on foot traffic alone, and a lower basket size than we projected.
How many full-time and part-time workers do you employ?
We have 13 full-time employees and between five and seven part-time workers.
What kinds of products are selling the most?
So far our sales have been 30% flower, 20% pre-rolls, 20% vapes, 20% edibles and 10% tincture, concentrates, merchandise and accessories.
What brands are selling the most?
Hudson, Ayrloom, Electraleaf, Zizzle and Rove are powerhouses, but smaller brands like FLAMER, Eaton Botanicals, Miss Grass, MATA and Dr. Midtown are crushing it, too.
Which demographics do you see as your target market?
Everyone who believes that the formerly incarcerated deserve second chances, and that no one should be in prison for cannabis.
Can you describe your business experience outside of cannabis?
I own and operate a fitness studio called CONBODY.
How does that experience translate to running a cannabis dispensary?
It gave me a lot more confidence in approaching this endeavor. I also had a network of investors and executive-level operators to pull from. Some of the similarities include build-out logistics, payroll and employee scheduling. The starkest difference has been inventory management and the compliance and accounting that comes with it.
How much of a problem do illicit cannabis shops present to your business?
We’re outnumbered 80-1 in the Lower East Side. People are creatures of habit, and a lot of the [illicit] businesses have developed meaningful relationships and a loyal customer base in the last two years. They’re also not restricted to the same marketing regulations that we are. Little things like having our Google business account shut down when we first opened, not being able to use sandwich boards in front of the store and not being able to offer discounts put us at a big disadvantage. I’m not afraid of competition, but it’s a lot harder when we can’t play by the same rules.
Can you tell us about your long-term plans for your store?
The Lower East Side is our flagship location, and we hope to serve our community in perpetuity. We are expanding, too, and opening a second location in the South Bronx in the next couple of months. We’re open to — though not actively seeking — other opportunities in the state, and broader East Coast.
What state cannabis policies/regulations do you think are the most helpful to your business?
The policies were drafted in an environment where the illicit storefront market wasn’t anticipated, so we can’t point toward any specific policies that have helped.
Can you describe how you’re hiring and training employees?
We’re focused on providing employment opportunities to justice-impacted native New Yorkers — though, that’s not mandatory criteria. We’re fortunate to have extremely high retention, and haven’t had to hire more staff since opening.
What advice would you give to other entrepreneurs planning on opening dispensaries?
Dive deep into local and state regulations, create a solid business plan, prioritize compliance and build a solid team. Go support the dispensaries that are opening! See for yourself how the community is engaged, and the different ways these businesses are catering to their environments. Stay adaptable, embrace challenges – and, most importantly, stay passionate about the plant, and its potential to have a massive positive impact.