The introduction of statewide cannabis lounge regulations marks a groundbreaking moment for California’s cannabis retail industry. With the passage of State Assembly Bill 1775, local jurisdictions can permit cannabis cafes where customers can enjoy on-site cannabis consumption alongside non-infused food, beverages and live entertainment – unlocking new opportunities for dispensaries to expand their offerings and extend their brand’s reach.
This shift presents an exciting chance to blend cannabis retail with hospitality, enabling dispensaries to reimagine their spaces as immersive entertainment destinations. While converting the space to accommodate cannabis consumption has the potential to enhance customer engagement, it can introduce unique challenges in design, compliance and operations. By leveraging innovative architectural solutions and taking inspiration from adjacent industries and other cannabis lounges, operators can create spaces that redefine how the public interacts with cannabis, shaping the future of cannabis hospitality in California.
Opportunities and challenges with cannabis loungesÂ
Cannabis lounges present an avenue for dispensaries to enhance their brand identity and reach a broader audience. By incorporating engaging programmatic elements such as live music, curated food offerings and social spaces, dispensaries can become destinations, driving foot traffic and increasing customer dwell time. In major cities like Los Angeles and San Francisco, where nightlife and tourism are thriving, these lounges have the potential to rival traditional bars and restaurants in the near future.
However, converting a dispensary into a cannabis lounge requires more than surface-level changes. Lounges must be designed to meet many of the same standards and building codes as the food service industry, incorporating key infrastructure such as kitchens, washing stations and proper sanitation facilities. With food and beverage service, dispensaries will also need to upgrade electrical and plumbing systems to support the increased demands, while adhering to additional health department regulations. For lounges that allow smoking, specialized ventilation and odor mitigation systems are required to maintain air quality and to ensure the comfort of consumers.
Customer flow and security must also be carefully managed to separate the retail and lounge areas while maintaining operational efficiency. Thoughtful floor plans are essential to ensure smooth transitions between the two spaces, as well as to facilitate the movement of products and staff. Additionally, parking and site conditions need careful consideration to accommodate both quick-shopping dispensary customers, as well as those staying longer for consumption lounge visits, ensuring a positive experience for all guests.
Inspiration for cannabis lounge design
For new and aspiring lounge operators, drawing inspiration from both global and local cannabis lounges can provide valuable insights into optimal design, branding and operational flow. Globally, Amsterdam’s cannabis cafes can serve as a model for creating welcoming, community-oriented spaces that blend into everyday life. New operators can also draw inspiration from lounge programs across the U.S., where states like Nevada, Colorado, New Jersey and New York are curating unique offerings within their state’s regulatory framework.
Inspiration can also be drawn from California’s early lounge entrants, like The Studio Cannabis Smoking Lounge, L.A. County’s first legal consumption lounge outside West Hollywood. Located on the second floor of The Artist Tree, it offers tableside cannabis service, handcrafted canna-cocktails and a focus on creative events.
Similarly, PleasureMed combines cannabis consumption, gourmet dining, and a “psychedelic funhouse” vibe in a 6,500-square-foot space, incorporating two restaurants, a dispensary and a lounge. These integrations not only enhance the experience but foster a sense of community, encouraging longer dwell times and deeper connections between brands and consumers.
In addition to other cannabis markets, new operators can look to hospitality design principles, such as layouts and finishes commonly found in bars, hotel lobbies, and restaurants for inspiration. Hospitality design has mastered creating inviting environments that engage consumers, enhance brand loyalty, and elevate the overall customer experience. These varied approaches offer valuable insights for new California lounge operators, showing how lounges can cater to consumer preferences, integrate retail and lounge activities, and stand out in a competitive landscape.
What’s next for California cannabis retail?
Cannabis lounges have the potential to transform not only the cannabis retail sector, but also the entertainment scene in California. As these spaces become more mainstream, the market is expected to diversify, offering a range of experiences from casual, neighborhood-style spaces to upscale, luxury destinations.
This stratification will mirror trends seen in other industries like hospitality and dining, with operators creating curated experiences for distinct consumer demographics and preferences.
The rise in cannabis lounges also aligns with shifting consumer habits, particularly among younger generations who are increasingly choosing THC products over alcohol. To thrive in this evolving market, lounges will need to offer something unique – whether through immersive entertainment, innovative consumption methods or elevated design – to differentiate themselves and provide more meaningful experiences than other options.
By embracing compliance and thoughtful design, California’s cannabis industry can reshape the way people engage with cannabis, fostering greater cultural acceptance and cultivating a more sophisticated cannabis market.
Virginia Maggiore serves as principal of store planning for architecture firm RDC, based in Long Beach. She has more than 20 years of experience and has worked with brands like SKIMS, Wilson Sporting Goods, Babyletto and others to maximize business potential in retail spaces, streamline multi-location store roll out programs and curate elevated brand experiences through retail store design.
