If cannabis legalization were an athletic event, it would probably be best represented by hurdles. A runner clears one hurdle before focusing on the next one, which is similar to how it must feel to be an entrepreneur in the cannabis industry. State legalization is the first hurdle, and then it’s applying for licenses and meeting regulations, all before the actual work of opening and running a business.
If all goes well, there’s a clear stretch of road (or track, if you continue the metaphor) ahead. Other hurdles could pop up, though. Some could potentially trip up a business, such as if a regulatory body decides to change what has been established. And some might actually benefit a business, if it can clear the hurdle cleanly. Such is the case with social consumption laws.
What is social consumption?
Cannabis legalization comes with all kinds of caveats. In many states, although recreational use of marijuana is legal, public consumption is not. Some of the regulatory commissions are looking to change that, though, allowing for the social consumption of cannabis. Social consumption regulations would allow for people to use cannabis in designated spaces, much like drinking alcohol at a bar.
Most cannabis lounges, as many social consumption spaces are called, are connected to the retail shops selling the product. As with so many other aspects of the cannabis industry, there are varying requirements for this newer part of the business.
What do social consumption licenses allow businesses to do?
Massachusetts offers a good example for what companies looking to expand their businesses might need to know. Social consumption was part of the ballot measure legalizing marijuana in Massachusetts in 2016, but the state’s Cannabis Control Commission is finally planning to vote before the end of 2025 on the regulations that would allow for business owners to apply for licenses.
The licenses fall into three categories: already existing businesses adding on-site consumption into their operation, new or existing businesses working with qualifying marijuana establishments to host consumption activities, and for qualifying marijuana establishments to organize and host temporary consumption events. The Commission says the regulations it is putting in place are meant to ensure safety, including efforts such as requiring employee training to detect over-consumption. Different cities and towns in Massachusetts will also have to opt in to the social consumption regulations, the same way they have been able to ban retail shops.
Analytics and cannabis lounge operations: improving efficiency and experience
Analytics plays a key role in making sure your business is taking full advantage of the social consumption opportunities in the cannabis industry…or, for businesses in Massachusetts, ensuring that you are ready to hit the ground running when the regulations are approved. A data-driven approach allows decision-makers to be confident as they step into somewhat uncharted territory.
Not unlike the retail side of the industry, business owners need a full understanding of customer preferences, not only to ensure the right products are available in the new space, but that all marketing efforts can be geared towards making sure the right users are getting the right information. Because a consumption space will result in a different customer experience, with varying numbers of people in a place at different times and in different amounts than a retail space may draw, businesses need to make sure they understand the patterns and set up a positive customer experience while at the same time gathering the new data to constantly make assessments and improvements. The right analytics solution can ensure the same data that allows businesses to track cannabis from seed to sale will also result in a successful social consumption space.
A runner participating in a track meet isn’t expecting hurdles to disappear. That runner just incorporates hurdles into his or her training to make sure they are better prepared. Analytics won’t eliminate the hurdles that exist in the cannabis industry – there will always be new challenges materializing in your path. The right analytics solution can certainly better prepare your business to clear those hurdles and stay ahead of the competition.
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