How to Open a Cannabis Dispensary in New York: A Preview
As New York has legalized cannabis consumption lounges and dispensary recently, adults in New York are looking forward to this new state of affairs of recreational cannabis in 2022 and 2023. And while licensed medical marijuana dispensaries already have one foot in the door when it comes to adult-use retail cannabis sales, the state will also award 150 new CAURD dispensary licenses with comprehensive social equity provisions.
The Cannabis Retail License Application Process in New York
The process for obtaining one of these coveted adult-use marijuana retail licenses begins when you submit a completed conditional application form, through the New York Business Express with the application and all supplemental materials. There is a non-refundable application fee. The Office of Cannabis Management (OCM) is in charge of licensing and regulating cannabis businesses.
How Much Does it Cost to Open a Dispensary in New York?
Along with the non-refundable application fee, you’ll need to be prepared to pay the legal, leasing, and ancillary fees related to the application process. In fact, upfront capital estimates for a cannabis retail business in New York could range between $75k and $180k. These costs include:
Real estate renovation and construction
Business equipment and infrastructure
Security and surveillance system
Professional fees (attorney, CPA, etc.)
Minimum working capital
How to Open a Cannabis Dispensary in New York
From your initial application to your grand opening, there’s a lot involved in launching a cannabis retail store in New York. Below is a high-level breakdown of the major steps involved in a successful dispensary opening.
The first major hurdle in opening an New York dispensary is preparing your application, which includes submission of detailed business, financial, operating, and security plans.
Your cannabis retail business plan must describe how your store will be managed on a long-term basis. This section must also include descriptions of your customer purchase and dispensing processes, customer privacy and confidentiality, your plan to obtain and maintain customers, and your proposed security plans.
Your financial plan should demonstrate that, if granted a license, you will have access to sufficient capital to own and operate the store. Of course, both your investors and the Office of Cannabis Management will want to know exactly how much upfront investment you’ll need to get off the ground as well as the store’s projected revenue.
Your operating plan must describe the day-to-day dispensary operations, including:
o daily opening and closing procedures;
o security, customer admittance, and customer traffic-control procedures;
o ordering and point of sale procedures;
o delivery service procedures (if the licensee delivers to customers);
o product inventory intake procedures;
o product return and disposal procedures;
o emergency procedures; and
o an explanation of how workers will monitor for and prevent sales to customers where there is a risk to health or safety, underage or illegal sales of cannabis products, or any other criminal activity within the licensed premises.
You will also need to provide a security plan that details how you’ll prevent theft and diversion, demonstrates safety procedures for both staff and customers, and establishes protocols for safe delivery and storage of cannabis products and currency.
Choosing an Ideal Dispensary Location in New York
In New York, your location must meet the minimum following criteria:
Must be located in a storefront with a street level.
Must have hand washing and toilet facilities for employees
Must have a layout that promotes the safe dispensing of cannabis
Must have sufficient room for product handling and storage
Must be at least 500 feet from school grounds or a community facility
Must be at least 200 feet from of a building occupied exclusively as a house of worship on the same street or avenue