Opening A Dispensary In New Brunswick: A Guide

New Brunswick has seen a recent surge in cannabis dispensaries, with Puffin, Earth & Ivy, and Garden State Botanicals all opening their doors to customers. The legalisation of cannabis in Canada has paved the way for these businesses, with New Brunswick establishing itself as a hub for cannabis culture. The process of opening a dispensary in New Brunswick involves adhering to the regulations set by the government, including age restrictions and rules regarding the operation of cannabis establishments near educational institutions and places of worship.

Funding your dispensary

Funding a dispensary business in New Brunswick requires careful planning and consideration of various factors. Here are some key points to consider when thinking about funding your dispensary:

• Startup costs: Starting a dispensary business entails various initial expenses, such as leasing or purchasing a suitable property, renovating the space to meet legal requirements, installing security systems, purchasing inventory, and covering operational costs until the business becomes profitable. These costs can quickly add up, so it's essential to have a clear understanding of the financial requirements.
• Funding options: There are several ways to fund your dispensary venture. One common approach is to seek investors or partners who believe in your vision and are willing to contribute capital. This could be friends and family, as demonstrated by the founders of Earth & Ivy, New Brunswick's first standalone retail dispensary, who relied on funding from their friends and family in New Jersey. Alternatively, you could explore small business loans, either through traditional banks or cannabis-focused financial institutions. Some provinces or states may also offer grants or incentives to encourage the development of the legal cannabis industry.
• Financial planning: Developing a comprehensive financial plan is crucial. This should include a detailed breakdown of expected startup costs, projected revenue, and expenses for the first few years. Creating a solid business plan can help attract potential investors and secure funding. It's also essential to consider the ongoing financial health of your dispensary, including managing cash flow, inventory levels, and pricing strategies.
• Compliance and regulations: Understanding the legal and regulatory landscape of the cannabis industry in New Brunswick is essential. There may be specific licensing requirements and taxes associated with operating a dispensary. Ensure you are aware of these obligations and factor them into your financial planning to avoid legal and financial complications.
• Location considerations: The location of your dispensary can significantly impact your costs and revenue potential. Consider factors such as foot traffic, competition from other dispensaries, and local regulations that may affect your ability to operate. Choosing a strategic location can help attract customers and ensure the success of your business.
• Marketing and promotion: Building a strong marketing strategy is crucial to the success of your dispensary. Consider allocating a portion of your funding to marketing and promotional activities, such as developing a website, utilising social media, and running advertising campaigns to attract customers and build brand awareness.

Location and zoning laws

When considering opening a dispensary in New Brunswick, it is important to be aware of the local zoning laws and restrictions. Here are some key points to consider:

Firstly, dispensaries in New Brunswick must be stand-alone retail stores, located away from schools and areas frequented by minors. This is a crucial factor in ensuring that cannabis sales are restricted to adults aged 19 and above, in compliance with the legal age limit. The physical distance from schools and areas popular with minors helps to reduce the accessibility of cannabis to underage individuals.

Secondly, the province has implemented a "zero-tolerance" policy for new drivers and all drivers under the age of 21. This policy is part of the vehicle amendments in the Cannabis Control Act, aiming to prevent drug-impaired driving. Dispensaries should be mindful of their proximity to roads and highways, ensuring that they do not contribute to any safety hazards or encourage cannabis consumption near roadways.

Additionally, the Smoke-free Places Act prohibits smoking and vaping cannabis in all public places, including parks and outdoor spaces. Dispensaries should be located in areas where smoking and vaping are permitted, typically limited to private residences and adjacent private properties. Landlords and property owners can also restrict the smoking of cannabis in rental units and specific areas within their jurisdiction.

When selecting a location for your dispensary, it is essential to consider the surrounding businesses and residential areas. The proximity to universities, residential neighbourhoods, and popular landmarks can impact the foot traffic and target audience for your dispensary. It is advisable to choose a location that balances accessibility for your desired customers while adhering to the zoning restrictions mentioned above.

Furthermore, it is worth noting that the government-run retailer Cannabis NB, a subsidiary of the New Brunswick Liquor Corporation, has a monopoly on the legal sale of cannabis in the province. This means that the location and zoning laws for dispensaries are closely regulated and monitored by the provincial government. Collaborating with local authorities to understand their specific requirements and restrictions is essential when establishing a dispensary in New Brunswick.

Dispensary type: medical vs recreational

The type of dispensary you open will depend on your target market and the purpose of the cannabis use. Medical and recreational cannabis are two different categories of the same substance, with distinct regulations and requirements. Here are some key differences to consider:

Purpose:

Medical cannabis is used for medical purposes and to treat specific symptoms. It is often used for conditions such as epilepsy, multiple sclerosis, nausea from chemotherapy, chronic pain, anxiety, insomnia, and depression. On the other hand, recreational cannabis is used for adult-use and is associated with "getting high" or improving overall health and wellness.

Legal Requirements:

To purchase medical cannabis, customers must have authorisation from a healthcare provider and approval from the state, which may come in the form of a "card". Recreational cannabis, on the other hand, can be purchased by anyone over the age of 21 in qualifying states without the need for a doctor's recommendation.

Taxation:

Medical marijuana patients with a state-approved medical card are typically exempt from paying sales tax on cannabis products. In contrast, recreational customers are subject to sales tax on their purchases.

Purchase Limits:

Medical marijuana patients are permitted to buy larger quantities of cannabis compared to recreational customers. In California, for example, recreational customers are limited to purchasing one ounce of flower, while medical patients can buy up to eight ounces.

Labelling:

Medical marijuana products must be labelled appropriately, with an additional label declaring "For Medical Use Only". This ensures compliance with regulations and distinguishes them from recreational products.

Dosage Forms:

The types of products available may vary between medical and recreational dispensaries. Medical dispensaries often offer capsules and tinctures, while recreational dispensaries may have more joints and gummies. However, this can differ depending on the state and its regulations.

Pricing:

Medical cannabis is often more affordable than recreational cannabis due to differences in taxation. Additionally, a medical card may allow for the purchase of larger quantities of cannabis.

Contaminants:

Regulations on contaminants like pesticides and heavy metals may differ between medical and recreational products. Medical products often have stricter limits as individuals with medical conditions may be more sensitive to these contaminants.

Location:

When deciding on a location for your dispensary, consider the regulations and laws specific to that area. Some jurisdictions may have additional business license requirements or outright bans on retail marijuana businesses. Ensure you are compliant with both state and local laws.

Marketing and customer loyalty programs

Customers can enrol in loyalty programs by exchanging their phone numbers for access to exclusive deals and discounts. They can earn points for every dollar they spend, and as points accumulate, they will be incentivized to shop in-store more often and spend more money.

One example of a successful loyalty program is Earth & Ivy's "Ivy Insider" program, which offers rewards and discounts to frequent shoppers.

Another way to structure a loyalty program is with an annual or one-time flat fee, like Amazon Prime. You could offer multiple tiers, and customers who buy into the program could receive one-time welcome gifts and unlock special deals, discounts, or other perks depending on the tier.

You can also implement a points-per-purchase model, which allows you to gain deeper insights into individual shopping behaviours and the cost and ROI of the program to your business. This model also eliminates the need for physical punch cards, although you may need to implement an automated email or SMS text campaign to keep customers informed of their reward status.

Social media can also play a role in your loyalty program. You can encourage customers to earn points by posting selfies with your products, creating how-to videos, leaving reviews, or engaging with your brand online. This will help to extend your marketing reach while also providing value to your patrons.

In addition to loyalty programs, you can also utilize text message marketing to stay at the top of your customers' inboxes and create brand loyalty. This can include sending reminders about their points balance, exclusive deals, and discounts. Email marketing campaigns can also be effective, especially if customers are hesitant to give their phone numbers.

Staffing and team building

Staffing and team-building are crucial aspects of opening a dispensary in New Brunswick. Here are some key considerations and steps to build a strong team:

Hiring Process:

Firstly, it is recommended to split the hiring process into two types of roles: consultants and employees. Consultants are part-time team members hired for specific functions like legal and financial services, security audits, and compliance. Employees, on the other hand, are full-time staff with roles such as store managers, budtenders, inventory managers, and security officers.

Must-Have Roles:

General Manager:

The general manager oversees day-to-day operations, including developing standard operating procedures, managing staff, creating schedules, ensuring compliance, facility management, and driving sales through marketing initiatives. They should possess strong leadership, multitasking, problem-solving, analytical, and team management skills, with experience in the cannabis industry being advantageous.

Sales Associate/Budtender:

Sales associates, or budtenders, are the face of your dispensary, interacting directly with customers. They should be knowledgeable and passionate about cannabis, providing education and guidance to consumers. Other responsibilities include handling transactions, maintaining the sales floor, and staying updated on cannabis products and trends.

Inventory Manager:

Inventory managers are responsible for all aspects of inventory management, including receiving, stocking, distributing, and tracking products. They ensure compliance with state laws and regulations, control inventory levels, manage relationships with suppliers, and perform audits. Organization, software proficiency, and mathematical skills are essential for this role.

Security Officer:

Security officers ensure the safety of staff, customers, products, and assets. They monitor security cameras, patrol the premises, prevent unauthorized access, investigate potential threats, and enforce safety protocols. Trustworthiness, reliability, and the ability to handle confrontations calmly are key attributes for security staff.

Receptionist/Greeter:

The receptionist or greeter is responsible for creating a positive first impression. They greet and check customers' IDs, answer phones, direct calls, track customer flow, and gather contact information for loyalty programs. Friendliness, organization, multitasking skills, and attention to detail are ideal characteristics for this role.

Compliance/Operations Manager:

Compliance is critical for dispensaries to remain operational. The compliance/operations manager ensures compliance with local, state, and federal laws and regulations. They develop and manage compliance programs, stay updated on legal changes, maintain licensure, train staff on compliance, source compliance technology, and perform audits. This role requires meticulous organization, attention to detail, and preferably a background in law, especially cannabis law.

Additional Roles:

While the above roles are essential, there are also "nice-to-have" positions that can enhance your dispensary team:

• Cannabis Delivery Driver
• Education Officer
• Human Resources Manager
• Finance Officer/Accountant
• Marketing Manager
• Brand Ambassador
• IT Professional

Hiring Tips:

• Focus on relevant skills, transferable experience, and cultural fit rather than solely on cannabis industry experience.
• Make your dispensary an attractive workplace with benefits, employee training, and a positive work environment.
• Utilize mainstream job resources like Indeed and LinkedIn, as well as cannabis industry-specific job boards.
• Tap into your network, including current staff, for referrals and recommendations.
• Sponsor, host, or attend cannabis career events to find talent.
• Understand and adhere to state-specific hiring laws and compliance requirements.
• Document standard operating procedures (SOPs) for employee management, including hiring, onboarding, training, and performance evaluation.

Building a strong team for your dispensary in New Brunswick requires a strategic approach to hiring, a combination of essential and value-added roles, and a focus on creating a positive and compliant work environment.

Frequently asked questions