Cannabis Consumption Lounges

The next opportunity for the social equity community are the consumption lounges. Through the consumption lounge space people can realize opportunities in cannabis and generate a profitable business in the Illinois cannabis industry. Below the basic current laws are listed:

• Where can I purchase cannabis?
o Only from an authorized and licensed dispensary. Private sales are illegal.
• Where is the use of cannabis prohibited?
o The use of cannabis is prohibited is all public places. A “public place” means any place where a person could reasonably be expected to be observed by others.The law also prohibits smoking in close physical proximity to anyone under 21 who is not a registered medical cannabis patient.
• Where can I use cannabis?
o Cannabis can only be used in a private residence or in an on premise authorized dispensary. Cannabis cannot be used in close physical proximity to an individual under 21 years of age.
• Can I use or possess cannabis in my private residence?
o Yes, as long as the residence is not used as a daycare and/or you are not in the close proximity of someone under the age of 21.

The following exceptions should be noted:
Cannabis is prohibited in federally funded public housing;
Landlords can prohibit the use and possession of cannabis in rental properties; this is a landlord-tenant issue that may affect your lease. Consult with your landlord.
Locations prohibited by the Smoke Free Illinois Act (hotels, restaurants, bars, etc.)

Lounges have long been viewed as a necessary social outlet for adults 21 and over to smoke, vape, dab, eat and drink the plant – similar to a bar for alcohol or cigar lounge for tobacco. Under the current laws below are the potential revenue producing streams.

Revenue Streams:
• Admission Fees
• Equipment Rental Fees
• Event Space Rental Fees
• Merchandise Sales
• Table Reservations

Customer Market 1.3-1.6 Million cannabis consumers:
• All consumers need somewhere to consume
• Large percentage of market is out of state

Potential Law Changes:

To take true advantage of the consumption lounge the lounges need to be able to sell cannabis, cannabis infused items, and concentrates. Although the state has a distribution model where all cannabis it to be dispensed through a dispensary, if the law is opened up to allow single serve cannabis and single serve cannabis infused food items to be sold it would benefit the current market as well as create a entirely new revenue stream in the Illinois cannabis industry that is easily traceable and could easily be implemented without much additional cost to the business owner.

Single Use Cannabis Sales:
• Flower
o .5 gram
o 1 gram
• Infused Food Item/ Edible
o 5 mg item
o 10 mg item
• Concentrate/ Dab
o .25 gram
o .50 gram

Purchase Limits:
• (3) 1 gram flower purchases
• 50 mg total purchase of infused food item/ edible
• .5 g concentrate or dab

Creating these changes interferes with none of the cannabis establishments that are currently operating but in fact would enhance their business and create new revenue streams.

The new law would create new opportunities for social equity businesses:
• New branding opportunities
• Manufacturing opportunities
• Packaging opportunities
• Less risk on product roll out
• Craft grow products featured
• Jump start on cannabis shelf space
• More attractive investment
• Creates more marketing opportunities within the consumption lounge
• Expand the cannabis market
• Creates more transportation opportunities

Missed Opportunities:

Illinois Cannabis 1st quarter comparison numbers

• $362 Million in sales
• 8.2 million products sold

• $278 Million in sales
• 5.9 million products sold

• $109 Million in sales
• 2.6 million products sold

If interested in hiring a consultant to help you obtain a consumption lounge fill out contact form below

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