Legalization Is On The Way—Is Your Dispensary Ready?

By Andy Poticha,

With multiple states on the brink of legalizing adult-use cannabis, the transition from medical to recreational dispensaries is a clear and present reality for many cannabis companies. The good news is, based on the experience of the 24 states where adult use cannabis is legal, regulations are typically not the drivers of required renovations; the shift is less regulatory, and more a transformation needed to enrich the customer experience.

While regulations may not require massive changes to physical space, dispensary customers and the experience they are seeking do change profoundly, calling for store renovation. Many existing dispensaries still feature built-in checkpoints behind bulletproof glass and walled-off consultation spaces—outdated features once required by a more clinical environment and a fear of burglaries that now feels passé.

As the cannabis market continues to evolve, recreational customers have pushed many dispensaries to adopt a more experiential, product-focused approach similar to typical retailers. Dispensaries face the challenge of catering to at least two distinct recreational customer profiles: buyers who prioritize efficiency, and boutique visitors who value a personalized shopping experience. Dispensaries must understand what their unique set of recreational customers want, without leaving medical patients behind.

Four Design Changes for Adult-Use Cannabis Dispensaries

Here are four pivotal design considerations when shifting from operating solely as a medical dispensary to creating a customer-friendly experience:

Open it up!: Transitioning to adult-use means rethinking a dispensary’s interior design to become a more inviting, open retail space. You can remove barriers that detract from the customer experience, such as consultation rooms reminiscent of a medical office. This approach will open up the sales floor for customers to explore product displays and better interact with staff. Create a Welcoming Atmosphere: The first impression is crucial, so make it count. The goal is to make every customer feel comfortable and valued. This transition requires the reimagining of entry points, removing overly restrictive security features like mantraps with bulletproof glass, and designing a unified space that amplifies the experience. Adjust the aesthetic to appeal to your chosen customer base, whether they prefer express transactions or a leisurely, guided shopping experience. Plan for Flexibility. The space should be flexible so many different types of product displays can be used and evolve over time. Many dispensaries sell not just cannabis products but also apparel, beverages and other items. The more flexible a plan, the longer it will last. Also, many dispensaries are employing a conversation piece such as an Instagram wall. Point of Sale Design: As the focal point of the dispensary, the point of sale (POS) setup must evolve to cater to both medical and recreational customers efficiently. This shift includes having at least one dedicated line for medical patients. Also, adding efficiency to the check-out process is particularly important for express recreational customers.

Cost Considerations for Transitioning

The cost of transforming a medical dispensary into a recreational one can vary widely. If your store was designed recently and is already inviting, it may just need minor tweaks. However, that may not be the case for most operating locations, which will lead to updates that fully create an ideal aesthetic and customer experience.

As of the first quarter of 2024, Cannabis Facility Construction has renovated dispensaries in 14 states. While costs vary across this footprint, for a full-store renovation of a medium-sized dispensary (3,500-4,500 square feet), costs can start at around $700,000 for a basic renovation. However, when considering a larger-scale, more dramatic renovation of a space that feels highly clinical, costs can escalate into the millions. Key factors that can affect the price include the level of complexity, material choices, the size of the dispensary and the level of customization or rework required. Also keep in mind that equipment and materials such as millwork and mechanical equipment remain in short supply, which can affect prices and lead time.

Another cost consideration is downtime. An experienced contractor can walk you through your options to minimize the amount of time your dispensary is closed (if at all) during renovation. For minor changes, the work may be possible during off-hours.

Despite the costs, this investment is crucial for dispensaries aiming to thrive in the burgeoning adult-use market that’s growing more competitive daily. How do you differentiate your dispensary from every other?

Designing for the Future 

As more states move toward legalizing recreational cannabis and the industry evolves, so too must the dispensaries that serve its customers. The essence of this transformation lies in understanding that, while operational aspects vary between medical and recreational use, the core of dispensary design revolves around enhancing the customer experience. By focusing on design changes that foster a welcoming environment and meet the needs of a diverse customer base, dispensaries can position themselves for success in the ever-expanding world of cannabis.