Business Idea

Start A Cannabis Restaurant

About

Starting a cannabis restaurant requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell cannabis , or selling cannabis online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$863M
starting costs
$24.5K
gross margin
43%
time to build
9 months

About

Starting a cannabis restaurant requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell cannabis , or selling cannabis online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$863M
starting costs
$24.5K

 

gross margin
43%
time to build
9 months

Startup Costs

Min Startup Costs Max Startup Costs
Equipment & Supply Expenses $550 $6,500
Retail Business Expenses $0 $16,150
Inventory Expenses $350 $14,750
Advertising & Marketing Costs $75 $9,636
Software Expenses $0 $425
Website Costs $17 $275
Other Expenses $0 $300
Total Startup Costs $992 $48,036

Successful Businesses

Business URL Rank
Utah.gov: The Official Website of the State of Utah utah.gov #6,144
Access Denied kfc.com #34,751
Restaurant.com restaurant.com #68,917
Potbelly Sandwich Shop potbelly.com #97,558
Hotel Restaurant Supply hotelrestaurantsupply.com #271,344
The Cannabist thecannabist.co #339,417
Restaurant Equipment equippers.com #406,928
LabCanna labcanna.com #591,613
National Restaurant Show nationalrestaurantshow.com #592,942
Wicked Weed Brewing wickedweedbrewing.com #881,903
Sol Flower livewithsol.com #960,299

Pros & Cons

Pros Description
Rewarding work Starting a cannabis restaurant can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Meaningful business connections You never know who you will meet as a cannabis restaurant. This could be the start of an incredible business opportunity!
Daily physical activity Cannabis Restaurant's typically involve a much greater degree of movement than other lines of work. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. This can have a positive impact on energy levels and your overall health.
Amazing perks and discounts Working in the cannabis restaurant comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.
You are your own boss! With starting a cannabis restaurant, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!
Local Community One of the best parts of starting a cannabis restaurant is that you can develop a local following by selling your products at craft shows, farmers' markets, or even local storefront businesses! This gives you access to additional revenue streams and loyal customers.
Cons Description
Crowded Space Competition is high when it comes to your cannabis restaurant, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
Finding The Right Supplier Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Low margins The gross margins for your cannabis restaurant are typically around 43%, which can make it more challenging to incur new expenses and maintain profitability.
High employee turnover In the cannabis restaurant, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Taxes As a cannabis restaurant, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.