There is a million-dollar cannabis tourism question making the rounds right now. Everyone is trying to figure out how to make social consumption lounges profitable enough to stay afloat. Las Vegas lounge Smoke & Mirrors set out with high hopes, only to close its doors just a year later. The business listing marks the closure as temporary, sharing with Las Vegas Weekly that it will pivot to an events rental space to better use its license.
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Cannabis consumers are hungry for a social space to safely enjoy products. The business side has yet to fall into place. Unfortunately, the sector is still finding its feet. Smoke & Mirrors allowed all to enter and purchase cannabis products, infused non-alcoholic drinks, and entertainment. There are many cannabis lounges in the U.S. operating this way, but one Los Angeles consumption space is taking a different approach with a membership model.
Members only cannabis clubs are here
Sara Stewart spearheaded the opening of California’s first cannabis lounge, Lowell Cafe, and RISE Mundelein in Illinois. Since then, she has consulted on various lounge licenses across the U.S. She expressed to GreenState that she is unsure whether the membership model is the future for cannabis social clubs.
“This business needs to run like hospitality-driven environments with multiple revenue streams and familiarity,” Stewart said. “I’d be super surprised to see what kind of consumer actually wants to pay for a membership.”
Sunset Social Club put its money on members-only weed clubs at its soft opening last weekend. Though many are unsure whether the membership model is the move, the Sunset Social Club grand opening party on July 14th was marked as a great success by business owner “Pantera Sarah.”
As a long-time Los Angeles resident with deep roots in the Los Angeles nightlife scene, Pantera Sarah envisions the swanky, exclusive environment as a callback to the old days of Hollywood nightlife, before smartphones removed all privacy for those trying to let loose.
Sunset Social Club celebrates soft opening
The Sunset Social Club space is on the iconic Sunset Strip in Los Angeles, across the street from the famed Chateau Marmont. Instead of operating like a bar, where patrons enter for a drink or joint at their leisure, the lounge will use a model that requires an application and regular membership fee.
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The Southern California cannabis lounge sits underneath its sister dispensary. The store is open to the public, but underneath is members-only. Guests can enjoy a full coffee bar, small bites, and curated Old Hollywood decor sourced from estate sales around the area.
Membership costs either $420 monthly or $4200 yearly. This covers entry, a monthly $420 cannabis credit at the dispensary, coffee bar access, and ample parking, complete with an attendant. Small bites are provided by a Michelin-trained chef, and there is a cannabis mixology bar for infused sips. The weed product credit expires each month and does not roll over.
There are also promises of off-campus perks. Those who are accepted as members could receive VIP access to events, priority access to screenings at the Chinese Theater, and discounts to well-reviewed local restaurants and venues.
For now, the Club asks that hopeful members submit an application. The online form asks for social media handles, a photo, a job title, and a reason for applying. There is no guarantee that every application will be accepted. The space shies away from kitschy selfie walls and weed leaves and leans into a bit more glamour.
Future of weed lounges remains hazy
The membership model seems enticing for business owners across the board. A built-in monthly payment is guaranteed income, making space for growth similar to Community Supported Agriculture programs that help farmers expand. However, it is yet to be determined whether Southern California cannabis lovers will buy in.
Business owners are keen to figure out the key to success for a consumption lounge. As Sunset Social Club finds its feet, many will be watching to see if the membership model works.
