California Gives Weed Outlets a Path to Become Restaurants

Photograph: Shutterstock

California has given the go-ahead for cannabis lounges in the state to recast their facilities into cafes where patrons can eat and drink as well as light up. 

Under the bill that was signed into law Monday by Gov. Gavin Newsom, local jurisdictions can now allow the pot shops to prepare and sell cannabis-free foods and beverages for on-site consumption as of Jan. 1. Only non-alcoholic beverages like coffee can be offered.

The places are already permitted to sell prepared foods and packaged beverages laced with THC, but not to prepare the fare on site or allow it to be consumed there.

The measure also enables the facilities to add live entertainment if given a greenlight by local lawmakers. 

Proponents say the loosened controls will enable certified dispensaries to function like the cafes in Amsterdam, which sell marijuana as well as coffee, baked goods, sandwiches and other fare for on-site consumption. The outlets have become a signature of the Netherlands city and a major tourist draw.

Dispensaries say they need additional draws and revenue sources to counter the loss of weed sales to the black market, where the prices for pot are often lower. Licensed facilities took in only one of every three dollars that were spent on cannabis products in 2020, or roughly $4 billion of the $12 billion in total revenues, according to Assemblyman Matt Haney, the bill’s sponsor.

“This is the future,” Haney said at a press conference. “It’s the future for supporting our small businesses and helping them to thrive.” 

Haney and other supporters of the bill have also maintained that easing of restrictions will create more jobs.

The law breezed through both chambers of the California legislature in bipartisan votes. The bill, AB 1775, was also publicly championed by celebrities like Whoopi Goldberg, Bill Maher and Woody Harrelson. 

Similar legislation was passed by lawmakers a year ago, but Gov. Gavin Newsom vetoed the measure. He contended at the time that the bill did not extend sufficient protections from second-hand smoke to the servers who would take patrons’ food and beverage orders. 

“I commend the author for incorporating additional safeguards, such as expressly protecting employees discretion to wear a mask for respiration, paid for at the expense of the employer, and requiring employees to receive additional guidance on the risks of secondhand cannabis smoke,” Newsom said in a message he sent to the legislature as he signed the bill. 

Newsom added that he would look unfavorably on any subsequent legislation that weakens the protections.

The bill marks another major step in the evolution of California’s pot business. In 1996, the state became the first in the nation to legalize the retail sale of marijuana for medical purposes. The dispensaries were permitted to sell THC products for recreational use in 2016, and a go-ahead for on-site consumption followed. 

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