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The operators of several licensed cannabis dispensaries in the Bronx say that their sales have increased following the recent crackdown on illegal smoke shops, although some say they’re still struggling.
Gov. Kathy Hochul said Monday that legal sales across the state have jumped 51% since May, when she signed a bill that expanded enforcement powers to rein in the unlicensed stores. This year’s legal sales, she said, have more than doubled 2023 numbers.
“Thousands of illegal cannabis storefronts across the State have plagued our communities and siphoned business from licensed retailers,” Governor Hochul said in a statement. “I launched the Illicit Cannabis Enforcement Task Force (ICET) to quickly close these unlicensed shops, and today, more than 1,000 have been shuttered. I look forward to building upon that success to continue our enforcement efforts across New York.”
But owners of legal dispensaries in the Bronx say they have seen mixed results in the wake of these crackdowns. Some see a big benefit from the shuttering of illegal smoke shops near them, while others say they still struggle with competition from nearby illegal shops, and fear the state won’t live up to its lofty promises of closing them down.
Levent Ozkurt, owner of Hush NYC on Williamsbridge Road, said that even though authorities have been slow in terms of enforcement, he’s seen it make a difference.
“We’ve definitely seen an increase in sales to the point that we increased our hours,” Ozkurt said.
Anthony Rivera, a partner in the recently opened Sesh NYC on Webster Avenue, said they’ve seen a month over month sales increase that he can’t exactly attribute to the crackdown on illegal shops, but believes it’s helping. He wants the crackdown efforts to continue and views regulators and licensed shops as partners in a growing market.
“The industry is still in its infancy,” Rivera said. “All that I ask is that regulators and compliance officers understand and are mindful of the challenges of small businesses.”
The governor’s initiative led to the creation of Mayor Eric Adams’ “Operation Padlock to Protect” program, a multi-agency effort that was launched in May to shut down both illegal dispensaries and smoke shops selling illegal e cigarettes and vapes.
More than 1,000 stores across the city have been closed, either temporarily or permanently—including 210 in the Bronx—since the program went into effect through mid-August, city officials said. Authorities have also seized over $63 million in illegal products across the five boroughs.
Christian Chavez, owner of the first legal dispensary in the Bronx, Status Cannabis on East Tremont Avenue, said that his store has definitely seen an uptick in sales.
“I feel that it’s creating a little bit more confidence in the consumer base,” said Chavez, whose store opened in July 2023. “They feel more comfortable bringing their business to us.”
A customer shops for cannabis at a licensed dispensary in the Bronx. Photo ET Rodriguez
While Chavez said enforcement has been beneficial, and remains optimistic about the future, he noted that getting established in the business has not been easy.
“I’m not going to lie, it’s been an uphill battle,” Chavez said. “The challenges that we’ve been facing with the OCM [Office of Cannabis Management] early on have put us in survival mode. I think that with the clear plan that we have established I think in the next six months we can achieve success and be where we want to be, but it has not been a pretty journey.”
Adams stood Wednesday in front of 4 tons of seized illegal cannabis products at an incineration plant on Long Island to talk about how the city will go about destroying them after their seizure. He emphasized the societal damage that illegal cannabis can do, linking it to crime and violence. He also said that it cuts into the profits of legitimate cannabis operators.
New York City Sheriff Anthony Miranda broke down how far the city has come in its efforts to curb illegal cannabis sales, and how far it still has to go.
“3,600 locations have been reported,” Sheriff Miranda said. “We have conducted over 4,000 inspections, sometimes re-inspections of locations. We have been able to seal 1,000 locations. So, there are ongoing investigations, and we will be visiting some of them a couple of times.”
Mayor Eric Adams holds up a package of illegal cannabis product to be incinerated along with 4 tons of seized marijuana. Courtesy of the Office of the Mayor
Adams also said that the Sheriff’s office had inspected 100% of the illegal shops on its radar.
David Nicponski, owner of Freshly Baked on Arthur Ave. in the Bronx, however, questioned the results. He said he’s been working with state Sen. Gustavo Rivera’s office to try and increase enforcement around his licensed dispensary.
“All these places are still operating,” Nicponski said. “I keep sending them pictures showing them operating and nothing happens. And this is a severe issue. People are competing with us on economics that we simply cannot match.”
With high overhead costs, regulatory hoops and an opaque licensure process that allegedly moves at a snail’s pace, owners like Nicponski, who invested their life savings into starting a small business, say they are nearing a breaking point.
“If nothing changes, then the eventual result is that the business goes bankrupt,” Nicponski said. “We lose everything. Our family is devastated. Twenty-five years of life savings. Right?”
Licensed cannabis store owners along with city and state officials all agree that a successful legal cannabis market hinges on the state’s ability to extinguish illegal distribution. With thousands of reported illicit stores still in operation across the city, legitimate store owners say it may be a while before this budding industry begins to flourish.
“}]] The operators of several licensed cannabis dispensaries in the Bronx say that their sales have increased following the recent crackdown on illegal smoke Read More