004: Are Social Consumption Lounges the Destination Hotspot of Tomorrow?

Image Credit: MG Magazine

Cannabis bars, also called social consumption lounges (SCLs), are making a slow but prominent impact in the world of recreational entertainment. With legalization efforts ramping up across the United States, entrepreneurs are quickly taking advantage of the interest in social spaces uniquely suited for public consumption of cannabis. Explosive early interest is driving the growth of SCLs, particularly along the west coast.

Unique to this type of bar is how city and state laws impact the sale, distribution, and consumption of cannabis. The majority of social consumption lounges are centered along the west coast – as of the time of this posting, only one SCL currently exists on the east coast, The Summit Private Lounge in Worcester, Massachusetts.

For all the interest in SCLs, relatively few have managed to navigate the legal landscape in opening up their business. Yet there is no doubt that these types of recreational spaces will grow exponentially in the coming years.

What do business owners need to know about SCLs?

The bay area in California has seen the largest influx of social consumption lounges in the United States thus far. Given the state’s relatively lax laws around cannabis usage, SCLs have thrived. Part of this success has been structured around the way that they have been able to drive revenue.

California is unique in that SCLs allow for cannabis sales on-site. Patrons can rent out booths for an hourly fee, and purchase products ranging from edibles, CBD-infused drinks, and more. These SCLs aim at providing a classy, high-caliber experience that allows patrons to consume cannabis in a classy and controlled environment.

Comparatively, the business models for SCLs differ widely from city to city and state to state. Many states have limited the number of licenses needed to sell cannabis, and have been slow to distribute more.

This hasn’t stopped savvy business owners from creating lucrative businesses without the sale of cannabis. Rather than driving their business model on the sale of cannabis, some SCLs leverage membership fees that are gathered on a monthly basis with unrestricted access to lounge space. Further revenue is gathered by staging events like paint-nights or informational sessions.

Regardless of how these businesses meet the bottom line, one thing is apparent: these businesses depend on delivering an unforgettable experience to patrons.

3 Features to Consider for the Best Cannabis Bar Experience

SCLs are driven by the laws that govern their operations. Because of this, a cannabis bar in one city might look completely different than one even a few miles away. Customer experience is the common thread that holds these diverse businesses together, which must be considered well in advance before opening the doors for business.

Open Social Space

Whether a social consumption lounge is able to sell cannabis on-site, or simply offers a staging ground for public consumption, providing an open social space is key to keeping customers interesting and coming back for more. SCLs that function on a membership basis depend on events like live painting sessions, game nights, or educational events to bulwark interest. For this, ample seating and space must be aligned to suit multiple purposes with furniture that can be easily rearranged to suit a variety of purposes.

Offering Multiple Avenues for Entertainment

As cannabis affects each of your patrons differently, providing them with multiple ways to enjoy themselves can lend to a better overall experience. Consider what patrons are interested in doing to pass their time: some might want to chat with friends in a cozy booth, others might want to spend time playing video games or working on projects that interest them. By providing a mixed-use space that speaks to individual needs, you can ensure a happy clientele.

Appealing Visuals

A noticeable trend has emerged among what some experts have dubbed “the experience economy” – 72% of millennials would rather spend their money on events over material goods. What is this demographic looking for from a SCL? A story to share and remember. Providing a consistent and cohesive aesthetic around your SCL allows for your clients to take and share photos, cueing their friends to come visit and drive word-of-mouth advertising.

Carefully consider what story your cannabis bar is looking to tell. The form and function of your space will dictate how patrons interact with your business, and can often be the main selling point that drives revenue.

The History and Future of Social Consumption Lounges

At the beginning of 2020, Alaska announced the first state-issued approval for cannabis usage in retail stores. While some cities have approved such measures historically, this decision marks the first state-issued approvals in the nation. With cannabis legalization emerging as a nation-wide trend, this decision signals the beginning of a new type of consumer experience.

Even in spite of the pandemic, this trend is apparent: in Sesser, Illinois, the state’s first on-site marijuana consumption facility is opening. Due to the limited number of dispensary licenses, the bar in question – the Luna Lounge – is operating as a BYO-style venue where patrons can comfortably consume cannabis.

As gathering restrictions are removed, people will return to public venues. MerJ Architecture understands that the value of a multi-use space like a SCL depends on building an experience that customers will come to love and remember. While our portfolio largely revolves around cannabis facilities design, we have designed recreational camps and retreat centers designed around conversation and collaboration.

Are you looking for an architectural partner for your SCL? Contact us today to learn more about what makes us the experts in cannabis design.