Interviews
Kathryn Blackwell, Co-Founder & CEO, Open Dør Dispensaries- Interview Series
The key areas that can be detrimental to new operators and their projects are real estate and zoning, compliance and regulations, and operational best practices for a cannabis retail operation.
Kathryn Blackwell- Open Dør Dispensaries
The failure rate of the cannabis business is about 40%, which is not bad for such a nascent and highly regulated industry. But considering the huge startup costs of most cannabis businesses, one would rather be in the 60% and not the 40%.
While common in other industries, franchising is a new business model for the cannabis industry. Taking up a franchise will increase the startup cost of a cannabis dispensary but at the same time, it takes the guesswork out of rolling out a dispensary and significantly bumps up chances of success. But as we all know, achieving success with franchising is not a walk in the park, but it can be done. So, what’s the secret?
To get an answer to this question, we picked the brain of none other than the franchising maestro herself: Kathryn Blackwell.
Meet Kathryn Blackwell
As an intro, how did your career path lead you to cannabis retail?
I’ve always been an entrepreneur at heart. My first endeavor was a juice bar concept inside health and racquet clubs. It quickly gained popularity and we grew it into a chain of stores in regional shopping centers and health clubs. This is where my passion for franchising began. My next business was co-founding Kahala Corp, one of the largest international QSR franchise companies that owned brands such as Cold Stone Creamery, Blimpies Salads, and Subs, TacoTime, etc.
Fast forward twenty-five years, I was visiting Washington, which is a legalized adult-use state. I decided to visit a dispensary, but really had no idea where to begin with this new experience, and had no idea as a customer, what to expect when I arrived. I drove up to two different dispensaries during my search and didn’t feel safe or comfortable actually going in. Other locations were either very clinical, or the exact opposite, and seemed ill-informed or disinterested in what I was looking for. This is where the idea of The Open Dør began. I saw the opportunity to bring proven franchising tools and organizational tactics to cannabis. When I got back to Arizona, I began researching the industry and met Bryan McLaren, CEO of Zoned Properties. He thought my idea for a dispensary franchise was much needed in the industry. He introduced me to my co-founder, Chelsea Mulligan, and from there we began to build the brand.
Help us understand the learning curve of dispensary operations
When on the journey alone, cannabis dispensary operators experience a rollercoaster of emotions. This can include overwhelming fear about how to enter a new industry on their own, questions about how to follow broadly defined regulations, all while launching a new business.
Even if an operator has background knowledge and experience in retail, there are so many obstacles when it comes to cannabis regulations and being prepared to operate within compliance.
The Open Dør Dispensaries concept takes traditional franchise tactics and brings them into the cannabis industry to help minimize risk, maximize value, and build consumer confidence. Franchisees are given the support, training, and resources needed to mitigate risk and bypass the learning curve of the complexities of launching a cannabis dispensary project.
The key areas that can be detrimental to new operators and their projects are real estate and zoning, compliance and regulations, and operational best practices for a cannabis retail operation.
Could you furnish us with some insights on consumer spending patterns in the cannabis industry
We’ve always seen that flower is the highest selling product in dispensaries. Last year concentrates and vapes accounted for a large portion of consumer spending with edibles, oils, extracts, and tinctures next. In 2022, it is predicted that THC-infused beverages will be on the rise for consumer purchases.
We are also seeing an increase in the adoption rate among older demographics which shows that the stigma of cannabis is decreasing. This could also be attributed to the increased number of states with legalized adult-use cannabis sales.
The black market; how does this affect legal cannabis dispensaries and is this something that is likely to go away in the near future?
The black market will always be around, but for the majority of customers, this will not be their source for medical or recreational cannabis. Many customers would prefer to go to a clean, safe, and welcoming environment where they can learn what types of cannabis products will help them with their needs, and know that the products are not only safe but are also the best quality available in the market.
This is a prime example of why Open Dør Dispensaries operations and training are so sought after. This experience creates a traditional retail experience in the cannabis industry.
For a new cannabis franchise, what does it take to provide a consistent customer experience?
Just as mainstream retail would do, it is important to maintain a consistent brand, quality products, and an excellent customer experience for those that visit your store. Each independent Open Dør Dispensaries location can be localized through the products, interior decor pieces, and community partnerships. The consistency will be evident through the training manuals, standard operating procedures, and employee relations standards that our corporate executive team has created.
Our hope and goal for Open Dør Dispensaries are to provide the marketplace with something that is not available at MSO retail chains to date:
- Empower independent operators to succeed in retail operations, by using our best practices and business purchasing power through a franchise.
- To allow the franchisee to succeed and continue to build the diverse network of market operators, rather than cannibalize them into a single corporate organization.
- Create a brain trust of diverse operators.
In a nutshell, what does it take to succeed as a cannabis franchise?
At the end of the day, we are taking the complexity out of cannabis dispensary operations for our franchise dispensary owners and customers. Open Dør Dispensaries is also creating less risk for cannabis industry investors. All of this is done by providing a modern cannabis retail model with a turnkey approach so that license holders and operators get to market faster and with more efficiency.
Thank you for the great interview, readers who want to learn more about the products that are offered should visit Open Dør Dispensaries.
