Consumption lounges are ‘next frontier’ for cannabis industry

Cannabis consumption lounges are redefining hospitality with a buzz-worthy twist.

From yoga sessions with edibles to paint-and-puff nights, dedicated consumption spaces are the next chapter for the cannabis industry, according to Dale Sky Jones, chancellor of Oakland, California-based cannabis education institution Oaksterdam University.

Lounges are “the most exciting frontier for the cannabis industry,” said Jones, who’s leading a roundtable on consumption lounges at MJBizCon in Las Vegas today,

But creating these spaces isn’t just about good vibes.

A successful lounge act will master compliance, safety and customer education to craft an experience as elevated as the patrons themselves.

That can in turn build brand loyalty and unlock new revenue streams.

Crafting the experience – where cannabis meets hospitality

The foundation of a successful consumption lounge begins with the experience it delivers.

Jones stressed the need for thoughtful design, seamless operations and specialized staff training to ensure the spaces are not only compliant with local regulations but also provide a memorable and enjoyable experience for patrons.

From air filtration systems to soundproofing for music venues, every detail plays a role in shaping the customer journey.

“Hospitality is about reducing friction and creating a flow that feels natural,” Jones said. “Whether it’s the layout of a buffet or educating customers about dosing and onset times, every element contributes to the overall experience.”

Staff training is crucial, especially recognizing signs of overconsumption and managing cannabis-naïve customers.

“Most people don’t know their tolerance, and that’s where education and safety come in,” Jones said. “Bars have alcohol management techniques, and we need that for cannabis.”

“We need staff to handle these situations, provide spaces for patrons to rest and hydrate and ensure everyone has a positive experience.”

Cannabis consumption lounge opportunities and challenges

Consumption lounges offer opportunities for businesses willing to innovate. There are comedy nights and music venues and dual-use spaces. The possibilities are endless.

Tribal governments, in particular, have a unique advantage, as they can craft models that integrate cannabis into existing recreational environments like casinos and resorts. NuWu Cannabis in downtown Las Vegas provides an ideal example.

But the challenges are significant.

Compliance remains a major hurdle, with state and local regulations often treating cannabis differently than alcohol. Cannabis businesses are more exposed to legal and insurance risks than establishments that serve alcohol, Jones said.

“We have to be our own advocates,” Jones said, urging operators to prioritize safety and compliance while pushing for fairer regulations. “Insurance hasn’t caught up.”

Public education is another critical area because cannabis is not as well understood as alcohol, Jones said.

“We need to educate not just consumers but also city councils, state governments and regulators to ensure these models are allowed and supported,” she said.

The future of cannabis hospitality

Jones sees consumption lounges as a way to elevate cannabis brands and create new business models.

“The brands that succeed will be the ones that focus on lifestyle and experience,” she said. “You can’t take cannabis across state lines, but you can take the experience.”

She also envisions a future where cannabis is seamlessly integrated into everyday activities, from senior care to dog parks.

“People love to bring their dogs to the park or enjoy a yoga class. Why not add cannabis to those experiences in a safe and responsible way?”

As the industry continues to evolve, Jones urged operators to balance advocacy with responsibility to educate customers and the community.

“By leading with education, safety and innovation, we can show the world that cannabis is a safer, healthier choice,” she said. “This is our chance to redefine what hospitality means. Let’s do it right.”

Margaret Jackson can be reached at margaret.jackson@mjbizdaily.com.