Explore how to set up a cannabis dispensary

Cannabis retail isn’t one-size-fits-all. Some dispensaries thrive with quick, no-fuss counter service, while others embrace hands-on shopping, high-tech kiosks, or even on-site consumption lounges. And with delivery reshaping the landscape, the way customers shop is changing fast.

Finding the right sales model—or mix of models—can set your dispensary apart, making shopping seamless, boosting efficiency, and keeping customers coming back. So, how do you decide what works best for your space, your market, and your goals? Let’s dive in.

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Understanding Your Dispensary's Retail Floor

Your retail floor model depends heavily on the layout of your dispensary. Consider the following:

  • Inventory: Where will inventory be kept? How are new orders communicated and packed?
  • Reception Area: Do you have a designated check-in space? When will a customer present their ID and to whom?
  • Sales Floor: How many people can comfortably fit inside?
  • Delivery Operations: Is your license delivery-only or can you offer a hybrid model?
  • Pickup Orders: How are they fulfilled? Can customers skip the line for pre-orders?
  • Ordering Process: Do you have floating iPads and dedicated staff for order creation?
  • Register Setup: How many cash registers are needed?
  • Browsing Options: Do you use TV menus, kiosks, or display cases?

Retail Hardware Essentials

  • Check-In Devices: For ID verification and monitoring entry.
  • Ordering Equipment: Floating iPads, kiosks, and digital menus.
  • Order Fulfillment: Registers, scanners, packing stations, and payment processing devices.
  • Labeling Tools: Printers for compliant product labeling.
  • Delivery Dispatch: Dedicated computers for dispatchers to manage routes.

The Core Sales Models for Cannabis Dispensaries

1. Traditional Counter Service

This familiar model prioritizes simplicity, with budtenders behind counters managing transactions.

  • Intake: Customers check in with security, reception staff, or at the counter.
  • Sales Area: Customers browse display cases or TV menus then order at the counter.
  • Inventory: Products are stored behind the counter on the retail floor.
  • Pros:
    • Lower staffing requirements
    • Secured inventory reducing opportunities for theft
  • Cons:
    • Risk of bottlenecks during busy hours
    • Visible, long lines and associated wait times may deter customers
    • Limited customer experience centered around waiting in line
Classic Cannabis Dispensary Counter Service Setup
Erb & Arbor embraces the traditional counter service model, where customers browse products on a TV menu or in display cases before placing their orders with a budtender at the counter.

Where It’s Popular:

  • Established medical and recreational dispensaries in older markets like California: These stores often have deeply rooted customer bases who are familiar with the counter-service model. With products stored securely behind the counter, staff can guide newer customers while efficiently serving regulars who know what they want.
  • Smaller build-outs in New Jersey & New York: This model works well in dispensaries with constrained square footage, as product inventory can remain behind the counter maximizing available retail space.
  • Markets with educated customers who value fast, efficient transactions: In areas where customers tend to have product knowledge, counter service allows for streamlined operations with quick, direct transactions. Budtenders can still provide education when needed but aren't required to engage deeply with every customer.

Why It Works:

Counter service is ideal for dispensaries that want to maintain tight control over inventory while delivering personalized service when necessary. It balances efficiency with the ability to build customer relationships, especially when staff can identify which customers want a quick checkout versus those who appreciate longer conversations.

CASE STUDY: Elevate x Meadow Discover how Elevate’s team optimized inventory, delivery, and in-store sales using Meadow’s integrated tools. Keep reading here.

2. Assisted Self-Service (Open-Floor Model)

In this model, customers browse the retail floor independently and bring their selections to the register for checkout. Staff are available to assist if needed.

  • Intake: Customers check in with security or reception staff before entering the retail floor.
  • Sales Area: Products are displayed on the sales floor, and customers can pick up items to bring to checkout.
  • Inventory: Live products are accessible on the retail floor.
  • Pros:
    • Engaging, self-guided shopping experience
    • Fewer staff required compared to traditional counter service
  • Cons:
    • Requires well-trained staff to manage customer flow
    • Increased opportunity for theft

Open-Floor Cannabis Dispensary with Self-Guided Shopping

Off the Charts utilizes the open-floor model, where customers browse live product displays in a dispensary designed for hands-on shopping and discovery.

Where It’s Popular:

  • Dispensaries in modern markets like California: Retailers in these states are increasingly adopting open-floor models to mimic the intuitive, interactive experiences found in mainstream retail. Customers appreciate the freedom to browse products directly, while staff remain available to assist when needed.
  • Stores with a hands-on, discovery-focused approach: This model appeals to customers who enjoy physically interacting with packaging and seeing products up close before purchasing. The tactile experience helps build trust and can lead to higher impulse purchases.
  • Dispensaries with extensive product menus: With products already on the sales floor, large menus are easier for customers to navigate visually rather than relying on digital menus or budtender explanations. Thoughtful product grouping and clear signage can significantly improve the shopping experience.

Why It Works:

The assisted self-service model empowers customers while giving dispensary owners more flexibility with staffing. Products displayed on the floor help demystify cannabis, especially for newer customers, while seasoned consumers can quickly find and purchase their favorite items without waiting for an available staff member. Inventory visibility increases sales opportunities, while clear product groupings and signage help maintain an intuitive flow.

How Off the Charts Opened 30+ Locations in 2 Years with MeadowMeadow partners with Off the Charts who has opened over 30 locations--each with a unique retail floor model tailored to its market. Discover their approach here.

3. Floating Budtender Model (Apple Store Style)

This model resembles the Apple Store setup, where staff use tablets to place orders, which are then packed in the back.

  • Intake: Optional check-in area; customers may walk in freely. Customers are checked in via iPad when they engage with the budtender.
  • Sales Area: Customers are assisted by staff using floating iPads to take orders.
  • Inventory: Products are stored in the back and retrieved by an inventory team for fulfillment using an Order Packing Station.
  • Pros:
    • Personalized, guided experience
    • Efficient order fulfillment for high-traffic stores
  • Cons:
    • Requires extensive staff training
    • Less tactile product interaction for customers
Cannabis Dispensary with Floating Budtender Service
iLyfted uses the Floating Budtender model, where expert budtenders roam the sales floor with iPads, guiding customers to the perfect products. Orders are placed on the spot, sent to the back for fulfillment, and seamlessly paid for at checkout.

Where It’s Popular:

  • Retailers prioritizing personalized, guided shopping experiences: This model shines when customer education is a core value. Budtenders can move freely around the store, answer questions on the spot, and initiate orders while building rapport. The back-of-house team handles fulfillment, ensuring smooth transitions from product selection to checkout.
  • High-end, design-forward dispensaries: Dispensaries looking to create a sleek, modern shopping environment often favor this model. It allows for spacious, minimalist floor designs without the clutter of multiple counters, contributing to a premium, concierge-like feel.
  • Newer markets where customer education is critical: In emerging markets like New Jersey or New York, customers may need more product guidance. Floating budtenders can support those unfamiliar with product types, dosing, or consumption methods while still maintaining efficient order flow.

Why It Works:

The floating budtender model combines personalized service with operational efficiency. Orders are taken via tablet on the floor, sent directly to the back-of-house team for fulfillment, and then retrieved and brought to the register for checkout. This setup reduces wait times, increases customer engagement, and supports higher throughput without sacrificing the customer experience.

💡 Don't let staff training keep you from utilizing the floating budtender model. Brush up on your Budtender Training Best Practices for your Dispensary here.


4. Self-Serve Kiosks

Kiosks allow customers to browse menus and place orders independently.

  • Intake: IDs checked by security or staff.
  • Sales Floor: Kiosks offer interactive menu access.
  • Inventory: Orders print to the fulfillment area for packing.
  • Pros:
    • Shorter wait times
    • Lower staffing needs
  • Cons:
    • Requires user-friendly interface and clear signage
    • Requires regular menu management
Cannabis Dispensary with Self-Order Kiosks
S.W.E.D. enhances the traditional counter-service experience by offering kiosk menus alongside the customer queue. With products stored behind the counter, these kiosks help shoppers browse and plan their orders while waiting, making the process smoother without relying solely on kiosks for new orders.

Where It’s Popular:

  • New Jersey dispensaries leading in tech adoption: New Jersey has become a hub for self-serve kiosks as dispensaries look to streamline operations and accommodate tech-savvy customers. Kiosks reduce wait times by allowing customers to browse menus, place orders, and even pay without budtender assistance.
  • Retailers with expansive product menus: For dispensaries carrying extensive inventory, kiosks simplify the browsing experience. Interactive menus with filters for product type, potency, and effects help customers navigate options quickly and independently.
  • Cannabis stores with limited staffing resources: Kiosks enable dispensaries to maintain high service levels without significantly increasing headcount. One staff member can oversee multiple kiosks, assist as needed, and step in for customers unfamiliar with the technology.

Why It Works:

Self-serve kiosks empower customers while boosting operational efficiency. They accommodate tech-friendly consumers who prefer independent shopping and provide a familiar experience akin to ordering at quick-service restaurants. For dispensaries, kiosks increase throughput, reduce labor costs, and offer valuable insights into customer preferences through built-in analytics.

💡 If you're integrating tech into your dispensary operations, don’t forget to include daily maintenance in your Standard Operating Procedures. To help streamline essential tasks, we’ve put together SOPs for opening and closing your dispensary—ensuring smooth, efficient workflows from start to finish.


Cannabis Delivery Models: Expanding Access Beyond the Storefront

Cannabis delivery has grown significantly in recent years, offering new ways to meet customers where they are. Depending on your license type, market regulations, and operational capacity, delivery can become a key sales channel to extend your reach beyond the physical storefront.

Common Delivery Models to Consider:

  • Hub-and-Spoke Delivery: Centralized inventory hubs serve multiple delivery zones, increasing operational reach and efficiency. Ideal for markets like California and Michigan with expansive delivery service areas.
  • Dynamic Delivery (Ice Cream Truck Model): Mobile delivery vehicles carry inventory and fulfill orders on demand based on customer proximity. This model is particularly popular in California, where regulations support location-based menus and rapid fulfillment.
  • Hybrid Model: Combines elements of both hub-and-spoke and dynamic delivery, offering flexibility to handle scheduled deliveries and on-demand orders simultaneously.
Omnichannel Cannabis Retail with In-Store & Online Shopping
Bored N Stone exemplifies the power of omnichannel cannabis retail, seamlessly blending in-store ordering with kiosk support, traditional counter service, and both standard and express delivery. Backed by Meadow, they offer a fully integrated shopping experience that meets customers wherever they are. 🚀💨

Where It’s Popular:

  • California pioneered dynamic delivery and remains a leader in the space.
  • New York, Michigan, and New Jersey are seeing increased adoption as regulations evolve to accommodate customer demand.

Key Considerations:

  • Not all states allow for dynamic or hybrid delivery models; retailers should consult local regulations before investing in delivery infrastructure.
  • Delivery success depends on efficient inventory tracking and order fulfillment, both of which Meadow’s delivery features help manage seamlessly.

💡 Thinking about launching cannabis delivery? Whether you're in California, New York, New Jersey, or Michigan, setting up a compliant and efficient service requires the right licensing, logistics, and strategy. Our step-by-step guides break it all down so you can hit the road with confidence.


Cannabis Consumption Lounges: Creating Immersive Retail Experiences

In markets where on-site consumption is permitted, lounges offer a way to build community and extend the shopping experience beyond the sale. These spaces encourage customers to try new products, relax, and engage with the brand in a memorable, social setting.

Key Features of Cannabis Lounges:

  • Intake Process: Guests check in with ID verification to ensure compliance.
  • Sales Model: Customers can purchase products on-site or order from their lounge table with POS-integrated ordering systems like Meadow’s lounge workflow.
  • Experience Design: Seating layouts, event programming, and product sampling can create a unique draw for both locals and tourists.
Social Cannabis Consumption Lounge in a Dispensary
PleasureMed delivers a next-level cannabis experience with a dispensary downstairs for seamless shopping and a consumption lounge upstairs offering curated dining, bud tastings, and product sampling. Whether you're exploring the menu or relaxing with a sesh, their floating budtender model ensures personalized service at every step.

Where It’s Popular:

  • California leads the charge with cities like San Francisco, Oakland, and West Hollywood offering licensed lounges.
  • Michigan and New York are beginning to see momentum as more jurisdictions approve consumption spaces.

Key Considerations:

  • Lounge operations require specific licensing and operational protocols distinct from standard retail.
  • Product menus for lounges often emphasize ready-to-consume items like pre-rolls, beverages, and edibles, which should be reflected in the POS setup.
CASE STUDY:  PleasureMed x Meadow As a trailblazer in the cannabis industry, PleasureMed isn’t just a business; it’s a model for what the future of cannabis consumption could be. Learn more here.

Omnichannel Sales & Hybrid Models: Meeting Customers Anywhere

Omnichannel retail integrates multiple sales channels to give customers a seamless experience whether they’re shopping online, in-store, or via delivery. These workflows are becoming essential as consumers increasingly expect convenience and flexibility.

Omnichannel Options to Consider:

  • Order Online for Pickup: Customers place orders via an online menu and collect their purchases at the dispensary. Express pickup options reduce wait times.
  • Self-Serve Kiosks for In-Store Orders: Kiosks allow tech-savvy customers to shop independently, while freeing up staff to handle fulfillment. Kiosks are also beneficial for customers who can browse while they wait in line.
  • Dynamic Delivery with Online Ordering: Customers can view live, location-based menus and place delivery orders via your website or mobile app.

Choosing the Right Model for Your Business

When selecting a sales model, ask yourself:

  • What experience do you want for customers?
  • What does your physical space allow?
  • Do you want to scale delivery services?
  • What are local compliance requirements?

Testing different models can uncover new growth opportunities. For instance, introducing self-serve kiosks might streamline peak-hour operations, while adding delivery services can expand your customer base without needing a second storefront.


How Meadow Supports Every Sales Model

Meadow's all-in-one cannabis POS system is designed with flexibility at its core. Whether you're opening your first dispensary or adding a new sales channel, Meadow provides the tools you need to succeed.

Key Features:

  • Comprehensive Sales Model Support: From traditional counter service to self-serve kiosks, lounges, and dynamic delivery, Meadow supports every configuration.
  • Real-Time Inventory Management: Instantly syncs inventory across all sales channels to maintain compliance and avoid overselling.
  • Seamless E-Commerce Integration: Menu Pro offers intuitive online menus with delivery and pickup capabilities.
  • Built-In Compliance & Reporting: Direct Metrc integration simplifies reporting and ensures adherence to state regulations across CA, NJ, NY, MI, MA, and DC.
  • Customizable Retail Workflows: Easily adapt Meadow’s flexible workflows to your store's unique needs.
  • Data-Driven Insights: Actionable reports and analytics to optimize performance and grow revenue.

Ready to elevate your cannabis retail operation? Imagine the possibilities when you meet customers wherever they prefer to shop. Schedule a demo today to see how Meadow can help you build a streamlined, compliant, and high-performing dispensary operation across any sales model and market.

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