12 minute read
Knock, Knock
from CCR June 21
Kathryn Blackwell and Chelsea Mulligan co-founders The Open Dør
Knock, Knock…
The cannabis industry is a male dominated industry, so what else is new. It certainly didn’t deter The Open Dør Dispensaries co-founders Kathryn Blackwell and Chelsea Mulligan from jumping into the game. Both will fully admit that they didn’t intentionally set out to be a woman-owned company, their fortunes just drifted that way.
Today, the female owned and operated company is a turnkey franchise dispensary model for cannabis industry enthusiasts who are new license owners, just submitted their licenses or are current dispensary owners. So, in an industry growing like few others, the duo is committed to helping dispensary license owners with every aspect of opening and maintaining their business— from architecture and design, compliance in their legalized state, employee education, and more. We sat down with Blackwell and Mulligan to get a feel for where they think the industry is heading. GIVE US A SNAPSHOT OF YOUR BRAND? The Open Dør Dispensaries is a national cannabis retail franchise offering license holders and industry stakeholders the opportunity to invest in a turnkey dispensary model in legal medical marijuana and adult-use markets. Headquartered in Scottsdale, Arizona, The Open Dør Dispensaries leadership team includes co-founder and CEO Kathryn Blackwell, co-founder and COO Chelsea Mulligan, and Strategic Real Estate Advisor Bryan McLaren. The Open Dør Dispensaries takes the complexity out of cannabis for dispensary license owners, operators and investors.
Through its comprehensive support offerings, the franchise brand provides a national solution for stakeholders to get to market faster, with ease and less financial overage. Our model provides expertise and guidance tailored to the industry’s nuanced regulatory landscape, covering zoning and real estate, state and municipal compliance, and retail operations.
WHAT TYPE OF CONSUMERS ARE YOU TARGETING? We are targeting dispensary license holders and investors who have an equity interest in a license to operate a dispensary. Essentially, we are creating less risk for an investor with our turnkey model because we help the operator get to market faster and with more efficiency. We also can help those that may not yet have a license, but are applying for one with our extensive compliance and licensing team. Our concept takes the complexity out of cannabis for franchise dispensary owners and customers. HOW DOES THE OVERALL DESIGN CATER TO WHAT TODAY’S CONSUMERS ARE LOOKING FOR? The Open Dør Dispensaries design was inspired by our own experiences as new cannabis dispensary customers. We saw a great need for cohesiveness of the sales team, education and overall customer service in many of the dispensaries we visited when legalization first came into play in the states we were in. We included many traditional retail elements into the design of The Open Dør Dispensaries. First, a focus on a welcoming environment and detailed merchandising. An investment in lit shelves for product display and sparkle lighting that is used in a classic retail environment to elevate the showcasing of the products. Creating a plan for the clear pathway and traffic flow of customers enriches the shopping experience. Having a streamlined checkout counter and a sophisticated Point of Sale technology allows customers to check out efficiently and quickly was also important. Lastly, having an efficient floor plan for the back room and a systematic order fulfillment process is a key element to smooth operations for a dispensary. With recreational cannabis becoming more prominent throughout the US, we wanted to cater to new customers who may not have a lot of education or experience on how dispensaries work by creating an inviting environment. Things that weren’t a focus in cannabis before, we are showcasing and perfecting because it is expected from new customers. When a franchisee joins us with their dispensary license in a state with legalized cannabis, they benefit from The Open Dør Dispensaries architectural plans and floor plan layouts, decor packages, access to technology platforms, training materials for staff, marketing programs and co-promotion campaigns with selected brands. We also provide franchisee support with its continued education, benchmark success metrics and on-site compliance guidance.
WHAT ADJUSTMENTS HAVE YOU MADE TO CATER TO TODAY’S SHOPPING LANDSCAPE? One of the most important pieces of our business plan is that we are dedicated to serving the customer. This is not just a friendly smile to us, but also creating an educational environment for our staff so that they are the best resource for customers who visit our locations. There are several areas within the shop that cater to this: Printed and digital product materials, staff members with extended education in and knowledge of cannabis, and dedicated team members who specialize in assisting new consumers to find the products best suited for their needs.
WAS YOUR OPERATION DEEMED ESSENTIAL DURING THE LOCKDOWN? Yes, since many states have legalized medical marijuana, dispensaries were deemed essential during the pandemic in many of those states. From an investment standpoint, being a part of a business that is deemed as essential is always a positive outcome. During the pandemic, cannabis sales also were extremely high because people were locked at home and had more recreational time for adult-use products.
WHAT TYPE OF AREAS DO YOU LOOK FOR WHEN SEEKING STORE LOCATIONS? As a dispensary, we are only of value in legalized states, however we are always keeping a pulse on soon to be legalized markets. It also depends on the type of legalization. For example, a state that has only legalized medical marijuana may not need to be in as high-traffic areas as adultuse markets would need to be to increase shoppers and visibility.
WHAT’S YOUR SHORT- AND LONG-TERM STRATEGIES? We have a roadmap for each state we are focused on for launches. But in cannabis, good entrepreneurs are always ready to pivot. So while we will always keep the same roadmap, we will add new paths and always be ready to add what is needed to best service our franchisees and clients. WHAT ADVICE CAN YOU OFFER OTHER BRANDS ON HOW TO DEAL WITH WHAT HAPPENED IN THE MARKETPLACE? Think ahead and be prepared for the next step in the industry for your market.
WHAT MAKES YOUR LOCATION ENGAGING TO TODAY’S CANNABIS CUSTOMER? Each section—flower, vapes, concentrates, etc.—will have education near it that is interactive. The living wall in the lobby area was designed both for a feel of nature but also to be “instagrammable” and engaging.
WALK US THROUGH HOW AND WHY YOUR SHOP(S) IS DESIGNED THE WAY IT IS? The shop is designed to flow easily and also give each customer the ability to see everything. Our design strategy was to have lots of light, keep it classy, but welcoming with its tones and textures, as well as have some flexibility like the moving podiums and brand highlight area.
GIVE US A RUNDOWN OF YOUR MARKET’S LAYOUT. Dispensaries must adhere to certain standards when it comes to the layout of the store. Customers are allowed into the first part of the store when there is enough capacity. They are in the lobby at this point where a receptionist can check their ID or medical marijuana card. The lobby has menu information, dispensary information and a waiting area. We differentiated our lobby with a larger footprint and a separate window for online order pick-up. When the customer is called into the main store area, they come in through one side that leads them through a sales process. It was important for the retail area to incorporate mainstream retail attributes into the design such as sparkle lighting, marketing ques in different areas, clean lines and not a lot of collateral that we have traditionally seen in dispensaries. Our goal with a minimalist look is to keep the conversation with the budtender or “salesperson” to create a relationship with the customer. This, in turn, lets the customer have a one on one experience to understand about different products and the chance for the budtender to upsell. Lastly, behind the scenes there is another layout specifically for the back storage room. This backroom has education and training areas and is laid out for utmost security. WHAT’S THE BIGGEST ISSUE RELATED TO THE CONSTRUCTION SIDE OF THE BUSINESS? Our biggest hurdle is finding real estate zoned and landlords who will allow a cannabis dispensary to do business in the building. This is why The Open Dør Dispensaries strategically partnered with Zoned Properties, which is a leading real estate development firm for emerging and highly regulated industries, including regulated cannabis. The company is redefining the approach to commercial real estate investment through its integrated growth services.
TALK ABOUT SUSTAINABILITY. Implementing eco-friendly materials where possible, selecting energy efficient equipment, light fixtures and windows when possible.
WHAT TYPE OF OPPORTUNITIES DO YOU SEE MOVING AHEAD? Consumption lounges. With our extensive restaurant background, we would be very interested in creating an inviting and comfortable cannabis lounge and cafe. This is not yet available in all recreational and legalized states, but we are seeing this concept in California and Colorado.
WHAT TRENDS ARE YOU SEEING/EXPECTING? The Open Dør Dispensaries was very aware of trends in both the cannabis and mainstream retail industries, and we were able to incorporate some of these best practices into our plans. Some of the areas that we had focused on were incorporating technology and online ordering/delivery.
WHAT’S THE SECRET TO CREATING A “MUST VISIT” LOCATION IN TODAY’S COMPETITIVE LANDSCAPE? This was a part of why we decided to create The Open Dør Dispensaries. We knew there were missing opportunities from traditional dispensaries that maybe were a part of the
mix, but not necessarily mainstream. With more states becoming legalized, creating a welcoming environment for someone who has not yet experienced cannabis products was first and foremost for us. We also needed consistent and knowledgeable customer experience. Having convenience and options for our customers was also a focus area for our plans. WHAT’S TODAY’S CONSUMER LOOKING FOR? A solid, consistent experience with friendly employees and quality products. Customers are tired of having to drive around town to find the products that they need or want. By having a systematic approach and vetting the products that are in our dispensary, we help customers with all of these pain points. TELL US WHAT MAKES YOUR BRAND SO UNIQUE? We aren’t focused on just the big picture; we are focused on cultivating employees and creating a consistent and warm experience for our customers. Not letting ourselves get in the weeds, but be sure the day to day of each location is consistent, efficient and inviting.
ONE-ON-ONE WITH...
Kathryn Blackwell and Chelsea Mulligan The Open Dør Dispensaries
Describe a typical day. What’s the biggest thing on your to-do list?
Kathryn: It is really important for me to begin my day by clearing my mind. I start each day with some sort of work out; I’m really loving the Peloton app right now and Barre workouts. Being a franchise that has opportunities in every state, I am adamant about reading market updates on legislation, cannabis news and retail news. It is our job to know all of the latest information that is happening in the industry so we can be the support system that’s so needed. We are constantly reviewing new vendors we think may be a fit for our dispensary. Most dispensaries only have to go through the brands that are in their own state, but as a national franchise, we are looking at all US brands that could potentially be incorporated into a new location. Throughout the day, I also have discussions with our corporate team and prospective franchisees that are looking for a partner to help them succeed.
Chelsea: There is never a typical day in cannabis. For me, since I oversee compliance and operations, I am constantly seeing changes to regulations, trends, etc., that I have to begin incorporating into my SOPs and training manuals. Currently, I am heading up a dispensary opening for a license in Phoenix. For a new retail space there are always things that change on the to do list to accommodate.
What’s the most rewarding part of your job?
Kathryn: Knowing that I am utilizing 30 years of experience in retail operations to provide a solution and assistance to help another entrepreneur be successful—all those past headaches were not wasted.
Chelsea: Watching employees flourish in a highly successful company. Sometimes you only see one or the other, so to have high morale and achievements reached is always a plus. I also am always looking for that lightbulb moment when an employee realizes something they were good at. Also, watching them find their why is insanely satisfying and is one of my “whys.”
What was the best advice you ever received?
Kathryn: “If you can turn your passion into a profession—don’t let anything or anyone stop you.” Also, “If you can’t say, ‘Hell yes,’ to an idea, say, ‘Hell no.’”
Chelsea: To always believe that I am a fearless and empathetic warrior. To believe in my strength, my knowledge and to trust my abilities, as they haven’t ever failed me.
What’s the best thing a client ever said to you?
Kathryn: “This (The Open Dør Dispensaries franchise opportunity) is exactly what I’ve needed.” Chelsea: Best compliment would be the client that dubbed me “The Dispensary Whisperer.” Best thing a client has said is when they stated being “Chelsea Compliant” was more stringent than being state compliant.
How do you like to spend your down time?
Kathryn: Down time has been limited lately, but when time allows, I like hiking in the Arizona foothills, cooking together with my kids and extended family, and supporting other women entrepreneurs.
Chelsea: Down time is something that I have had to work at creating. That is something that I have found important and have also instilled in employees that work for me. One of my favorite things to do is just jump on the trampoline with my child. I also enjoy scootering to local restaurants with my husband. I honestly also love working on other projects I have in the fire.
