Dispensaries continue to thrive under shelter-in-place orders
SEASIDE, Calif. (KION) Businesses on the Central Coast are suffering under shelter-in-place orders. Many are requesting help from the federal and local governments to stay alive. Marijuana companies don't get the same benefit, so Monterey County is looking to give them a break. But they might not need it.
“I think a lot of people are trying to put their attention on other things," Higher Level Assistant General Manager Alex Ledesma said. "And, you know, cannabis being open—it seems like it may be something people are going to."
Higher Level dispensary in Seaside is considered an essential business. While the shelter-in-place order is still greatly affecting many of the businesses allowed to stay open, they said they're doing well.
“I think it’s mainly people wanting to stock up on products and stay home as much as they can, which is nice," Ledesma said.
Ledesma said the big change he has noticed is in the way that people are shopping.
“We’ve had a massive rise in online orders during this time, which is beneficial for us and for all of our customers," Ledesma said. "You know, we’re trying to practice as much distancing as we can.”
With that rise in online orders, they've had fewer people making in-store purchases. But it's balancing out to what they were doing before the coronavirus.
And Higher Level isn't alone. Despite the pandemic coming at the end of the fiscal year, year end totals might not reflect a drastic change.
“They are doing well. They expect 1.3 million dollars in revenue from FY19 to 20,” Seaside City Manager Craig Malin said.
Malin said that's on par with previous years, if not higher.
But this week, the Monterey County Board of Supervisors will be considering delaying tax payments for cannabis businesses until June. Supervisor Chris Lopez proposed the idea because these businesses "are not eligible for federal assistance or traditional banking relief to survive the crisis."
That tax money would still have to be paid back eventually. But Ledesma isn't sure that they need it.
“I think we’re doing quite well, but like I said, any help is always appreciated in any sector,” Ledesma said.
Dispensaries in Salinas said they're seeing the same trend. They're doing about as much business as they were before the shelter-in-place order.