Have you ever wondered what it takes to run a successful cannabis dispensary and lounge?

Today, we have the pleasure of introducing you to Mr. Daniel Chung, a true pioneer in the cannabis industry. Formerly a buyer at Blum Oakland, Daniel has since started his own dispensary and is in the process of opening a lounge. Daniel shared with us his values and unique approach to running his dispensary, and we discussed the process of how brands get their products on dispensary shelves.

As we talked, we explored the challenges that new cannabis brands face in getting their products into dispensaries, as well as the challenges and opportunities that come with owning a dispensary in Oakland. Throughout our conversation, Daniel emphasized the importance of perseverance and resilience in the face of adversity and how these qualities have contributed to his success.

Daniel’s Background

Growing up in a traditional Korean American household, Daniel never imagined he would end up in the cannabis industry. However, after pursuing various jobs and finding himself constantly drawn to cannabis, he realized that this was where his heart was. Despite the taboo surrounding cannabis in his upbringing, Daniel was drawn to the plant and found solace in its use.

After working a series of odd jobs, including working as a teller and personal banker at Wells Fargo and working at a funeral home, Daniel found his calling in the cannabis industry. When he started working at Harbourside, a medical cannabis center, he kept his job a secret from his family for years. But eventually, his passion for cannabis and its medicinal benefits led him to start his own dispensary and lounge, where he could provide quality products and a welcoming environment for people of all ages and backgrounds.

Daniel’s dispensary reflects his values and approach to the cannabis industry. He aims to provide a welcoming and comfortable environment for his customers, and he takes pride in offering a diverse selection of products that appeal to a wide range of people.

From a Budtender to Building His Own Store and Dispensary

As a former budtender at Harbourside, Daniel gained invaluable insights into the cannabis industry and consumer preferences. Serving hundreds of people every day, he interacted with a diverse range of customers, from new smokers to hardcore stoners, college students, veterans, and seniors.

Through these interactions, Daniel gained a deep understanding of what consumers actually want, beyond the marketing hype on social media. He learned that consumer preferences can be different from what is advertised, and that education plays a critical role in shaping these preferences. At Harbourside, he received a top-notch education on genetics, lineages, terpenes, and concentrates, even before they became popular.

He credits Harbourside for giving him a Harvard-like education in cannabis, and for teaching him the ropes of the industry, from accounting to purchasing. He gained a solid foundation in what a dispensary should look like, and he learned about the fierce competition among growers to bring their products to dispensaries.

Daniel’s inspiration

Daniel learned the importance of working with the right people, as he saw the challenges that Steve and others faced from working with the wrong partners. To ensure that he and his team maintained control over their vision, they traveled the country for eight months, interviewing 40 different capital partners, ultimately settling on a local group with strong family values.

Starting a dispensary from scratch is not without its challenges, and Daniel was aware of the risks he was taking in leaving a secure job and prestigious company. He had to plan meticulously and save for three years, all while budgeting carefully and experimenting with profit margins.

Fortunately, as an equity-owned dispensary, Daniel’s team received support from the city and local officials, who were kind and considerate of their needs. The Oakland Police Department also provided excellent service, responding quickly to their requests.

Through his journey, Daniel learned that success in the cannabis industry requires perseverance, hard work, and a willingness to take risks. He hopes that his story inspires others to follow their dreams, even when the path ahead seems uncertain. Daniel’s story shows that success in the cannabis industry is possible with the right guidance, hard work, and a commitment to staying true to one’s values. We hope his story inspires you to pursue your passion and take risks, just like Daniel did.

Discovering the Importance of Investing in Yourself and Taking Risks

Investing in oneself is a concept that Daniel takes very seriously. He believes that relying on others to secure your future is not a sustainable approach, and it is vital to be financially independent. Daniel’s personal experience of being kicked out of college twice taught him the importance of understanding how money works and how challenging it is to make and save money.

As a former teller at Wells Fargo, Daniel observed the struggles of seniors who relied on Social Security or a small pension to make ends meet. This realization made him more conscious of the need to take care of himself and his future.

Daniel also emphasizes the importance of being self-reliant in the cannabis industry. Since banks don’t generally accept cash payments in the industry, there’s no option to save money in a bank account. Farmers bury their money in the ground or hide it in trees, making cash for their retirement.

His experiences have taught him that investing in oneself is crucial. Being self-reliant and financially independent can help secure one’s future, and in the cannabis industry, it is even more important. It is essential to have a solid understanding of how money works and how to save it for the future.

Building a Thriving Cannabis Business as a Minority

After getting kicked out of college twice, Daniel knew that he needed to take control of his future and invest in himself. He worked a variety of odd jobs before finding his passion in the cannabis industry. As a budtender at Harbourside, Daniel had the opportunity to interact with a diverse range of customers and gain a deep understanding of the industry. He eventually became an entrepreneur and opened his own cannabis dispensary, Blunts+Moore, with his business partner, Ricky McCullough.

For Daniel, entrepreneurship was a way to break through the ceiling that comes with a salaried job. As an entrepreneur, there is no limit to what one can achieve or how many income streams one can create. This was particularly important to Daniel as a first-generation American who wanted to take care of his family and provide them with a better life.

The pressure to succeed is not unique to Daniel. As immigrants and first-generation Americans, many of us feel the weight of our families’ expectations on our shoulders. We want to prove that their sacrifices were worth it and that we can build a better future for ourselves and our families.

Entrepreneurship offers a way to do just that. By taking control of our futures and investing in ourselves, we can create opportunities that would not be possible otherwise. We can build businesses, create jobs, and contribute to our communities in meaningful ways.

Of course, entrepreneurship is not without its challenges. It requires hard work, dedication, and a willingness to take risks. But for those who are willing to put in the effort, the rewards can be significant. For him, the rewards have been plentiful. He has built a successful business, created jobs, and become a leader in his community. He has also been able to take care of his family and make them proud.

Practical Advice for Brands

When trying to get their brand into a store, the owner should make an effort to negotiate with the buyer. They should know the ins and outs of their business and be willing to show up to the store and wait for the buyer if needed. However, this may not be the best tactic as many buyers would feel pressured or uncomfortable. Instead, a better approach would be for the owner to go into the store as a customer and understand the menu and where their gaps are. They can then see if their portfolio has anything that can fill those gaps. This shows that they are looking to synergize with the store rather than just force their product onto the shelves.

Brands that are equity, women-owned, or LGBTQ-owned are given a chance at this particular store. However, many of these brands struggle due to high costs or a lack of diverse products. With bigger brands, the store expects cross-marketing, staff samples, and promotional items. New brands are asked what makes them different from the ones already on the shelves. If they can’t tell the buyer why their product is better, it’s an uphill battle. Dropping the price may be the only option, but it’s a race-to-the-bottom kind of mentality. 

Getting on the shelf is only half the battle, as getting customers to buy the product is the other half. When vendors come in and compare their products to other brands, it’s not realistic as bigger companies have unlimited resources and marketing. The best approach is to offer a product that fills a gap in the store’s menu and to show that they are willing to work with the store rather than compete with other brands.

How can a Brand Secure a Spot in a Store like Rootd 510?

For newer brands, the expectation of making it onto dispensary shelves and gaining customer recognition is a long and difficult journey. Established brands have already had a foothold for years, and they have a much deeper understanding of the market and its trends.

One of the key differences between newer and established brands is the way they approach their business. Established brands are not just focused on the retail market, but are also involved in meeting with breeders, predicting market fluctuations, and staying ahead of trends. They have built up enough data and knowledge to understand these cycles, while newer brands are still trying to navigate and understand the market.

But even established brands can’t rely solely on their reputation and history. They have to continue to innovate and differentiate themselves from the competition. When buyers are considering which brands to bring onto their shelves, they are looking for something unique and compelling. One key question that is always asked is, “What makes your brand different from everyone else?”

Brands cannot simply rely on vague or unrealistic answers like “We’re the best” or “Our product is amazing.” Instead, they must provide real and tactical answers that show their unique selling points. This could be proprietary genetics, a focus on specific cannabinoids like CBN, or other standout features that set them apart from the competition.

In this ever-growing and competitive industry, it’s important for both established and newer brands to understand the challenges they face in securing shelf space and customer recognition. By staying informed and continually innovating, they can differentiate themselves from the competition and carve out a place for themselves in the market.

How Root’d 510 Selects Brands for Their Dispensary Shelves?

Root’d 510 is a unique dispensary that values equity and diversity in its product selection. They prioritize brands that are equity-owned, women-owned, or LGBTQ-owned, as they believe in supporting underrepresented communities. However, they also consider other brands, as long as they offer a diverse range of products and can explain what sets them apart from the competition.

When it comes to larger brands, Root’d 510 expects cross-marketing and promotion items, but they won’t tolerate companies trying to leverage demos as discounts. They understand the importance of competition and recognize that no one company can monopolize the market.

When new brands try to get on their shelves, Root’d 510 considers what gaps they have in their product selection and if the brand can fill that gaps. They want brands to come to them with a unique value proposition and something that differentiates them from others in the market. It’s not just about getting on the shelf but also getting customers to buy their products.

In terms of setting up meetings with the store, vendors should avoid waiting around the store as it can make buyers feel pressured. Instead, vendors should try to schedule an appointment in advance or show up as a customer and study the store’s menu to see where their product can fit in. Root’d 510 also appreciates when vendors bring food for their staff, as it shows appreciation and makes a positive impression.

At the end of the day, Root’d 510 understands that the battle for the shelf is competitive, and established brands have the advantage of being in the market longer. However, they’re always open to giving new brands a chance, especially if they offer something unique and can fill a gap in their product selection.

Should Larger Cannabis Brands Pay for Shelf Space?

Daniel explains that he initially thought about the idea of larger brands paying for shelf space, but he ended up doing some calculations and realized that it made more sense to offer a set percent discount on his overall order. This allowed him to have a more competitive pricing standpoint in Oakland, where he is based. He notes that he currently sells some products at the cheapest prices in the area, such as Hiva and Wilds, and $10 flower rates.

Rather than just taking money like a landlord, Daniel prefers to have a partnership relationship with the brands he works with. He values exclusivity, monthly demos, and promotions that other stores don’t offer. He believes that this approach is more beneficial for both parties in the long run, as it fosters better relationships with the brands.

Daniel also discusses the partnership display wall at his store, which features custom-built cubbies for brands to display their products. He regularly swaps out the brands to keep things fresh and interesting for customers. Overall, he emphasizes the importance of treating his relationship with brands as a partnership, as long as they treat him the same way in return.

Choosing the Right Capital Partner

When it comes to soliciting investment, it’s important to be mindful of who you’re taking money from. Daniel, in his experience, always kept in consideration what kind of people the investors were and how they made their money. He stayed away from investors who had shady backing or were just money-hungry people. 

Additionally, Daniel and his team avoided Canadian stock money as well, as many companies that they talked to that were backed by Canadian stock money no longer existed a few years later. It’s important to be wary of over-promises when taking money too. Daniel’s team has been all over the country searching for a capital partner and ended up working with the people who owned their distribution warehouse. 

The owner of the company, Damien McKinney, had a family-oriented mentality and even donated money to churches and schools, which aligned with Daniel’s vision of wanting to make the world better, not just make more money. Overall, it’s crucial to consider who you’re taking money from and whether or not their values align with your own.

To Learn More about Daniel Chung and his journey to success, check out the full episode:

Where to contact Daniel Chung?

If you’re interested in reaching out to Daniel and his store, Root’d 510 for business inquiries or vendor partnerships, you can contact them through their website at www.rootd510.com. 

Daniel also has an active presence on social media, including Instagram and Linkedin, where you can stay up-to-date on Root’d 510 updates. Additionally, if you’re in the Oakland area, you can visit their physical storefront located at 2932 Adeline St, Oakland, CA 94608.

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