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Grover Beach cannabis shop closes, industry in crisis

June 9, 2023

By KAREN VELIE

A Grover Beach cannabis shop that opened in 2018, 805 Beach Breaks, is now closed. It was the first pot shop in San Luis Obispo County and it’s the first to shut its doors.

Trulieve, a Florida-based cannabis company and the parent company of 805 Beach Breaks, announced the closure of its Grover Beach pot shop last week because of financial concerns. There is a handwritten sign on the front door: “Closed until further notice.”

The closure of 805 Beach Breaks follows the shutdown of Trulieve’s Palm Springs and Venice pot shops. With 185 cannabis stores, Trulieve is the biggest cannabis retail store operator in the country.

At $4 a share, Trulieve’s stock is down by over 92% from its all-time high of $50.42, seen in March 2021.

California’s cannabis industry is in crisis, with pot shops unable to pay their taxes, in debt and closing their doors.

Cannabis retailers are required to collect a 15% excise tax on the sale of all cannabis products. Payments for the first quarter of the year were due on May 1, 2023. However, 265 pot shops failed to make their May tax payments and now face 50% penalties, according to SFGATE.

While hundreds of pot shops struggle to pay their debts, Guadalupe recently approved two applications to open cannabis retail stores in the small Santa Barbara County city.

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They had a terrible business model. The “we’re doing you a favor by being here” attitude doesn’t fly well with stoners. PLus crazy prices, terrible parking, unimpressive product, no deals, etc etc. NHC, with it’s multiple stores, dozens of employees, is currently THRIVING; whether you like it or not!


17

NHC continues to open new stores. And, in Lompoc, several dispensaries are doing just fine, so not sure about the “crisis.” In fact, KSBY ran a recent story about a Lompoc pot shop—it didn’t mention a crisis. The city of Lompoc received $3.4 million in taxes from the industry in the last two years. What crisis? In Grover Beach, NHC simply priced 805 out of business. Better run stores will win every time in a capitalist environment. That’s what we love about America.


3

Another pot shop, just a couple blocks away, seems to be doing really well.

Some businesses simply overextend themselves, or can’t handle the competition.


15

Yet, thousands of Illegal pot grows creating environmental havoc in national forests and BLM lands are still producing “blood marijuana” for the cartels.


42

While I never approved of so-called “legal” pot use, this is another fine example of the government driving businesses into the ground.


Remember, the government could not successfully run a whorehouse that had an liquor license.


64

Safety, NASA and military are gov’t operations. Where has libertarian ideals worked?


-27

And all three are notoriously in the red from overcharging, lack of maintenance support, and massive failure to monitor expenditures to the point of billions of dollars are simply unaccounted for. They operate ONLY because of the annual government budget being increased. The $400 hammer stories didn’t come from fairy tales.


17

“Remember, the government could not successfully run a whorehouse”


It is just that … a rumor, and it isn’t true.


-7

Thats because they only hired friends and family who gave all the product away.


0

New industries always has growing pains. Some will make it and some will not.


-33

Does that not prove the point about government?


After all this time and billions of dollars in sales, the government showed how to run a business into the ground. They got involved in the marijuana business and single handedly brought the industry to its knees in only a few years. Amazing!!


Bravo!


52

Yes, amazing what having overhead can cost a legitimate business.

Remember no one forced them to go legit and charge huge prices for a product you can grow at home in a flowerpot.


24

Up in smoke.


51

Guess they didn’t bribe the right officials to get their taxes waived.


57

That would be reserved for Amazon the largest retailer in the world, no income tax and a low shipping rate via the USPS.


13

Regulated and taxed out of business. High priced license fees and too many taxes. No wonder we don’t have any Mom N Pop pot shops.


47
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