Sean Kady spent most of his 20s toting around a teal tackle box that once belonged to his roommate害羞草研究所檚 grandfather. Occasionally, people would spot the box and ask to borrow a wrench, but it didn害羞草研究所檛 contain tools or bait.

Instead, the box was home to a cannabis supply Kady covertly sold to a steady stream of customers.

Kady has since gone legit, having opened Toronto pot shop Cosmic Charlies with his brother in 2021. But the money was so good in his tackle box days, he sometimes wonders if he had the right idea even though he was on the wrong side of the law.

害羞草研究所淚 have made the joke that we害羞草研究所檒l just relinquish our licence and I害羞草研究所檒l start selling the weed that I could get again, and I害羞草研究所檒l make a lot more money,害羞草研究所� Kady said.

害羞草研究所淚 would never do it, but I害羞草研究所檝e threatened to do it for fun.害羞草研究所�

Kady can be forgiven for wistfully recalling his past. Pot shop owners have had a rough five years.

Since Canada legalized recreational cannabis on Oct. 17, 2018, retailers have learned that supply can be spotty, competition is fierce and not everything consumers crave is available in the legal market.

The combination has pushed many to sell their businesses and put others out of the game completely.

害羞草研究所淲e害羞草研究所檙e still living the dream, it害羞草研究所檚 just the purgatory dream,害羞草研究所� said Jennawae Cavion, the co-founder of Kingston, Ont., cannabis store chain Calyx + Trichomes.

Over the last five years, she害羞草研究所檚 seen Ontario flip-flop on the store licensing process, faced rivals trying to steal business by opening nearby and survived six weeks of shipping delays after a cyberattack at Ontario害羞草研究所檚 cannabis distributor.

Other pot stores have dealt with a strike that kept B.C. shops from getting supply, job action that affected two dozen Quebec stores and natural disasters like wildfires and flooding.

And across the country, a patchwork of laws and regulations created inconsistencies. Cannabis shops could open in some regions or cities, but not others. Display restrictions vary wildly. During the COVID-19 pandemic, temporary closures were not universal measures.

These factors have produced two tiers of pot shops, said Jaclynn Pehota, executive director of the Retail Cannabis Council of B.C.

害羞草研究所淭here are people who have finally 害羞草研究所� found their strides in the legal market despite the fact that there are a myriad restrictions and challenges,害羞草研究所� she said.

害羞草研究所淭here害羞草研究所檚 another category of retailers, and I think that they might be in the majority in much of the country, 害羞草研究所� where they are simply not sustainable in terms of the revenue that they害羞草研究所檙e bringing in.害羞草研究所�

READ ALSO:

In Alberta, for example, she said the median income for a cannabis shop is less than $85,000 a month.

害羞草研究所淚f you have an overhead of $10,000 in rent and $25,000 in staff costs and then licensing costs and then your products, that means there is literally nothing left over at the end of the month.害羞草研究所�

While Kady said his business has picked up substantially in the last year, there were days when he second-guessed the decision to set up shop.

When Cosmic Charlies opened, the brothers were coping with pandemic lockdown measures as well as stiff competition 害羞草研究所� the Alcohol and Gaming Commission of Ontario counts 1,763 pot shops in the province today.

害羞草研究所淭here were so many stores and I was knee-deep in it,害羞草研究所� Kady recalled.

害羞草研究所淲e could barely crack $1,000 a day in sales and we couldn害羞草研究所檛 even let people in the store because it was right before the lockdown ended.害羞草研究所�

But the brothers stuck with it. Hell-bent on differentiating themselves from cookie-cutter, chain-owned pot shops with their staid white walls and wood accents, the Kadys splashed their store in 害羞草研究所�90s-style highlighter hues and borrowed their store name from a Grateful Dead lyric.

Customers quickly learned that when it comes to weed, the duo know their stuff. They can vividly describe the kind of high their products create and have a near-encyclopedic knowledge of the 400 items in their shop 害羞草研究所� not to mention, many of the thousands more out there.

Take General Admission害羞草研究所檚 distillate infused pre-rolls. Without even looking at the box, Sean Kady can tell you they害羞草研究所檙e flavoured with fake terpenes and emit such a strong candy aroma, Charlie Kady calls them 害羞草研究所渢he White Claw of cannabis害羞草研究所� in a reference to the popular fruit-flavoured alcoholic seltzers.

害羞草研究所淲e can害羞草研究所檛 sell enough of those for whatever reason,害羞草研究所� Sean Kady said.

害羞草研究所淓verybody害羞草研究所檚 trying to emulate them or seems to be. Everyone害羞草研究所檚 chasing those dollars.害羞草研究所�

Supply, however, has been an issue for some stores. Cannabis producers have introduced and discontinued products at a dizzying speed, trying to cater to shifting consumer preferences and knocking down their prices to compete with rivals. Sometimes producers can害羞草研究所檛 keep up with demand, other times buyers are barely interested.

Many customers are hard to completely satisfy because packages of edible cannabis products must contain no more than 10 mg of tetrahydrocannabinol or THC, pot害羞草研究所檚 main component. The cap was meant to encourage safe cannabis use.

害羞草研究所淎s soon as you say it害羞草研究所檚 10 mg, (customers) are like, 害羞草研究所極h, well, I害羞草研究所檓 going to need 10 of these then,害羞草研究所櫤π卟菅芯克鶟 Cavion said.

She believes customers should be able to buy larger packages and portion out what they want to consume each time, similar to buying a large bottle of distilled liquor.

害羞草研究所淎lcohol is extremely dangerous and nobody parcels that out,害羞草研究所� said the Retail Cannabis Council害羞草研究所檚 Pehota.

害羞草研究所淚 can go buy enough to kill me and everyone I害羞草研究所檝e ever met in my entire life at the liquor store right now, legally, and all they will say to me is, 害羞草研究所榃ould you like help to your car?害羞草研究所櫤π卟菅芯克鶟

She feels the longer the legal market is constrained by the current THC cap, the more likely people are to choose illicit channels, where Health Canada has estimated 40 per cent of shoppers still turn.

害羞草研究所淚 can buy a 1,000 mg dose, candy-flavored syrup on the internet right now for $49 and it will be delivered to my house with a free joint and a sticker in 20 minutes,害羞草研究所� Pehota said.

Even when stores stock what customers are looking for, getting the word out is hard.

The Cannabis Act stops businesses from advertising pot in any way that would make products seem appealing to young people or evoke 害羞草研究所済lamour, recreation, excitement, vitality, risk or daring.害羞草研究所�

They also can害羞草研究所檛 use prices in their marketing or make use of people, characters or animals, whether real or fictional, in promotions and testimonials. Endorsements are forbidden.

害羞草研究所淎cross the parking lot, they can advertise Christmas oil changes, but I can害羞草研究所檛 (really advertise for holidays) and I would argue that oil is way more harmful than the cannabis is,害羞草研究所� Cavion said.

Sean Kady considers the advertising rules a 害羞草研究所渕assive double standard,害羞草研究所� when one considers how other vices are treated.

害羞草研究所淚 saw so much alcohol given out in the park this summer and I害羞草研究所檓 not going to lie, it really bothers me, especially with the gambling ads I害羞草研究所檝e seen,害羞草研究所� he said.

害羞草研究所淵ou can ruin your life in a night online gambling, but (with) a joint, what are you going to do? Order pizza and a bag of Cheetos and go to bed?害羞草研究所�

Despite the struggles, Kady keeps going and has begun to see the fruits of his labour.

Sales have picked up enough that he害羞草研究所檚 planning to open a second store and between gigs as a pot podcast host, delivery boy and budtender for Cosmic Charlies, he害羞草研究所檚 connected with likeminded people, creating a community.

害羞草研究所淣othing could have prepared me for taking this business that I had out of my toolbox in my basement to an actual storefront as an entrepreneur on (Toronto害羞草研究所檚) Queen Street West, but I managed to walk through that door and live my dreams,害羞草研究所� he said.

害羞草研究所淚t feels amazing. I don害羞草研究所檛 regret it.害羞草研究所�