Cannabis experts weigh challenges, opportunities in growing NY market

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Ryan Martin admits getting a retail cannabis dispensary operational is no easy feat. 

“There have been many challenges,” said Martin, owner of MJ Dispensary in Henrietta. “But I couldn’t be happier with the results.” 

MJ Dispensary was the first cannabis retailer to open in the Rochester area, but the process took more than 18 months — a stretch during which Martin was responsible for rent and other expenses with no revenue coming in. 

Since opening in December 2023, the business has found its footing. Employment has grown to 23 workers from 13, and the dispensary has expanded its vendor network to 100 from 40. Martin also is preparing to launch a second location in the Rochester area. 

While challenges remain—among them strict advertising restrictions, diligence in product ordering and employee retention — Martin credits product variety, a focus on customer education and strong business advisors for the company’s early success. 

“Surround yourself with people you trust,” he said. 

Martin shared his perspective during the RBJ/Daily Record’s recent virtual panel discussion on the business of cannabis, sponsored by Harris Beach Murtha. 

The panel also featured: 

• Will Brophy, chief operating officer at Nabis 
• Jason Klimek, partner and co-leader of the Cannabis Industry Team at Harris Beach Murtha, and 
• Sade McCallan, manager of Emerging Initiatives at the city of Rochester.

Brophy discussed the complexities of the cannabis supply chain.  

Nabis, a licensed wholesale platform, operates its main New York fulfillment center in Rochester. He likened the supply chain to a negotiating table with different parties, such as retailers, distributors and processors — all with competing needs.  

Retailers often prefer smaller, flexible orders, while processors, having invested heavily in infrastructure, push for larger runs to maximize efficiency, he noted.  

Brophy noted that retail in New York is still limited. 

“Every region counts,” he said.  

Despite the challenge, Brophy said he is bullish on the cannabis market in New York.  

“Tensions aren’t going away, but these competing needs may be the energy source that keeps the market evolving,” he said, adding there is an opportunity to “embrace the challenge and use it as a catalyst to innovate and set the industry up for success.” 

Klimek outlined legal issues shaping the industry, particularly those affecting dispensary real estate.  

More than 150 dispensaries across New York — including some in the Finger Lakes — are impacted by the state’s revised interpretation of the 500-foot buffer between dispensaries and schools.  

Some operators are suing the state over the matter, and Klimek noted that the dispute may ultimately need to be resolved by lawmakers. 

“We are finding that retail property is a flashpoint with cannabis right now,” he said. 

McCallan highlighted Rochester’s municipal cannabis program and the disconnect between state and local licensing.  

The state does not notify the city when an applicant is awarded a provisional license for a dispensary, she said. 

That can slow down the process of opening when it comes to the city’s end, she added, noting obtaining certificates of occupancy may take 30 to 90 days to obtain and is followed by the business permitting process. 

Her role, McCallan explained, is to help applicants complete the city’s requirements. To meet that goal, she works collaboratively coordinating with other departments and community education partners. 

“I love to see everyone come together, get started and create something,” McCallan said. 

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