San Francisco dispensaries struggling as they continue to compete with illegal market – CBS News

The co-owner of a San Francisco marijuana dispensary says it’s a challenge to draw in customers lately.

Nate Haas operates Moe Greens Dispensary & Lounge in San Francisco as co-owner and CEO.

“We’re charging our customers way too much. As a dispensary, it’s tough for us to compete with the illicit market,” said Nate Haas of Moe Greens Dispensary & Lounge.  

That black market includes illegal grow operations, distribution, and unlicensed dispensaries. California Governor Gavin Newsom touted California as the largest legal cannabis market in the world, but licensed cannabis dispensaries are struggling to compete with the black market. 

Meanwhile, a team of law enforcement officers are cracking down on illegal operators. It’s one part of the state’s efforts to even the playing field and cultivate a legal marketplace. 

Kevin McInearny is a commander with the California Unified Cannabis Enforcement Task Force.  

“We exist to specifically deal with the illicit market,” said McInearny. 

UCETF officers raided what they say is an uncommon unlicensed dispensary in downtown San Rafael, serving a warrant, detaining two individuals, and seizing all products. 

“Instead of single dispensaries, our focus is on organized crime. The more significant violations associated with the cannabis market, including labor trafficking tax evasion the weapons charges,” said

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