In a historic move for New Jersey's cannabis industry, regulators have officially approved the state's first-ever cannabis consumption lounges. This long-anticipated development marks a major milestone, allowing cannabis users—both medicinal and recreational—to legally consume cannabis on-site at designated lounges, similar to the experience of a coffee shop or cigar bar.
Four dispensaries received approval from the New Jersey Cannabis Regulatory Commission (CRC), including Urban Dispensary in Newark, making it the only lounge location north of Trenton. Dispensary owners across the state celebrated the news, with many calling it a step toward greater normalization and access.
One of the most enthusiastic recipients of the new license is Rames Maximus, owner of Urban Dispensary. He had applied for the license 18 months ago and was stunned when his business was suddenly greenlit. “We were just watching the meeting like we always do, and then they pulled up the screen with the consumption approvals—and we went berserk,” Maximus shared.
Maximus has ambitious plans for his Newark lounge. The buildout will cost between $200,000 and $300,000, with custom glass doors and a state-of-the-art ventilation system. “It’s very similar to a cigar lounge,” he explained, “but with advanced systems to constantly clear smoke, eliminate odors, and maintain air quality.”
The CRC mandates that these lounges meet specific safety and ventilation requirements, and Newark has its own set of local regulations as well. Customers will need a membership or special event access to enter. While medical users may bring their own products, recreational users will be required to purchase cannabis directly from the dispensary.
Despite the high costs and complex requirements, Maximus sees the lounge as a vital opportunity for community engagement and education. “It’s a way to connect with customers on a deeper level—show them how to roll, how to use concentrates, and explain the products face to face,” he said.
While municipalities like Newark have embraced the lounge model, others, such as Jersey City, have delayed approvals despite having applicants ready to launch.
Located just a few miles from Newark Airport, Maximus hopes his lounge might even benefit from the airport’s frequent delays. “We’re not excited for delays, but if people are stuck for hours, at least now they have another option,” he said.
The four dispensaries still need to pass in-person inspections before opening, but the endorsement from the CRC is a promising start. As more municipalities weigh their stance, these first lounges will set the tone for the future of cannabis culture in New Jersey.
