HotBox Lounge + Shop announces the incorporation of HotBox Holdings Inc., a new organization that will focus on further development of HotBox-branded cannabis and hemp products. HotBox Holdings Inc. will expand on its existing brand by opening seven new Lounge + Shops across Canada and multiple locations in the U.S. through the end of 2019.
Established in 2000 by Abi Roach, HotBox Lounge + Shop is the first of its kind in Canada and the oldest of its kind in North America. Its primary location is situated in Toronto's Kensington Market and is the go-to place for people to consume cannabis on a social level. Since opening its doors 18 years ago, HotBox has served over two million customers, generating a net revenue of over $1.2-million annually in 2017 without the sale of cannabis bud or flower.
"We're incredibly excited to introduce HotBox Holdings Inc.," said Roach. "To say it has been a long time coming is an understatement. We're honoured to continue serving our loyal customers with HotBox-branded goods, and to expand the brand into new markets and product offerings across North America."
In addition to its plans to expand into other major cities in Canada, HotBox Holdings Inc. is also focused on entering the United States and is in the process of obtaining a retail license, opening its headquarters, and launching HotBox-branded media events, hotel and festival activations in Boston, Massachusetts.
"Being in cannabis for 18 years has given us the opportunity to witness the ongoing changes in consumption and the evolution of the space as a whole. We've become a valuable resource centre for the industry," added Roach. "With legal cannabis sales in Canada just around the corner, we are looking forward to partnering with licensed producers to offer hands-on, educated exposure of their recreational brands to our network of users, while establishing ourselves as a trusted source for all-things cannabis-related."
Roach-O-Rama opens its doors: “Serving potheads since, AH… I forget”
Inspired by the normalcy of cannabis in Jamaica Abi opens Hotbox Cafe in the back of the shop: it is the first cannabis lounge in Eastern Canada and is the oldest existing lounge in North America.
The first issue of Spliff Magazine is published. It has since been rebranded as the Hotbox Magazine to further enforce brand recognition.
Hotbox becomes the first lounge to incorporate vaporizers, providing customers with a safer consumption method.
Hotbox Afterdark opens as a welcome alternative to nightclubs for cannabis consumers.
Hotbox Jamaica opens as a “Ganja Hotel”. It is now a Bud & Breakfast complete with Ganja Tours
The Cannabis Friendly Business Association (CFBA) launches to lobby the city of Toronto to allow cannabis lounges. The lobby efforts are successful and cannabis lounges are deemed a responsible option for social cannabis consumption.
Justin Trudeau is elected creating a new frontier in the cannabis industry.
Hotbox Medilounge opens as a temporary full service cannabis social club.
A CFBA policy paper, spearheaded by Hotbox, is included in the Federal Task Force report
Project Claudia results in the raid and closure of 43 cannabis retailers. Hotbox is not raided and serves as a cannabis community centre.
Hotbox branded products start rolling into the marketplace.
Hotbox Homegrown opens in partnership with Homegrown Hydroponics
Hotbox Ganja School starts up in partnership with Sensii Cannabis & Matt Mernagh.
Hotbox lobbies the city to move the issue of lounges from the province to the municipalities. The province of Ontario has moved to include cannabis lounges in its legalization framework. It is now up to each municipality whether or not they will allow consumption sites to exist.
Hotbox Lounge + Shop expansion from North America to the world!
Canadians aged 25-44 who have tried cannabis in their lifetime (Statistics Canada, 2012)
Why is Hotbox successful?
55% Conversion YoY with 60% repeat rate
Current revenue $1.5M YoY
Lounge compliance application in process
Media, Community, Industry Engagement
From young adults to senior citizens Hotbox caters to the diverse range of cannabis consumers.
25-30% of Canadian adults are already regular consumers but this number is projected to go as high as 39% after legalization.
The Kensington flagship store averages 7500 unique sales monthly totaling an average of $125K per month with one brick and mortar location in operation.
We anticipate a 30% annual rise of foot traffic and sales keeping on track with our steady growth trend since 2000.
Currently customers have an average spend amount of $50 per visit but with the potential for sale of cannabis we estimate a rise of 40% in spend value.