Cannabis Meets a Michelin Restaurant. Can this Collab Work?

Famed San Francisco restaurant, Lazy Bear, just launched their own brand of premium sativa flower. They partnered with Sonoma Hills Farm to create Lazy Bear Reserve.

The LB owners spent 3 years pheno-hunting in search of a strain that expressed the soul of Northern California and complemented the ingredients often found on their menu.

This is not the first time a non-weed company or popular personality extended their brand into cannabis.

It is, however, the first time a 2 star Michelin restaurant has lent their brand to a cannabis product.

I have eaten in LB, and the food is very good. Securing 2 Michelin Stars is a big deal and speaks to the establishment’s terrific food and customer experience.

I respect companies that creatively push brand and product boundaries. It’s not uncommon for restaurants like McDonalds to launch grocery versions of their products. The payoff can be significant.

Having said all of that, I’m not sure this collab makes strategic sense for LB:

First, the positives:

1️⃣ This collab further mainstreams cannabis;

2️⃣ For some, imbibing quality cannabis with food adds to the culinary experience;

3️⃣ LB seems to have done their homework by developing unique, high-quality flower and pre-rolls.

I wish them success, but I have concerns with the challenges and track record of these type of brand extensions.

Specifically,

➡️ Brand risk

Many premium brands overestimate their appeal in other categories.

Michelin stars are hard to get, especially 2 of them. Why would LB risk their prestigious stars particularly with a rating organization with exacting standards and possibly a stigma against weed?

Often, these collabs don’t make sense for the consumer and end in disaster, both for the anchor brand as well as their suppliers. Google Pierre Cardin for a sombre case study.

➡️ Compromised patron experience?

The implicit brand message is that consuming LBR before or during a meal would enhance your overall culinary experience. However, you can’t smoke LBR in the restaurant (you can outside).

Many foodies do not want to smell weed (or tobacco, cologne) during a pricey or special occasion meal.

➡️ Execution challenges

It is very difficult to maintain product and supply consistency with premium flower. Cannabis connoisseurs are fickle and expect matchless quality, consistency and uniqueness.

LBR could also turn into a big distraction and capital suck for the LB team who already have their hands full with running a high-end restaurant.

I’m rooting for LB but they will have their work cut out for them. Other brands considering a cannabis hook-up should know that the rewards are big but the moves are not easy.

I help leadership teams launch world class brands and execute marketing programs with excellence.

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