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How a POS system can help offset Alberta’s new minimum wage

On October 1, 2018, the minimum wage in Alberta was raised to $15.00.

The increase was introduced to reduce poverty levels in the province, lessen the burden on social support programs, and improve the quality of life for vulnerable people.

However, for employers especially in the service industry, this change can make quite an impact on a quarterly (and annual) budget.

How wage changes affect employers

Despite the best intentions of politicians and policy creators, a hike in minimum wage always has an impact on businesses, and the changes run far past merely paying workers more. There will be additional payroll taxes, for example, that businesses have to pay, and longer hours for fewer staff.

Analysts have always warned that raising the minimum wage will have the biggest impact in the food services industry. In fact, it’s already begun.

The Hat is a longtime Jasper Avenue eatery that offers burgers, beers, cocktails and other pub favourites. Mike Bhatnagar, owner of the 100-seat restaurant, has noted the negative effects that have been affecting his business since wage hikes began. Despite raising menu prices, profits are continuing to decline month by month. In an effort to balance his sheets, Bhatnagar has reduced the number of staff at lunch and dinner times, and may now even have to close the restaurant entirely on Sundays.

Mo Blayways, the owner of two locations of 1st Round in Edmonton, has had to increase his menu prices by over 10% in the last three years.

“It’s a death by a thousand cuts,” said Blayways, who has 150 full-time and part-time employees. “At the end of the day, (the minimum wage increases) have been extremely damaging to our consumers and our employees.”

In order to compensate for the effects of wage pressure, restaurant owners have had to make changes to their business models. For example, the size of the section that employees must cover on a shift has nearly doubled. Sometimes, the dishwasher is no longer a position on shift. Additionally, servers have seen a drop in tips with menu price increases and are less satisfied with their jobs.

All in all, as a business owner (and especially a restauranteur), the recent increase in minimum wage is bringing with it a whole platter of new problems to deal with.  

How employers can protect themselves

Although the effectivity is debatable, the Alberta government has provided the following services to help employers adjust to the wage increase:

Introduce technology and streamline your internal processes

The provincial government will only do so much to protect you from the repercussions of wage change. The best way to minimize financial loss is by changing your business model to adapt to and anticipate future change.

For example, more and more quick service restaurants (QSR) and casual sit down locations  are enjoying the benefits of the self-service model. Food kiosks in restaurants make it easier for customers to customize, pay for and pick up their orders, while also reducing the number of employees required on shift. Restaurants are leveraging food service kiosks and self-service models to automate ordering process, provide consistency, and to reduce business inefficiency and financial overhead.

In fact, in  a study done by Tillster, it was revealed that only 18 percent of QSR customers surveyed had used a self-ordering kiosk in a period of three months, but that 60 percent said they would go to a QSR more frequently if kiosks were offered.

Changing your business model may mean that some of your internal processes will also require modification. Implement a POS system that will allow you to scale your business into a turn-key operation.

The Time Business POS system offers faster service, premium local on-site support, and cellular coverage to ensure your system is never down despite power outages or network failure. The system also has a comprehensive loss-prevention program to ensure employee theft is eliminated.

Find out more about how to maximize your optimize your business and maximize your ROI today.

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Cannabis Business 101

Everything you need to know about Canada’s greenest retail industry

Attitudes toward cannabis culture are rapidly changing in this country, and so to are opportunities for success within this wave of green. Bill C-45 (the Cannabis Act) was introduced in Parliament on April 13, 2017.

On June 21, 2018 the bill received Royal Assent from the Senate. The law will fully come into force on October 17, 2018 and will officially legalize access to recreational cannabis across Canada.

There has been a feeling of eager excitement among users of medicinal and recreational cannabis, as well as among entrepreneurs who see the potential in capitalizing on this emerging market. Canadian cannabis stocks also responded in kind, anticipating the business boon headed our way.

The Cannabis climate in Canada

For the last couple years, Canadians have been reported to purchasing marijuana en masse. Last year alone, $5.7 billion was spent by 4.9 million Canadians aged 15 to 64 on medicinal and non-medicinal cannabis, according to Statistics Canada. The most telling statistic is that 90% of purchases were directed toward recreational cannabis, despite these purchases still being considered illegal.

The rapidly growing consumer market makes it obvious that there is substantial economic potential in starting a marijuana dispensary. However, the process is not for everyone, including seasoned entrepreneurs. The legalization of marijuana represents a paradigm shift in government policy; regulation and oversight means a time-consuming, expensive, and potentially frustrating application process for those who hope to stake their claim in the realm of retail marijuana dispensaries.

Rest assured, cashing in on the green rush is far from impossible – especially if you understand the following important details.

What is the legal status of cannabis in Canada?

Cannabis is currently considered a Schedule II drug, and with the exception of marijuana purchased for medical reasons (which requires a prescription and must be purchased from a licensed medical marijuana dispensary), the purchase of “black market” cannabis may result in fines and/or a felony offense.

“Black market” in this sense applies to the purchase of marijuana from any source other than medical marijuana dispensaries licensed through Health Canada.

What do I need to know to open a retail cannabis dispensary?

Short answer: a lot, and it depends on your location. Alberta is shaping up to be a highly competitive market, so let’s start there.

Everything You Need To Know About Applying For A Retail Cannabis License

  1. First major consideration: the number of licenses available is not unlimited. To start, Roughly 60 each will be available in Edmonton and Calgary, and approximately 10 each in Red Deer, Banff, and Jasper.
  2. The Alberta Gaming and Liquor Commission (AGLC) controls the wholesale distribution of recreational cannabis throughout Alberta and will be the only source of online cannabis sales. Meaning, you will only be able to get licensed to sell at a brick and mortar shop.
  3. Applicants need to apply for a business license and development permits through their municipality and through the AGLC.

For further information on the application process please check out these links below: 

To stay informed with the City of Edmonton’s activities related to cannabis legalization, you can join the stakeholder list for email updates.

Retail space requirements

  • A lease (or conditional lease) for the proposed retail space is required with the application.
  • A Commercial Development Permit must be obtained before you can officially apply for the cannabis retail license.
  • A retail recreational cannabis dispensary requires a dedicated shipping/receiving area, video surveillance, secure storage, secure product display area, and point of sale area. Dedicated inventory and employee accountability systems will be essential to thriving and avoiding costly fines.

AGLC requirements

  • Extensive background checks are a necessity. This includes the applicant(s) and associates of the applicant(s) such as spouses, relatives (if living with the applicant), any individual with a financial interest in the business or premises, and any corporation with a financial interest in the business or premises.
  • The AGLC permit application takes 2-4 months to process
  • All staff must complete SellSafe Cannabis Staff Training provided through the AGLC

Cost

  • The total cost to apply for one retail location is roughly $5000 ($400 for a new retail business application, $700 annual license, and $3000 deposit for criminal background checks)

Important notes

  • Completing all of the above tasks does not guarantee a license will be provided. The City of Edmonton is utilizing a lottery system for permits for the first year.
  • All retail cannabis dispensary applications will be public knowledge and posted on the AGLC website. Anyone is free to submit an objection within 21 days of the permit application being posted on the AGLC website. Applicants are then given 14 days to respond to the objection.
  • To prevent the creation of monopolies, no single business can acquire more than 15% of cannabis licenses.

Other considerations

The city of Toronto will not be permitting the operation of retail marijuana dispensaries during the first year of legalization. This means there will be considerable pressure for entrepreneurs from Toronto to operate cannabis dispensaries in Alberta and British Columbia. A business does not have to be incorporated in Alberta to apply for a cannabis permit, the business just requires an extra-provincial registration.

The next year will be an exciting time to be an entrepreneur in this province. Pursuing a retail cannabis dispensary is a high risk, high reward venture, however, completing the necessary due diligence and aligning your business with proven systems can allow for the rewards to far outweigh the risks.

What do you feel is most important to know about the cannabis dispensary business? Let us know here.

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Cannabis Dispensaries in Alberta

What it takes to train an AGLC Qualified Cannabis Worker

In our first article in this series, we outline the basics about the cannabis industry in Canada and what potential business owners need to know about setting up their stores successfully in Alberta. However, a basic read-through of the basics simply isn’t enough.

For the last couple years, Canadians have been reported to purchasing marijuana en masse. Last year alone, $5.7 billion was spent by 4.9 million Canadians aged 15 to 64 on medicinal and non-medicinal cannabis, according to Statistics Canada. The most telling statistic is that 90% of purchases were directed toward recreational cannabis, despite these purchases still being considered illegal.

The rapidly growing consumer market makes it obvious that there is substantial economic potential in starting a marijuana dispensary. However, the process is not for everyone, including seasoned entrepreneurs. The legalization of marijuana represents a paradigm shift in government policy; regulation and oversight means a time-consuming, expensive, and potentially frustrating application process for those who hope to stake their claim in the realm of retail marijuana dispensaries.

Rest assured, cashing in on the green rush is far from impossible – especially if you understand the following important details.

What is the legal status of cannabis in Canada?

Cannabis is currently considered a Schedule II drug, and with the exception of marijuana purchased for medical reasons (which requires a prescription and must be purchased from a licensed medical marijuana dispensary), the purchase of “black market” cannabis may result in fines and/or a felony offense.

“Black market” in this sense applies to the purchase of marijuana from any source other than medical marijuana dispensaries licensed through Health Canada.

WHEN WILL CANNABIS BE LEGAL IN CANADA?

The final vote on the Cannabis Act is scheduled for June 7, 2018; if the act passes, recreational cannabis could become available across the country as early as August 7, 2018.

What do I need to know to open a retail cannabis dispensary?

Short answer: a lot, and it depends on your location. Alberta is shaping up to be a highly competitive market, so let’s start there.

Everything you need to know about applying for a retail cannabis license

  1. First major consideration: the number of licenses available is not unlimited. To start, roughly 60 each will be available in Edmonton and Calgary, and approximately 10 each in Red Deer, Banff, and Jasper.
  2. The Alberta Gaming and Liquor Commission (AGLC) controls the wholesale distribution of recreational cannabis throughout Alberta and will be the only source of online cannabis sales. Meaning, you will only be able to get licensed to sell at a brick and mortar shop.
  3. Applicants need to apply for a business license and development permits through their municipality and through the AGLC.

For further information on the application process please check out these links below: 

To stay informed with the City of Edmonton’s activities related to cannabis legalization, you can join the stakeholder list for email updates.

Retail space requirements

  • A lease (or conditional lease) for the proposed retail space is required with the application.
  • A Commercial Development Permit must be obtained before you can officially apply for the cannabis retail license.
  • A retail recreational cannabis dispensary requires a dedicated shipping/receiving area, video surveillance, secure storage, secure product display area, and point of sale area. Dedicated inventory and employee accountability systems will be essential to thriving and avoiding costly fines.

AGLC requirements

  • Extensive background checks are a necessity. This includes the applicant(s) and associates of the applicant(s) such as spouses, relatives (if living with the applicant), any individual with a financial interest in the business or premises, and any corporation with a financial interest in the business or premises.
  • The AGLC permit application takes 2-4 months to process
  • All staff must complete SellSafe Cannabis Staff Training provided through the AGLC

Cost

  • The total cost to apply for one retail location is roughly $5000 ($400 for a new retail business application, $700 annual license, and $3000 deposit for criminal background checks)

Important notes

  • Completing all of the above tasks does not guarantee a license will be provided. The City of Edmonton is utilizing a lottery system for permits for the first year.
  • All retail cannabis dispensary applications will be public knowledge and posted on the AGLC website. Anyone is free to submit an objection within 21 days of the permit application being posted on the AGLC website. Applicants are then given 14 days to respond to the objection.
  • To prevent the creation of monopolies, no single business can acquire more than 15% of cannabis licenses.

Other considerations

The city of Toronto will not be permitting the operation of retail marijuana dispensaries during the first year of legalization. This means there will be considerable pressure for entrepreneurs from Toronto to operate cannabis dispensaries in Alberta and British Columbia. A business does not have to be incorporated in Alberta to apply for a cannabis permit, the business just requires an extra-provincial registration.

The next year will be an exciting time to be an entrepreneur in this province. Pursuing a retail cannabis dispensary is a high risk, high reward venture, however, completing the necessary due diligence and aligning your business with proven systems can allow for the rewards to far outweigh the risks.

What do you feel is most important to know about the cannabis dispensary business? Let us know here.

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The Full List of Security Measures for Cannabis Retail Shops

Overhead security camera in a government owned public building.

When opening a cannabis retail store in Canada, there are a lot of things to keep in mind – as you probably already know by now.

One of the most important policies, however, surround security systems in retail stores. In fact, a store license will not be issued to any applicant who hasn’t submitted a floor plan detailing exactly where surveillance and security devices are going to be installed to prove they’ve met the physical security requirements for the premises.

Playing By The Rules

With that said, here are the rules you need to keep in mind to ensure you don’t fail any audits (based on regulations created by The Alberta Gaming, Liquor and Cannabis Commission (AGLCC) is an agent of the government of the Canadian province of Alberta:

  1. Your retail store must be protected by a professionally installed and monitored alarm system. The system needs to be able to detect any attempts to open, enter, or tamper with your store or your cannabis room, or the security system itself.
  2. You need “panic” or robbery buttons installed at all point of sale positions.
  3. Your store needs a digital camera system that:
    1. Has cameras in the ceiling (or domes) that are linked to a monitor and a recording system that’s located in a secure area on site.
    2. Is setup (with appropriate lighting) so that you can see all point of sale areas, receiving areas, customer areas, and the secure cannabis storage rooms at all times (24 hours). You should also be able to clearly capture all activity where there are people entering or exiting the premises including staff areas.
    3. Retains 60 days minimum of digital colour video with a time/date stamp that doesn’t block the image. You should always be able to clearly identify all the individuals that appear on camera.
    4. Is tested weekly to make sure all cameras and recording equipment are functioning properly. Make sure you have a log of the test results that can be given to AGLCC at any given time.
  4. In terms of physical barriers, your store needs to have:
    1. 1.5mm (16 gauge) hollow metal doors with 1.9mm (14 gauge) metal frame and tamper-proof hinges at all entry points other than the customer entrance. You also need to use commercial grade non-residential locks on every door with a tamper-proof strike plate. The locking devices must penetrate the door frame by at least 1.25 cm.
    2. Commercial-grade material for both the customer entrance and the overhead receiving door so that unauthorized individuals can’t get in.
    3. Locking devices that aren’t on a master key system.
    4. A secure cannabis storage room that is constructed of Flattened Metal Mesh, EMMA 557-99 style ¾-9F, nominal strand thickness of 0.120” (0.108” to 0.132”) diamond opening of 0.563” x 1.688” or Sheet steel 16ga, A1008/A1008M (cold rolled) or A1011/A1011M (hot rolled) or equivalent.The room needs a 16 gauge (1.6mm) steel sheet that’s HR Commercial quality, ASTM A366, has a matte finish, and that shall extend 1200mm around door frame on inside of room and attached to the door frame with screws, welds or rivets.It also needs a 1.5mm (16 gauge) hollow metal door not exceeding 36 inches width with 1.9mm (14 gauge) metal frame, and 16mm gypsum wall boards on both sides of the wall attached with drywall screws.Finally, your cannabis storage room requires a mount steel or steel mesh on the outside of the room that is supported at all sides by anti-spread bracing, aligns sheet edges at every vertical and horizontal seam on the centre-line of the steel stud or anti-spread bracing, and that is secured properly with screws, welds or rivets.The secure cannabis room can’t be used for any other purpose than the storage of cannabis. In other words, don’t put any other items or equipment in here!
  5. Whatever cannabis or cannabis accessories are displayed in the customer area have to be kept in a secure showcase that’s locked at all times and can only be accessed by authorized staff. Any of the cannabis within this showcase has to be kept in its original sealed package.After operating hours, all cannabis that’s sitting on display must be stored in the secure cannabis storage room until the next morning.

Phew! That’s a lot of stuff to remember. However, you’ll have to comply with all of those points to stay qualified for your license and, furthermore, you’ll also need to submit a floor plan that identifies system compliance (for the alarm system, camera system and secure cannabis storage room) to AGLCC for approval. Not sure where to start? Don’t worry, our team will create a custom security floor plan that’s fully compliant with provincial regulations.

Security Is Our Speciality

security guard officer watching video monitoring surveillance security system

Unless you want to be running around to 10 different custom vendors in the city to take care of all the regulatory needs (on top of your evergrowing to-do list), you should opt for an efficient, all-inclusive package with Time Business.

Why?

Well, firstly – we’re local, so we know exactly what your provincial government  requires and expects. Secondly, we’ve been working successfully with Canadian businesses for over 50 years to meet their business needs. Our company has created the ultimate Cannabis Retail Shop Package that includes everything from a specialized POS system and digital signage to the implementation of a camera and alarm system for your shop (that fits every regulation listed above).

Interested? Find out more here.