Dispensary 33, one of Chicago’s pioneering legal cannabis retailers, announced this week that it will transition into a fully employee-owned business. This marks the first time in Illinois cannabis history that a dispensary will be 100% owned and operated by its workers—a significant shift in an industry often dominated by multi-state operators and private equity-backed corporations.
Dispensary 33, which opened its doors in 2015 as one of the city’s original medical cannabis providers, has been known for its progressive values and commitment to local community engagement. Now, by transitioning to an employee ownership model through an Employee Stock Ownership Plan (ESOP), the company is deepening its commitment to social equity and workplace democracy.
“This isn’t just a new chapter for our business; it’s a redefinition of what ownership looks like in the cannabis space,” said co-founder Abigail Watkins, who helped guide the transition. “We’ve always believed in empowering our team, and now they’ll literally own the future of this company.”
The decision comes at a time when Illinois’ cannabis industry is still grappling with equity and access. Despite state-level initiatives to foster diversity and inclusion in the industry, critics argue that social equity applicants and small operators often face overwhelming financial and bureaucratic hurdles. By contrast, Dispensary 33’s employee-ownership model aims to offer a sustainable path forward that builds wealth from within.
Under the new ESOP structure, all eligible employees will gradually acquire shares in the company at no cost to them. As owners, employees will gain voting rights, profit-sharing opportunities, and a direct say in the company’s direction. Advocates say this kind of model not only boosts morale but can significantly improve long-term business performance.
“Cannabis workers are the backbone of this industry, yet they’re often excluded from ownership and decision-making,” said Meiko Lewis, a budtender who has worked at Dispensary 33 for four years. “This gives us a real stake—not just a job, but a future.”
The employee ownership trend, while still rare in cannabis, has seen growing momentum across other industries, particularly among businesses looking to solidify their legacy while resisting consolidation pressures. In cannabis, where consolidation has led to store closures and layoffs in many states, employee ownership offers a more resilient and inclusive alternative.
Industry experts say the move could serve as a model for other dispensaries across the state—and potentially the nation. “As more cannabis companies struggle to balance profit with purpose, the Dispensary 33 story proves there’s another way,” said Chris Diaz, an economist specializing in emerging markets.
The transition is expected to be finalized later this year, and customers should expect business as usual—except with even more invested employees behind the counter. For the team at Dispensary 33, it’s not just about selling cannabis. It’s about cultivating a new standard for what ownership, equity, and empowerment can look like in the green economy.
As Lewis put it, “We’re not just rolling joints—we’re rolling out a future that’s ours.”