San Francisco dispensaries struggling as they continue to compete with illegal market

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The co-owner of a San Francisco marijuana dispensary says it's a challenge to draw in customers lately.

The co-owner of a San Francisco marijuana dispensary says it's a challenge to draw in customers lately.Nate Haas operates Moe Greens Dispensary & Lounge in San Francisco as co-owner and CEO.'We're charging our customers way too much. As a dispensary, it's tough for us to compete with the illicit market,' said Nate Haas of Moe Greens Dispensary & Lounge. That black market includes illegal grow operations, distribution, and unlicensed dispensaries.

The state task force has seized more than $53 million in illegal cannabis in the first quarter of this calendar year and shut down several indoor operations in the Bay Area. 'It starts with the cultivators. There is a lot of indoor cultivation in the area, especially in the East Bay mostly run by Chinese organized crime,' said McInerarney. Legal dispensary owners like Haas are skeptical law enforcement can make enough of a dent in the illegal market.

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