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

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


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. California Governor Gavin Newsom touted California as the largest legal cannabis market in the world, but licensed cannabis dispensaries are struggling to compete with the black market. 

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Meanwhile, a team of law enforcement officers are cracking down on illegal operators. It’s one part of the state’s efforts to even the playing field and cultivate a legal marketplace. 

Kevin McInearny is a commander with the California Unified Cannabis Enforcement Task Force.  

“We exist to specifically deal with the illicit market,” said McInearny. 

UCETF officers raided what they say is an uncommon unlicensed dispensary in downtown San Rafael, serving a warrant, detaining two individuals, and seizing all products. 

“Instead of single dispensaries, our focus is on organized crime. The more significant violations associated with the cannabis market, including labor trafficking tax evasion the weapons charges,” said McInearney.  

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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. They believe the only way to survive is if lawmakers slash taxes on cannabis products and more.  

“If you tax them out of existence which has happened to a lot of our growers, manufacturers and distributors, it’s going to be difficult for a lot of people to continue,” said Haas.  

A national survey conducted in 2022 by Whitney Economics, a cannabis industry research firm, found that fewer than one in four cannabis businesses were profitable. 

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“We want them to be successful. So in essence everything we do is either to protect the public or to support the legal market and generally those are the same thing at the same time,” said McIneraney.  

“We keep cutting and cutting and cutting. With all those cuts, it’s just a tougher environment,” said Haas.  

Haas is optimistic despite the hurdles and challenges, and that everything won’t go up in smoke just yet.

Newsom created the Unified Cannabis Enforcement Task Force in 2022. Since inception, UCETF has seized $371,199,431 in unlicensed cannabis through 236 search warrants.

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Hundreds Rally in San Francisco Against U.S.-Israel Strikes on Iran | KQED

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Hundreds Rally in San Francisco Against U.S.-Israel Strikes on Iran | KQED


She acknowledged that Iranian Americans hold a range of political views, including some who support U.S. intervention, but said she believes the future of Iran should be determined by its people.

“The Iranian people in Iran can decide the future of their country,” she said. “War, I don’t think, is going to help.”

Speaking to the crowd, Mortazavi challenged what she described as a narrative that Iranians broadly support U.S. and Israeli military action.

“They want you to believe that every Iranian … is cheering on the United States and Israel,” she said. “That is unequivocally false.”

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She urged attendees to continue organizing beyond the rally and announced plans for additional demonstrations.

A demonstrator holds an Iranian flag as protesters gather outside the San Francisco Federal Building during a “Hands Off Iran” rally Feb. 28, 2026, in San Francisco. The demonstration called for an end to U.S. involvement in the strikes on Iran. (Gustavo Hernandez/KQED)

Dina Saadeh, an organizer with the Palestinian Youth Movement, said multiple groups mobilized quickly in response to the strikes.

“I’m angered today,” Saadeh told KQED. “People here don’t want to see our country engaged in more endless war.”

Saadeh described the protest as part of a broader effort to oppose sanctions, military escalation and what she called U.S. imperialism. She said participants were calling on elected officials to redirect public funds toward domestic needs.

“People want money for jobs and education, not for war and occupation,” she said.

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KQED’s María Fernanda Bernal contributed to this story.



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Sam Smith’s San Francisco Residency Charts New Course for the Castro

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Sam Smith’s San Francisco Residency Charts New Course for the Castro


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Sam Smith has kicked off his residency at the Castro Theatre in San Francisco, with the singer’s 20-date stint helping to officially usher in a new era for the historic landmark.

First erected in 1922, the Castro closed in 2024 for a reported $41 million renovation project. But the century-old Spanish-style Baroque theatre is open for business — and music — once again, with its gilded ceiling and ornamental walls restored to its original design, while seating is now reconfigurable for different events, including 650 seats that can be removed to create more standing room space (like for Smith’s concert). More importantly, city officials hope the re-opening of the Castro Theatre will also help revive the predominantly queer neighborhood it sits in, which shares a name with the venerable venue.

“Do you guys realize how special this street is?” Smith asked the sold-out crowd, during night two of their residency last week. “I grew up in a village in the middle of f-ckin’ nowhere,” they shared. “I was the only gay in the village and yes I was very dramatic about it as well,” they added with a laugh.

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“There is nothing like this street and nothing like the Castro and the community here,” Smith said. “I’ll never forget coming here when I was 20 years old, so reopening this theater now is such an honor.”

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Tickets to Smith’s Castro residency quickly sold out when the shows were first announced but you can still find stubs on sites like StubHub, Vivid Seats and SeatGeek. New users can use the promo code THR30 to save $30 on orders of $300 and up at VividSeats.com. SeatGeek customers can use promo code HOLLYWOOD10 to save $10 at SeatGeek.com.

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Smith’s San Francisco stint follows their “To Be Free: New York City,” residency which took place last fall at Brooklyn’s historic Warsaw club. Other artists set to play at the Castro this spring include Father John Misty, José González, Santigold and Lucy Dacus. The Castro will also help celebrate the 50th anniversary of the LGBTQ-themed Frameline Film Festival this June.

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Smith’s residency runs until March 14.

According to tourism officials and local businesses, Smith’s new Castro residency and the reopening of the theatre has already helped to bring in a number of new visitors to the area. Mat Schuster, the executive chef and owner of long-time neighborhood fixture, Canela, says business has been “very busy” in the last few weeks, crediting Smith’s show with bringing out new diners to the Spanish restaurant, which has been on Market Street since 2011. Other local hotspots like wine bar Bar49, the San Francisco outpost of Hi Tops, and the women’s sports bar, Rikki’s (named after Gay Games Federation founder Rikki Streicher), were all packed on a recent evening following Smith’s Castro concert.

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According to San Francisco Tourism, the reopening of The Castro Theatre is poised to deliver “meaningful economic gains” to the surrounding neighborhood, which some stats estimating that the venue will draw more than 200,000 visitors annually.

With the Castro Theatre now open again, local officials are looking ahead to other upcoming celebrations, including a planned reimagining of the Castro and Market Street intersection into The Memorial at Harvey Milk Plaza, honoring the first openly gay elected official in California (and the inspiration for the 2009 Sean Penn film). Milk’s legacy is already enshrined at the San Francisco airport of course, with terminal 1 at SFO renamed as the “Harvey Milk Terminal;” the new memorial is scheduled to be completed by 2028. The annual Castro Street Fair, meantime, a community street celebration founded by Harvey Milk in 1974, will take place on the first weekend of October.

The reopening of the Castro comes amidst a busy few months for San Francisco, which recently saw a number of athletes and celebrities in town for the Super Bowl. Steph Curry’s new speakeasy, The Eighth Rule, was among the hotspots over the big game weekend and the basketball star’s bourbon-forward bar continues to be a hot reservation in the city. Opened in the fall, the bar is tucked away in a nondescript hallway inside the Westin St. Francis hotel in Union Square, offering an intimate and exclusive setting for the Golden State Warriors point guard’s Gentleman’s Cut Bourbon, which can be ordered on its own or as part of a six-course omakase-style cocktail tasting (we loved the clarified coconut milk punch and the truffle-vanilla whiskey sour). Of course, guests can also order cocktails a la carte, choosing from different bourbons and whiskeys, plus a full selection of other spirits.

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Next door to The Eighth Rule is Bourbon Steak San Francisco, the latest outpost of Chef Michael Mina’s award-winning steakhouse. The restaurant marks the celebrity chef’s return to the Westin St. Francis, where he opened his first eponymous restaurant in 2004. In addition to its selection of steaks, seafood and caviar offerings (like Mina’s famous “caviar twinkee”), this Bourbon Steak outpost offers a family-style dining experience for six people, available through advance reservations. This is the only Bourbon Steak location to offer this communal table format.

New this month is the highly-anticipated opening of JouJou, an elevated French brasserie concept from the owners of the two Michelin-starred Lazy Bear. Located in the city’s Design District, JouJou is poised to be the next celebrity hangout, with its ornate dining room and marble-topped counters setting the scene for steak frites and star sightings alike. As chef David Barzelay told the San Francisco Chronicle when asked about the inspiration for JouJou: “It always feels like you’re just in a place where it’s happening.”



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San Francisco, Oakland report warmest February morning on record

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San Francisco, Oakland report warmest February morning on record



Saturday morning in the Bay Area was muggy and mild, if not warm. Temperatures only cooled down to the upper 50s to low 60s across much of the Bay Area – five to 15 degrees above average for late winter.

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For San Francisco and Oakland, it was a record warm start to the last day of the month. With temperatures only dipping down to 62 in San Francisco, it was the warmest morning in recorded history during the month of February, and those records go back to 1875. The old record was 61° in 1985. 

Oakland’s old record was also in 1985, when the low was 60°. Now Oakland’s new record for warmest February morning was set on Saturday, with a low of 61. It was also extremely muggy, with dew points in the upper 50s and humidity over 90%.

Why? It mostly has to do with the extremely warm blob of water sitting off the Bay Area’s coast. It’s technically called a “Marine Heatwave” and the one we are currently dealing with began in May 2025.

Normally this time of year, ocean temperatures are near 53 degrees – but it was about 57 near the Golden Gate Bridge as of Saturday morning.

Warmer ocean water warms up the air above it, and then winds carry the warmer air over land and warms us up. The warmer water also increases evaporation, raising moisture content in the air (aka humidity).

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So now you know, you can blame the warm blob of ocean water for the reason it was so muggy.



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