A Closer Look at Michigan Designated Consumption

No matter where in the Mitten you are from, Michiganders are big consumers of cannabis. In fact, the Michigan marijuana market is often the top market in the United States. Michigan dispensaries have averaged $279 million per month, according to the Michigan Cannabis Regulatory Agency, since records began Dec. 1, 2019. This totals roughly $9.7 billion through October 2024.

For visitors to the Great Lakes state, be mindful of these laws surrounding cannabis use. Possession up to 2.5 ounces (with up to 15 grams of concentrate) is allowed. Gifting/sharing is permitted up to 2.5 ounces with another adult, as long as no compensation is part of the transaction. Finally, cannabis may only be used in private spaces or licensed places like a designated consumption establishment for marijuana in Michigan. This translates to no permission for intake in vehicles or public spaces such as parks, streets, bars or other shared spaces where people congregate.

Designated consumption establishments in Michigan

Looking to open a designated consumption establishment in Michigan? The state defines places eligible for a Michigan consumption lounge license as a nonresidential location that charges a fee for entry, sells goods (not cannabis products) or services while individuals 21 years and older are consuming on the premises, or requires membership for entry. These Michigan microbusiness designated consumption establishments, also known as both lounges and cafes, shall acquire a designated consumption establishment or temporary marijuana event license, with the purpose of allowing users to consume cannabis in places other than their private residences without the fear of arrest by state authorities.

Michigan consumption lounge rules

Any Michigan consumption lounge is required to have a specific state license before operations begin. Before applying for a marijuana designated consumption establishment license, a location must be approved and supported by the local municipality, and an area must be identified as suitable for cannabis consumption with smoke-free areas. Further, a facility must be established with adequate barriers and walls to ensure smoke does not infiltrate into nonsmoking space, as well as have a ventilation/filtration system that removes visual smoke and odor from air, leaving the marijuana consumption areas outside of the building.

Cost-wise, a Michigan consumption lounge license applicant must pay a non-refundable $3,000 application fee for prequalification. Once the Marijuana Regulatory Agency approves the prequalification application, the applicant is required to pay a $1,000 licensure fee. The cost of renewing this license is also $1,000. Holders of a Michigan consumption lounge license are able to possess other cannabis licenses in the state, such as a microbusiness or dispensary license.

However, because retail sales of cannabis by designated consumption establishment licensees is prohibited, Michigan dispensaries and microbusinesses must be separate. Adjoining suites, configured in a manner where patrons can buy marijuana from one part of the facility and consume it in a separate area, are allowed. Michigan consumption lounge rules allow for bring-your-own products, but check the rules of individual consumption sites before entering.

Cannabis consumption establishments in Michigan

As of the publication of this post, Michigan microbusiness designated consumption establishments include:

• Only Alien Cannabis Co. in Kalamazoo
• Rolling Embers in New Buffalo
• Zip Dispensary has a new consumption lounge called Pipe Dream in Hartford.

A recent MLive article announced an upcoming combined music venue and cannabis consumption lounge planned for the Ypsilanti area. The proposed venue, called Pipeline, will be just south of where Frost Cannabis dispensary and growing facility are planned to open. Developers still must enter into an agreement to secure approval from the township board, addressing issues like the number of planned large events necessitating temporary on-site parking, lighting security conditions, portable toilets, trash disposal, capacity and hours of operation under the Planning Commission’s conditions.

This type of mixed-use site is growing in popularity. The state of California has a new law, known as the Control, Regulate and Tax Adult Use of Marijuana Act, which permits cities to let cannabis retailers serve non-cannabis food cooked on site and host live entertainment events. This ruling is based on Michigan cannabis numbers, where, according to MJBizDaily, cannabis consumers spend triple the amount of their counterparts in California, which did not previously allow on-site food and beverage consumption at dispensaries.

Grow your Michigan cannabis business

Want to try out a Michigan consumption lounge for yourself and expand your business at the same time? Learn more about consumption licenses in Michigan this summer! Register for CannaCon Midwest at Lansing Center July 18-19, 2025. Both days are open from 10 a.m. to 5 p.m.

CannaCon is the nation’s leading business-to-business cannabis conference on a mission to grow the cannabis industry by educating cannabis business owners on all things related to cannabis and CBD. The B2B trade shows feature a large exhibition hall with exhibitors from around the country as well as seminars delivered by industry experts.

This article was originally posted on Oct. 6, 2020, and updated on Jan. 28, 2025.