Founded in Berkeley, California, Amoeba
Music has established itself as one of America's most iconic music
store chains. With three locations across the state, co-founder David
Prinz says its Los Angeles store alone brings in $20 million in annual
revenue.
It's original location on Telegraph Avenue, however, has seen
revenues plummet by 50 percent over the past decade. Thanks to the
initial rise of pirating services like Napster and LimeWire, and then
legal streaming services like Spotify, students in the local area
stopped buying records and CDs.
But financial trouble is not unique to Amoeba; Telegraph Avenue is
blighted and its local economy has been in decline for years. Since the
1990s, sales at stores along Telegraph have dropped over 40 percent,
Dave Fogarty, Berkeley economic development project coordinator, told
San Francisco Chronicle in 2013. Prinz, who started Amoeba with Marc
Weinstein in 1990, said they needed to create a new revenue stream to
prevent the Berkeley shop from closing. It's rescuer? Medical marijuana.
Four and a half years ago, as the medical marijuana business started
to show its muscles in California, Prinz and Weinstein decided to
convert its once-popular 3,000 square foot jazz room into a marijuana
dispensary. After submitting an application last fall, the founders
finally received approval last week from the city of Berkeley for a
license to sell medical marijuana. Prinz says the dispensary, which will
be a totally separate space with its own entrance, will open by May
2017. "Marijuana will save Amoeba Music in Berkeley," says Prinz.
This isn't Amoeba's first foray in marijuana. Since April 2014, its
San Francisco location has been running a medical marijuana
recommendation clinic with Dr. Samuel Dismond. The clinic, which does
not sell marijuana, sees about 50 patients a day who consult with the doctor and leave with a recommendation to use cannabis.
"The clinic helps us continue to pay the rent and helps us pay our
employees," Prinz said. "But the dispensary is going to be more
lucrative."
The Berkeley location will sell marijuana and THC-infused products.
Because Prinz and Weinstein have never sold marijuana before, they
partnered with longtime advocate and marijuana entrepreneur Debby
Goldsberry. She's also a founder of Berkeley Patients Group, a respected
cannabis supplier and dispensary operating since 1999. (BPG is seen as a
model for the industry--it pays millions in taxes, follows rules and
regulations, and donates to the poor.)
"I don't think we could've kept Amoeba Berkeley going without this.
Our store in Berkeley took the biggest hit; college kids are the first
to find out how to get music for free," says Prinz. "I think we'll see
the college kids come back again once the dispensary opens."
Prinz says they invested about $500,000 in total for the license, and
to keep the store open. The dispensary will not grow its own marijuana,
but instead purchase the cannabis from farmers in Northern California.
He says he's been flooded by interest from growers who want to help
stock Amoeba's shelves with weed.
Twenty years ago, Rolling Stone said we built the best
record store," says Prinz. "We think we'll be able to do that for this
industry--my goal is to build the best dispensary in the world." He
hopes to bring the "Amoeba experience" to the dispensary, which will be
called the Berkeley Compassionate Care Center. (If the shop ever becomes
recreational, Prinz says they will call it "AmoeBuds.")
The impetus for the dispensary was to save the business, but Prinz
and Weinstein say there was another motivating factor: Rasputin Music
has been on Telegraph Avenue since 1971, decades before Amoeba Music
moved in across the street. Founded by Ken Sarachan, Rasputin watched
record store after record store bite the dust.
To honor the fallen record shops, the store made a tote bag with a
cemetery illustration, featuring tombstones with the names of every
record stores that went out of business in the area: Tower Records, Sam
Goody, Odyssey Record, Music Land, Peach's, Moby Disc, Rough Trade,
Rainbow "Twenty years ago, Rolling Stone said we built the best
record store," says Prinz. "We think we'll be able to do that for this
industry--my goal is to build the best dispensary in the world." He
hopes to bring the "Amoeba experience" to the dispensary, which will be
called the Berkeley Compassionate Care Center. (If the shop ever becomes
recreational, Prinz says they will call it "AmoeBuds.")
The impetus for the dispensary was to save the business, but Prinz
and Weinstein say there was another motivating factor: Rasputin Music
has been on Telegraph Avenue since 1971, decades before Amoeba Music
moved in across the street. Founded by Ken Sarachan, Rasputin watched
record store after record store bite the dust.
To honor the fallen record shops, the store made a tote bag with a
cemetery illustration, featuring tombstones with the names of every
record stores that went out of business in the area: Tower Records, Sam
Goody, Odyssey Record, Music Land, Peach's, Moby Disc, Rough Trade,
Rainbow tombstones
with the names of every record stores that went out of business in the
area: Tower Records, Sam Goody, Odyssey Record, Music Land, Peach's,
Moby Disc, Rough Trade, Rainbow Records, Star Records, Aron's, and more.
"I care about Berkeley, I care about Telegraph, I care about the
kids, the patients, but we will not end up on that bag," said Prinz,
half joking. "I paid over half a million dollars so we don't end up on
that bag."
Rasputin and Amoeba have been locked in an epic feud for 26 years--ever
since Weinstein quit working at Rasputin and opened up shop across the
street. "We are fighting to keep our store open, we are fighting to keep
our employees' jobs," says Prinz. "We think marijuana will help us
continue the fight."
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