Brooklyn weed shop's closure has industry warning it could be the start of a wave

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October 08 2025

Overview

Happy Munkey, a prominent cannabis lifestyle brand, has closed its second NYC dispensary in Brooklyn. The closure, confirmed in August 2025, comes less than a year after its November 2024 opening. Industry sources suggest it may be permanent.

Details

• Location: 453 Fulton Street, Brooklyn, listed as “temporarily closed” on the Happy Munkey website.

• Reason: High rent and competition from illegal cannabis shops.

• Timeline: Closed in early August 2025, with the license set to expire on February 9, 2026, per the Office of Cannabis Management (OCM) database.

• Financial Strain: The Brooklyn shop, registered as Ramon Reyes LLC, is on the OCM’s COD list for unpaid vendor bills since August 20, 2025, per Jaunty CEO Nicolas Guarino.

Context

Founded in 2017 by Ramon Reyes and Vladimir Bautista, Happy Munkey transitioned from the underground cannabis market to legal dispensaries. Their first location in Manhattan’s Inwood neighborhood remains open. In 2023, they told Crain’s they aimed to open six dispensaries, the state’s legal maximum.

Industry Challenges

• Competition: Illegal shops sell cannabis cheaper, outnumbering legal dispensaries 5:1 to 20:1 in Brooklyn, per industry sources.

• Market Saturation: Only 494 recreational dispensaries operate statewide as of September 26, 2025. OCM’s Kevin Brennan predicts a “tipping point” at 1,700, with only 64% of licensees likely to open due to financial hurdles.

• Economics: Dispensaries need $2.5 million in annual sales to break even, a threshold half fail to meet, per Freshly Baked NYC owner David Nicponski.

Expert Insights

• Andrew Cooper, cannabis attorney: “We’re definitely going to see more closures.”

• Jeffrey Hoffman, NYC cannabis attorney: The lack of widespread closures is surprising, as some owners deplete personal savings to stay afloat.

• David Feder, Weed Law founder: Happy Munkey’s closure is notable due to its prominence and prime Fulton Street location.

• David Nicponski: Opening near another legal dispensary, Yerba Buena, was a strategic error, compounding illegal competition.

Broader Implications

• Enforcement: A May 2024 crackdown by NYC and state officials hasn’t curbed illegal shops, which Nicponski says sell cheaper than legal wholesale prices.

• Future Closures: Experts predict a wave of dispensary failures due to high costs and lax enforcement against unlicensed retailers.

• OCM’s Stance: The agency claims no adult-use dispensaries have permanently closed but notes some may be relocating.

Cautionary Tale

Happy Munkey’s closure highlights the risks of overconfidence. High rents—sometimes $50,000 to $100,000 monthly—strain operators betting on market dominance, says Feder. With only 1,500–2,000 dispensaries expected statewide, per OCM’s Felicia Reid, not every licensee will succeed.