San Francisco’s first ‘equity’ weed store was an epic failure. City Hall insiders may still pocket millions

OG Article By Chris Roberts

September 30 2025

Cannabis Equity in San Francisco

The Promise

Shawn Richard stood in Haight-Ashbury, December 2019, golden scissors in hand.San Francisco’s first social equity cannabis store, Berner’s on Haight, was his.The program aimed to right the War on Drugs’ wrongs, prioritizing people like Richard—once incarcerated, now a nonviolence advocate.Legal cannabis, voters decided in 2016, should empower small businesses, especially for the city’s shrinking Black community.Richard, a success story, rejected big-money offers to sell his permit.He was the “king of legal weed.”

The Power

Richard had allies.Mayor London Breed, a childhood friend from Western Addition housing, backed him.Conor Johnston, Breed’s former chief of staff, was a partner.Johnny Delaplane, another partner, ran a medical dispensary.Their team, Cole Ashbury Group, secured the city’s first equity permit in just eight minutes—unusually fast.Critics cried favoritism.Two white partners in a Black-led equity program raised eyebrows.Still, Berner’s opened with fanfare, branded by Cookies, a top cannabis name, with a $760,000 loan and Berner’s Instagram hype.

The Process

San Francisco’s system avoided corruption.No lotteries, no scored applications—just speed.The fastest online applicants won permits.Zoning limited cannabis shops, making Haight Street’s single slot a prize.Richard’s team outsmarted rivals, using software to autofill forms.Competitors, like Alex Aquino and Mike Musleh, sued, alleging a rigged “city family” game.They lost.The city denied bias.Richard’s store opened, drawing crowds that stretched down Haight Street.

The Peak

2020 was golden.Pandemic stimulus checks fueled sales.Cannabis was “essential,” per Governor Newsom.Statewide sales soared, doubling by 2022, with $800 million in taxes.Berner’s thrived, selling Cookies strains like Gary Payton and Sunset Sherbet.Valuations skyrocketed—Los Angeles Cookies stores hit $10–12 million.Richard earned $110,000 yearly from Cookies.National legalization seemed imminent.

The Problem

The bubble burst.High taxes—over 30%—crushed legal shops.Illicit markets thrived, untaxed and unchecked.Haight Street’s charm faded as cheaper Cookies stores opened nearby.Richard’s “Presidential” brand flopped.Berner’s became a hangout, not a business, per Cookies claims.A lawsuit accused Richard of misconduct; he denied it.The store, rebranded Blaze on Haight, closed in 2024.

The Payday

City rules initially barred equity permit sales for a decade.Mayor Breed cut it to five years in 2021, citing flexibility.Cole Ashbury triggered a $10 million buyout from Cookies in 2023.Cookies resisted, alleging Richard’s mismanagement.Arbitrator David Garcia ruled for Cole Ashbury in 2024, citing no proof of damages.Cookies owes $8.4 million after fees.The store’s value? Just $2.7 million.Optimism, not due diligence, drove expectations.

The Pattern

Johnston and Delaplane played the system.They backed another Haight permit at 768 Stanyan, sold for $2.1 million to Harborside.Delaplane’s Project Cannabis sold to Columbia Care.In Illinois, they propped up Cookies stores with a social-equity applicant, using lax rules and state loans.Permits, not pot, were the real gold.

The Present

San Francisco’s market shrank 11% in 2025.Illicit sales—$10 billion—dwarf legal ones.Newsom cut taxes to 15%, but it’s late.Many equity hopefuls quit.Richard now rents his permit to Eaze Inc., a chain.Cole Ashbury owes $9,100 to a vendor.The dream of generational wealth?Mostly debt and disappointment.

The Point

Legal cannabis promised justice.It delivered for a few.Connections, not equity, won.The real kings?Those who sold the permits, not the pot.