Dispensary Standard Operating Procedure (SOP) Templates

Standard Operating Procedures (SOPs) are step-by-step instructions that document how to carry out specific tasks and processes within your cannabis dispensary. These dispensary procedures are essential for maintaining consistency, ensuring regulatory compliance, reducing training time, and improving operational efficiency. Just like SOPs in other industries, cannabis SOPs extend primarily from governing regulations and technology. Technologies like point-of-sale (POS) systems help shape how your employees perform tasks and how you operate your business.

SOPs can include everything from opening and closing routines to customer check-in and sales procedures, inventory audits, and emergency product recalls. Think of SOPs as the playbook your team members follow every day. These procedures help ensure you remain compliant with regulations, improve operational efficiency, ensure staff accountability, reduce risk and human error, and provide a consistent customer experience no matter which budtender is on shift or which of your locations your customers visit.

In short, SOPs help protect your license, avoid costly mistakes, and provide a better customer experience – all while saving time and money.

Unlike other retail businesses, cannabis dispensaries operate in one of the most highly regulated industries. Regulatory bodies at the state and provincial level have imposed strict guidelines on everything from product handling and data entry to customer interaction and cash management.

Here are some of the top reasons why SOPs are essential for retail cannabis operators:

Compliance: Well-maintained SOPs help ensure your employees are performing their tasks in accordance with regulations. They make expectations clear. Additionally, dispensary SOPs can help you respond quickly to our industry’s constantly shifting regulations. When the rules change, it’s easier to update your documentation practices and job descriptions when they’re already laid out and well-organized. In fact, you should regard SOPs as your internal regulations that go above and beyond state, provincial, and local ordinances to satisfy your unique needs and goals.

Training: SOPs simplify onboarding and training by standardizing how tasks are performed. These documents can even serve as sequential training modules, especially when they’re divided into distinct tasks. Employees can learn one set of responsibilities and, when they’re ready, take on other tasks one by one.

Efficiency: As the saying goes, time is money. When employees perform their jobs easily and efficiently, your payroll costs drop. SOPs prevent your staff members from reinventing the wheel with their own way of performing tasks; this is particularly important when you’re operating multiple storefronts. Plus, streamlined operations mean fewer errors, less waste, and more time for customers.

Accountability: SOPs make it clear who is responsible for what – and how it should be done. In the event of a compliance violation – such as a budtender’s failure to correctly confirm a birth year on an ID card – well-wrought SOPs can provide a degree of insulation for your business by shifting culpability to the employee’s human

Scalability: As you grow, robust SOPs help make duplicating your success much easier. When you roll out a new store, good documentation will limit miscommunication among your new staff and help maintain compliance.

Creating your own dispensary SOPs may seem intimidating, but it doesn’t have to be. Here’s a simple process you can follow to get started:

1. Compliance First

The best place to start is with all mandated compliance requirements. If you build your SOPs around what regulators expect and are looking for, you’re much better positioned to pass impromptu inspections with flying colors.

2. Key Processes

Next, map out the day-to-day tasks your dispensary needs to perform. Think about customer flow, inventory, compliance reporting, staffing, and sales.

3. Break Down the Steps

For every single process or procedure, write out each step in detail. Be as clear and concise as possible – you don’t want to leave any room for misinterpretation or ambiguity. Use simple language, bullet points, and checklists for easy readability and implementation.

4. Assign Roles

Clarify exactly who is responsible for each step. This helps reduce confusion and ensures accountability.

5. Include Tools and Systems and Integrate Your Tech Stack

Be sure to list any software or hardware used in your processes; for instance, your POS, payroll, and track-and-trace systems should all align with your SOPs.

6. Document, Test, Update

Your SOPs should be living documents. Test each SOP with your team and revise as needed – and remember that as regulations change, your SOPs will need to change with them.

While every cannabis business is unique, these 9 SOPs form the foundation of a well-run dispensary. Implement these first, then expand as needed to fit your dispensary’s unique needs and challenges.

Your team should follow a consistent checklist when starting and ending each business day. These routines are especially important in a high-security, cash-heavy operation like a cannabis dispensary.

Opening Checklist:

• Turn on lights, music, and check temperature controls; put out applicable signs; spot clean as needed.
• Inspect premises for forced entry or suspicious activity.
• Verify all display and stock products are accounted for.
• Turn on and log into software systems (POS, inventory tracker, etc.).
• Review orders and inventory.

Closing Checklist:

• Lock all doors, safes, and display cabinets.
• Generate compliance and sales reports.
• Cash out registers and close POS systems.
• Clean and sanitize the store.
• Conduct a final security sweep and set alarms.

Customer check-in isn’t just a formality; it’s a critical compliance step. Regulators frequently issue penalties for improper ID checks or failure to record customer information. To prevent this, make sure your customer check-in SOP includes:

• Verifying government-issued ID for age and validity.
• Scanning ID into your POS or customer tracking system.
• Confirming the customer hasn’t exceeded the daily purchase limits.
• Following local laws regarding customer data collection and serving limits.

Remember: A consistent check-in SOP protects both your license and your reputation.

Your sales process should feel seamless to the customer – but behind the scenes, it should be well-documented and compliant. Sales transaction SOPs should include:

• Greeting customers and asking questions to understand their needs.
• Answering product questions within legal limits.
• Recording product sales accurately in the POS.
• Collecting payment via cash, debit, or integrated digital solution.
• Including appropriate taxes and recording for remittance.
• Packaging purchases in accordance with state/provincial laws.

To streamline the sales process and ensure all sales are tracked and recorded properly, consider a compliant POS solution that integrates directly with your state or province’s track and trace system.

Customers increasingly expect flexible ordering options. Your SOP should outline how to receive and fulfill online or order-ahead purchases accurately and efficiently. Include steps for:

• Verifying and confirming online orders.
• Prioritizing and staging orders for pickup.
• Communicating wait times and order status.
• Ensuring age and ID verification upon pickup.
• Integrating orders with POS and compliance systems.

In regions where cannabis delivery is permitted, there are strict guidelines around packaging, security, and documentation. Delivery SOPs should cover:

• Proper packaging and labeling procedures (especially for fragile items like glassware).
• Steps for tracking deliveries through software systems.
• Third-party delivery protocols.
• Security checks before and after delivery.
• Documentation requirements for each stage of the delivery process.
• Procedures for customer identity and age verification upon receipt.

Every cannabis delivery must be treated like a high-value transaction, with proper checks and balances to ensure safety and regulatory compliance.

With limited access to banking services, cannabis retailers must be especially diligent about cash management. These SOPs should cover:

• Assigning till drawers.
• Daily cash reconciliation procedures.
• End-of-day cash counts and deposit slips.
• Secure storage of cash on premises.
• Policies for armored car pickups.
• Roles for cash handling and deposit authorization.
• Recordkeeping for audits and tax reporting.
• Authorizing refunds, discounts, and voids.
• Monitoring discrepancies and logging incidents.

A comprehensive security SOP protects your staff, products, and premises. It also helps you remain compliant with state or provincial regulations. Plus, because of heavy banking restrictions, most dispensaries operate in a cash-heavy environment – which is one more reason why security SOPs are of utmost importance.

Standard procedures for physical and digital security include:

• Defining employee access roles for secure areas and safes.
• Surveillance camera placement, maintenance, and footage retention policies.
• Alarm system checks, usage, and emergency triggers.
• Physical access controls, e.g. entry logs and badge readers.
• Procedures for reporting theft, threats, suspicious activity, or security incidents.
• Regular audits of access logs and security systems.

Your inventory SOP should ensure cannabis products are received, stored, and tracked properly to avoid shrinkage and maintain compliance. This SOP should address:

• All product intake and verification procedures.
• Storage and organization protocols.
• Procedures for handling and disposing of expired, damaged, or returned items.
• How to conduct cycle counts and full physical audits.
• Staff responsibilities for managing inventory.
• Integration with POS, inventory management, and compliance software.

Additionally, this SOP should address quality control and product handling to ensure only safe, legal, and compliant products make it to the sales floor. Include procedures for:

• Vetting licensed vendors and suppliers.
• Logging product batch numbers and COAs.
• Ensuring products meet shelf life and storage standards.
• Monitoring customer feedback and complaints.
• Pulling or quarantining compromised products.

Download our Dispensary Inventory Management Procedures Template

Cannabis inventory and chain-of-custody is highly regulated and monitored. Your SOPs must align with your state’s track-and-trace system (e.g. Metrc, BioTrack, etc.). Your track-and-trace SOPs should include:

• Receiving shipments and verifying product info.
• Properly labeling and tagging products.
• Transferring inventory between locations.
• Conducting regular inventory audits.
• Reporting discrepancies.
• Integration with POS and compliance software.

Managing your people is just as important as managing your products. This SOP should cover:

• Recruiting and hiring protocols.
• Onboarding processes like paperwork, licensing, training, and systems access.
• Shift scheduling and shift-swapping rules.
• Time tracking, payroll procedures, and tax filings.
• Performance evaluations and disciplinary steps.
• Termination and offboarding workflows.

Creating your dispensary SOPs is only the first step; you’ll also need to implement ongoing training and reinforcement to ensure they’re followed. Here are some tips to help keep your staff up to date on operational procedures and continually reinforce their importance:

• Make your SOPs readily accessible in a digital SOP library or employee portal.
• Hold periodic refresher training and quizzes.
• Conduct surprise audits or walk-throughs.
• Create a feedback system for staff to suggest improvements.

Remember: well-documented SOPs aren’t just about compliance. They’re about creating a consistent, efficient, and trustworthy cannabis retail experience. Whether you’re managing one store or several locations, SOPs help you scale without sacrificing quality or customer service.

Start by creating SOPs for the 11 areas we outlined above. Use the free templates provided as a jumping off point, modifying them as needed to fit your dispensary’s unique needs and challenges. Then – with the help of your team, your tech tools, and regular check-ins – begin to implement them. As your business grows, your SOPs should grow with it to ensure you stay compliant, competitive, and customer-focused.

Want to see how Cova’s award-winning dispensary software can help you streamline operations, remain compliant, and provide an exceptional customer experience? Book a free demo today!