Like many marijuana shops in California, the Urbn Leaf in San Diego bulked up its inventory before legal sales began on Jan. 1, stockpiling enough marijuana to last for months because no one knew what the era of legal cannabis would bring.
The shop, along with others involved in the state's fledgling cannabis economy, are now concerned that too few operators have been licensed to support a marijuana pipeline of state-approved growers, distributors and retailers.
In some cases, they say, bottlenecks have already slowed the supply chain from fields to storefronts.
"They are going to have to come online with more producers in the next 12 months to keep up with the demand," said Will Senn, the founder of Urbn Leaf who operates three dispensaries and plans to open three more, including one in Los Angeles.
"The black market will balloon if we can't get legal, licensed producers to step into the industry. That's the biggest risk," he said.