The Z-Axis Of Chaos: How Dutchie's New Tech Solves Cannabis Industry Pain Points—'People Know What Great Looks Like,' Says CEO Tim Barash

Zinger Key Points
  • Dutchie CEO Tim Barash discusses the challenges and unpredictability of the cannabis industry.
  • Dutchie 2.0 uses AI for personalized shopping, loyalty programs and operational efficiency.
  • Barash says listening to customers is the key to success in cannabis retail's evolving landscape.

“People know what great looks like, and they want to get there as fast as they can,” says Tim Barash, CEO of Dutchie, in an exclusive interview with Benzinga Cannabis. With nearly two years at the helm of Dutchie, a leading cannabis tech platform, Barash reflects on the stark realities of working in the cannabis industry. It's a world unlike any other he's encountered, even after years in restaurant tech at Toast, where he helped build one of the largest vertical software platforms for the restaurant industry.

"I thought restaurants were the toughest retail environment until I spent a couple of years in the cannabis industry," Barash said, recognizing what it takes to operate in volatile, high-stakes environments. But cannabis adds an extra layer of unpredictability. "In any small business or startup, you have to deal with growth and complexity, like the X and Y axis. The cannabis industry has this Z-axis…it's the craziest, most erratic chart you can have," he says, referring to the ever-changing patchwork of rules and regulations that make long-term planning difficult.

Barash knows firsthand the pressure of navigating this landscape. "There's regulatory stuff, there's state stuff, there's federal stuff, there's vendors that want to work with you and then choose they don't overnight," he says. Yet, his approach remains pragmatic and straightforward: "Listen to customers and build what they want." This guiding principle has shaped Dutchie's success, even as the cannabis industry remains in flux.

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Dutchie 2.0: A Personalized Retail Revolution

Barash's philosophy is clear: focus on the customer. That's precisely what Dutchie 2.0, the company's newest platform update, is designed to do. "This is us taking a big step in that direction," he told Benzinga. Dutchie 2.0 integrates AI and machine learning to offer personalized product recommendations and targeted promotions for dispensaries.

Consumers in today's world expect more, and cannabis is no exception. "People know what they're not getting," Barash notes. Dutchie 2.0 brings cannabis retail into line with modern experiences offered by e-commerce giants like Amazon. Whether it’s logging on with a Google account to personalize the experience or receiving notifications when a favorite product is back in stock, the platform provides a seamless and engaging user experience.

Though it's not just about personalization, Dutchie 2.0 also tackles long-standing operational issues. One key feature is the platform's 360° mobile-first reporting engine, which gives dispensaries real-time insights into sales and inventory. "This isn't mind-blowing VR technology," Barash jokes, but it's precisely what cannabis retailers need to stay competitive. These insights help businesses manage operations more efficiently and make smarter, data-driven decisions that optimize everything from staffing levels to product ordering.

Addressing Industry Pain Points

Another practical feature is Dutchie's out-of-stock management tool, solving a common issue in cannabis retail. "In the past, when something was out of stock, it would just vanish from the menu," Barash said. Now, customers can sign up for notifications or browse similar alternatives, helping dispensaries retain engagement and capture lost sales.

"We all likely have different cannabis preferences," Barash says, illustrating how Dutchie 2.0 leverages AI to create personalized shopping experiences. Whether a customer prefers high-potency flower or bath bombs, Dutchie's machine-learning algorithms help retailers better connect with their customers in meaningful ways.

Navigating Data Privacy And Consumer Trust

As consumer data becomes more integral to shaping retail experiences, privacy remains a critical concern. Barash is quick to assure that Dutchie takes this seriously. "It's all optional," he says about the platform's opt-in features for personalization and data-sharing. "We have a very sophisticated team that works on security and compliance."

Despite these concerns, consumers have shown a growing appetite for personalization. "Since we introduced some of these features, we went from 25% to 60% of people logging in," Barash notes, indicating that cannabis consumers are increasingly eager for a seamless, tailored experience.

The Future Of Cannabis Retail

Barash is confident in Dutchie's ability to help dispensaries thrive, but he’s aware of the challenges ahead. As federal rescheduling and global legalization approach, the competition will grow fiercer. "Our strong belief is that it will happen," Barash says about federal rescheduling, noting Dutchie's involvement in advocacy efforts.

When tech giants inevitably enter the cannabis space, Dutchie's edge will come from its focus on vertical platforms. "The vertical platforms that are super focused and really listen to the industry—they beat the horizontal platforms every single time," Barash explains. He’s confident that Dutchie's intimate understanding of the cannabis industry will give it a competitive advantage.

Staying Ahead By Listening To Customers

Ultimately, Barash's strategy is simple: "As long as we keep listening to our customers, history has shown, that's the way to win." With Dutchie 2.0, Barash is leading the charge toward a future where personalized experiences and operational efficiency are at the heart of cannabis retail.

Dutchie's continued growth is rooted in a vision that places both dispensaries and their customers at the forefront. As cannabis marches toward mainstream acceptance, Dutchie is ensuring that the tools dispensaries need to survive and thrive are already in place, preparing the industry for its next great leap.

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