After four years, Phantom CBD closed its doors Tuesday with the manager stressing relying on selling edibles is not financially feasible.
SAN ANTONIO — Smokeable hemp products are now off store shelves across Texas as new state rules take effect, which has forced some businesses to shut down for good while others attempt to adapt with the changing industry.
The ban stems from Texas’ evolving interpretation of hemp laws following the 2019 federal legalization of hemp under the Farm Bill. While hemp-derived products containing less than 0.3% delta-9 THC remain legal, Texas lawmakers and regulators have tightened restrictions on smokable forms like hemp flower, a product that when heated, exceeds the legal THC limit.
State officials have argued the ban helps law enforcement distinguish illegal marijuana from legal hemp and protects public health. But those opposed to the ban have stressed the regulations unfairly target small businesses and removes access to products many consumers rely on.
At Phantom CBD in San Antonio, a shop that had been open for four years, the new rules have effectively ended operations.
“In the back, we would restock up on supplies and now it’s just all the remnants of the counter, all the glass,” said manager Marvin Rocha.
Rocha, who has been with the business since its opening, oversaw the closure on Tuesday.
“We’re just here wrapping up, cleaning up, patching the holes in the wall and getting it ready for the next tenant,” Rocha said.
Hemp flower made up a majority of Phantom CBD’s sales. With that revenue stream gone, Rocha said shifting to edibles alone wasn’t financially viable, leading to the owner’s decision to close up shop for good.
Rocha also worries about customers who depended on smokable hemp for relief.
“We had a lot of veterans that would come into the store. The hemp and the flower would help them tremendously with their aches and pains,” Rocha said.
He also feels for the employees who now are without a job.
“There were four employees, four friends of mine,” Rocha said. “One of them just had a baby. So the pressure’s on him. But yeah, it’s a shame we have to close.”
While some businesses are shutting down entirely, others are trying to stay afloat by adjusting their business model.
At Bexar Kingdom, owner Christopher Gonzalez said the ban has forced a shift in what they sell. Instead of closing, the shop is moving toward an emphasis on edibles and THC-infused beverages.
“It’s definitely been an impact,” Gonzalez said. “What we’ve done is just let people know and educate them what we’re going to have coming up, how we’re switching to edibles and consumable drinks.”
Gonzalez and his team are renovating the space inside and out to create a fresh concept that involves a social setting featuring hemp-derived THC mocktails.
“Here at this bar, we’re going to have our mixed-THC mocktails from a local manufacturer brand that is bringing out spirits that are going to have hemp THC available to allow us to mix drinks and allow people to have a social spot to mingle,” Gonzalez said.
But for now, operations are scaled back. Gonzalez and his business partner are running the shop alone after having to temporarily let employees go as they await to see whether the state approves their alcohol license.
“Unfortunately, we’ve had to steer away our employees and say, ‘Hey, hold on while you can,’” Gonzalez said. “We’re excited to have them back in 60 days when we’re able to bring on the social house.”
The impacts extend beyond business owners. One former employee of Bexar Kingdom, a father of four, has enlisted in the military following the job loss.
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