Aric Klar, founder and CEO of Quality Roots, draws on his family's pharmacy and retail expertise to build a thriving cannabis operation in Michigan. Despite pandemic delays, the Battle Creek dispensary now generates three times the expected business through innovative delivery and education-focused experiences. Klar's interview reveals plans for state expansion and eventual multi-state ambitions amid a competitive market.
Family Expertise Fuels Regulated Industry Success
Klar grew up immersed in his parents' large independent pharmacy chain in Michigan, mastering patient care, team leadership, and supply chains in a heavily regulated sector. He orchestrated their 2014 sale to Walgreens before launching Toyology Toys, a trend-driven retailer with national distribution. At Quality Roots, brothers Jonathan and Michael, father Mark, and operational partners from the Schostak family form the core team, alongside experts like Nicole Essa in restaurant and supply chain management. This structure emphasizes trust and empowerment, essential for scaling in cannabis where compliance demands precision.
Strategic Expansion in Michigan's Evolving Market
Quality Roots launched its first dispensary in Battle Creek and holds additional licenses pending local adult-use transitions, with Klar anticipating activations this year. The company pursues the state's competitive request-for-proposal process to secure more footholds. Michigan's shift from medical-only to recreational sales since 2018 has intensified competition, yet family-honed operations position Quality Roots to capture share through reliable execution and vendor partnerships with brands like Sozo Health, Pleasantree, Redbud Roots, Cresco Labs, and Apothecare—the state's sole certified organic cultivator.
Pandemic Adaptations Unlock Revenue Potential
Originally slated for March 12, the Battle Creek opening paused amid COVID-19, allowing refinements in processes and curbside service. First-month recreational sales hit $350,000, climbing toward $525,000 in the second, far exceeding projections. A standout move extends delivery to 150-165 miles, filling gaps left by local competitors limited to 20-30 miles. Complementary products like speakers alongside cannabis accessories tap Klar's trend-spotting skills, fostering loyalty in a market where more stores will soon pressure margins.
Funding Paths and Broader Ambitions
Funded so far by the Klar and Schostak families via a lean cap table, Quality Roots eyes capital raises from active partners to fuel its pipeline. M&A interest flows from brands seeking Michigan licenses and presence. While prioritizing Michigan mastery—including consumer education for repeat visits—Klar monitors Ohio and California for MSO evolution, timing entries to align with proven models and market readiness.
