The Effect of Smoking Bans on Restaurant Business

Bartosch WJ and Pop GC. "Economic
Effect of Restaurant Smoking Restrictions in
Restaurant Business in Massachusetts, 1992 to 1998." Tobacco
Control, 11(Supplement II): ii38-ii42,
2002.

Restaurant smoking restrictions are not universally well regarded in the communities that adopt them. Restaurant owners worry abut the loss of business and restaurant employees are concerned about the potential job loss of business and restaurant employees are concerned about the potential loss of jobs. Although research has shown that these fears are unfounded--that restrictive smoking policies are not economically harmful to restaurants or restaurateurs--tobacco and restaurant industry-funded studies report that job losses and declining sales go hand in hand with smoking bans. This study looked at restaurant businesses in Massachusetts communities that adopted restrictive smoking policies--both before and after their implementation--to better understand the impact.

The researchers identified cities and towns in Massachusetts that enacted highly restrictive restaurant smoking policies during the seven-year period January 1992 through December 1998. They defined highly restrictive policies as those that banned smoking restaurant-wide or limited it to an enclosed, separately ventilated area. Using restaurant meals tax receipts collected by the Massachusetts Department of Revenue, the investigators then compared restaurant business before and after the implementation of smoking bans. They subsequently contrasted these findings with trends in restaurant sales during the same time period in communities without highly restrictive smoking policies. Because f the strong link between drinking and smoking, the researchers separately analyzed findings on restaurants serving alcohol, theorizing that these establishments might be disproportionately affected by smoke-free policies.

Across the state, the general trend in all restaurant business between 1992 and 1998 was one of growth; sales increased on average slightly less than 4 percent each year. Overall, neither highly restrictive nor less restrictive smoking policies had a significant effect on restaurant sales--this was true for both alcohol-serving and non-serving establishments. Other factors, however did affect restaurant sales. Business fluctuated seasonally, as would be expected with or without the bans. Per-capita income also affected restaurants. Those in wealthier communities generated more sales. In fact, among all restaurant types, each 1 percent rise in county per-capita meal receipts.

The authors' findings are consistent with survey research that showed that "most of the state's residents would continue to dine in establishments once they are smoke-free and many would frequent smoke-free establishments more often. "The conclude: "We find claims of community-wide restaurants business decline under highly restrictive smoke-free policies to be unwarranted."

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