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."