There is no longer any doubt in the scientific community that smoke-free laws have no negative impact on bars and restaurants. Peer-reviewed, scientific studies show no economic impact, and in some cases a positive impact, on bars and restaurants.
- In a summary of 49 economic studies, there was no negative economic impact from smoke-free laws on restaurant or bars in 47 of the 49 studies. All 47 studies used objective measures such as employment and/or taxable sales receipts; data were analyzed several years before and after the smoke-free laws; and appropriate statistical tests were used to adjust for underlying economic trends (e.g., unemployment, labor force conditions) and seasonal fluctuations in data.2
- The few reports that show negative economic impact predict economic harm before the laws take effect, or they use subjective reports of estimated reductions in business, rather than actual, objective, verified or audited data after the laws take effect. These studies are funded predominantly by the tobacco industry or associated groups. Almost none of the studies finding a negative impact are published in peer-reviewed journals.2
What Makes a Sound Economic Study?
In order for an economic scientific study to be considered a reliable source of data, the following factors must be considered. The study must:
- Measure what actually happened and not just what people feared would happen
- Use hard numbers such as actual revenues or employment statistics collected by an unbiased source
- Include information from a reasonable time before the smoke-free policy went into effect and account for underlying trends and random fluctuations in the business cycle
- Use at least one year of data (usually 4 quarters) before and after the law
- Disclose the source of funding for the study
- Be published in a scientific, peer-reviewed journal
- Be financed by an organization that has no ties with the tobacco industry
How do Smoke-free Laws Affect Employment?
- In Lexington, employment in bars remained stable after the smoke-free law took effect. Restaurant employment increased by 3%, resulting in 400 more employees per month. The study analyzed data 5 years prior to and 14 months after the law took effect in April 2004.3
- In New York City, the number of restaurant jobs increased by 18% after the smoke-free law took effect. Data were analyzed two years before and two years after the law took effect in April 1995.4
How do Smoke-free Laws Affect Sales Tax Receipts?
- In 1995, California implemented a smoke-free restaurants regulation; in 1998 they implemented a smoke-free bars regulation. Based on a 12 year analysis (from 1990-2002), revenues increased in both venues after passing the laws.5
- Two years after implementation of a smoke-free law covering bars and taverns in the state of Washington, revenues for bars and taverns were $105.5 million more than expected.6
How do Smoke-free Laws Affect Employee Turnover?
- Restaurant workers in smoke-free cities are just as likely to stay on the job as those who work in cities without smoke-free laws. Business owners in smoke-free cities do not experience higher training costs associated with hiring new workers. In a study of payroll records from a national full-service restaurant chain franchisee operating 23 restaurants in Arizona, there was no effect of smoke-free laws on employee turnover.7
