Restaurateurs said that the new law, expected to go into effect in March or April, will sap revenues, which have already slipped because of the recession and the ripple effects of the terrorists attacks.
"This is a bad time for people in the restaurant business," said E. Charles Hunt, executive vice president at the New York State Restaurant Association's New York City chapter. "Owners are concerned about their revenues and some workers are worried about losing their jobs. This is really bad timing."
Ciaran Staunton, owner of O'Neill's near Grand Central Station, could not agree more. Staunton, who has owned the bar and restaurant for five years, said he is planning to lay off three of his 12-person staff once the ban goes into effect.
| Bar & Restaurant Trade |
Total Retail Trade |
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|
|
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| Year |
1990 |
|
1998 | 1990 | 1998 | |||||||
| USA | 182 | 260 | 1,807 | 2,695 | ||||||||
| CA | 26.3 | 28.0 | 225 | 291 | ||||||||
| NY | 13.1 | 13.8 | 124 | 148 | ||||||||
| MA | 6.1 | 5.9 | 50.7 | 62.6 | ||||||||
| VT | .46 | .44 | 4.5 | 6.0 | ||||||||
| UT | .94 | 2.1 | 10.6 | 19.3 | ||||||||
| For comparison, below are some smoker friendly states | ||||||||||||
| NC | 4.5 | 8.0 | 45.8 | 81.1 | ||||||||
| VA | 4.4 | 6.9 | 47.5 | 73.6 | ||||||||
| MO | 3.5 | 5.7 | 36.0 | 57.3 | ||||||||
| TX | 11.4 | 18.4 | 120 | 190 | ||||||||
Mr. Kuneman further notes: Smoker-unfriendly states have not kept up with their fair share of our nation's total bar and restaurant business since 1990. Data are presented for total retail trade to control for population shifts and possible poor local economic conditions. The data are not adjusted for the 20% inflation between 1990 and 1998.
The smoker-unfriendly states have experienced increased overall retail trade, but bar and restaurant revenues have remained flat. Adjusted for inflation, however, bar and restaurant business is actually down 20% in these states. The studies often cited that purport to claim smoking bans are good for business evidently do not adjust for inflation, and/or do not include bars and restaurants that went out of business. Other studies cite restaurant taxes collected but fail to correct for tax rate hikes. Note bar and restaurant business in smoker-friendly states has appreciated at rates similar to the overall retail trade. Of the 45 states that have not banned smoking at the state or local level, only Hawaii experienced poor revenue growth similar to California, New York, Massachusetts and Vermont. Since Utah is mostly Mormon and Mormons don't smoke, it would be expected Utah would not suffer the revenue loses the other states in this category experienced.
"Owners are concerned about their revenues and some workers are worried about losing their jobs. This is really bad timing."Bloomberg said that the smoking ban was to protect bar and restaurant workers from second-hand smoke.Ciaran Staunton, owner of O'Neill's near Grand Central Station, could not agree more. Staunton, who has owned the bar and restaurant for five years, said he is planning to lay off three of his 12-person staff once the ban goes into effect.
Apparently by forcing them out of their jobs and onto the pavement.