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The effect of ordinances requiring smoke-free restaurants on restaurant sales

Author

Listed:
  • Glantz, S.A.
  • Smith, L.R.A.

Abstract

Objectives. The effect on restaurant revenues of local ordinances requiring smoke-free restaurants is an important consideration for restaurateurs themselves and the cities that depend on sales tax revenues to provide services. Methods. Data were obtained from the California State Board of Equalization and Colorado State Department of Revenue on taxable restaurant sales from 1986 (1982 for Aspen) through 1993 for all 15 cities where ordinances were in force, as well as for 15 similar control communities without smoke-free ordinances during this period. These data were analyzed using multiple regression, including time and a dummy variable for whether an ordinance was in force. Total restaurant sales were analyzed as a fraction of total retail sales and restaurant sales in smoke-free cities vs the comparison cities similar in population, median income, and other factors. Results. Ordinances had no significant effect on the fraction of total retail sales that went to restaurants or on the ratio of restaurant sales in communities with ordinances compared with those in the matched control communities. Conclusions. Smoke-free restaurant ordinances do not adversely affect restaurant sales.

Suggested Citation

  • Glantz, S.A. & Smith, L.R.A., 1994. "The effect of ordinances requiring smoke-free restaurants on restaurant sales," American Journal of Public Health, American Public Health Association, vol. 84(7), pages 1081-1085.
    • Handle: RePEc:aph:ajpbhl:1994:84:7:1081-1085_6
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    Cited by:

    1. Peter Schulz & Uwe Hartung & Maddalena Fiordelli, 2012. "Effect of smoke-free legislation on Ticino gastronomy revenue," International Journal of Public Health, Springer;Swiss School of Public Health (SSPH+), vol. 57(6), pages 861-866, December.
    2. Michael R. Pakko, 2006. "On the economic analysis of smoking bans," Regional Economic Development, Federal Reserve Bank of St. Louis, issue Oct, pages 115-130.
    3. J. Dunham & ML. Marlow, 2000. "Smoking laws and their differential effects on restaurants, bars, and taverns," Contemporary Economic Policy, Western Economic Association International, vol. 18(3), pages 326-333, July.
    4. Ahlfeldt Gabriel M. & Maennig Wolfgang, 2010. "Impact of Non-smoking Ordinances on Hospitality Revenues: The Case of Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 230(5), pages 506-521, October.
    5. Renaud Foucart, 2017. "Group Consumption and Product Diversity: The Case of Smoking Bans," Journal of Industrial Economics, Wiley Blackwell, vol. 65(3), pages 559-584, September.
    6. Jennifer W. Kahende & Brett R. Loomis & Bishwa Adhikari & LaTisha Marshall, 2008. "A Review of Economic Evaluations of Tobacco Control Programs," IJERPH, MDPI, vol. 6(1), pages 1-18, December.
    7. Craig A. Gallet & Gary A. Hoover & Junsoo Lee, 2006. "Putting Out Fires: An Examination of the Determinants of State Clean Indoor‐Air Laws," Southern Economic Journal, John Wiley & Sons, vol. 73(1), pages 112-124, July.
    8. Richard Thalheimer & Mukhtar M. Ali, 2008. "The Demand For Casino Gaming With Special Reference To A Smoking Ban," Economic Inquiry, Western Economic Association International, vol. 46(2), pages 273-282, April.
    9. Tami Gurley-Calvez & George W. Hammond & Randall A. Childs, 2014. "Labor Market Impacts Of Smoking Regulations On The Restaurant Industry," Contemporary Economic Policy, Western Economic Association International, vol. 32(4), pages 681-694, October.
    10. Lisa Stolzenberg & Stewart J. D’Alessio, 2007. "Is Nonsmoking Dangerous to the Health of Restaurants? The Effect of California’s Indoor Smoking Ban on Restaurant Revenues," Evaluation Review, , vol. 31(1), pages 75-92, February.
    11. Kim, Dohyung & Yörük, Barış K., 2015. "The impact of restaurant smoking bans on dining out expenditures: Evidence from panel data," Journal of Urban Economics, Elsevier, vol. 88(C), pages 38-49.
    12. John Dunham & Michael Marlow, 2003. "The economic incidence of smoking laws," Applied Economics, Taylor & Francis Journals, vol. 35(18), pages 1935-1942.

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