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"Therefore, the smoking ban has nothing to do with these businesses failing but rather they fail because their product is not as good as their competitor.

Gee, I love Capitalism!"

Yes, I agree that this is a lesson in capitalism. The fact is that the market now has fewer customers to win to their business. Therefore, fewer customers, means less revenue available. There will occur competition between all restaurants and bars for this limited revenue. This competition will continue until the capacity to serve the available customers has balanced with the number of customers available. That means that businesses will continue to fail until the right capacity is available to serve the market. It also means that there will occur a decrease in product offered. The same phenomonon occurs when Walmart moves into a town. The difference is that the capacity increased, choices increased, the market freely chose which capacity to use and which capacity to eliminate.

That is not the way things are happening here. If you remove the people that would like the world to revolve around themselves (like you), we had a relatively satisfied market. The capacity had already balanced to the market's needs. We then dissatisfied a large percentage of that market. In the absence of satisfaction these available customers left the market. Now, we have to balance the capacity available by eliminating it.

Now, what caused the number of available customers to decrease? That was caused by the government legislation, that has not been disputed by anyone. If you would like to show any other event that caused the number of avialable customers to decrease, then feel free.

If you can't understand this then I would suggest taking a basic econ course at your local CC. That would be enough to give you the basic economic understanding you are obviously lacking.