It would be nice to have some real numbers here. If business went down 30% and has since risen 1%/year, the fact that it's rising would not change the fact that the ban seriously hurt business.
What's really discouraging here is that so many people seem so unwilling to recognize that markets act as mini-democracies: if a business allows smoking, that's a pretty good sign that more customers specifically want to allow smoking than customers who want to forbid it. What the smoking nazis seek to do is forbid businesses from giving their customers what they want.
If a 10% of the prospective diners in a community refuse to eat at a restaurant that allows smoking, and 20% refuse to eat at one that does not, then (assuming diners represent market share commensurate with their numbers) if the community has at least 10 restaurants, there will be at least one that forbids smoking and at least one that allows it [if the anti-smoking zealots don't interfere]. The remaining restaurants could split in any ratio, but will probably roughly mirror the 2:1 margin of customers who base their dining decisions the issue.
One key to understanding market behavior on these issues, btw, is recognizing that if any group which represents a large market share is being under-served, one or more businesses in the field will stand to benefit by serving that group, even if it means the loss of some or all of its existing customers. For example, suppose there were 11 restaurants, none of which totally forbade smoking. At least one of those restaurants must have a sub-10% market share. If that restaurant is the only one to forbid smoking, it would stand to win an instant 10% market share from people who want a smoke-free restaurant. Since its current market share is less than 10%, winning the 10% share from smokers would be a benefit, even if it cost some or all of the existing customer.
Of course, this is a slight over-simplification; businesses may legitimately value on long-time customers more than new ones. On the other hand, very seldom will a business stand to lose its entire clientele as a result of catering to an untapped market segment. Thus, while the principle that market niches don't go unfilled doesn't hold true 100% of the time, businesses will 99.44% of the time act to serve untapped markets if the government lets them.
Sure didn't take a lot of posts before the "N" word got out...
To the restaurant and bar owners of Bemidji. You had better listen to the pro-choice people here. My husband and I are both non-smokers. We used to own 2 restaurants and a half -share in a bar-nightclub here. in Victoria B.C. ,Canada In 1999 the Capital Regional District(CRD)here enacted a 100% smoking bylaw here. We did not protest, after all we were and would not be adversely affected by the smoking bylaw, so we thought. We never violated the bylaw. Our restaurant-bar and grill was already 70% non-smoking 25% smoking before the bylaw,anyway.We did not believe it would matter to us. We were so, wrong.
We believed that with a level playing-field as the CRD promised us, our businesses might even see higher profits. We were fools to buy into this anti-smoking rubbish . We lost our bar-club within eight months of the bylaw's introduction. Our partner filed for bankruptcy. Forty-two of our workers became unemployed.
In the previous five years The business was generating gross sales of over $2 million per annum. Our business was down over 50% in 1999 peaking at 65% in the winter months. We closed early most weeknights and on several occasions on weekends. It was a bitter blow to our family and all the people involved with our business.
Fortunately we had other investments that did do well for us. Our other investments: We own and operated two restaurants one a bar and grill(200 seats), where my husband is the manager and I co-manage, along with my brother a pizzeria delivery and take out only) in a small strip-mall. The bar and grill in the last two and a half years is barely turning a decent profit. We do have a fair sized patio and in the spring-summer months we have been making out alright. The winter is a different story. Business is down over 35-45%. Our staff is reduced by 12 and my husband puts in over 90+ hours per week. We normally employ 28 people. Before the bylaw. This used to be our full-time staffing year-round. We can no longer afford to hire the help except during the spring-summer season. We also had to stop hiring live music, we used to have bands every night of the week. It was too costly. We never thought the bylaw would have such a drastic impact but it has on most businesses in our industry.
We were told that smokers would, in time accept the bylaw and things would actually be better for most businesses. This has not happened in most places here. I have talked to many other business people in our industry and I know many of them personally. They have no reason to lie about this. We were sold a bill of 'bad goods.' The almost the entire industry in Victoria is paying for it.
I know of 40+ businesses that have closed directly on account of the smoking bylaw, here. There will be many more to come. Our take-out pizza parlor: is thriving on the other hand. Sales have steadily increased and we are now doing over 30% better in gross sales than we were before the smoking bylaw.
Still this is a far cry from off-setting the loss of our bar and the profits from our restaurant-bar and grill. We are luckier than most. Our family has helped us financially in our times of money woes and the loss of our business bar-club).
We would sell the restaurant bar and grill) tomorrow, but the market value has dropped so low, we must keep working until we can at least break even on what we paid initially for the business. No one in their right mind wants to be in the restaurant business in this city, unless they are a chain-restaurant, high class dining, take-out-delivery or a donut shop.
The bar-nightclub-pub business here is down at least 15%-50%. And it's not improving. People: smokers and non-smokers are staying home. Or going outside the city to locales where smoking is allowed Non-smokers are not replacing smokers in bars, clubs or restaurants . The anti-smoking operatives are lying to all of you. Do not be fooled. Bringing a smoking ban or bylaw to your community will bring nothing but hurt and economic suffering to most businesses in the hospitality field.
My husband and I have over 60 years between us in this industry. The most insulting thing I ever heard was when we attended a council meeting to voice opposition to the bylaw, when we had a first-hand look at how two out of our three businesses were suffering. When we said our bar-club was going to 'go under' if the bylaw continued our council members commented that "maybe we should seek another line of work, obviously we had no idea how to run a business." My husband had to be restrained. Some idiot in a business-suit who has never to my knowledge ever patronized any of my businesses with any regularity, who has no experience running such a hospitality establishment is telling us with over 60 years experience, that we have no idea how to run our places. We had turned constant profits since becoming business owner for over the last 25 years. These people who claim second-hand smoke is a health issue are not kidding. The health of your financial well-being is in jeopardy if smoking is banned in your city. You will lose tourist dollars and valued customers.
A word of well-earned advice. People who did not patronize restaurants and bars in your community when smoking was allowed will seldom, if ever come out even if those businesses become smoke-free. Non-smokers and the anti-smokers pushing for government imposed smoke-free drinking and dining will not even put a dent in the amount of customer base that you will lose. That's not all you will lose. Monetarily speaking, we have lost in excess of $530,000.00 Canadian dollars from the loss of our bar-nightclub. Over $220,000.00 in revenue from our bar and grill-restaurant. We have gained about $120,000.00 from our pizza parlor. Do the math: smoking bylaw=-$750,000.00+$120,000.00=-$630,000.00 And our early retirement. We are not taking into account the loss we would take if we tried to sell our bar and grill-restaurant at market value.
Do not believe the 'anti-smoking snake-oil pitchmen.' They are lying to you. They are playing games with your livelihood.
It is too late for us here in Victoria. Hopefully you can learn from our mistake. Had we of known of the impact a smoking ban as, we would have fought. Now we must pay the price for our complacency. The smell of fascism is much o unpleasant than the smell of any amount of secondhand smoke. To the 'concerned' citizens who advocate a local smoking ban or bylaw: Butt out of other people's business. You are brainwashed fools. Go back to your smoke-free 'caves.'