Restaurant Related News

Bar/Restaurant Business Up 12 Percent in Smokefree New York

10,000 new jobs added to city's hospitality industry.

Tobacco interests pretend that smokefree workplace legislation hurts business, but tax revenues prove otherwise.

By Joe Cherner
Published: January 5, 2004

NEW YORK, New York -- New York City's smokefree workplace law took effect in March, and business is booming. According to Commissioner of Finance Martha Stark, "New York's bars and restaurants paid the city 12 percent more in business taxes in the months since the law began than they did in the corresponding period in 2002.

From April through September of 2003 (the latest data available), the department collected $12 million in the same period of 2002.

"Although these statistics are far less important than the number of lives that will be saved, they are a good indication that New Yorkers are adjusting quite well to the smoking ban," adds Stark.

In addition to higher revenues, almost 10,000 new jobs were added to the city's hospitality industry, according to data from the New York State Department of Labor.

The situation in New York is similar to the situation elsewhere, according to Joe Cherner, founder of BREATHE - Bar and Restaurant Employees Advocating Together for a Healthy Environment. "Every peer-reviewed study using sales tax data shows that clean air is good for health AND good for business," says Cherner.

"It's normal that some restaurants and bars lose money or go out of business. It has nothing to do with providing clean air. The restaurant/bar business has extremely high turnover. A bar or club that was trendy last year might not be trendy this year."

According to the Zagat survey, 91 restaurants closed since New York's smokefree workplace law took effect. But 174 restaurants opened and many more openings are scheduled, according to Zagat.

California became the nation's first smokefree workplace state in 1995. Since then, Delaware, New York, Connecticut, Maine, and Massachusetts have passed smokefree workplace legislation. That number is expected to grow in 2004.

"Tobacco interests love to get the media to report about businesses losing money," adds Cherner. "But the truth is that for every loser, there are two winners."