Health Department: restaurant sales up after smoking ban

Information gathered from a random sample of Springfield restaurants shows dining establishments have experienced an increase in sales since city officials enacted a smoke-free dining ordinance in July 2003. During the first three months the ordinance was in effect, restaurant sales increased 9.32 percent compared to the same period in 2002, according to the Health Department survey released Sept. 10.

But some restaurateurs say their receipts don't reflect that.

"I've lost a lot of business, and I haven't got it back yet," said Jim Dillard, co-owner of Cedars Restaurant at 513 N. West Bypass.

The study, "Financial Impacts of the Smoke-Free Dining Ordinance," was prepared by the Springfield-Greene Health Department and the city's Finance Department. The restaurant sales reports collected for the study are on file in the city's Finance Department.

Springfield-Greene County Health Department Director Kevin Gipson said the study indicates the smoking restrictions in restaurants haven't impacted revenues quite as severely as opponents to the ban had feared.

Based on a random sample of 81 of the 96 smoke-free restaurants and 49 of the 84 exempted restaurants, the analysis examined Springfield's restaurant sales during the third and fourth quarters of 2003. Comparisons were made with the same two quarters of 2002.

During the first quarter the ban was in place last year July through September restaurants with exemptions that allow smoking in properly ventilated areas saw sales increase about 5 percent, the study shows. Those that were required to go smoke-free had a sales increase of less than 1 percent, against the same period in 2002.

That revenue gap narrowed in the following quarter October through December compared to fourth quarter 2002.

"We saw exempted establishments those that allow smoking around 3.9 percent sales increases, and those that were required to go smoke-free about 3 percent," Gipson said.

While restaurant sales collectively appear to have strengthened, that doesn't lessen the impact on individual owners who have turned away patrons that smoke.

"It's taken regular customers," said Ruth Freeman, owner of Aunt Martha's Pancake House at 1700 E. Cherokee.

"I had people that smoked regularly and, of course, they don't come back. It's sort of ruined my lunch hour. I know who isn't here," Freeman said.

Freeman said she not only misses their sales, but also their commaraderie when regulars would eat and congregate at her 45-year-old business over coffee and cigarettes throughout the day.

The flow of diners has taken a nosedive at Cedars Restaurant in west Springfield, where Dillard said business has lagged. "From 6 a.m. to 8 a.m., I'd say it's down 80 percent," he said. "In fact, I've had to trim help back early morning. I've dropped a kitchen helper, and I've dropped one server."

The impact at Cedars' south side location at 3322 S. Campbell hasn't been as severe. "About 90 percent of the customers over there probably did not smoke," Dillard said.

Gipson said the random sample of restaurants surveyed covered all parts of the city.

From what Gipson has heard anecdotally, businesses that went nonsmoking and previously had strong morning traffic were hit hardest. "I think more of your breakfast type places, your early morning, your 24-hour type places in the city, it seems to me, were the ones impacted the most."

That holds true at Springfield's four Steak N Shake restaurants, according to Gary Leonard, owner.

"Right now, there's a lot of different choices where people can go and smoke, and it's had a terrible impact on my third-shift business," he said, referring to his 11 p.m.-7 a.m. shift. "It's knocked that portion of my business about 18 percent," Leonard said.

Leonard's complaint is the one that's been heard since Springfield City Council began discussing the issue in early 2003: that allowing exemptions to some restaurants is unfair to others.

"My thoughts on it are that it's still unfair from the standpoint that they have not created a level playing field for everyone with all the exclusions that take place in the smoking ordinance," Leonard said.

But Gipson concedes that point, but said the overall good of the ordinance outweighs the bad.

"I don't think that there's any doubt that this (ordinance) initially hurt some individual businesses. I think that can be proven," Gipson said. "But in general, overall, it doesn't appear to have had a major economic impact on the restaurant business in Springfield."

The future might hold a smoke-free Springfield when it comes to dining out.

"We've reduced half the number of restaurants in Springfield that allowed smoking," Gipson said. "We would like to, certainly for public health reasons we think this was a public health issue we'd like to see a totally smoke-free environment."

That would be all right with Leonard.

"If they would make this whole thing no smoking all across the board in Springfield, I've got no problem with that," Leonard said.

Springfield City Council agreed with the Health Department and its recommendations and passed the smoking ban in July 2003. Health Department officials have said smoke-free restaurants and public spaces protect customers and employees from second-hand smoke and reduce the risks of cancer and other chronic diseases.