Clean Indoor Air Act And The Effects On Small Business

On July 24, 2003 the Clean Indoor Air Act was effective in New York State. This law states that smoking shall not be permitted in a number of indoor areas. Included in these areas are places of employment, bars, certain food service establishments, commercial establishments and bingo facilities ("Regulations of Smoking in Public and Work Places" 1). When a law such as this one is put into effect, we can not help but to ask "How is this going to affect business?" This is a valid and common question asked by many, but answered by few.

There has been much debate on whether or not there are major effects on businesses such as privately owned bars, restaurants and bowling alleys. The truth is, the impact of the Clean Indoor Air Act on business, varies. Some studies show that business has declined as much as 40% since the smoking ban; others say that business has even slightly increased since the ban, and yet others say that business has not been effected whatsoever.

Those that complain that the smoking ban has negatively affected business are generally bar owners in small towns. Some of these business owners rely solely on the sale of alcoholic beverages and regular customers for an income. Colleen McShane, president of the Illinois Restaurant Association, points out that "alcohol and cigarettes go hand in hand" (Bergen, 2). Adrien Gallo, who manages four bars, has noticed that smokers tend to buy fewer drinks than they did before the smoking ban came into effect. He says "Since people have to go smoke outside, their drinks just sit on the bar. So before, where they might have had two drinks while smoking a cigarette or two, now they're having maybe part of a drink. They might be smoking less because it's a pain to go outside to do it - but they're also drinking less" (Lee, 2). Gallo has also seen an increase in "pub crawling". He says that when people go outside to smoke they meet up with other people and "just head off to another bar" (Lee, 2).

David Damon Jr., another concerned bar owner, says "I didn't just lose the smokers; I lost the friends of the smokers, the nonsmokers, who didn't want to hang out with them" (York, 1). The Prells, a couple which frequently went to David Damon's bar, confirmed his loss in business. "We used to go out every week, but now we go out once a month," said Mrs. Prell, "We're saving money" (York, 3). Smokers are "cutting down on the number of times they go out to bars or restaurants, not on their cigarettes" (York, 3). Damon used to hold bowling banquets, but says now people would "rather shake hands at the last game and go home" (York, 2). His sales showed a 40 percent decrease in business after the ban took effect. Mr. Damon, however, did fill out the 10 page waiver application, and weeks later the waiver was hand-delivered. Mr. Damon now hopes to get back the customers that he has lost (York, 2).

The list does not stop here. Many small business owners have experienced a drastic decrease in alcohol sales. A business called Ole-N-Rick's, owned by two retired firefighters, have seen their sales fall 50 percent since the indoor smoking ban (Bergen, 1). Selby Scaggs, owner of the Anchor Inn Seafood Restaurant, has suffered a 40 percent drop in alcohol sales alone, and more than 50 percent loss in computer trivia games (Craig, 1). Mary Jo Spencer, the co-owner of the Cedar Lodge, says that after the smoking ban came into effect she witnessed a loss of 62 percent in her sales (Mangione, 2). The owner of Hogs & Heifers says that not only is she having a hard time making a profit, but she is considering laying off four employees (Hu, 2).

Waivers are, however, being made available for those applicants that qualify. Counties with their own health departments are at liberty to create their own guidelines on how, to whom, and what the qualifications are for these waivers to be granted. For some establishments, however, it's not the same. There are 21 counties in New York State that do not have their own health departments. These counties are to abide by the guidelines of the state health department. Some county officials have made it easier to qualify for a waiver, and others have made it more difficult. New York State requires that the business must be able to prove a 15 percent decrease in sales tax receipts for three consecutive months during the smoke-free period. Also, the business is to have "Smoking areas located away from the general traffic patterns of travel to enter the establishment and visit restrooms" (Division of Environmental Health Protection, 3). The business is also required to install a ventilation system located in an effective position, and separate smoking/ non-smoking sections (Division of Environmental Health Protection, 3). Every county with its own health department, however, does have the option to create their own set of qualifications for a waiver. For example, Oneida County, who has their own health department, granted 28 waivers, nearly a fifth of all waivers granted in New York State, within the first year of the smoking ban (Cooper, 1). This leads us to believe that perhaps it is easier to be issued a waiver inside the county of Oneida than it is to be granted a waiver by the state, thus creating an unfair advantage. Senator Raymond Meier, representing Utica, says "You effectively have, in the 57 counties outside the city of New York, 57 different standards, and you can see that. This county has granted more waivers than any other county. Some have granted none. There's no uniformity of administering this waiver process and absolutely no predictability about it" (Cooper, 2). Some people are worried about the inconsistency that this exception presents. For most of those who have been granted the waiver, however, business may be looking up. Mary Jo Spencer, who reported a 62 percent decrease in business after the smoking ban came into effect, was granted a waiver and says that their smoking room has helped business. She says "It's not quite back up to normal yet, but it's better than it was before. I've been very pleased with my smoking room" (Mangione, 2).

Curiously, not all businesses are being effect the same way. A prime example of this resides with Evan Christou. Christou owns two very different dinners in two different cities: the Gateway Diner in Albany and the Tops Dinner in Rotterdam. A momentous decrease in business has been experienced by the Gateway Diner in Albany, but the Diner in Rotterdam has remained unaffected by the smoking ban (Wood, 1). So, to what do we owe this diverse impact? Christou says that the two dinners have almost the same menu, but very different demographics. The dinner in Albany, he says, tends to attract more smokers