Smoking ban effect on bars still hazy

First-quarter sales at Washington’s bars and taverns dropped by 3.4 percent compared with a year ago, and Washington’s Department of Revenue said one reason could be the state’s recent smoking ban in public places.

State researchers tallied gross sales receipts at 1,042 bars and taverns statewide, and found they did about $4.1 million less than the same three-month period of 2005.

That could be connected to Initiative 901, said Mike Gowrylow, a spokesman for the state revenue department. “But it’s not a clear causal connection. All we see is a connection that needs further watching,” he said.

Moreover, three months is too short a time for conclusions, plus taverns have more business volatility than other sectors, Gowrylow said.

Initiative 901 prohibited smoking in restaurants, bars, taverns, bowling alleys and card rooms, and also within 25 feet of doors or windows of public places. It went into effect in December 2005.

Compared with the dip in tavern sales, the state’s 4,900 full-service restaurants saw an 8 percent increase in sales during 2006’s first quarter, Gowrylow said. The smoking ban should have had little or no impact on restaurants, about 80 percent of which had been smoke-free before last year, he said.

Sit-down restaurants generally follow the general mood of the economy. Since the state and national economies rebounded in 2003, Washington’s restaurants have enjoyed growth in sales averaging about 7 percent a year, said Gowrylow.

The tavern sector shows more volatility, state revenue department numbers for the first quarter indicate. In the first quarter of 2005 the tavern sector had a 4.3 percent increase in sales. The year before, it fell 0.8 percent, and in 2003 the decline was 2.0 percent, Gowrylow said.

Phone calls to Spokane area taverns found varying responses to the state numbers.

Diane Sams, a bartender at the Sullivan Scoreboard at 205 N. Sullivan Road, said the ban has clearly hurt business.

“My net pay is down seriously. It’s due to the ban, and I’m worried,” said Sams, a single mother whose bartending job is her only income.

Mark Leckie, day manager at the Bottoms Up Bar and Grill in Spokane Valley, said business there is up compared to 2005. “Why? No smoking helps. More people come in now,” said Leckie.