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Business benefits of smokefree

Many pubs and restaurants in England that have already introduced voluntary smokefree policies report an increase in trade and profits. A recent survey for The Times, published in October 2006, found that amongst English pubs that have already banned smoking:
  • profits have risen by an average of 50%
  • food sales have risen by 80% on average
  • 9 out of 10 landlords reported that they were selling more food
  • nearly half of landlords said that drinks profits had increased by 37% on average, while a third said they had stayed the same

A survey of 501 business decision makers in England conducted by Continental Research in August 2006 found that:

  • 89% of all businesses, and three-quarters (74%) of hospitality businesses predict that smokefree legislation will be easy to implement
  • 36% of hospitality businesses believe that creating a smokefree workplace will have a positive impact on the company, 45% believe it will not change anything, whilst only 17% believe it will have a negative impact

Mitchells & Butlers (M&B), the pub group that owns the All Bar One and O’Neill’s chains, reported in September 2006 that food sales, which make up 28% of their sales mix, were up by 11%, as a result of the introduction of smokefree legislation in Scottish pubs.

In the betting industry, many worried that the ban would deter punters from visiting bookies, however Ladbrokes’ chief executive Christopher Bell said the evidence from Scotland had been the reverse. Mr Bell said he relished the introduction of the legislation in England, saying it would be "the removal of the last stigma attached to high street betting shops."

The pub chain Wetherspoons has reported that overall sales in August, September and October 2006 were up 9.2% on last year, but rose 11.8% in their 101 non-smoking outlets.

Punch Taverns started to introduce non-smoking outlets nearly three years ago and now has over 70 smokefree pubs.  Francis Patton, customer services director said: "Too many people are looking at the smoking ban as a threat, but we know this is a huge opportunity. The smoking ban is a great opportunity to get new customers (who want to eat) into pubs and also keep people there who go regularly."

Importantly, it is widely acknowledged that smokefree legislation will improve the health of hospitality workers and patrons. The British Institute of Innkeeping’s magazine said earlier this year that: "We are talking about banning the use of a carcinogenic substance which in enclosed spaces kills or damages the health of passive smokers - that means licensees and bar staff and customers. This is a scientific fact, and we should bear this in mind along with the economic arguments."


Last Updated: 14 December 06
 
Herefordshire Council, Brockington, 35 Hafod Road, Hereford HR1 1SH | Tel: (01432) 260000 | info@herefordshire.gov.uk