Smoke Ban’s Impact Still Felt: Many Businesses Adjusted, Survived; Others Less Fortunate
DOVER – When the state’s smoking ban went into effect two years ago, the new law changed how bars and restaurants operate.
Instead of having smoking and nonsmoking sections, suddenly the establishment’s entire indoor seating area – which in many cases means the whole seating area – had to be nonsmoking.
The changes caused a “new reality” that forced businesses to change, said Rep. Robert J. Valihura, R-Wilmington, one of the lead sponsors of the legislation creating the ban.
New promotions popped up, including discounted drinks. Some establishments, such as Dover’s The Lobby House, beefed up outdoor seating areas with television screens and other amenities.
Even supporters, however, admit the ban drove some establishments into extinction.
“A number did go out of business,” Rep. Valihura said.
“Those that did go out of business did so because they did not change their business plan. A smoke and a drink business is no longer viable in the state today. Those that have changed have stayed in business and those that have not changed have been replaced by new businesses that are thriving.”
Bowers Beach bar Bayview Inn has applied for a food license so the popular watering hole can start serving sandwiches, owner Sherry Fistere said.
“We still have drinkers and smokers,” Ms. Fistere said. “Well, we lost the smokers but we’ll get the eaters instead.”
Ms. Fistere said several factors led to her small business losing $600 a week in income – 9/11, the lowering of the state’s blood-alcohol content for drivers to .08 percent and the smoking ban.
Adding deli sandwiches to the menu could help her recoup some of that lost revenue and counteract the ban.
Despite being a staunch opponent of the ban when it initially was instituted, Ms. Fistere said she has abided by the law and paid the one fine she has received for violating the ban.
Clayton Tavern could close Jan. 1 because business has dropped and owner Gene Hillard said he doesn’t want to pump any more of his savings into the business.
Mr. Hillard said he can’t afford the insurance premium payment due Jan. 1 and “probably” will close the establishment.
“It’s getting cold outside,” Mr. Hillard said.
“If you go outside now you can only have a couple puffs before you start shivering. People can go up to the Elks Lodge or the American Legion and smoke and drink all they want.”
Dover Downs took a huge hit in the wallet, reporting a 24 percent drop in income during the ban’s first year, but the casino slowly is recovering, company president and CEO Denis McGlynn said.
The casino has brought its revenues up about 10 percent in the past year, thanks to the state allowing additional machines and extended hours, Mr. McGlynn said, but it will take another 11/2 years to make up lost ground.
Mr. McGlynn said Dover Downs is exploring other ways to increase its revenues, including more extended hours and additional types of games, such as multi-player games that could simulate a card game.
“There are things to help the industry be competitive with the onslaught of Pennsylvania and Maryland on the horizon,” he said.
Pennsylvania has legalized gambling and casinos are on the way in full force, while Maryland legislators still are weighing the issue.
The state’s three casinos – in Dover, Harrington and Stanton – backed attempts to amend the smoking ban, but two efforts last year died in the Senate.
“I don’t think the ban can be modified. I don’t think the will is there,” Mr. McGlynn said. “Frankly, I’m over it. We’re not fighting it anymore.”
Mr. McGlynn said he is hopeful that Maryland and Pennsylvania follow the national trend of enacting smoking bans, which would put Delaware on a level playing field.
The Clean Indoor Air Act does not have a universal impact on restaurants, said Carrie Leishman, president of the Delaware Restaurant Association, which represents more than 100 establishments.
“There is no one clear answer on how it affects the industry,” Ms. Leishman said. “It has affected some very little, some not at all and some greatly.”
The degree to which the ban has affected a restaurant’s ledger depends on how big its bar business is, she said.
“There’s no question that restaurants’ bar business has been affected by the smoking ban,” Ms. Leishman said.
“Has anyone gone out of business because of the smoking ban? I don’t think so. But to say that business hasn’t been affected just isn’t true.”
Ms. Leishman said some restaurants have rebounded by offering more banquets and catering or by increasing menu prices.
W.T. Smithers owner Nancy Vodvarka said her Dover restaurant has not rebounded from initial losses after the ban took effect two years ago.
The restaurant lost holiday parties and now has to contend with cigarette butts found outside and having glasses stolen by customers who go outside for a smoke with drink in hand.
Ms. Vodvarka said she lost about $200 a day during the ban’s first six months. After that, smokers could take advantage of the warming weather and use the establishment’s back deck to take a few puffs.
“You don’t get that money back,” Ms. Vodvarka said. “The nonsmokers who were supposed to roll out of the woodwork and fill your place – I’m still waiting for them.”
Originally written By: Joe Rogalsky and Drew Volturo,
Delaware State News
