New U-M study finds smoking ban has not killed the bottom line of bars, restaurants

Sales tax collections from Michigan retail eating and drinking establishments, as well as Club Keno sales, from 2006 to 2011 were collated by the Michigan Department of Treasury and analyzed by a team from U-M’s Institute for Social Research.

The smoking ban, signed into law in December 2009 and put into effect on May 1, 2010, made Michigan the 38th state to enforce such a ban in bars and restaurants. Implementation of the ban brought widespread concern from bar and restaurant owners that it would be bad for business, according to the study.

Helen Levy, Ph.D., led the study, which found that overall the ban did not have a statistically significant negative impact on businesses.

• Read the economic impact report.

The report detailed that there were both winners and losers in terms of economic consequences: Some restaurants did see increases in business and others saw less traffic.

“It is important to note that while some establishments saw sales fluctuations after the passage of the Dr. Ron Davis Smoke-Free Air Law, bars and restaurants as a whole were not adversely affected,” James K. Haveman, director of the Michigan Department of Community Health said in a statement. “We commend Michigan bars and restaurants for their support in transitioning to a smoke-free environment as this law has also drastically improved the air quality in these establishments.”