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Smoke-free Ordinances Increase Restaurant Profit and Value

Benjamin C. Alamar

Alamar: Postdoctoral fellow, Center for Tobacco Control Research and Education, University of California at San Francisco, 530 Parnassus Ave., #366, San Francisco, CA 94114. Phone 1-415-476-3139, Fax 1-415-514-9345, E-mail [email protected]

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Stanton A. Glantz,

Stanton A. Glantz

Glantz: Professor of Medicine, Center for Tobacco Control Research and Education, University of California at San Francisco, Box 1390, San Francisco, CA 94143. Phone 1-415-476-3893, Fax 1-415-514-9345, E-mail [email protected]

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Benjamin C. Alamar,

Benjamin C. Alamar

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Stanton A. Glantz,

Stanton A. Glantz

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First published: 18 July 2008

https://doi.org/10.1093/cep/byh038

Citations: 32

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Abstract

This study estimates the value added to a restaurant by a smoke-free policy using regression analysis of the purchase price of restaurants as a function of the presence of a smoke-free law and other control variables. There was a median increase of 16% (interquartile range 11% to 25%) in the sale price of a restaurant in a jurisdiction with a smoke-free law compared to a comparable restaurant in a community without such a law. This result indicates that contrary to claims made by opponents of smoke-free laws, these laws are associated with an increase in restaurant profitability. (JEL I120, H000, D780)

Abbreviations:

BEA: Bureau of Economic Analysis
BLS: Bureau of Labor Statistics
CI: Confidence Interval
GSP: Gross State Product
SDCF: Sellers Discretionary Cash Flow
SHS: Secondhand Smoke
WLS: Weighted Least Squares

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Volume22, Issue4

October 2004

Pages 520-525

Smoke-free Ordinances Increase Restaurant Profit and Value

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Smoke-free Ordinances Increase Restaurant Profit and Value

Abstract

Abbreviations:

References

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