The Effect the Smoking Ban Will Have on the Pub and Restaurant Industry. Market Analysis

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A ban on smoking in public places was introduced in England and Wales in July 2007. Using market analysis, suggest the effects that the ban might have on the pub and restaurant industry.

On 1st July 2007 a ban on smoking in all enclosed public places and workplaces in England was enforced and had become law. The ban meant that all offices, factories, shops. Pubs, bars, restaurants, clubs, public transport and work vehicles that are used by the more than one person would effectively become smoke free. It even extended as far as indoor rooms, very common in workplaces. The law was introduced due to growing concerns about the health of the general public and the damage caused by second hand smoke. Second hand smoke is a serious health hazard, and there is no safe level of exposure. Medical and scientific evidence shows that exposure to second hand smoke increases the risk of serious medical conditions such as lung cancer, heart disease, asthma attacks, childhood respiratory disease, sudden infant death syndrome and reduced lung function. Medical research has shown that 85% of second hand smoke is invisible and odourless, even though you think your workplace, pub or club is not a particularly smoky place you may be at more risk than you realise. The main fears of the ban coming into effect, were the implications it would have on businesses, where smoking was part of the experience. i.e. Pubs/restaurants where smoking to some would complement the drinks or food. If smoking was banned from these places then possibly there would be a negative correlation between the amount of customers lost and the ban coming into effect.

It is a possible effect that the customers lost would then lead to a fall in demand for the services from pubs and restaurants, as the amount of non-smokers would stay the same whilst they would be losing out to smokers who may feel excluded. Since the introduction of the smoking ban in England, cigarette sales have fallen by almost 7%(BBC,...
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