Smoking Ban Affects Bottom Line

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Smoking Ban Affects Bottom Line

By KBJR Manager

It's been nearly two months since the Minnesota statewide smoking ban took effect. As Chris Buckley reports, it's having an impact on bar business on the Iron Range.


Palmers Tavern in Hibbing has been in business nearly fifteen years. Owner John Larson says he'd expected business to take a hit after the new law went into effect and he did immediately.

He says this October he sold nearly thirty percent product than October of 2006.

And the biggest hit was the weekday afternoon crowd.

"The people getting done with work that want to have a couple of beers, a couple of cigarettes, and go home.

These people don't go out at night, they don't go out on weekends, this was the only time we'd see them, and many I haven't seen since October first."

He says he expects numbers to be down until the patio opens up in spring, and while some local bars haven't taken much of a hit, he doesn't know of anyone that's seen an increase in business.

"Our reps have said they're at least 30 to 35% down in sales, I do know of a place in Orr that's already begun laying off people because of it."

The bar is selling the rest of its cigarette inventory and won't be renewing that license next year. Sales there have, of course, dropped as well.

"We used to sell ten or twelve cartons a month and there's not a good markup for that, but it does show what kind of customer base we had."

He says pull tab sales are also nearly thirty percent lower than normal.

"I see the same regular players but don't see them gambling as much, some would spend several hundred a night, and now instead of playing for three hours they're here maybe an hour."

The non-smokers who frequent the bar, he says, are happy with the new rules.

But those are people that are there several times a week. He hasn't seen any new customers taking advantage of the smoke-free environment.

"I'd be interested in asking the non-smokers that say they haven't come out in ten, fifteen years that stood in front of the county and said, we're ready to go out. Geez, I'd like to see it - we've been here for 15 years, now we're smoke free, you wanted it so here it is!"

In Hibbing ,Chris Buckley the Northland's NewsCenter.

Minnesota is the 20th state to pass a law banning smoking in all bars and restaurants.

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