While the purpose of smokefree laws is to protect health, some have expressed concern that such laws may have a negative economic impact on restaurants and bars.  However, there is no longer a serious debate among researchers about the economic impact of smokefree laws. There is strong evidence from a large and growing body of domestic and international economic research that smokefree laws have no adverse economic impact on restaurants and bars.⁹

Despite the evidence to the contrary, the tobacco industry and some members of the hospitality industry may assert that smokefree laws harm business.  These claims are not backed by research, and are generally anecdotal.  The science proves otherwise.  In 2003, a comprehensive review of research on the economic impact of smokefree restaurant and bar laws found that all of the well-designed studies report no impact, or a positive impact, on sales or employment levels.¹⁰ Research has also found that in some cases smokefree laws can have a positive impact on restaurant and bar business values.¹¹Economic impact research has been conducted in widely diverse rural, suburban, and urban communities across the US, including tourist destinations such as New York City, Los Angeles, and Aspen, Colorado.

Smokefree workplace policies can also reduce business costs and absenteeism, improve productivity, and reap other economic benefits. The only documented negative economic impact has been on the tobacco industry itself.