SACRAMENTO, Calif., May 11, 1998 -  On behalf of its more than 300,000 members and adult smokers in California, the National Smokers Alliance continues to oppose the California smoking ban and is working with California businesses and individuals to urge repeal of the ban. This "Prohibition Update" is part of a series, designed to inform interested parties about the impact of and reaction to the law on a statewide basis. These news briefs are documented from published and private sources and more detail can be provided upon request.

Out of Work Bartender Plans Protest at State Capital

WEIMAR, Calif., May 11 -- Suzy Thompson, a former bartender who has seen the decimation of her industry as a result of California's statewide smoking ban, is using her newly acquired free-time to plan a protest at the State Capitol in Sacramento. On May 22, Thompson hopes to muster bar owners from across California to protest the negative effects the smoking ban has had on their industry. "We're trying to send a message to both legislators and California citizens," said Thompson. "My days as a bartender are over because of this ban, and I know there are plenty of others with stories like mine. This ban was supposed to protect employees like me. How am I protected when I can't even earn a living?" According to Thompson, the protest will also feature California gubernatorial candidate Jeff Williams, who will discuss the "political implications" of the ban and the "much bigger personal freedoms issue" connected with the legislation. Thompson can be reached with any questions by calling 530-637-4882 or by e-mail at [email protected].

Escondido Bar Owner Asks: "Where Are the Non-Smoking Customers I Was Promised?"

ESCONDIDO, Calif., May 11 -- Ray Alto, owner of the Fireside Lounge, immediately noticed the negative effects of California's statewide smoking ban on his establishment. Since January 1, the day the ban took effect, revenues at the Fireside have been on a downward slope.

"I kept hearing that the drop-off in business would be temporary and that non-smokers would be coming out in
droves to frequent my establishment, but that's just not happening," said Alto. As revenues plummeted 70%, it became obvious that non-smoking customers were not going to replace his smoking clientele. Consequently, Alto had to lay off three employees in order to stay in business. "I would do anything to protect my employees, but the government thinks that they can do a better job. I'm not so sure that being unemployed is very good protection from anything," Alto said. Alto has allowed his remaining bartenders to work as waiters at his adjoining restaurant in order to make ends meet. Alto has now been forced to work more hours and tend bar himself to make up for the loss in manpower. "All I am asking for is the choice to run my own business," Alto said.

Tulare County Bartender Perplexed

TULARE, Calif., May 11 -- Steve Uyeg, manager and bartender at the Marco Polo Lounge in Tulare, is unsure about his obligations under California's smoking ban. Uyeg claims that the vagueness of the law coupled with the uneven and sometimes non-existent enforcement policies has created mass confusion surrounding the ban.

"We have bars all over Tulare County that aren't complying with the ban," said Uyeg. "The owners and employees are telling their patrons that it's okay to smoke as long as they are willing to pay the fines." Uyeg claims that they are complying with the ban at the Marco Polo Lounge and, as a result, business has decreased drastically. Uyeg estimates that, on some nights, bar sales are down by as much as 80%. "On nights where we allow our patrons to smoke, we make about $120 a night," said Uyeg. "Last Monday we didn't allow our customers to smoke. Our total sales were five dollars. "People in Tulare County are confused about how the ban is being enforced. As a result, people are simply going to places where they can smoke," said Uyeg. "Even a local judge was seen smoking a cigar in a restaurant."

Lancaster Bar Being Harmed by Smoking Ban

LANCASTER, Calif., May 11 -- As the smoking ban indiscriminately takes its toll on California's bars and taverns, the Calico Saloon is no exception to the perils of this unnatural disaster. The small bar in Lancaster has experienced more than 30% in decreased revenues which forced the staff to downsize by nearly half.

"Times are rougher than ever before," said Suzanne Ball. "Quite a few places have been closing down around here. We've been struggling just to stay alive." Ball complains she has already lost five of her ten employees. Severe losses in revenues forced her to lay off three employees and two more retired due to the ban's devastating effect on their tips. Lee Baker, a bartender at the Calico, concluded: "The most maddening part of this ban is the fact that it was supposedly written to protect us -- the employees. I know that all of the people who work in this bar are smokers. And, the only thing this law has done for us is take away our job security and our tips. That's the kind of help I can do without."

Pepe's Billiards Gets Stuck Behind the Eight-Ball

LOS ANGELES, Calif., May 4 -- Like many bar owners who are complying with California's smoking ban, Jose Olmos, owner of Pepe's Billiards in Hollywood, is in jeopardy of losing his establishment. Olmos relentlessly enforces the ban because he simply doesn't want to take any chances. Olmos worked hard and saved his money for years to open Pepe's and doesn't feel the risks of being cited are worth it. As a result, Olmos has experienced a 60% decrease in revenues since January 1.

"People want to smoke in the bar when they are playing pool and drinking," said Olmos. "They get mad when I tell them to smoke outside. They leave and never come back. Many of my regular customers are smokers and, as long as they smoke, they are going to patronize establishments that accommodate them. "Everyday somebody lights up in here and I have to put down what I'm doing and ask them to please go outside," said Olmos. "Asking my customers not to smoke these days feels more like I'm telling them to 'get out and don't come back until you stop smoking.' "I'm not going to break the law. I don't want to take any chances of losing my bar," said Olmos. "I've heard horror stories about police raids. I just hope business picks up or I could be out of business by year's end."

Oakland Tobacconist Finds Loophole in Ban

OAKLAND, Calif., May 4 -- John Karnay, owner of a high-end cigar and smoking lounge in Montclair, is capitalizing on his exemption from the statewide smoking ban. As a retail tobacconist, Karnay owns one of the few establishments that is able to still allow smoking. Karnay is further trying to take advantage of a possible loophole in the ban by obtaining a license that would also allow him to sell alcoholic beverages. As long as revenues from alcohol remain under 40% of gross sales, Karnay would be one of a few tobacconists able to sell alcohol and allow smoking.

According to an article in the Hayward Review, Karnay recently received approval from the Oakland Planning Commission to serve beer and wine at his smoking lounge. Pending license approval from the state Department of Alcoholic Beverage Control, the lounge could be in position to exploit this possible loophole in the ban. Oakland City Manager Robert Bobb agreed that, as long as sales from alcohol remain under 40% of Karnay's gross sales, the establishment may serve beer and wine to its patrons.

Survey Shows 60% of California Bar Owners Are Losing Money
as a Result Of Smoking Ban

SACRAMENTO, Calif., April 30 -- A survey released by the American Beverage Institute found California bar and tavern owners have lost an average of 26% of their revenues since the smoking ban went into effect January 1. In addition to lost revenues, more than 50% of those surveyed noted an increase in angry customers which resulted in decreased tips and increased barroom conflicts.

The survey, conducted March 3-6, was based on telephone interviews of 300 bar owners and managers. More than 60% of all those contacted experienced a decrease in revenues. The highest percentage of those reporting losses were stand-alone bars and taverns where 81% claimed that business was down as a result of the smoking ban.

The group reported that the ban has had negative economic consequences not just on owners, but on bar employees as well. Nearly 30% of those contacted claimed they were forced to lay off employees or cut back shifts and 59% noted a decrease in gratuities. John Doyle, spokesman for the American Beverage Institute, told the Sacramento Bee: "What we're saying to California is that this ban is taking a terrible toll" on bars and taverns. "Individual establishments should be able to set their own smoking policies. This is conclusive evidence the California smoking ban is an experiment that has failed," Doyle was quoted as saying in the Los Angeles Times. The American Beverage Institute is a Washington-based trade association that represents 5,000 restaurant, bar and tavern owners, including 500 in California.

Former U.S. Secretary of Agriculture Claims California Smoking Ban Will
"Harm Many Hard-Working Americans"

CALIFORNIA, March 12 -- In an opinion editorial published in the Siskiyou Daily News on March 12, former U.S. Secretary of Agriculture, John Block, criticized California's smoking ban claiming that it infringes upon the rights of small business owners and challenges freedom of choice. The headline read: "California's smoking ban probably more harmful than smoke itself."

Block claimed that while the law was intended to protect employees, "it will only harm many hard-working Americans." He also stated: "Quite simply, the ban brings into question the things that make America great -- the freedom to make individual choices and the option to participate in a healthy free enterprise system." Block continued: "...bar and tavern owners rely on the preferences of their customers. The smoking ban strips these business people of the freedom to allocate their resources to meet their patrons' needs rather than the needs of the government and advocates of a smoking ban." Block concluded: "... the ban on smoking is a step down the path to over-regulation and anti-business attitude. The government needs to get its priorities straight."

San Francisco Bar Owners Creatively Avoid Smoking Ban

SAN FRANCISCO, May 1 -- According to a report in the May 1 San Francisco Examiner, several San Francisco area clubs are finding ways to avoid California's smoking ban. The Examiner detailed several Bay Area establishments that have taken different measures to accommodate their smoking patrons. For instance, the Iron Horse Restaurant on Maiden Lane converted an old banquet room into a smoker's lounge.

Owner Paul Dunn tends the bar himself so that no employees are present. Dunn told the Examiner: "People are pleased that they can repair up there for the enjoyment or a cigar or cigarette. We've had nothing but positive feedback." Jim Brandt, owner of San Francisco's Gold Coast Restaurant, opened the Torpedo Lounge tailored specifically for his smoking patrons. This members-only club charges a $50 membership fee and members are required to get their own drinks since employees are not allowed in the room. Brandt told the Examiner that opening the new smoking lounge was an act of "patriotic civil disobedience and blatant political incorrectness."

The Examiner reported: "Brandt said plenty of smokers who'd been cowering in the back of bars, smoking furtively, would be relieved to find places where they openly could indulge their habits once again." Also in San Francisco, Shanghai 1930 developed a smoking room back in October. Members pay a $3,000 membership fee and $100 a month to enjoy a cigar or a cigarette without being hassled. Brandt concluded: "It's been a silly law, and the enforcement has not been the greatest. A lot of people have called us and want to see what happens."

Upscale Bar and Restaurant Owner Feels Smoking Ban Infringes on Individual Rights

ONTARIO, Calif., May 7 -- Joe Costa, co-owner of Royal Cut, an elegant restaurant and bar, is disgruntled with the smoking ban. Costa feels that in addition to encroaching upon bar revenues, the smoking ban is also an
infringement upon a citizen's right to choose how he or she wishes to live their life. Since January 1, Costa's bar has lost 24% of its business as a direct result of the smoking ban. Costa explains that he had to restructure his bar by laying off his cocktail waitress and cutting back the amount of hours his bartender works.

"Anytime a business loses 24% of its revenue, it hurts. It hurts big time," said Costa. "I used to have my bartender and cocktail waitress working all night, but now I have no cocktail waitress and my bartender is working shorter hours. There is just not enough business." More importantly, Costa feels that it is an individual choice to smoke and an individual choice of whether or not to allow smoking in one's bar. "Government can't run business, so they shouldn't be trying to run mine," said Costa. "As a small business
owner, I should have the ultimate decision about how to run my own establishment."

Tourists Fed Up With California Laws

ONTARIO, March 23 -- Bar owners that accommodate tourists and business travelers are getting an earful these days about the new smoking ban. Juanita Porche, owner of The Corner Pub in Ontario, says she hears complaints on a regular basis from out-of-state travelers.

"My bar is located near Ontario International Airport and near a major route for interstate truckers," said Porche. "The majority of my customers are out-of-state travelers who can't believe the extent of regulation by California politicians. "A large portion of the tourists I deal with believe that California government has excessive presence in personal and business affairs," continued Porche. "Many believe that California's government has gone way too far in an attempt to regulate morality. "Business travelers are planning their conventions in neighboring states where they can still smoke," said Porche. "While I understand their choice not to come back to California, that translates into a loss of business for my establishment."

CIGAR SALES DEVASTATED BY SMOKING BAN

San Jose, March 16 -- California bars that rely on the sale of cigars to supplement their alcohol sales are staring at a lot of extra cigars in their cases these days. The new statewide smoking ban has crippled cigar sales in these establishments, bringing total income down and threatening the livelihoods of the owners and employees that rely upon these revenues. Rob Rich, manager of The Mission Ale House in San Jose, says his bar is losing approximately $3,000 a month in cigar sales and wondering what to do next.

"Cigar sales were a popular way for the bar to earn some extra money," said Rich. "Now, they've become an added cost we can't afford. People aren't going to buy a product that they can't use. This smoking ban has just created a lot of unhappy customers and severely cut revenues." While retail tobacconists enjoy an exemption from the ban, places like The Mission Ale House that depend on cigar sales for added income, are suffering huge losses in revenue. "This is a bar, not a grocery store. We don't sell products for people to take home and use," continued Rich. "We sell legal products for the public to use in the bar. The smoking ban takes away our rights to earn a living and our customer's rights to exercise their freedom of choice."