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Smoke and Mirrors

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This entry was posted on 2/6/2007 11:24 PM and is filed under Politics, Business, Statistics.

Chris Knight, the owner of the Blind Pig, came up to me today. He informed me that, "The last two days have been the worst since we opened." He specifically claims that the lack of sales on these two days (Sunday and Monday, February Fourth and Fifth) proves that Champaign’s smoking ban is hurting his business.

He makes a classic flawed argument. He equates one cause (the beginning of the smoking ban last week) to the effect (the lowest sales since he opened.) There are two separate variables that are probably the actual causes of the low sales…

First, I believe that he’s talking about Sunday and Monday. One would probably expect that a bar would have the lowest sales each week on Sundays and Mondays. (Also, this Sunday was the Super Bowl. I don’t remember that he has any big screen televisions in his bar, but I can’t really show my face in there any more to check. When the Bears lost, I doubt that many people felt like going out downtown afterward, and I also doubt that many people felt like going out the Monday after the Super Bowl either.)

Secondly, it was cold…really cold. I asked him whether the two days he was referring to were also the coldest two days since he opened. He didn’t answer. So, I looked it up myself. These two days did, indeed, have the lowest low temperatures of any days in 2005, 2006, and 2007. In my opinion, there’s your cause.

 

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Comments

    • 2/8/2007 1:39 PM Mattvarble wrote:
      Is this the same Mr. Knight who also allegedly threatened to sue members of the Urbana City Council if they passed the smoking ban ordinance? Get ready to hear a lot more of that kind of nonsense. We're already seeing unsubstantiated claims of a supposed 40% decline in business (which is a standard ILBA talking point opposition response, as they did exactly the same thing in Springfield).

      Also its interesting how the City Council Candidates opposed to this issue who intend to repeal the ordinance aren't openly expressing their views on the smoking ban and trying to hide from discussing this issue. For example just ask Feinen or Foster what their view is and if they will repeal the ordinance.
      Reply to this
    • 2/9/2007 10:20 AM B is for Business wrote:
      At some point we are likely to have some reliable data to analyze the impacts (or non impacts) of the smoking ban. Since your vote was not impacted by the health implications of second hand smoke, would you change your position if there was ideed a harmful impact to bar revenues?
      Reply to this
      1. 2/9/2007 12:02 PM Ken Pirok wrote:
        I've already answered that. I am the only elected official that I know of who is actually examining Food & Beverage Tax revenues.

        I would be surprised if business is affected, because it hasn't been anywhere else.
        Reply to this
        1. 2/9/2007 12:58 PM B is for Business wrote:
          Ken, I appreciate that you are analyzing the numbers objectively, but cannot find where you answered the question. You are looking numbers, have done research, etc. I commend you for this. I'm hoping to understand what (more specifically adverse affects to tax revenues) would cause you to change your vote since your basis was not health-related concerns. I think that's a fair question. If you've already answered it, what was the answer and where can I find it? If you aren't willing to answer that now, just tell me.
          Reply to this
          1. 2/9/2007 3:16 PM Ken Pirok wrote:
            I've already talked numerous times about analyzing the Food and Beverage tax numbers compiled each month by the city's Finance Department.

            That's as specific and as clear as I can be. You may use common sense to figure out the rest. Perhaps, one would measure a specific month or a year of data and compare it to the same period the prior year. Perhaps, one would measure total receipts, receipts per establishment, etc. There hasn't been even a month with the smoking ban to analyze, so it's premature to say anything else.
            Reply to this
            1. 2/9/2007 5:30 PM B is for Business wrote:
              A simple, "no I will not answer your question" would have worked also.
              Reply to this
    • 2/9/2007 3:14 PM mattvarble wrote:
      I think a decline in revenue is unlikely to occur over the long term. Here's a study from El Paso TX that examined exactly what you are discussing with respect to the before and after effects on gross sales tax receipts following the implementation of a smoking ban. That is NOT to say certain businesses will fold and others will open up (as that's a different issue)..We're talking about consumption of food and beverage) Also keep in mind that bars and restaurants that act belligerent and hostile towards people who openly supported the smoking ban should and deserve to loose business as they are engaging in a self fulfilling prophecy of driving people away instead of making people feel welcome following the smoking ban (failure to adapt)and thus that variable itself cannot be completely ignored when examining effects upon business.

      Here is the link to the study:

      http://www.cdc.gov/mmwR/preview/mmwrhtml/mm5307a2.htm
      Reply to this
      1. 2/9/2007 3:20 PM Ken Pirok wrote:
        The Surgeon General has also studied lots of studies about how business is affected.
        Reply to this
    • 2/10/2007 3:51 PM Nice try wrote:
      Your statement:
      "One would probably expect that a bar would have the lowest sales each week on Sundays and Mondays."

      Do you have data to back this up? Or did you just pull this out of thin air?

      The Blind Pig bartenders related to us last night that business during the week is non-existent while near normal on the weekend (Friday/Saturday).

      Between your generalization and their first person experience, I will take their first person experience.
      Reply to this
    • 2/11/2007 8:38 PM mvarbl wrote:
      The Blind Pig has also openly acted hostile towards people who support the smoking ban and has been very public about it (published in the newspaper and on TV many times on the record) thus if they are claiming people are staying away I wouldn't be surprised if it was because that place (by their own actions) has made most of the public feel uncomfortable going there. Real smart to risk your business by publicly berating 2/3 of the very same public suppotive of this issue which could have patronized your establishment. Thus a self fulfilling prophecy and they deserve to lose business if they are going to act that way and that I would say is probably more of the reason. Heck, before the ban I thought that place and their exotic beer selection was great, but I won't even think about going there now.
      Reply to this
      1. 2/12/2007 6:41 PM Nice try wrote:
        In my opinion, because I do not speak for Chris Knight, the Blind Pig was hostile towards people who were going to dictate to the Blind Pig how to run their business and who were not spending their money there. Seems simple to me. You're right though in one respect; the Blind Pig has lost some of its atmosphere now that it isn't a smoky pub. It's sad that another traditional past-time is being put on the scrap heap of in the name of a "no-risk" society.
        Reply to this
    • 2/14/2007 9:54 AM mattvarbl wrote:
      Um..I certainly didn't dictate to them how to run their business (city government passed a regulation on not allowing smoking in certain places), but I do believe his general hostile behavior and attitude was directed at me, members of city government, and all of the members and supporters of the organization that was formed in support of the smoking ban based upon his comments. Again, I and many others I know have no interest in going to an establishment where the owner openly acts mean and hostile toward me or anyone else that supported this issue. That conduct more than anything else will (and should) kill off your business faster than anything else since it makes people feel uncomfortable. Instead he could have been more open and said welcome to my business, and tried to adapt but decided to alienate people and focus on what used to be instead of what is.
      Reply to this
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