When Nevada residents voted for a statewide ban on smoking in all businesses that serve food, they were hoping to clear the air for bar and tavern customers and workers alike. As the law of unintended consequences plays out, however, they may have actually voted to eliminate a good number of jobs.

With the Southern Nevada Health District readying to enforce the Clean Indoor Air Act, a growing number of bars and taverns are getting ready to shutter their kitchens to keep the smokers inside.

Kilroy’s, a bar and grill which the Food Network claimed served the “best burger in Las Vegas,” informed employees three days after Christmas that the kitchen was closing. Co-owner Paul Lampi said the decision was easy because most of his gambling patrons are also smokers, and he would lose more money by getting rid of the smokers than by cutting food sales.

“Even though I do about a million dollars in food sales, I am lucky if I make even a six or seven percent margin on it,” he said.

In addition to the 25 jobs lost at Kilroy’s, another Las Vegas tavern chain the Inn Zone is planning to cut an additional 50 jobs when it stops food service. Inn Zone owner Mike Jacobi also said he would lose more money by cutting smoking and losing gamblers than he would be cutting food service. The bar will begin serving pre-packaged food—which is allowed under the smoking ban—and will comp some delivery orders for gamblers.

Jacobi said the smoking law backfired on drafters and supporters.

“They thought they had closed the door on smoking, but they didn’t realize that we’d close the kitchens,” he said.

By Greg Jones

Greg Jones is managing editor of Casino Connection Nevada, as well as associate editor of Global Gaming Business magazine.

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