Smoking ban Changes Bars And Restaurants Business

A Sioux Falls businessman plans to tap into food sales in hopes of making up for bar patrons he lost to the Kent smoking ban. John Herrmann, president of SRS Inc., which owns Poppadox Pub, will open a restaurant in May in the former Coyote Canyon space.

The move is in response to the statewide smoking ban that went into effect Nov. 10 that officials say has cut into bar revenues.


"We think we have to get a little more heavily into the food business to survive, that's the primary reason I'm expanding into this area," Herrmann said. "I think you're going to have to have full-service options to even be a player in the market anymore."

But even the bar-and-grill market Herrmann seeks to expand into is seeing market shifts of its own. On the one hand, the smoking ban is enticing more families to eat in places they otherwise wouldn't have, leading to tobacco sales increases at some establishments. But some say long-term customers are staying at home and late-night business has waned.

Herrmann plans to offer Midwestern fare such as chicken, ribs and steak and also build a game room with darts, pool, and possibly a 3-D golf game and one or two ticket redemption games, such as those that are found in arcades.

Overall business at Poppadox on South Minnesota Avenue, which does not have a full-service food menu, is down from 16 percent to 25 percent since Nov. 10, Herrmann said.

That seems to be the case across the state, said Caren Assman, executive director of the Licensed Beverage Dealers of South Dakota. The organization does not specifically track how bars are doing, but Assman said many owners are reporting losses.

"Steady customers are no longer coming in, they're going home and having a cocktail and a cigarette," Assman said.

At Poppadox, Herrmann said decreased sales could be attributed to a variety of factors, but he's talked with some regulars who say they're not coming in because they can't smoke.

"The smoking ban had a huge impact, and we're going to live with it the best we can. This is just trying to be proactive to accommodate everybody," Herrmann said.