Friday, February 23, 2007

Smokefree restaurants and the European marketplace

In a recent poll, more than 60% of Germans favored a smoking ban in restaurants. I've seen similar numbers for France. Everything I know about free markets suggests that large enough niche markets will be rapidly accommodated by the marketplace, and 60% is more than a niche. Why then, is it so hard to find a smokefree restaurant in either country? Generally, smokefree dining in Germany or France is confined to venues that are smokefree for some other reason (e.g. museums, department stores) or the even rarer hippieish vegetarian restaurant. In California, smokefree restaurants started showing up in the mid-80's, long before smokefree legislation seemed possible, and by 1990 smokefree dining was easy to find (especially in restaurants catering to the upper middle class).

Only two explanations seem possible. European restaurateurs either have some knowledge that is not revealed in the polls (the marketplace is working), or they are more fearful of change than their American counterparts (the marketplace is dysfunctional). There's also the possibility that things have changed since my last visit to Europe in 2005, but that doesn't explain why the marketplace seemed to be failing then. Of course this will all be moot soon, as these governments are about to mandate smokefree environments for all restaurants. In the meantime, I'm looking for an answer and would like to hear your comments.

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