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Smoking ban is bad news for the smelly clothing industry

Jim Riley

16th September 2008

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Some of the losers from the smoking ban are easier to spot than others. Pubs, restaurants and bingo clubs have all reported a negative effect. However, here is an example of a market-leading business that is also blaming the smoking ban for a short drop in profits…

Most of us can recall the effect on our clothes of a night out in a smoky pub or club. That stale smell from our clothing - the unmistakble stench of cigarette smoke. If the garment in question was a suit or expensive dress, then the next step was often to have it dry-cleaned. Happy days for the high-street dry cleaners who, how shall we put it, “cleaned up”.

However, the ban on smoking in public places has been bad news for the dry-cleaning industry. That is certainly the message from market leader Johnsons, which has just reported a 28% fall in profits in the six months to June 2008.

That’s bad news for a business that has quite high levels of debt, although these have been reduced by selling a subsidiary business.

However, it is good news for business teachers - an interesting and different example of how a business can face a sharp drop in demand due to external influences.

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Jim Riley

Jim co-founded tutor2u alongside his twin brother Geoff! Jim is a well-known Business writer and presenter as well as being one of the UK's leading educational technology entrepreneurs.