The café-tobacconist sector since 1997
Between 1997 and 2003, French café-tobacconists recorded a substantial increase in nominal turnover, driven by brisk consumption and a rise in sales of drinks and food served on the premises that outpaced inflation. In 2003, the 30% surge in tobacco prices and the related prevention campaigns contributed to a one-third reduction in cigarette consumption volume. The sector turnover in constant euros subsequently dropped, then stagnated, although it continued to gain in nominal terms until 2006. Since 2007, when the ban on smoking in public places came into effect, café-tobacconist turnover has declined in nominal terms, no doubt owing to lower sales of drinks and food served on the premises. The sector suffers from low diversification. In ten years, the number of café-tobacconists has fallen 16%, the smaller units being the hardest hit.