A campaign to raise awareness of the high penalty rates paid to workers over the Easter long weekend appears to have backfired for some Newcastle businesses.

Several cafes and restaurants displayed posters apologising for being closed over Easter, saying they simply could not afford to pay staff penalty rates and urging them to lobby Canberra for change.

An ABC listener, Erin from Cooks Hill, said she has cancelled a wedding party at a local restaurant that displayed the poster.

"Well, I think it's appalling," she said.

"I was walking past a restaurant in Newcastle over the weekend, saw the sign, and first thing this morning I rang and cancelled my wedding reception there."

Erin said the extra rates are the only reason she can afford to eat there.

"I just found it very offensive," she said.

"The only reason that my wedding reception was there in the first place was because I could afford it because of penalty rates."

The ABC contacted the restaurant, but the owner has declined to comment.