The mayor of a Queensland town where a restaurant attracted controversy by displaying a sign saying "sorry no Muslims" has described the incident as unfortunate.

An image of the sign, displayed outside Longreach's Eagles Nest Bar and Grill, was posted to the restaurant's Facebook page last Friday.

"Just a bit surprised to see the sign up 'sorry no Muslims' ... what's that about???" the author of the post, Helen Day, wrote.

The line was written at the bottom of the sign, which also read: "2000 years ago Jesus Christ made headlines turning water into wine ... the tradition continues ...We turn money into beer (sorry no Muslims)."

The post sparked mixed reactions on the restaurant's Facebook page, with users divided between praise and condemnation.

She also expressed her disappointment about the sign in a post on ABC Open.

"Unfortunately, I do not believe when the owner chalked these three words up on his board there was that much thought about whether he would recognise a Muslim or not," Ms Day wrote.

"Anyone who looks like the stereotype will not be allowed in regardless if they are Muslim or not.

"Targeting minority groups such as Muslims would not have as much impact on the profits.

"It is extremely sad that a business in Longreach has appeared to react to the Sydney siege by not allowing Muslims to come into his establishment whereas Sydney's reaction - #Illridewithyou - has drawn all the communities together.

"I will await the conclusion of this disappointing story."

'We have fielded too many abusive calls'

Owner of the restaurant John Hawkes said the sign was up for a total of nine hours.

"Over the past 24 hours, my business and now my home has received more than 200 phone calls," Mr Hawkes said.

"While the great majority are in support of free speech and are of patriotic sentiment, we have fielded too many abusive and threatening calls. For this I apologise to my family.

"I sincerely hope I don't end up sanitising my every thought to the robotic degree that is evident in commercial life around us.

"I did not encourage or envisage the social media response to this sign, but the story, if there is one, is in the reaction, not the action."

Mr Hawkes said the restaurant sign's message this week would focus on Santa Claus and a Samaritan.

Longreach mayor Joe Owens said he believed the sign was something the majority of people in town did not support.

Councillor Owens said it could have some impact on the town's image, but he said the community was welcoming of all religions.

"I certainly will be speaking with the operator, pointing out in my opinion the error that he has created here," he said.

"It is something I believe the majority of people in town do not support.

"Longreach is a town I believe that welcomes all races and all religions.

"It's a very unfortunate thing that has come out from one individual."