A pizza shop owner ran 20 metres to punch a man who later died in hospital after seeing one of his female employees "stiff-armed" outside a NSW coastal pub, a court has heard.

George Joseph Habkouk, 49, appeared in Wyong Local Court on Monday via video link from Cessnock maximum security prison accused of punching Haydn Butcher, 30, in the head outside the Lakes Hotel at The Entrance about 1am on New Year's Day.

Mr Butcher fell to the ground after being punched, hit his head on the concrete and lost consciousness.

He was taken to Royal North Shore Hospital in a critical condition but died from his injuries the following day.