Food is no longer served in the small beer garden of Newtown's Carlisle Castle Hotel, so that patrons can smoke. Licensee Melissa Wood said the situation discouraged the responsible consumption of alcohol and was "becoming a bit of a nightmare". Lee Sultana, smokes a cigarette in the courtyard of the Carlisle Hotel, Newtown. Credit:Sahlan Hayes "People are whinging, 'why can't they go out here?'," she said. "I think it's discouraging people to do the right thing and eat while they're drinking." At the nearby Courthouse Hotel, the large outdoor area has been partitioned into two sections: one with dining and no smoking, the other with smoking and no dining. The Bank Hotel, also in Newtown, has made similar provisions. "Now I get to make the choice between drinking on an empty stomach or ditching my smoker friends," patron Daniel Graham said on Twitter.

The effect has also been felt at central business district cafes. City of Sydney councillor Angela Vithoulkas, who owns Vivo cafe on George Street, said regular patrons were no longer coming in for coffee and cigarette breaks because there was nowhere in the vicinity they could legally smoke. Sign outside the Carlisle Hotel in Newtown. Credit:Sahlan Hayes She said her business and others nearby had seen a downturn in trade of 20 to 30 per cent. "It's gone – overnight," she said. "We've suffered a great loss. It happened from the first day." Ms Vithoulkas said options for smokers in the CBD were now so limited that "people are just huddled around garbage bins". She also criticised the health department for a "lack of planning" to assist operators through the transition phase. She felt small businesses had been disadvantaged compared to larger venues that could divvy up their outdoor space.

Director of the NSW Centre for Population Health Jo Mitchell rejected suggestions businesses were not adequately informed about the changes. NSW Health twice wrote letters to affected owners and worked with peak bodies to ensure operators were aware of their responsibilities, she said. The requisite signage was also available free of charge from the department. "There has been quite a lot that's been done," Dr Mitchell said. There was no data available from the first week of enforcement but Dr Mitchell said the implementation had been successful and the laws were "overwhelmingly positively received by community members". But venue owners expressed continuing confusion about what was permissible. In Alexandria, the Brewery Bar has devoted an eighth of its beer garden for smokers, but owner Mark Fethers said he could do little to stop patrons taking their food into the smoking zone, describing it as "grey area".

Dr Mitchell clarified that operators were required to indicate the area was a non-dining zone and were expected to enforce those regulations. But if they had done so, they would not be liable for patrons who flouted the rules. Individuals could not be fined for eating in the smoking area, she said.