Police removed what looked like a firearm and placed it in the boot of one of the patrol cars.
A second man ran from the scene and was tracked by a police dog for a distance before the canine lost the scent.
Pubgoers spilled out on to James St and were interviewed by police with some also photographed.
The attempted robbery was the topic of discussion on Facebook this morning, including an account from a witness who was having a drink with his dad at the time. The witness said his dad took the armed man down
with a pool stick before patrons tackled the offender.
He spoke of being shaken after the incident.
Nothing was taken in the attempted robbery.
Eastern Bay of Plenty area commander Inspector Sandra Venables said police firmly discouraged members of the public putting themselves at risk by tacking offenders.
"Particularly when they are armed," she said.
"But that doesn't take away from the fact that these patrons were incredibly courageous and they should be proud that they stood up for their community.
"Meanwhile, two 23-year-old Whakatane men are due to appear at Whakatane District Court later today charged with assault with intent to rob.