Other businesses also getting in early in Hawke's Bay are Napier businesses Ujazi and Jester's Pies in Napier, and Bay Espresso, Taradale.
Mr Smith, who's been in the food and refreshments game in Hastings and Napier for 40 years, said: "It will be interesting to see what happens when it does kick in. The time has come for smokers to give up smoking."
Hawke's Bay District Health Board Smokefree Health co-ordinator Johnanna Wilson was at Sutto Cafe with her crew yesterday, providing the back-up support and signage.
It had some immediate impact, with one of the few smokers among the 16 staff Mr Smith employs across two Sutto cafes, in town and near Hawke's Bay Fallen Soldiers Memorial Hospital, pledging to quit the habit.
The staff member "signed-on" with Smokefree team member Te Aroha Hunt, saying her partner also wants to give up smoking.
Ms Wilson said the initiative at Sutto Cafe had been Mr Smith's. He contacted the Smokefree team for help with signage and other support as Hawke's Bay takes the next step in creating a Smokefree New Zealand by 2025.
In Napier, Ujazi manager Tom Quinn said there had been very little negative feedback. "A lot of children come here with their families and this creates a healthier environment for everyone. Sometimes you need to do something for the greater good."
Sonja Nicholls, from Jesters Pies, said: "I was all for it. We have a lot of kids coming here and the last thing they need is people smoking around them."
The policy is educative, and is about encouraging people who wish to smoke to move away from areas the councils have named 'fresh air zones'.