The Station Bar and Bistro general manager Dave Perreaux, who is also GM of The Duke of Gloucester and The Boardwalk, said the 200-person cap was not a huge concern for their venues.
"We can't hold much more than 200 so it does not really impact us very much," Perreaux said.
He said other venues in Hawke's Bay could hold more than 200 though, so it was a bit strange to have a "one-size-fits-all" rule for everyone under the current cap.
Perreaux said where the red setting was impacting them was wage costs and the workload on staff to run table service, as opposed to customers coming to the counter to collect or order their food and drinks.
"It impacts our wage costs ... if staff need to operate table service it doubles the workload."
He said, understandably, the Government does have detailed data and makes its decisions accordingly.
Hospitality NZ chief executive Julie White said, because the country was seemingly past the Omicron peak, businesses should be able to drop to orange soon.