A restaurant boss says local lockdowns have "hit us hard" with cancellations due to the ban on travel and households mixing.
New lockdown rules have been imposed on Denbighshire, Flintshire, Conwy and Wrexham following a rise in Covid cases.
It means no one can enter or leave each county without a reasonable excuse and different households can't meet indoors.
Dylan's has one restaurant in Llandudno, in Conwy, and has already seen scores of cancellations. Its sites in Anglesey and Gwynedd, which are not in lockdown, have not been hit as hard but are seeing a small fall in numbers.
Co-owner David Evans said: "It’s hit us hard, to be honest.
"We had a good August and September, and had actually recruited more staff to help us through what we hoped would be a busy time through over the Autumn period. Sadly, not to be.
"Predictably, loads of cancellations followed the announcement on Tuesday.
"We’d been welcoming in a really nice mix of visitors and local people dining in small groups, and business had been steady for the last eight weeks or so.
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"We’ve created a really safe, comfortable environment and feedback from customers has been so positive, its such a shame now we’re having to turn visitors away and only serve local customers from single households."
Since reopening after the national lockdown they have served around 80,000 people across their three sites, without a single Covid incident.
He added: "Whilst we appreciate that rising R numbers are a concern across the region, and Welsh Government are wise to try and nip this particular spike in the bud, all the data I’ve seen suggests transmission within hospitality venues is minimal.
"Domestic transmission is the big worry - and the local lockdown could be counterproductive in pushing people to get together in households.
"Our other sites are still holding up well for the time being, though of course numbers have also begun to fall.
"Our only hope is that the lockdown is limited in duration and doesn’t spread too far west."
Welsh Conservatives have asked for the travel ban to be reviewed while Plaid Cymru want a 'hyper-local' approach.
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A Welsh Government spokesman said: “We are requiring people living in lockdown restrictions to only travel for essential purposes, whilst those living outside lockdown areas should only enter them with a reasonable excuse.
“We appreciate this can cause difficulties for some businesses, but we are trying to prevent the spread of a deadly virus around Wales.
“Earlier this week, we announced £60m for businesses impacted by local restrictions, as part of an additional £140m to support companies across Wales in the third phase of our Economic Resilience Fund.”