Some would be forced out of business, jobs would go and tourists would look to other countries, say restaurateurs.
Parliament is to vote next week on a proposal from its services committee to ban alcohol in all free-standing restaurants, which are not part of hotels.
This follows hot on the heels of earlier votes to ban alcohol sales at Bahrain International Airport and Gulf Air.
Any decision by parliament must also go through the Shura Council and the Cabinet before it can become law.
Restaurateurs say they hope this never happens, saying it would cripple business - particularly in the fashionable Adliya area.
