Many publicans are antagonising potential customers simply by obeying the law on admitting children.
A new report found that parents blame licensees for failing to cater for families and want to see the UK adopt a continental-style café bar culture which welcomes children.
But the trade is being prevented from catering for a wider audience by the strict regulations attached to children's certificates, which are compulsory for licensees wanting to admit children.
The latest research by the National Family and Parenting Institute, entitled Is Britain Family Friendly?, claims the UK is the least child-friendly country in Europe.
Families surveyed in the report said they felt unwelcome in UK pubs and were pushed into taking children to burger bars and other restaurant outlets specifically catering for families.
One parent said: "It would be a major bonus if pubs, restaurants, wine bars and cafés would welcome children so that outings with children at the weekends and in the evenings could be family oriented, as is the case on the continent."
Others complained that many family rooms in pubs were uninviting and said they felt their children were being "pushed away into a corner".
The reality, as shown by the findings of The Publican's Market Report 2000, is that most publicans are anxious to provide family facilities, and many are breaking the law to do so.
While only 12 per cent hold children's certificates, 48 per cent say they allow children in the bar.
Children's certificates, which were launched in 1995, are widely seen as a failure, mainly due to different interpretations of the regulations by various licensing magistrates.
The licensing reform White Paper proposes to allow all pubs to admit children, placing the onus on publicans to decide their policy.
Bass Leisure Retail was among the leading operators which supported children's certificates when they were launched.
Corporate communication director Bob Cartwright admits the company has been disappointed by the reality, particularly where the conditions imposed have been so onerous they make obtaining a certificate financially unviable. "It's another indication of the urgent need for licensing reform," he said.