Multiple operators with only two or three pubs fear they will be hit hard by proposed changes to the 48-hour week regulations.
They claim moves to remove a specific clause allowing pub managers to work more than the prescribed 48 hours if they wish could push costs up and force them to close their businesses.
The move would push up wage bills, forcing employers to pay extra staff to cover the hours.
It was feared the change, which is currently being considered by the European Commission, would hit pub companies such as Six Continents, formerly Bass Leisure Retail, that have a large number of managed houses (See 48-hour working week loophole to be closed (17 July 2001)for full details).
It is now thought it could also have a huge impact on smaller pub and bar operations.
Tim Hore, licensee of the St James's Tavern in Winchester, Hampshire, and a member of the regional council of the British Institute of Innkeeping, said he may be forced to close his other pub in the city, The Green Man, if the change is brought in.
"I would have to seriously think of a way round it and, as a last resort, closing the pub would be an option.
My manager works more than 48 hours, we all do, and I am sure many licensees and a lot of the regional brewers would be hit hard if this is brought in," he said.
"It is something that set the alarm bells ringing and I will be raising it at the next regional council meeting."
The Confederation of British Industry has said it plans to oppose the move strongly by lobbying EU ministers.
But the EC has already warned that the exemption clause is only temporary and said it would like to see it removed by 2003.