The Hunter's leading business organisation says the public holiday to mark the death of Queen Elizabeth will benefit some businesses while hurting others faced with increased staff costs.
The federal government has declared Thursday, September 22, a one-off public holiday to coincide with a national memorial service.
Banks, schools, day care, libraries, museums and universities will close, but shops, pubs and cafes can open.
Business Hunter chief executive Bob Hawes said on Tuesday that the holiday was "appropriate and in line with community expectations".
"As the longest British reigning monarch, she was a much loved and respected leader, and there are those who recall with great joy the queen's visits to NSW to communities like Newcastle," Mr Hawes said.
"No doubt there will be challenges for some of our members, particularly smaller businesses who are now faced with additional staffing costs and bookings that may need to be shifted.
"The impacts across business will be uneven as the public holiday will see additional benefits for some with higher foot traffic and increased spend in store."
Mr Hawes said businesses would not be limited by restricted trading as occurs on Anzac Day mornings.
"The short notice could cause disruption, particularly for industries like hospitality, arts and culture, retail and tourism, many of which the public will expect to be open.
"Many businesses had already taken bookings for that day in good faith and will now be faced with an additional cost base should they choose to open.
"We hope that if businesses approach customers and patrons about bookings that the conversation is respectful and understanding.
"The businesses are not to blame for the position in which they find themselves."
Some workers could take a four-day weekend, which would affect businesses' decisions on whether to open.
"We know a number of businesses are still short-staffed and may take the option to close rather than risk under-delivering on community expectations.
"For pubs, clubs, restaurants and entertainment venues, the Wednesday night may function as an additional Friday."
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