Hassan Butt, aged 20, the owner of Mint Paris Lounge on London Road, was charged with failing to prevent smoking in a smoke-free place after customers smoked shisha pipes inside.
He pleaded guilty at Sheffield Magistrates Court this week and was ordered to pay £2,327, including costs.
Sheffield Council cabinet member for environment Coun Bryan Lodge said: “We won’t tolerate smoking in what should be smoke-free places and this shisha lounge is no exception. The law is clear on this and if a business is operating as a shisha cafe, the premises must meet the necessary requirements.
“We have offered further advice to Mr Butt and were encouraged by his guilty plea. I hope he’ll learn from this and run his business legitimately going forward.
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“As a council, we are committed to improving health and wellbeing in the city and will continue to inspect all licensed premises and take further action when appropriate.”
They were fined because shisha pipes are included in the Health Act 2006, which introduced the smoking ban. To be compliant with the law the building needed to be 50 per cent open, which it was not.
It comes in the same week that the shisha bar was granted a late-night licence despite opposition from local residents.
The lounge applied to be able to play music, as well as serve food and drinks, until 2am each night of the week.
Councillors gave the go-ahead to the licence despite opposition from the Leverton Tenants’ Association, which represents people living on Leverton Gardens, a short distance from the bar.
Lily McCall, chairwoman of the association, said: “Our tenants’ association consists of three high-rise flats and noise rises.
“We have a very large number of tenants who are very light sleepers and will quite likely be disturbed by the music.”
The licence included a condition that there will be signs telling customers to leave quietly.