The Public Expenditure Minister says any premises which isn't complying with Covid-19 rules, does not deserve to stay open.
Research by the ESRI shows a third of customers in restaurants and pubs aren't having their Covid cert checked.
Government officials will meet with hospitality sector representatives this afternoon to reiterate that the rules must be complied with.
Minister Michael McGrath says the Government will take action if things don't improve.
"We do expect the minority of operators who are not complying to fully comply with the rules.
"It's in all of our interests that they do.
"If they don't, there are penalties. The Government will act, and the authorities will act.
"Any business that does not comply with the rules does not deserve to stay open."
However Paul Treyvaud, owner of Treyvaud's Restaurant in Killarney, believes the rules were rushed through.
"What we need to do instead of having the government pointing the finger, and wrongfully saying that it's the hospitality industry that is to blame, is at some stage we need to point the finger back at these guys.
"The way they rolled out the vaccine cert was an absolute disgrace.
"We had no idea, nobody had any written form of confirmation of what was going on."
