Starting in 2008, the smoking ban in Germany will be extended to eight other states, and will include the capital Berlin.
In Berlin, smoking will be banned in restaurants, bars and clubs.
However, Germany allows special rooms to be set aside for smokers, falling short of many total bans on smoking in enclosed areas that are enforced elsewhere in Europe.
To allow a smooth transition, Berlin's authorities have also announced that the law will not be actively enforced for the first six months.
Still, restaurant and bar owners are preparing for profit cuts.
Manfred Guarini is a restaurant owner in Berlin.
For me, as a restaurant owner, it will have negative consequences. I'm a smoker myself and if I want to go out somewhere to have a meal in the evening and if I can't smoke while having some wine, then I do not go there at all.
But not all smokers are against the ban.
Flamm Vidal, a barman at one of Berlin's traditional corner pubs, was looking forward to the ban to help him stop smoking.
The staff nearly all smoke, but with few exceptions we are all happy with the ban because it might make us stop smoking.
Because of German federal regulations, the smoking bans are being introduced gradually.
Three states imposed partial bans on August 1st this year, covering places such as restaurants, hospitals, schools and state offices, and the rest are set to follow by the end of 2008.