The individuals who are smoking should definitely get fined, and the establishment should get cited for not having their employees enforce the law by telling patrons to put out their cigs in their establishment (though let's be honest: is a Filipina or Sri Lankan really going to tell some guy in a thobe to put it out or leave?).

"I wish I could drink like a lady. I can take one or two at the most. Three and I'm under the table. Four and I'm under the host"
-- Dorothy Parker