The new powers will be enforceable by law, and come after consultation with the UK Government over a recent spike in Coronavirus case numbers in the city.
Under the changes, both Birmingham City Council and the local police will have the power to investigate reports of, as well as issue fines to businesses that are failing to comply with Covid-secure risk assessments.
They will also allow local council chiefs to restrict access to, or close bars or restaurants if they are deemed to be creating a risk.
Hospitality premises have been told they should not accept bookings for more than six people or from groups from more than two households, and if unsure, they have the right to ask and refuse service.
Track and trace should also be enforced to make sure all customers provide their personal details in case of a positive test result, whilst staff should be sent home to isolate and take a test if they show symptoms.
“While the recent figures show our rates are going down, we cannot be complacent," says Councillor Ian Ward, Leader of Birmingham City Council.
"We must all continue to follow all the relevant safety guidance in order to protect our families, friends and work colleagues.
“Staying focused now will also support our fragile economic recovery in the long term.
"No one wants to see a continual ‘stop, start’ approach as to what citizens can do and where they can go, least of all our business community. Most of whom are adhering to the guidance and are doing all they can to keep our citizens safe.
"For those that are not we are now enacting powers to ensure that they do. These new powers will allow us to intervene when businesses are putting staff and customers at risk of infection.
"By all working together to take action now, we can hopefully bring the numbers down, prevent further restrictions and protect the health and jobs of people across the city."