I guarantee 50% of hospitality sector business's will closed down within 12 months, its not sustainable, also there will be many many vaccinated people who will refuse to go to places that require vaccine passports.
Lets say you have a 100 people that got to your café each day now but after the vaccine passports are introduced you only start getting 70 people a day because the other 30 refuse to enter or aren't vaccinated, how long do you think the business will last for?
This depends on how financially strong the business was to begin with, and what happens elsewhere. You are correct that you will end up with fewer businesses.
The relevant question is probably whether the government should have accountability for compensating business owners and retraining employees. That has to be financed somehow, which will be unpopular with those who oppose passports.
Public health equally has to be financed somehow, which gets forgotten about in this debate. Is letting people die, and receive expensive treatment prior to death or life-saving treatment due to their refusal to get vaccinated, more or less expensive than the alternative? Someone has to pay for that. Whether you're talking NHS or the US system, at the end of the day it doesn't matter whether those costs come out of a paycheck in the form of taxes or reduced wages and health insurance deductions.
If your take is that you, and others, should be permitted to make selfish decisions that endanger the lives of others (and turn you, and them, into the breeding grounds for the next souped up, more lethal mutation), I would point out that populaces throughout history have eventually acceded to pretty draconian tactics during pandemics...or been forced to accede at swordpoint/gunpoint.
Vaccines have been proven to work well, a quarter of a percent of the population of the United States six feet under is not a trivial number, and the long-term disability of a much more substantial fraction is also a serious problem.