Going back to your original post, I think that was a better way to handle things. Here’s a variation:
First offense, license suspended for 1 wk. Second offense, 3 wks. Third offense, closure with future re-opening subject to evaluation by the Health Department. Or something like that. But let the “good actors” stay in business.
I personally consider a “bad actor” in the restaurant/bar industry, and in this context, to be a place where the staff aren’t following the rules (like masks), or where the allocated number of patrons exceeds the maximum – with some reasonable discretionary leeway for both in terms of enforcement.
The number of people at the venue and their behavior can only be realistically controlled on a “best effort” basis. On the other hand, the staff are employees, and as such should reasonably be expected to individually follow government health rules, as a condition of employment.