Barriers must be put back up across Merchants Road at Gloucester Quays before someone is seriously hurt, it has been warned.
The barriers were originally put up by the Peel Group, which owns Gloucester Quays, to ensure cars did not use the street as a cut through from Llanthony Road to St Ann Way.
But last week, Gloucestershire County Council removed the bollards because they were "illegally blocking the highway."
With a European-style outside seating area being created along Merchants Road and the relocation of Cineworld, concerns have been raised that a pedestrian could be injured if motorists are allowed to cut through.
Mark Owen, chairman of the Federation of Small Businesses for Gloucestershire, said: "The tragic incident in Bath last week shows how little protection pedestrians have from vehicles when something goes wrong.
"There is a fantastic atmosphere being created at Gloucester Quays with many people enjoying food and drink in the outside seating areas.
"Vehicles travelling up and down not only ruins the atmosphere but presents a serious hazard.
"Someone is going to get hurt and I don't want it to be my child.
"Common sense must prevail, and I would encourage councillors and business people to lobby the GCC to review this decision."
Gloucestershire County Council said action had been taken following complains from traders, taxi drivers and members of the public.
Jason Humm, area highways manager, said: "After looking into it, we discovered that once the roads were adopted they became public highway and the bollards were therefore there illegally, blocking that highway.
"Because we'd had complaints we had no option other than to ask the developer to remove them, though we understand the police stepped in and actually took the bollards out themselves.
"However, we're more than happy to look into this again to see if there's another solution which suits everyone.
"If any of the local businesses or residents would like to get in touch we'd be happy to talk to them about this."
