Charges for breaching COVID-19 capacity restrictions have been dropped against popular Adelaide restaurant Golden Boy.

The Thai restaurant was issued a $5,000 fine in November last year when South Australia was facing strict venue capacity restrictions after just emerging from a snap lockdown triggered by a COVID outbreak linked to medi-hotels and a pizza shop.

At the time, emergency COVID-19 directions meant up to 100 seated diners were allowed in restaurants as long as that did not amount to more than one person per four square metres.

Golden Boy licensee James Hillier was challenging the fine, with the charges against the restaurant now withdrawn in the Adelaide Magistrates Court.

There has been no application for costs.

Mr Hillier previously told the court he had received "very little detail" about why the venue was fined, and whether it could be challenged.

In July, he told reporters he was confident he could reach a compromise with police.

"We were visited [by police] on the night, a headcount was done under the recently altered conditions that we were trading under … and between eight and 12 weeks later, we received an expiation," Mr Hillier said outside court earlier this year.

"I'm confident if we work through the evidence with the police, we will either reach some form of compromise, or we will accept the expiation as it stands."

Mr Hillier said the venue had been doing its best to adhere to venue capacity restrictions at what had been a challenging time for the restaurant, as well as the industry in general.

"Every business has difficulties — some more than others. It's just a challenging time for everyone, but we're no better or worse off than anyone else.

"Hopefully, once vaccination levels get up to a certain point, we can relax to a point where it's not so difficult to meet the conditions."