Protesters greeted the launch of Bristol's �5m "showcase" bus route on Friday. A group of people, including members of the local business community, protested on Gloucester Road, claiming the new lane will cost them passing trade.
The council says it has built a new car park as a compromise, and that the route runs at peak times only.
The bus lane runs from the north to the south of the city, via its centre and will connect Henbury, Southmead and Hartcliffe.
Bus stops will have electronic displays of information and details of approaching buses.
The new "showcase" route is the first step in a major overhaul of bus services planned by the city council.
It is aimed at improving the reliability and frequency of buses, which are normally held up during peak hours because of congestion, says the council.
Councillor Helen Holland added: "This first showcase route is evidence of the value of the council working in partnership with First Bus in Bristol."
But Mary Hawksworth, who runs West Street Diner in Bedminster, told BBC News Online: "It is a waste of money. They would have done better to tidy up Gloucester Road and Bedminster.
"All of us here have had our trade affected by the work for this service, traffic hasn't been able to get through."