The youths are said to have had an argument with another group in town but turned on bar staff and security when they tried to intervene, according to local media. Around 20 men are thought to have been involved in the attack last week.
The violent attack saw chairs hurled at bar staff, who can be seen blocking the furniture with chairs of their own.
The bar is known as the Aloha Bar and sits near the main street, in Portimao in the Algarve region of Portugal.
The group began to throw chairs at the glass doors of the bar during the attack at around 1.00am on June 20. They then proceeded to target a staff member as he held up his own chair to block the projectiles.
Portugal’s civil police force in Portimao (PSP) claimed that it had identified seven out of the approximately 20 youths after they traced them to a local hotel.
Portimao Council also confirmed to the local news site Portugal Resident that it wants to install 32 CCTV cameras in the area to help reduce violent crime.
It also says it will station a permanent PSP station in the area to prevent similar attacks.
The town, which used to be a small fishing area, has exploded since locals began embracing the tourism industry in the 1980s.
Now a popular resort town with luxury hotels, the centre of the tourist area is full of bars and restaurants and has been the scene of multiple brawls.
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However, now that the tourism industry is recovering, it is yet to be seen whether countries will blame Brits for any rise in crime in their cities, particularly after incidents like these.
The Balearic Islands Government, responsible for popular destinations like Mallorca, Menorca and Ibiza, has implemented laws that limit the amount of all inclusive drinks resorts can serve their guests.
The holiday operator Thomas Cook said: “Please be advised that a decree has been issued by the Balearic Government on a new restriction for all inclusive meal options.”
“There is a maximum of six alcoholic drinks per person per day that can be served and these drinks will be provided only during lunch and dinner (three each).”