Sturgeon has described the measures as being meant to be a "short, sharp action to arrest a worrying increase in infection", but she admitted that they would be disruptive to many businesses and would be unwelcome to many people.
The leader of the Conservative Party in the Scottish Parliament, Ruth Davidson, shared her frustration after the announcement, claiming the new measures are "putting massive restrictions on people's lives and livelihoods." .
Meanwhile, pubs and restaurants in other regions will be subjected to less severe restrictions, limiting their opening hours to 6pm and a ban on the sale of alcohol indoors.
Five regions - Greater Glasgow and Clyde, Lanarkshire, Ayrshire and Arran, Lothian and Forth Valley - will see an nearly complete shutdown of the hospitality sector for the two week period which covers three weekends.
Speaking to MSPs, the First Minister said: "However, the evidence paper published today sets out why these settings present a particular risk".
Ms Sturgeon said she had asked the former First Minister about the allegations at the time, which he denied, but was left with "a lingering concern".
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It comes after Nicola Sturgeon said at Tuesday's coronavirus press conference that said the update would not include restricting travel across the country or enforcing a stay-at-home order, although such measures could remain in "hotspot" areas.
Health Protection Scotland (HPS) figures released by the Scottish Government on Wednesday indicate 1,054 new cases were registered overnight.
Ms Sturgeon apologised for the "significant impact on many premises" the restrictions will have, and announced a £40 million fund to help affected businesses. But I will be clear, we are not going back into lockdown.
"We are not halting the remobilisation of the NHS for non-Covid care".
"So while the measures I announced today will feel like a backward step and, in many respects, I know they are, they are in the interests of protecting our progress overall", she said.
There are also now 319 people in hospital with Covid-19, an increase of 57 on the previous day, and another person had died in the past day.
"It is by taking tough but necessary action, though, that we hope to avoid even tougher action in future".