We're still not exactly sure what was going on, but we were there on Winter Soltice, and our waitress later that night told us that it is tradition for these 'characters' to come and scare away the bad ghosts of the year past for the children. If you are a good child you have nothing to be scared of and you are happy to see these guys. If you are a bad child, they will beat you.
Either way I did not want one of these guys anywhere near me!