Landlord Andy Maglaras said the rescue teams had found the children, believed to be on a school trip, and were bringing them to safety.
The alarm was raised at about 1pm and saw three mountain rescue teams and police deployed.
Mr Maglaras said: "We are just waiting for them to come down, they are up on a trail.
"We are getting some hot juice ready for them.
"The rescue mission is based in our car park.
"There are 10 or 15 vehicles in the search and the helicopter.
"They have told us they will be bringing the children here and to get them something hot to drink and keep them by the fire.
"14 (children) are meant to be coming here now. I think they were on a school trip, we get quite a few around here."
The pupils' ages and where they are from have not yet been confirmed, but the Central Beacons Mountain Rescue Team confirmed it was taking part in the operation.
The search came as south west Wales was hit by heavy rainfall on Wednesday afternoon.
10 reasons we love Wales
10 reasons we love Wales
Just like the English have the rose, the Dutch have the tulip, the Welsh are known for the stunning and vibrant yellow daffodils that adorn the countryside.
You might not immediately think of beautiful beaches when you think of Wales, but you'll be pleasantly surprised by the miles of clean sand and crisp waters. Rhossili Bay in Wales has even been voted fourth best in the UK by TripAdvisor in their Traveller's Choice Awards this year.
To say the Welsh are big rugby fans would be an understatement, Cardiff truly comes alive when the national team plays at Millennium Stadium and people all over the country tune in to watch the boys in red belt out the national anthem.
From sprawling Caernarfon Castle to quirky Castell Coch in Cardiff, there are countless fascinating fortresses to explore all around the country.
The Welsh countryside is home to plenty of hills and valleys and the Snowdonia mountain range is sure to take your breath away.
The Welsh may be best know for their love of singing which is hardly surprising when one of the most famous singers in the world, Tom Jones, hails from Pontypridd in Glamorgan, South Wales.
The Welsh flag is one that can be recognised the world over mainly thanks to its roaring, red dragon. The fiery red dragon has been associated with Wales for centuries now although the origin is uncertain.
Welsh Rarebit may sound a little too like rabbit for many people to try it but it doesn't actually contain any meat. The tasty Welsh treat involves melting cheese and mustard over toasted bread.
From puffins to dolphins, seals and whales, there’s an incredible array of wildlife across the country so it's always worth putting your walking boots on and exploring the Welsh countryside.
Male voice choirs are icons of Welsh culture which may not be surprising when you find out the country is often referred to as 'the land of song'. The choirs are often found singing at major sporting events including national rugby matches.