A popular beachfront cafe at Stockton that locals fear could soon have to change it's name to Lexie's on the 'non-existent' Beach.

Cafe manager Vinny Sovechles, a Stockton local, described the beach erosion this week as "the worst he has ever seen".

Lexie's featured in a drone video put together by Stockton businessman Lucas Gresham, that went viral on Thursday, showing the erosion just metres from the cafe and adjoining City of Newcastle caravan park.

Mr Sovechles said the cafe relied heavily on beach trade during the warmer months and he feared without a beach business would suffer.

"We need a solution and we can't afford to wait years for one to be found," he said.

"This is a bigger issue than Newcastle council, we get that, but it's like the people in power don't want to do anything for Stockton and they are happy to see it wash away."

The cafe is located in Stockton beach car park, just metres from where erosion has scoured the coastline.

It is protected by a 140-metre buried rock wall between the cafe and neighbouring Stockton Surf Life Saving Club that was built by City of Newcastle in 2016.

Mr Sovechles said residents were "not far off protesting" to draw attention to the dire state of the beach.

"There has been a lot of talk about blocking the Stockton bridge or doing some kind of protest in the harbour, that shows you how frustrated people are with this," he said.

"We love the beach and to look at it now, it's just not right.

"A few sand bags are not going to fix this, it's a lot bigger than that."