Belmont's Cassowary Cafe, which opened in March, recently began using a pedestrian mall between the Pacific Highway and High Street for alfresco dining under Lake Macquarie council's VibrantSCENE program.

The program launched in mid-2020 and has mainly helped food vendors operate in council parks and reserves. Similar programs around the state helped expand dining onto footpaths, laneways and even roads in Sydney, particularly.

This week, as part of a suite of initiatives to boost the hospitality and entertainment industries, the NSW government announced it would offer $5000 grants to up to 5000 hospitality businesses to get outdoor dining ventures off the ground.

"Whether that's to help set-up curb-side dining or a pub-style courtyard, we're here to turn ideas into reality," Customer Service Minister Victor Dominello said.

The grants are expected to be prioritised to Sydney, but are a statewide initiative. Temporary measures will also allow businesses to set up alfresco dining more easily, as exempt development with landowner's consent, until April. Pubs and bars could use adjacent sites such as car parks to serve food and drinks, councils could establish mobile vendor spaces on public land, and registered clubs could repurpose car parks and bowling greens.

The changes build on pilot-programs like VibrantSCENE. Cassowary Cafe owner Ron Game said he approached council about using the mall and after an approval process and some minor works, recently began setting up tables, chairs and umbrellas in the space.

"It's bums on seats, literally," he said. "With the four-square metre rule we can only get 14 people indoors. Outside, we can have another 12 tables. It's a very big area and off the main road. It's got rear lane access as well."

Mr Game implored other businesses to consider seeking a $5000 grant, saying it would have helped him purchase additional furniture.

"If you have the opportunity to use any areas around you ... it's a godsend," he said. "If you can put tables outside to cover what you lose inside for the restrictions, and obviously with COVID it's a lot safer to be dining outside."

Lake Macquarie council said it was assessing "a small number" of applications from cafes in Warners Bay to use on-street parking spaces as dining areas, but "appropriate safety measures such as concrete barriers" were needed to proceed, which traders will have to fund.

Newcastle council said it "strongly supported" the government's push for more alfresco dining.

"This is an exciting initiative in support of hospitality businesses and welcome news for people looking to enjoy the lifted restrictions by dining outdoors in a safe social setting," they said.

"CN encourages the establishment of outdoor trading areas throughout Newcastle and has had an Outdoor Trading Program in place for several years."

The council in recent years has waived the outdoor trading fee to encourage restaurants, cafes and eateries to expand onto footpaths. The fee usually nets the council about $150,000 each year.

"With COVID-19 restrictions easing across the state, CN has received an increase in enquiries from businesses seeking to utilise outdoor areas or get an outdoor dining venture off the ground," a spokesperson said.

"We look forward to now having the legislative power to make this happen quickly and seamlessly."

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