Faced with a pandemic-induced identity crisis, The Rocks is evolving from international tourist trap to bona fide dining destination.

Pop-up food events, al-fresco dining and a slew of new restaurants and bars have revitalised the historic precinct over past months, attracting a growing number of Sydney residents to its cobblestone streets.

Owner of The Tea Cosy cafe Ash Kinchin says border closures of the last few years has given The Rocks the change to reinvent itself from a tourism hotspot to instead "put the focus on Sydneysiders".

"I've been working in The Rocks for 36 years and I've never seen it change so much," she says.

"It's been completely rejuvenated."

Kinchin attributes the influx of customers to NSW government development initiatives such as Playfair Takeover, a pop-up "foodie hub" running from August through December. It features fresh offerings from Iron Chef winner Claudette Zepeda and 2021 Masterchef contestant Jessica Hodge.

"I've been working in The Rocks for 36 years and I've never seen it change so much."

Hodge used the opportunity to open her first hospitality venture, Small. Good., an "Aussie deli" serving sandwiches, share plates and late night snacks using native ingredients.

"If it wasn't for [Playfair Takeover] I probably wouldn't have considered opening a venue here," Hodge says.

"I hadn't been down to The Rocks for a long time. I lost sight of how wonderful the history is and how beautiful the bridge and harbour are.

Contemporary Asian restaurant Luna Lu and sustainability bar Daintree are the latest venues to open, joining late 2021 arrivals Hickson House Distilling Co. and gin bar Frank Mac's.

More is to come, with the addition of cocktail bar Bar Lulu on September 23 and hospitality group Swillhouse's latest venture Le Foote, a European-inspired wine bar slated to open by the end of the year.

"Many of the city's top operators have toured the area in recent months as there is a sense that something special is happening," says Rena Richmond, a spokeswoman for the NSW government.

"We are looking forward to continuing to build the appeal of the area. Plans for a new William Smart building that will house multiple restaurants and bars has been approved by the City of Sydney and we hope to start construction in the next year or so."

Hickson House co-owner Mike Enright says "it just made sense" for hospitality group Barrelhouse to move into the area given The Rocks' plan to "hit the reset button".

"The trigger was the pandemic. It was a changing of the guard.

"When people come to The Rocks now it isn't just to see the Opera House. They're heading down here to eat and drink as well,' Enright says.

Long term businesses, such as the historic Fortune of War Hotel, have also benefited from COVID recovery initiatives. Managing director Steve Speed says concessions allowing al fresco dining have boosted trade.

"It brought an entirely different demographic into the area," Speed says, noting an increase in large corporate groups and families.

Pub and restaurant revenue has been higher than pre-pandemic levels for the past four consecutive months, according to the NSW government. Cafes have seen a boost in aggregated turnover of 50 per cent over the previous 12 months, while restaurants and pubs have reported an increase of more than 60 per cent.

Daintree bar manager Seine Cheung says the community has been welcoming.

"The more people are aware of everything that's going on here, the better," she says.

It's about to get a lot busier. 131 cruise ships will berth in Sydney harbour over the next six months, according to Business Sydney executive director Paul Nicolaou.

New venues at The Rocks to try

Daintree

You can feel good about splurging on cocktails at Daintree, a small charity bar where 50 per cent of all sales go directly towards reforestation project HalfCut. The second venture by The Laidre Group (The Keel) puts sustainability at the forefront of their fit out, menu and cocktail list. Bar Manager Seine Cheung is one of an all-female bar team who have been trained by Indigenous leaders to recognise, forage and best use native ingredients.

Cadmans Cottage Stairs, 106b George Street, The Rocks, daintreesydney.com.au

Small. Good.

Former Masterchef contestant Jess Hodge is taking Australian natives to the next level with her pop-up deli and wine bar. By day there's sandwiches filled with seldom-seen cold cuts like wallaby pastrami and kangaroo mortadella. By night, share plates with bunya nut falafel, emu meatballs and kangaroo tail terrine can be washed down with a glass of pet-nat or a cold schooner of Wildflower beer.

Shop 20 Playfair Street, The Rocks; small-good.com.au

Taqueria Zepeda

San Diego chef Claudette Zepeda has made a name for herself in the US with award-winning regional Mexican cuisine. For her first Australian venture, she's bringing authentic Mexican blue corn tacos with fillings such as adobada pastor (slow-cooked pork shoulder) and lengua (tongue). Pair them with an option of six unique salsas and a glass of freshly-blended agua fresca.

Shops 21-22, 10-26 Playfair Street, The Rocks; 0400 475 710; taqueriazepeda.com

Hickson House Distilling Co.

Hickson House is a relative newcomer to the Sydney distillery scene. Customers can go on a distillery tour, try a flight of the house gins or settle back with a drink from the impressive cocktail list. The native botanicals featured in their range of gins carry through to the menu, with dishes such as slow roasted whole duck with rosella and galangal glaze. The converted warehouse (once used as a carpark) has a masculine glam energy with high ceilings, dark wood and sparkling chandeliers.

6 Hickson Road, The Rocks; 02 8999 3852; hicksonhouse.com.au

Bar Lulu

This intimate bar opened on Friday with a list of Asian-inspired cocktails and snacks. Matcha martinis, galangal root old fashions and honey yuzu whisky high balls are served in plush, velvet and gold surrounds. Perhaps most interesting is Australia's "first and only NFT bar membership" in which token holders will be granted exclusive access to private lounges, events and secret menu items.

7-27 Circular Quay West, Campbells Cove, The Rocks; 02 8220 8400; barlulu.com.au