If you’ve visited Newcastle’s east end any time over the past few months, you may have noticed new signs of life on its historic streets. Several bars and restaurants have opened in the Steel City this year, and Newcastle is swiftly becoming one of the most exciting places to eat and drink in NSW.

“I went to Bistro Penny last week,” says Josh Di Stefano, co-owner of Newcastle bottle shop Vera Wine, “and after we finished dinner, I walked outside and thought – for the first time in Newcastle – ‘where am I going to go for a drink now?’ There were so many great options – the east end has developed a real Fitzroy, Melbourne, vibe. Also, Bistro Penny was phenomenal – and it was only its first week.”

Vera Wines and Bistro Penny join a growing cohort of Newcastle businesses (including hatted restaurants Humbug and Flotilla, Arno Deli, and new cocktail bar Roxanne) operated by hospitality professionals who spent several years learning the trade in Sydney and Melbourne.

For chefs and restaurateurs looking to open their first venue, Newcastle has a much lower barrier to entry than the capital cities.

“In terms of bang-for-buck when it comes to property and lifestyle, it’s hard to beat,” says Di Stefano, who relocated from Melbourne with his partner, Florence Diffey, and their children in 2022. “This morning I woke up, went for a swim at the beach, grabbed a coffee from the kiosk, and drank it while looking at dolphins. I mean, how bloody good, right?”

Bistro Penny owner-chef Joel Humphreys moved to Newcastle with his small family five years ago, after working in Sydney restaurants including Rockpool and Bistro Moncur.

“I miss Sydney a bit, sure, but I also love it up here. And now I’ve just launched the style of restaurant I’ve been wanting to open since we moved up.”

Housed in a former bank in Newcastle East (at one time the site was also home to Newcastle’s first Good Food Guide hatted fine diner, Restaurant II), Bistro Penny is all about approachable French-inspired dishes cooked over fire.

“The restaurant design and renovations have been going on for about a year,” says Humphreys. “The grill has been constructed with interchangeable levels, so we can cook anything from a scallop in the shell to a whole pig.”

Humphreys is joined by longtime chef friend Nic Wong as a partner in the business. Wong also leads the Lucky Prawn kitchen at Marrickville’s Bob Hawke Beer and Leisure Centre.

“I’ve known Joel since our Rockpool days,” says Wong. “I was actually interested in the same site before he was, but Lucky Prawn needed my full focus at the time. When I heard Joel was looking at it too, it was like, ‘Well, it was meant to be – we should do this together’.”

Meanwhile, a few blocks away, Arno Deli was almost certainly the only sandwich shop in Australia to be awarded the highest rating of three “glasses” at the Wine List of the Year Awards in October.

Helmed by Will O’Brien, who opened the store after cheffing in hatted Sydney restaurants for years, Arno specialises in porchetta panini, negronis, and more than two dozen Italian and Australian wines by the glass.

“To be honest, I did put a lot of work into that wine list,” says O’Brien, “but winning three glasses was completely unexpected.” (Sydney restaurants with a three-glass ranking include Quay, Aria and Saint Peter.)

O’Brien moved to the area with his family in 2012, when his partner enrolled to study at Newcastle University. “Back then, Sydney was sucking all the chefs down there, mainly because there weren’t many great places in Newcastle to work and learn about cooking and hospitality. Now, it almost feels like the opposite is happening.”

A quick guide to eating and drinking in Newcastle

Arno Deli179/181 King Street, Newcastle

Arno’s biggest seller is the “number seven” panini with prosciutto cotto, mortadella and provolone, among other fixings, but O’Brien’s go-to is the “number two” loaded with porchetta, eggplant and cos lettuce. “It was inspired by the massive porchetta sandwich that was on the first menu at Da Orazio in Bondi,” he says. Best for: a top-drawer sandwich and knockout wine.

Bistro Penny 8/10 Bolton Street, Newcastle

One of the most exciting restaurants to open outside of Sydney this year, with proven talent in the kitchen, a devastatingly handsome fit-out, and a full carte of wood-fired French-leaning food. Best for: Duck neck sausage and wood-grilled flounder.

Fairmont Diner 34 Cowper Street, Carrington

Located in the usually sleepy suburb of Carrington, the Fairmont is Newcastle’s hottest new brunch and cold brew hang-out. It looks like a Nashville dinner, the coffee beans are from St. Ali, and extra hot sauce is on every table. Best for: Tabasco-splashed burritos and other assorted hangover cures.

The Falcon 10 Pacific Street, Newcastle

A few blocks back from the beach, this is the best small bar in Newcastle (provided you’re into buffalo wings, margaritas and American dive bar vibes). Best for: cocktails and a soundtrack of The Eagles.

The Flotilla 9 Albert Street, Wickham

Arrive early for a martini at hatted Flotilla’s schmick next-door bar, Vecina, and later put your wine order in the hands of general manager Eduardo Molina. You can drink well here. Expect the tasting menu to feature finely calibrated, seasonal flavours such as wild fallow deer with beetroot and a sticky bone-marrow sauce. Best for: snapper crudo and semillon.

Humbug 87-89 Hunter Street, Newcastle

A hatted neighbourhood restaurant helping to rejuvenate Hunter Street Mall. Timber finishes, comfy banquettes and vibrant prints by local artists roll out the welcome mat for a menu that makes the marriage of European and Korean flavours feel seamless. Best for: a group dinner and house-made pasta with chilli prawn butter.

Jana Restaurant & Bar 185 Hunter Street, Newcastle

Inside Hunter Street Mall’s swanky QT Hotel, Jana is a destination in its own right. The smart-casual restaurant now leans Italian, with new chef Ryan Crothers (direct from a tenure at Waverley’s Passeggiata) sending out veal Milanese and market fish with pesto alla Trapanese. Best for: oysters and a bistecca steak to share.

The Ship Inn 102 Hunter Street, Newcastle

It’s not quite a pub, but it’s not a bar or a restaurant, either. The Ship is just a good ol’ cracking place to hang out, surrounded by dark timber, high ceilings, and footy on the telly (at least if the Knights are playing). The beer and cocktails are cold, and the food is usually ace, too. Best for: Grifter Pale Ale on tap and a fried chicken sandwich.

Vera Wine Bar 67 Beaumont Street, Hamilton

With only 12 seats, Vera Wine Shop’s new natural light-filled snacking zone might be the smallest bar in the state. You’re likely to find more natural wines on pour than spots to sit, plus a choice little menu of tinned fish, (very good) cheese and their chilled deli mates. Best for: a wedge of Ossau Iraty sheep’s milk cheese and young Burgundy.