The on-street dining trend that grew out of pandemic restrictions is here to stay as businesses and councils look to cash in at the expense of street parking.
Merri-bek City Council is the latest to introduce fees for “parklets”, which were installed outside restaurants and bars free by the council during the COVID-19 lockdowns when density limits restricted dining indoors.
John Mihailidis is prepared to pay to keep parklets out the front of his building.Credit: Jason South
The existing parklets are being torn down and businesses that want to keep on-street dining need to apply for a permit and pay a $580 annual fee, on top of other costs for design and installation.
Merri-bek Mayor Adam Pulford said the parklets were always intended to be temporary and the decision to remove them “followed many months of consultation”. He said businesses applying for permanent parklets would be supported.
Despite the additional costs, many businesses across Melbourne are paying up.
Souva So Good owner John Mihailidis, who’s had parklets outside his Greek tavern in Ivanhoe, in the Banyule council area, for several years, would have to pay $530.45 for one parking space and $371 for each additional space annually under the council’s new fees.
These parklets in Lygon Street, Brunswick East, will be torn down, as the council introduces fees to bring them back.Credit: Jason South
“Financially, I wouldn’t want it to be more than that, but that’s fine, if that’s what the cost is going to be,” he said.
“It gives people the opportunity to be sitting outside in the sun and enjoying the community ... that’s my big thing. It’s not just about the cost.”
Mihailidis believes the proliferation of parklets can give Melbourne a more European feel and encourage people to socialise.
Banyule City Council said it had not received any applications for a parklet permit so far.
Lygon Street in Carlton is known for its outdoor dining scene. Credit: Luis Enrique Ascui
Phillip Mansour, executive officer of Carlton local traders’ association Carlton Inc, estimates 95 per cent of businesses that had parklets installed during the lockdowns have paid to keep the fixtures since fees were brought in by the City of Melbourne about two years ago.
“It’s been a cost incurred to businesses that they believe has returned on investment,” Mansour said.
“It is a bit of a pill to swallow when you’ve got to pay for that additional space but ... they’re looking forward to the summer period now with the extra outdoor dining space, as they have been over the past few years.”
Nic Sandery, owner of Molly Rose Brewery in Collingwood, loved having a parklet spanning three parking spaces out the front of his business, but temporarily shut it down following noise complaints from neighbours. He plans to reopen it in a reduced capacity because “on-street dining is an amazing, amazing thing” and “benefited our business”.
Nic Sandery closed his parklets at Molly Rose Brewery after locals complained about the noise. He’s keen on bringing them back in a reduced capacity.Credit: Luis Enrique Ascui
When he does, he’ll have to pay Yarra City Council $2425 a year per parking space as well as a $325 application fee. For higher traffic streets in the area, it costs $3244.80 on a mid-traffic street and $5408 on a high-traffic street to rent a space for the year.
“It’s a tricky one because it’s generally not all-weather, so you have to allow for paying for it all year, but only using it for maybe a third to a half of the year,” Sandery said.
“The advertising of people having a fantastic time at your venue, I think is, for me, worthwhile.”
Some businesses are prepared to pay up but have been unable to successfully navigate the council application process.
Thirty Mill cafe in Malvern twice had a trial parklet installed by the council. But when the business applied to place it permanently, it was knocked back.
“We spent $3000 on those architectural drawings that they need and had it all done properly, and then they’ve actually since denied the request,” Thirty Mill operations manager Michael Docker said.
A City of Stonnington spokesperson said: “The application for a permanent parklet was refused due to safety concerns, with the parklet’s location creating a risk of cars striking the dining area during parking attempts.”
Docker disagrees and said the cafe was on an open street. He hopes the council will change its position in the future.
As far as Mihailidis, the Souva So Good owner, is concerned, the more parklets the better.
“What’s important to me is our parklets are creating a more community feel.”
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