Outdoor seating extending into footpath, parking spaces divides opinions among Potts Point and Elizabeth Bay business owners.

An upcoming council decision about whether to continue offering rent-free outdoor dining space in Potts Point and Elizabeth Bay at a cost of $2.5 million is pitting drivers against businesses.

An upcoming council vote on whether to retain the City of Sydney’s outdoor dining initiative once the trial ends on 30 June is dividing the opinions of local businesses, who have embraced increased business from outdoor seating but fear any further culling of parking space.

Maria Schrammel, Potts Point Chamber of Commerce and community member said the council should not allow more parking spots to be taken by outdoor seating.

“Losing parking is a big no,” Schrammel told the Wentworth Courier.

However she said the grace period with no council rent on outdoor seating had propelled the commercial hub back to life in recent months.

The City recently placed its new budget on public exhibition, with a proposal to continue to waive outdoor dining fees for the financial year 2022/23.

However the loss of revenue to the City for this initiative will cut $2.5 million in the coming financial year out of the city’s budget.

A City of Sydney spokesperson told the Wentworth Courier its was exploring how to continue to support businesses.

“We‘re proposing to formalise that change,” the spokesperson said.

Kings Cross Hotel extended its outdoor seating to public space. Image: Bianca Healey.

Elliot Solomon, CEO of Solotel, which runs the Kings Cross Hotel told the Wentworth Courier the outdoor dining initiative had been a “game changer” after “one of the toughest periods in business.”

CEO of Solotel, Elliot Solomon.

When the pandemic hit in 2020, the City of Sydney lifted all fees for outdoor dining and encouraged businesses to expand operations outside.

“We strongly support a decision to keep the initiative,” Solomon said.

Joel McDermott, general manager of the Potts Point Hotel, which has had a long-standing outdoor pub area that is governed by strict rules and rent to council said he would like to see more rules relaxed beyond just cutting prohibitive rent for outdoor areas.

“There‘s a couple of quirks to the system like that, that I think we could move to improve,” McDermott told the Wentworth Courier, including fewer restrictions on live music and less red tape to set up outdoor areas for patrons.

Kieren Tosolini, owner of Riverino Gelato which opened on Macleay Street only a few weeks ago believes the increased use of outdoor space with seating has helped clean up the area and promoted a more inclusive community atmosphere.

Outdoor seating was extended by council into parking space. Image: Bianca Healey.

“It helps create a safer environment by having more people around. You know, it makes people feel safer,” Tosolini said.

“A lot of people have been saying, you know, why doesn‘t the council just allow business, local businesses to have the seating for free after this, this period?”

“It‘s only positive for the area, it’s positive for the local economy.”

But many businesses with ties to the local community say more outdoor seating risks losing even more parking space - a valuable commodity - without clear rules about how and where it can be used.

Lau doesn’t want any more local parking lost to extended outdoor seating. Image: Bianca Healey

Glenda Lau, owner of Bayswater Kitchenette on Bayswater Road said she said no to the council’s offer to take over a parking spot in front of her restaurant during lockdowns.

She said for her business the extra space “wasn’t going to help us at all” because of the cost of hiring more staff to cover the extra tables.

While the extra seating benefited many businesses including bars during lockdowns Lau said as a local herself she understands the extreme need for parking space to be protected.

“I know for myself. You can’t get parking. You’ll be driving around for 20 minutes,” Lau said.

“We’re a neighbourhood restaurant. We don’t want to raise the ire of neighbours for something that doesn’t make business sense.

“It was the last thing we wanted for our community.”

Several newly opened venues said the question was not about the cost, but instead continuing more relaxed regulations around using outdoor space.

Stavrou is happy to pay for extended outdoor seating space for his cafe. Image: Bianca Healey.

Phillip Stavrou, owner of Elizabeth Bay cafe, took over from the previous owner around three months ago, has enjoyed the council’s removal of fees for outdoor seating since opening.

Stavrou said the issue was not cost but the onerous council rules.

“I’m fine with paying. What I would like to see are more relaxed rules so I can put more seats out there and utilise more of the space out there.”

Bones Ramen on Bayswater Road, Elizabeth Bay.

Jake Rikawa, manager at newly opened Japanese restaurant Bones Ramen told the Wentworth Courier the business would continue to use extended outdoor seating regardless.

“We can’t afford to not have outdoor seating,” Rikawa said, adding he was also wary of keeping on the good side of the community.

“We would like to consider bollard space but we don’t want to piss off everyone who lives around here,” he said.

“If it was up to me there’d be no parking here at all.”

The City of Sydney said it recently approved more than 440 applications for alfresco dining including businesses in the CBD as well as high streets across the local government area.

It said the new policy will go out on exhibition, “so we can hear what the community has to say” before any decisions are made.

Potts Point Hotel.

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Schrammel said it was possible for extended outdoor seating and more relaxed rules for businesses that didn’t remove further parking space in the area.

“You could still have wide footpaths on Macleay street, and have plenty of space to still be able to put outdoor dining on the footpath and still have [parking].”

“I think if businesses were encouraged to have that area filled, it really does clean up the streets.”