Big change looms for Melbourne outdoor dining businesses amid city revamp

Thriving Melbourne businesses could be forced to start paying fees again as the city rebounds from the devastation of the pandemic.

RESTAURANT and bar owners say they’ll be “devastated” if Melbourne City Council makes them start paying fees for footpath and alfresco dining in the city again.

Councillors will vote on whether to reintroduce fees for parklet dining and busking at a meeting on Tuesday night.

To ease the transition for businesses, council would offer a 50 per cent discount on fees for the use of sidewalk seating extensions, so it is $278psm, and also for busking.

Acting Lord Mayor Nicholas Reece said Melbourne businesses are enjoying a post-pandemic boom. Picture: Brendan Beckett

The council has waived more than $2.36m in application and permit fees for alfresco dining and busking since October 2020, to help support city businesses badly affected by the lockdowns.

Restaurant and bar owners say their businesses will be “devastated” if the costs are reintroduced.

“Obviously any extra fees that you’re going to have to pay will make life a lot harder,” Cosi Bar manager Michael Cupples said.

“There are a lot of restaurants that aren’t doing as well as us, so of course you feel for them,”

“I don’t think it is (back to what it was), honestly, in the city, so many people are working from home so it’s not going to come back to what it was I don’t think.”

David James, owner of The Mill Restaurant & Charlie’s Bar said the council had given businesses in the CBD little support.

“In true Melbourne City Council form there’s no support for struggling businesses,” he said.

“The CBD itself has been absolutely devastated through this whole process and will continue to be.

“It’s absolutely garbage … it’s just a massive struggle.”

Businesses with outdoor dining may need to start paying fees for the privilege. Picture: Getty Images

However, some businesses would be exempt from contributing rates.

At Tuesday’s meeting, the council will contemplate offering continued rate relief to buskers and businesses in the Docklands, which are still struggling to regain pre-pandemic revenue.

Permit fees would be waived for 107 outdoor dining premises in the harbour precinct until 30 June, 2023 under the proposal.

Buskers in the CBD would also be granted ongoing reprieve from fees until mid-next year, which council employees believe will “attract even greater vibrancy and vitality on the streets of Melbourne”.

Businesses would be able to return the outdoor dining infrastructure without charge. Picture: David Geraghty

However Acting Lord Mayor Nicholas Reece said the decision allowed restaurants and cafes to bounce back better than ever, with foot traffic steadily increasing and retail spending up 20 per cent on pre-Covid levels at $353m.

“Melbourne is springing back to life; the data tells us now is the right time to return to our regular outdoor dining permitting processes,” he said.

“By gradually reintroducing fees, we can continue to improve our neighbourhoods, build our city-shaping projects and deliver stellar events that make Melbourne the best place to live, work, study and visit.”

The reintroduction of fees on November 1 would net up to $716,000 for the City of Melbourne, according to the council.

However, some businesses would be exempt from contributing rates.

At Tuesday’s meeting, the council will contemplate offering continued rate relief to buskers and businesses in the Docklands, which are still struggling to regain pre-pandemic revenue.

Permit fees would be waived for 107 outdoor dining premises in the harbour precinct until 30 June, 2023 under the proposal.

Buskers in the CBD would also be granted ongoing reprieve from fees until mid-next year, which council employees believe will “attract even greater vibrancy and vitality on the streets of Melbourne”.

The council estimates it would be forgoing $56,000 in revenue from both sources.

City activation portfolio lead, Councillor Roshena Campbell, said the tailored reintroduction of fees would strike the perfect balance for the city and businesses.

“Since the beginning of the year, we’ve seen … 167 new hospitality venues adding to Melbourne’s world-renowned dining, but we know our city is still recovering from the economic impacts of the pandemic,” she said.

Restaurants and cafes with alfresco dining will be able to return outdoor dining infrastructure and footpath space to council if owners don’t want to pay the fees.

Those that choose to retain their permits will be able to apply for flexible payment plans.

Originally published as Big change looms for Melbourne outdoor dining businesses amid city revamp