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There is no obvious signage for Huelo, a russet red-fronted small bar with footpath tables, garlic and rosemary bunches hanging from a ladder inside and bistro-like white cotton curtains in the front windows. Just a small hanging illustration showing two linked arms clinking glasses with contented faces on them.

But then you go in, and it’s a dark wood-panelled general store selling vinegars, tinned olives, chilli sauces, truffle oils, quince paste, chutneys, ceramic plates and mugs lining floor-to-ceiling shelves.

Look closer and there’s a communal table, taller tables with wood-topped stools, a tiny bar and kitchen and bottles and bottles of wine. At the back is a beckoning door, centred by two gold, red and green stained-glass panels glowing with light from beyond. Push this open.

Another bar area, with just seven seats. Then, further on, an outside courtyard with plants and pink-painted edges and 20 seats offering a rare glimpse of sky from a Newtown bar. Remember this spot, but do go back inside.

Walk up the tall narrow wine bottle-lined staircase, past framed photos of customers copying Huelo’s logo by linking arms to drink, for another bar space.

Louder, more rambunctious with couches, tables, palm trees and fast tunes, it’s where, tonight, two people are deep into a pash on a low sofa. In a room full of chatting customers, they raise nary a wink.

Owner Swanny Kanongataa, formerly of The Rover and Bistecca, says Huelo’s bar areas suit whatever mood visitors are after.

“Upstairs is ’90s and ’80s hip-hop, r’n’b, pop, a bit more debauchery,” he says. “Downstairs front is Spanish jazz, low lighting, a bit calmer. The courtyard is fresh air, the stars. People walk through and choose their own journey for the night.”

They’re also choosing from an excellent snack menu, starting with Alto olive oil and fresh sourdough from A.P Bakery over the road, house-marinated olives, soft sardines, anchovies and manchego cheese on toast and freshly shucked Merimbula oysters. The latter, on the menu after Kanongataa formed a love of oysters while working at The Rover, initially raised eyebrows from colleagues.

“But oysters aren’t just for beachside eating or lofty occasions,” he says. “Oysters should be for everybody. We have a hugely popular oyster happy hour from four until six every day. It’s part of our identity.”

Another menu highlight is the De Queso croquettes – crunchy, stout and oozing with three Spanish cheeses – plus truffle fries, thin, golden and garnished with truffle oil you can buy off the shelves. Crispy fried whitebait is seasoned with smoked chilli and garlic, also for sale.

Order the charcuterie board’s soft, hard and smoked cheddar cheeses, soon to be accompanied by Kanongataa’s just-brought range of kangaroo and duck salamis.

Every wine stocked, a mainly Italian list with some French and Australian, comes by the glass. But, if you fancy a cocktail, Kanongataa is reinventing classics from the 1980s and ’90s.

A Midori Slice, a tall whirl of Icelandic Reyka vodka, Midori liqueur and a house-made mango and kiwi syrup is topped with frothy coconut mousse. The Mango Penicillin, smoky with fresh mango and ginger syrup, mezcal and 12-year-old Glenfiddich whisky, is as earthy as the coffee Manhattan, a mix Wild Turkey Rye, St. Ali cold brew, sweet vermouth and orange and Angostura bitters, is heart-beating and strong.

All up, Huelo, Tongan for sun-rays, is like a bar sliced from a small street in Italy, France or Spain and wedged into King Street.

Kanongataa, who developed Huelo with Dre Walters of Old Mate’s Place and Ginny’s Canoe Club, will soon introduce a dinner menu, a bigger deli fridge and more house-made produce including a pickling range. But his main aim is continuing the bar’s easygoing welcome.

“I love bars as a place for social cohesion,” he says. “And I’ve always dreamed of opening a community-led venue. We’ve got our own little world up in north Newtown now and we’re starting to be part of the fabric there.

“There are regulars who don’t even buy anything. They just come and shoot the shit with us.”