Sixteen years after selling its last Golden Gaytime, a century-old milk bar in the East Gippsland town of Bairnsdale has put the treat back on the menu. Only today, it’s an icy pole-shaped duck liver parfait coated in roasted hazelnut crumbs, and the milk bar has been transformed into East Handy Store, with a gold and velvet interior.

It’s part of a growing trend of bars and cafes setting up shop in former milk bars and corner stores, and riding a wave of nostalgia.

When it opened in 1923 as The East End Handy Bar, locals called in throughout the day for milk and bread, morning newspapers, lunchtime sausage rolls and after-school mixed lollies.

But the milk bar closed in 2008 after 85 years and sat derelict for more than a decade until Gippsland food entrepreneur Josh Thomas bought the freehold and gutted the old store, remodelling it into a stylish bar.

“Planning permission was the hardest part,” says Thomas. “But when they (the shire council) understood that we were bringing back a community hub, a place for people to congregate, to gather and chat, like local stores have always been, they became very supportive.”

Thomas and head chef Luke Wilson are doubling down on the mid-20th century milk bar vibes with a menu packed with references to sugar-laden and un-PC snacks from a bygone era.

“Remember Fags, those musky cigarette-shaped lollies that were renamed Fads when mums and the anti-cancer lobby pointed out that kids shouldn’t really be pretending to smoke sweets? Well, we hacked the recipe,” says Thomas.

The result is the Big Boss Cigar, a pink musk stick with a gold leaf band, served in an ashtray complete with candy ash. This joins other nostalgic-tinged dishes such as truffled mac and cheese and pedro ximenez-spiked chocolate crackles.

The team also reverse-engineered the fish and chip shop favourite, the Chiko Roll. “It’s a Women’s Weekly chop suey seasoned with a hint of Keen’s Curry Powder, wrapped in filo, dipped in sourdough batter and deep-fried,” says Wilson.

Despite the humour, the dishes are delicious, including buttery vol au vents filed with mushroom and chicken and a flavour-packed ham steak and pineapple – a disc of charred grilled, smoked ham hock topped with pineapple brulee.

“Being in a former milk bar gives us the freedom to create our own sense of fun mixed with some serious food and hospitality,” says Thomas. “These places were built for car culture, so they’re easy to get to, always have good parking and are cheaper than main street real estate.”

22 McEacharn Street, East Bairnsdale, easthandystore.com

Five repurposed milk bars to try

Cannoli Bar, Avondale Heights

Billed as Australia’s first cannolificio, this dedicated cannoli bar on a quiet street in Melbourne’s suburban north-west began life in the 1950s as Angelo’s Milk Bar. Now it serves Sicilian-style cannoli filled with flavours both classico (ricotta, Nutella, vanilla custard) and nuovo (Biscoff, lemon meringue, Oreo).

23 Riviera Road, Avondale Heights, cannolibar.com.au

Emil’s Cafe, Pascoe Vale South

Emil and Houda El-Khoury raised six children at the rear of their Reynard Street milk bar. Now two of their sons have transformed the old corner store into a smart cafe serving Middle Eastern-influenced dishes such as 40-degree poached salmon with spiced pilaf, and spatchcock chicken with rich garlicky toum, pickled veg and pita bread in what were once the kids’ bedrooms.

347 Reynard Street, Pascoe Vale South, emils.com.au

Matilda, Mont Albert North

There’s a corner of Mont Albert North that is forever Paris, with a menu and fitout inspired by the owners’ European travels. Fronted by a patch of lawn, customers can settle on a picnic blanket for a croque madame, smoked salmon toast with lemon creme fraiche, and toasty bread bits with peanut butter for the furbaby.

15 Arcade Road, Mont Albert North, matildamontalbert.com.au

The Milkbar Cafe, Shepparton

Once a milk bar by local commercial dairy producer Ducat’s, this father-and-daughter-owned cafe is always busy serving up a milk sorbet named after Ducat’s on house-made granola and Asian-inspired dishes such as banh mi.

149 Fryers Street, Shepparton, themilkbarshepparton.com.au

Skinnys Eatery, Preston

In the 1930s, The Brightway Corner Milk Bar sold Fantales to kids going to the Rivoli Theatre next door. Now it’s Skinnys Eatery, a retro diner serving American-style dishes such as subs stuffed with beef and pork meatballs, marinara sauce, pepper creme and lashing of grated pecorino, and bagel BLTs and hash browns.

107 Gilbert Road, Preston, @skinnys.eatery