City Eases Rules to Expand Outdoor Dining Revolution

City of Sydney

The City of Sydney is proposing key changes to its successful outdoor dining program to ensure the outdoor dining revolution is here to stay.

The proposals cut red tape to make it easier for businesses to set up an outdoor dining area and give them a greater say in how they use the space. It will also make temporary on-street dining spaces permanent across much of the city.

If endorsed by Council, the updated guidelines will be open for an extended period of public feedback to ensure the whole community can have a say on the future of outdoor dining in Sydney.

"We're essentially flipping the script to supercharge outdoor dining. Rather than telling businesses what they can do and where, we're saying as long as you keep a clear path people can get through and your neighbours are happy, we don't want any red tape holding you back," Lord Mayor of Sydney, Clover Moore AO said.

"When Covid hit we allowed businesses to set up dining areas on the road, with patrons protected by safe but reasonably ugly concrete barriers. We want to remove those barriers and build beautiful, permanent spaces that will change not just the face of our city but how we experience it.

"Making outdoor dining free and easy for businesses was a lifeline during the Covid pandemic, and it has been incredibly popular with the community. This year we removed fees forever, now we're cutting leftover red tape and making temporary spaces permanent to ensure the outdoor dining revolution is a part of Sydney's streetscape forever."

The main proposals include:

  • establishing a process to turn the on-street areas currently bordered by concrete barriers into permanent footpath extensions
  • providing a more certain and effective clear path of travel on the footpath for all users
  • allowing businesses to set up outside adjacent properties, following consultation
  • allowing dining on both sides of the clear path, against a building and curb, if space permits
  • making the approval process easier and quicker by reducing the need for notification and removing duplicate application processes
  • removing red tape such as rules around no standing without a table or shelf, or additional requirements for food, toilets and heaters
  • increasing flexibility to place planter boxes and large pots for greening in these areas
  • increasing business certainty with five-year approvals, where possible

The Lord Mayor said by providing a reliable, clear path of travel, maximum space will be available for business while protecting access for people with disabilities.

"Our priority is to ensure the city continues to have thriving outdoor dining spaces while maintaining sufficient space for others, including people with disability, those pushing prams or people with limited mobility," the Lord Mayor said.

"Traditionally this meant keeping a clear space next to the building line along the footpath, but this was often not the best solution.

"Building access ramps and steps, along with permanent utilities infrastructure and display of goods, often meant the intended clear pathway simply didn't exist.

"We are instead proposing to make sure our accessibility pathways are kept free from obstructions."

MUCHO Group Creative Director and Co-Owner, Jeremy Blackmore, who runs Tio's and a number of other venues, said the outdoor dining program had energised the street.

"Foster St feels so much more alive. People can sit outside on both sides of the street, during the day and at

night. This brings so much energy to the area. I think it has made Foster St a more inviting place and added to its charm as a drinking and dining destination," Mr Blackmore said.

Alfredo Perez from Wings and Tins, La Farmacia and Mrs Palmer's sandwich said it had changed business for the better.

"The best part is giving diners the choice: enjoy the full restaurant vibe inside or relax outside in the open air. It creates two different experiences under one venue, and guests really appreciate that," Mr Perez said

Paul Nicolaou, Executive Director of Business Sydney, said the program would support local businesses and city vibrancy.

"The City of Sydney changes to street dining arrangements are a serious effort to energise the vibrancy of the city building on the earlier decision to lift fees for outdoor dining," Mr Nicolaou said.

"The changes are a recipe for revolutionary changes including cutting regulation to a minimum, encouraging flexibility and imagination and improving streetscape amenities.

"Business Sydney also sees the great potential for boosting Sydney as a 24-hour global city. Enabling operators to obtain five-year approvals is a great step forward as is replacing current concrete "bunker" arrangements with attractive street enhancements."

Lord Mayor Clover Moore said outdoor dining has become an essential part of Sydney's dining culture, street vitality and nightlife.

"Since 2020 when we began offering public footpath and roadway space to businesses free of charge, we have approved nearly 1,000 applications, creating an estimated 13,000m2 of new space on roads and footpaths, supporting more than 860 businesses. The total value of support we have given businesses by waiving footpath and on-street outdoor dining fees since November 2020 is around $20 million," the Lord Mayor said.

"People really embraced it, with businesses telling us they took on extra staff to cope with increased patronage. Three-quarters of participating businesses have said the boost in customer numbers meant they needed to hire more employees, with more than a third seeing a 20% increase in turnover.

"It's wonderful to see people out on the streets, connecting with each other and enjoying their neighbourhood while supporting local businesses. These latest changes will further enhance outdoor dining experiences, giving people more opportunity to spend time in their neighbourhood connecting with each other and supporting local businesses, while making the city more accessible for those passing through the spaces."

Following endorsement by Council, the proposed outdoor dining guidelines will be open for public comment from 12 January to 12 March 2026.

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