Outdoor dining on the menu long-term

As has proven popular at places like Southbank Promenade, Melburnians can continue to dine alfresco with an ongoing outdoor dining model supported by City of Melbourne councillors this month.

Following the success of the program in response to COVID-19, the program will enable businesses to offer outdoor dining along footpaths and in “parklets”, parks and laneways through a program of subsidised permits beginning from July 1.

An economic evaluation of the extended outdoor dining program in response to COVID-19 indicates that every $1 spent on the program has generated $2.68 in benefit for the City of Melbourne economy.

A council report, which went before councillors at the May 4 Future Melbourne Committee (FMC) meeting, said the program had also supported 100 new jobs and provided 18,000 additional restaurant seats.

At least 75 per cent of venues across the municipality generated more than $1642 in additional revenue per week from their outdoor dining areas, and those in the CBD generated an additional $2150 per week.

“We asked people for their feedback and 96 per cent said outdoor dining had been a good addition to the city and 81 per cent want outdoor dining to become a permanent feature,” the Lord Mayor Sally Capp said.

“We want to continue the parklet program into the future and we are examining how to ensure any ongoing model is affordable to support businesses as they recovery and grow.”

Through the program, the council said that more than $500,000 in footpath trading fees were waived, and an estimated $1.9 million in potential revenue from paid parking meters (based on pre-COVID occupancy rates) and fines was foregone.

The extended outdoor dining program began in October 2020 to support hospitality traders to operate within COVID-19 restrictions and density limits and is set to end on June 30.

A total of 1592 permits for outdoor dining were issued across the municipality between October 2020 and April 2021, including 933 new permits for extended outdoor dining.

More than 200 outdoor dining “parklets” were installed and 25 laneways were closed on weekends to create more space for outdoor dining and activation.

The council’s chair of the city activation portfolio Cr Roshena Campbell said the program had supported what was a “critical industry” for the City of Melbourne’s economy.

“Every extra patron utilising the outdoor dining program helped a local business to stay open during the most difficult trading conditions in living memory,” she said.

“Eighty-one per cent of businesses have said their outdoor dining ‘parklets’ significantly helped them reopen.”

“To have outdoor dining become a lasting feature would be a fantastic outcome for our city.”

The City of Melbourne invested $7.68 million in the COVID-19 program in partnership with the Victorian Government as part of the $100 million Melbourne City Recovery Fund. 

The ongoing model includes the reintroduction of outdoor café permit fees, which were waived in 2020-21 in response to COVID-19, along with a new staggered fee-structure for extended outdoor dining areas. 

The council would work with current permit holders to transition to an ongoing model including a fee for “parklets” subsidised by 75 per cent in year one and 50 per cent in year two to support businesses through gradual recovery •