From pop-up to permanent: Outdoor dining here to stay

By David Schout & Matt Harvey

Pop-up outdoor dining on footpaths, laneways and “parklets” will become a permanent city fixture after the City of Melbourne agreed to continue the successful program.

From July 1, the council will introduce a new subsidised fee structure that ensured the initiative was here to stay.

Considering the recent end of the Jobkeeper wage subsidy and the delayed return of international students and visitors, fees for parklets — a repurposed on-street parking bay — would be subsidised by 75 per cent in year one of the permanent program, and 50 per cent in year two.

City activation chair Cr Roshena Campbell said she was confident the gradual return of fees would not represent a disproportionate cost burden.

“I’ve had extensive regard to the feedback of businesses, which has included a willingness to commence paying for outdoor dining and parklets,” Cr Campbell said.

“So, as we think about the future of this program, it’s clear that the time has come to pass the baton from council to businesses. For my part, I have every confidence that will be a positive development.”

The joint state government and council program had cost $7.7 million from October to March, due primarily to the installation and maintenance of parklets, plus foregone parking fees and fines.

However, from July 1, outdoor café permit fees were set to be reintroduced, alongside the new staggered fee-structure for extended outdoor dining areas.

The outdoor dining program has been a significant success within the CBD.

The council said that at least 75 per cent of venues within the Hoddle Grid generated more than $2150 in additional revenue per week from their outdoor dining areas.

A survey revealed that 96 per cent of residents, workers, students and business owners believed the program was a good addition to the city, while 88 per cent of businesses thought the program had created a positive vibe.

The measures were originally launched in October 2020 as Melbourne was emerging from a period of hard lockdown.

While at this time the hospitality sector was permitted to reopen, the state government’s COVID-19 restrictions were particularly restrictive on indoor seating, and open-air dining was seen as a viable alternative.

To facilitate this, footpaths, laneways and on-street car parking was converted into al fresco dining space, with many associated fees waived.

However not every venue has had been able to move operations outside.

Cr Rohan Leppert said that the program’s new permanence meant it was imperative that a fair structure was established.

“It’s a pity that not everyone has access to a parklet,” he said.

When the city subsidises those parklets and some don’t have access to them full stop, then that equity issue entrenches itself over time. So, I think we have to look at what the appropriate, fair mechanisms are over time, and this is a way of getting there.

Council is also hoping to bring life back to the city and surrounding suburbs with their “Melbourne Money” scheme which offers people 20 per cent of their money back when they dine within the City of Melbourne.

People who spend between $50 and $500 at hospitality venues from Friday 11 June will be able to apply for the discount by uploading a receipt online.

On Lygon St, businesses had a mixed reaction to the scheme.

Billy’s corner shop owner Bill Makris said he “hoped” the vouchers would entice more foot traffic back to Carlton.

“This area relies on students and tourists, I think 30 per cent of the trade is students and teachers from the local universities so that’s a massive part of our business,” Mr Makris said.

“There are so many things that have happened with this street in the past few years, demographics changed, the streets changed, it’s a lot quieter but a lot needs to be done to help the businesses. There’s no easy answer but hopefully the vouchers help.”

Il Dolce Freddo gelataria owner James Northrop said that the voucher scheme was more mixed messaging from the government.

“The [Melbourne] city council is trying to get people away from home and the state government is trying to get everyone to stay at home. It’s a bit of a miscommunication,” Mr Northrop said ahead of the latest lockdowns.

“Everyone in hospitality is kind of bracing, thinking there is going to be another halt anyway and this time there won’t be any sort of handouts.”

Mr Northrop also said that the council should focus on improving car parking on Lygon St and marketing it as a food destination.

“We had a boost in sales when lockdown first finished but Crown Casino hadn’t opened yet. The casino takes a lot of business away from the old Lygon St and I think that’s a big reason why the street is starting to die off,” Mr Northrop said.

“Car parking is also something the City of Melbourne has stripped away, so there’s no free car parking on the street.”

Lord Mayor Sally Capp said the scheme would provide critical support for hospitality businesses.

“All tastes and flavours will be rewarded with venues spanning hidden laneway bars, hatted restaurants, rooftop and riverside dining and famous foodie strips like Chinatown and Lygon St,” the Lord Mayor said.

“This $8.4 million investment in the program will deliver about $40 million in spending across the City of Melbourne’s hospitality providers.” •