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Sydney’s outdoor dining rules are changing – here’s what that means

Sydney’s outdoor dining scene is about to get a little more permanent – and easier for hospitality venues to navigate

Winnie Stubbs
Written by
Winnie Stubbs
Travel and News Editor, APAC
outdoor dining in Sydney
Photograph: Supplied | City of Sydney | Jess Lyndsay | outdoor dining in Sydney
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It’s been a while in the works, but thanks to an update from the City of Sydney, we’ve got reason to believe that the Harbour City’s alfresco eating game is about to seriously step up. The City of Sydney has just approved a new set of outdoor dining guidelines that will come into effect on October 1, 2026, changing how restaurants, cafés and bars can use public footpaths and kerbside space. Here’s what that means for your happy hour.

For starters, businesses will have more flexibility over where they can put tables and chairs. Venues will be able to apply to use space outside adjacent properties, rather than being restricted to the space directly outside their own premises. They can also set up dining on both sides of the pedestrian path – against the building and the kerb – where there is enough room.

The application process for venues is also being streamlined, with the City reducing notification requirements and removing duplicate processes. Some existing rules around outdoor dining furniture, food, toilets and heaters are also being removed. According to the City of Sydney, there will be more scope for greenery, too, with businesses given greater flexibility to install planter boxes and large pots. And there's a longer-term incentive for businesses: new permanent footpath extensions can receive five-year approvals where possible, giving operators more certainty.

outdoor dining Sydney
Photograph: Supplied | City of Sydney | Abril Felmanoutdoor dining Sydney

The council is keen to stress that the changes don't mean restaurants can simply spread tables across the pavement. The new guidelines retain requirements for a clear, continuous path of travel for pedestrians, including people using wheelchairs and those pushing prams. Dining on both sides of the path will only be permitted where there is sufficient space to maintain that access. The City says its compliance approach will initially focus on communication and education, rather than penalties, until February 1, 2027, except where enforcement is required for significant public safety issues.

And what about those concrete barriers? This is where things get considerably more permanent. The City is planning to convert around 150 temporary on-street dining areas into permanent footpath extensions, replacing the concrete barriers that currently separate diners from traffic. The works are expected to begin in early 2027 and roll out progressively across the city over the next eight years.

Construction will be carried out progressively, with around 20 to 30 sites expected to be tackled each year during the first three years. Businesses won't be charged for the works, although they will need to renew their outdoor dining permits once their new space is ready.

The changes build on a program that began during the pandemic, when the City started allowing businesses to use footpath and road space for outdoor dining. Since 2020, more than 2,600 applications have been approved, creating an estimated 16,000 square metres of additional space and supporting more than 1,000 businesses.

In short: more room and fewer hoops for outdoor dining, but clearer rules about keeping those of us not lucky enough to be settling in for an open-air session moving. Roll on a supper-outside summer.

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