Rooh Indian Contemporary Restaurant owner Malavika Gunaseelan said their business has already applied for the funding, and hope to expand their outdoor dining space.

"It is going to help us a lot. When it is busy we are always turning people away. The funding is going to help us get in another 20 to 30 people," Mr Gunaseelan said.

"When the weather is good people want to sit outside, but they couldn't before if it was too busy. We couldn't book because our area was very small. It will be good now with the funding."

The plan specifically aims to fund permanent outdoor dining infrastructure, such as tables, bench seats, Perspex wind barriers, umbrellas, planter boxes, heating and awnings.

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Mayor Robyn Gulline said the new initiative was designed to support local hospitality vendors.

"The initiative presents an opportunity to expand and improve outdoor dining across our municipality," Cr Gulline said.

"Being able to dine outside will be key to economic recovery. It's about working with businesses to try and provide that important flexibility as we transition to a 'COVID normal'."

The program is partially funded by the Victorian government. Participating businesses will be required to maintain the infrastructure which will be set out through footpath trading agreements.

For more information, visit https://www.hrcc.vic.gov.au/Business/Funding-for-outdoor-dining

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