The move, flagged on Sunday reflects the continued weakening of the coronavirus outbreak.

As of June 1, cafes, restaurants and pubs in Victoria will be able to serve up to 20 customers at once in an enclosed area.

That figure may rise to up to 50 patrons from June 22 and up to 100 in the second half of July.

Jane Keats, who runs The Secret Cup in High Street, welcomed the move.

"We'll definitely try to do something from June 1," Mrs Keats said.

"We'll have to see what's viable and what is not.

"It's going to be a lot of guesswork but it's nice to know (a date), at least we have something to plan for."

The Secret Cup has capacity for 100 patrons, spread evenly between indoor and outdoor seating.

Before the virus hit, there were 11 casual staff who were not eligible for Jobkeeper and were made redundant.

Mrs Keats, her husband and daughter have been providing a takeaway service for the past four weeks.

Wodonga Retailers president Greg Haysom said the changes gave some certainty to eateries for staff planning, but noted NSW had already allowed 10 sit down diners.

"Wodonga always seems to get the the wrong side of the deal," Mr Haysom said.

Victorian Premier Daniel Andrews stressed the changes were "not a done deal" and if there was a "sudden upswing" in cases "we may have to make the call to delay".

IN OTHER NEWS:

"Before each of these dates, the Chief Health Officer will review the rates of community transmission in Victoria, confirm our ability to test, trace and respond to possible outbreaks and make sure we have an adequate safety net in the health system - before we take the steps outlined," Mr Andrews said.

"This industry has told us they need time to plan and prepare to protect the safety of their staff and customers.

"Making these announcements now will be giving them that time."

Victorian Opposition Leader Michael O'Brien responded to Mr Andrews' actions by declaring that hospitality businesses should be open before schools.