It comes after the NSW government flagged plans to see councils fast-track outdoor dining area approvals in an effort to establish more open air seating this summer.

The Bended Elbow owner Gavin Grant said the move could lead to the opportunity to utilise the Ritz Arcade, located next to his Dean Street eatery.

"That could be an option," Mr Grant said.

It would add to the business' rooftop beer garden, The Laneway and outdoor seating on the Dean Street strip.

Mr Grant said he's able to use about 75 per cent of his seating capacity under current guidelines, but with bookings in hot demand, could use the extra space.

"There's a lot of bookings, the phone doesn't stop ringing," he said.

"Probably 80 per cent of our people at the moment are coming from Victoria.

"They're still coming in for the first time and they wouldn't have been out for two or three months."

However, not all eateries have the capacity to do the same.

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Early Bird Cafe owner Wendy Pope said she's already made use of her Dean Street space.

"We're sort of at capacity," she said.

"We're pretty lucky, we've only lost a couple of seats because we have inside the shop and outside."

Albury Council has waived outdoor dining fees as part of their COVID recovery plan.

"We've been working closely with the business sector, our partners at Wodonga Council, and the wider community to support local businesses through the hard times caused by COVID-19," Albury mayor Kevin Mack said.

"Although the pandemic is still with us, we're all hoping our economy will bounce back as restrictions continue to ease, and we'd all love to see more people safely enjoying our great outdoor dining experiences as part of that recovery process."

Sydney will be the first to trial the concept, but it may not be long before the opportunity arises for regional areas.

"We're exploring introducing further changes so that all councils can take advantage of the new arrangements and implement similar streamlined processes in time for summer," Minister for Local Government Sally Hancock said.

"By slashing government approval times, we want businesses and councils to work together to identify spaces for outdoor dining.

"For example, there might be an unused car park next to your premises, or some sunny pavement out the front of your restaurant. These could be perfect spaces to apply to use."

Victoria already has a focus on outdoor dining under COVID-19 restrictions.