Usually, the more adventurous will find a hidden cafe down the laneway between Doveton and Armstrong streets, but workers are putting the finishing touches on something brand new - a deck for outdoor dining.

The laneway has now been closed to traffic between two business car parks, which is the perfect amount of space for Hydrant Food Hall to set up its own outdoor area.

READ MORE: Skills shortages the next big challenge for the hospitality industry

The deck, which will soon have umbrellas and plenty of greenery, was a risk, according to owner Elise Rowe, but an exciting one as restrictions on businesses continue to lift and Ballarat hits its golden summer.

"Armstrong Street's become a bit of a hub, so to be looking up the laneway and seeing this, it's how we make another attraction for Ballarat," she said.

"There are so many other great attractions around the area, so let's be part of it.

"We have a long-term vision with anything we approach, so I wanted to make sure if we did something, it wasn't makeshift, it was a safe place for people to dine, and an enjoyable space we can make function with our indoor space."

The City of Ballarat changed several rules to allow more outdoor dining ideas, which are beginning to emerge across the city, from car parks being cordoned off to increase space for diners, to bigger ideas further out of town.

The Forge Pizzeria is partnering with Michael Unwin Wines in Cardigan Village to activate spaces and potentially bring back more events.

Owner Tim Mathews said he was excited by the ideas Ballarat venues were coming up with.

"It's a real vibrancy - I'm glad to see other businesses making the most of it," he said.

"Council was quick to jump on the state government grants, and now hopefully they can make the most of it for all the businesses in town."

In the doldrums of the second wave, the state government announced rapid grants of $5000 for businesses to reopen with outdoor dining - this grant helped Hydrant get its space ready, for example, but the rest was paid for by the business.

FROM SEPTEMBER: Businesses prepare for reopening as council processes permits

The other part of the funding was money for councils to adjust rules and help businesses, and the City of Ballarat has now opened expressions of interest for the $500,000 on offer.

According to a council media release, there are two parts - a small infrastructure program, which will help with umbrella or wind break installation, and outdoor dining hubs, "encourag(ing) businesses to work with their neighbouring hospitality operators to activate new outdoor dining spaces, by utilising land not currently being used for dining."

Ballarat mayor Daniel Moloney said council has consulted with more than 60 hospitality venues, including undertaking 25 site visits to inform the two packages.

"There is no end date for COVID, so whatever we can do now to safeguard our hospitality sector to prepare for long term changes to the way we dine in and outside, is imperative to the sector's future," he said in a statement.

"The community can certainly look forward to some exciting changes, in the coming weeks and months as we work together to create a new, expanded outdoor dining environment for Ballarat."

Ms Rowe said businesses will be thinking outside the square to make the most of the summer ahead.

IN THE NEWS

"Work together with your neighbouring businesses, and try to find what can help, whatever that is," she said. "We've got a long road for recovery now, so hopefully this will help - we're into the recovery phase now.

"I know a lot of businesses feel they have a whole new business now - some new systems are for the better, and some maybe not so, but there's things we may never have thought to do that we are doing now and thinking 'well why didn't we do that?'"

Applications for council funding close December 8.

Have you signed up to The Courier's variety of news emails? You can register below and make sure you are up to date with everything that's happening in Ballarat.