An online meeting was held on Friday morning between Greater Shepparton City Council and CBD traders, discussing how council could allow eateries to spill further onto footpaths.
Only outdoor dining will return when regional Victoria is moved in "Third Step" on its coronavirus recovery.
Groups will be limited to 10 and include density limits.
Indoor dining returns during "Last Step" and also includes limits.
Shepparton Chamber of Commerce president John Anderson, who attended the meeting, said additional outdoor seating seemed the "most logical" assistance council could provide when restrictions were eased.
“It would need approval from the surrounding land owners and permits eased, but how can council be as flexible as possible?,” he said.
“When you think of some businesses in the CBD it wouldn't work to shut down some streets, but there is a chance for them to spill up and down the street.
“The trader would be responsible for taking the contact details of diners, maintaining the table service and sanitation."
Mr Anderson said the meeting exhausted numerous possible outcomes, including toilets.
“Council staff are endeavouring to go back and answer all questions we put to them.
“The discussion was positive and good to see council taking the initiative to help businesses.”
Mr Anderson said there were discussions on closing down streets and setting up outdoor dining in the Maude St Mall, but it would be a logistical nightmare.
“There was good discussion around this, such as closing down a street, such as Fryers one night, but logically it wouldn't work,” he said.
“Another suggestion was dining in the mall but the problem came down to who was responsible for the cleaning and sanitising."
Mr Anderson said it would help hospitality more if such an opportunity extended past the coronavirus roadmap.
“Before we went through the second wave and seating was allowed indoors it was still limited to how many could dine at the restaurant, so Shepparton businesses were under trading,” he said.
“By keeping expanded outdoor dining it would increase overall trade and I can see it continuing into the future.”
Committee for Greater Shepparton chief executive Sam Birrell said whatever it took to bring money back into the local economy must be explored.
“I'd support any measure we can use to support hospitality,” Mr Birrell said.
“Council should be doing whatever they can to allow businesses to remain viable.
“If it took to expanding into car parks then let's do it even if it doesn't last long while we wait for indoor seating to return.
“There are people in Shepparton that have been fortunate to keep their jobs during the pandemic and they want to go back out to spend their money with Shepparton businesses.”
Council said more meetings would be held with traders and it had contacted hospitality operators in surrounding towns.
As part of the economic response to COVID-19 stage one, council said it would waive outdoor dining permit fees for 12 months.
A similar idea is being explored in the City of Greater Bendigo.
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