Owner of Bay Blue Café in Batemans Bay Amanda Fairhurst said she had to halve the amount of seating her business offered because of a letter she received in May.

The letter, from council, asked her to apply and pay for a footpath trading license.

“I’ve been here for two years, with outdoor seating, and this is the first I had heard of it,” Ms Fairhurst said.

“Having to have a license for outdoor seating came in in 2008.

“As of July 1 all outdoor seating had to be taken away.

“I’m struggling to fit everyone in; we are filling up every lunch time.”

The costs of a footpath trading license in the Eurobodalla is a $128 license establishment fee, $51 annual license fee and $101 per square metre of outdoor dining, with a minimum of three square metres.

A current certificate of public liability insurance of $20 million must also be shown, adding another cost.

Ms Fairhurst said at first “a lot of people” thought she had closed the business, but that was not the case.

“I was struggling anyway, this was the last thing I needed,” Ms Fairhurst said.

Although she said it was not really council's fault, she would have liked to know about the process before winter.

“I don’t have the money to pay for the license because it is winter,” Ms Fairhurst said.

“It’s not the right time.

“Council has offered me a payment plan solution.”

Ms Fairhurst said everyone had been “very supportive” but having another cost on her business meant she was going to have to increase prices and cut staff.

“Another cost is making a new menu because I'll have to increase prices,” she said.

“It’s affecting everyone but customers have been good about it.

“Regular customers with dogs can’t come in though.”

She is hoping to have the footpath trading license before summer so people can sit outside and “enjoy the sunshine”.

“We are working towards getting them back,” Ms Fairhurst said.