The owner of a Warrnambool eatery is devastated by Premier Daniel Andrews' announcement.
The whole of the state will enter stage three lockdowns from Wednesday, which means cafes and restaurants will only be allowed to offer takeaway meals.
Macey's Bistro owner Peter 'Cork' Walsh said he was concerned about his staff more than anything.
He said while the majority were on JobKeeper, the income of many would be affected and it also had an impact on their emotional well-being. "It's really devastating," Mr Walsh said. "We'll have to go into lockdown like we did last time."
Mr Walsh said he would consider offering takeaway meals.
"We've got the bottleshop, we're probably lucky we've got that," he said. "We'll survive, I'm just concerned about the staff."
Mr Walsh said it was disappointing regional Victorians were being punished for the actions of a minority of people from Melbourne.
"Every one here is doing the right thing and the police have been brilliant," he said.
Victorian Premier Daniel Andrews declared a state of disaster and said regional Victoria would be put into a stage three lockdown as of Wednesday.
"From the outset of this second surge, our aim has been to protect regional communities. By putting a ring around the city, we want to protect the entirety of our state," Mr Andrews said.
"For the most part, it's worked. But as we know, this virus doesn't discriminate, and its only goal is to spread. Based on the current numbers, it's clear there is a real and growing threat in some regional communities.
"The thought of this virus getting into regional aged care - and wiping out entire generations within our regional communities - is something that keeps me up at night."
Mr Andrews said a number of businesses would again be affected.
"Beauty and personal services will need to close," he said. "Entertainment and cultural venues will need to close. Community sport will need to stop. This we'll be tough for these businesses and their workers - and we'll have more to say very shortly about extra support to help get you through.
"Face coverings will continue to be compulsory - ensuring that if we do have to be out, it's in the safest way possible."
Have you signed up to The Standard's daily newsletter and breaking news emails? You can register below and make sure you are up to date with everything that's happening in the south-west.