Rafferty's Tavern owner Mark McIlroy said he believed the people who made the decisions were "out of touch with reality".

"There's no logic," Mr McIlroy said.

"There hasn't been any consistency the whole way through."

Mr McIroy said he was left shocked and frustrated to learn he was only allowed to have 10 people dining indoors at his venue and 20 outdoors.

"We will open in our limited capacity but it's not really worth it," he said.

"We're doing it for two reasons - number one to give members of the public somewhere to eat and number two for the mental health of our staff."

Mr McIlroy said the inconsistent rules made it impossible for business owners to plan for the future.

"The inconsistent rules are making it very difficult for businesses to survive," he said.

"We will play the cards we're dealt and try to make the best of a bad situation.

Related news: Density limit 'too restrictive' say business owners

"If we lose a bit of money for the sake of the mental health of our staff, so be it."

Macey's Bistro owner Peter Walsh expressed similar frustration at the rules.

"It's stupid," he said.

"These people have never been in business, I'm sure."

Mr Walsh said he would reopen his gaming room and an outdoor area to cater for 20 people.

"We're not going to open the bistro," he said.

"It's not worth it."

Mr Walsh said it was extremely disappointing, with people desperate to get back to the bistro.

"The phone has been ringing off the hook," he said.

"But we just have to knock people back."

Member for South West Coast Roma Britnell said density quotas needed to be reintroduced at hospitality venues to give businesses a fighting chance at survival.

She said it made no sense that large venues could only have 10 people at a time sitting down indoors.

"It just makes zero sense and for many of these venues it won't even be worth them turning on the lights to re-open," Ms Britnell said,

"Previously they were subject to a density quota with an upper cap - for most that was workable and made opening viable."

Ms Britnell said the government needed to explain how it determined that density quotas were no longer safe and how they landed on 10 being an acceptable number.

"Daniel Andrews stood up and made it sound like this was good news for business - it was very clear he has spent his entire life working in the public service and has no idea about the cost of running a business," she said.

"I've been on the phone with hospitality business owners since this was announced and most of them say it's just not viable to open for such low numbers.

"They will say it's based on health advice, but I want to know why the public heath team gave this advice - as my maths teacher used to say, show your working, explain how you got to this answer.

"Why, with higher levels of vaccination and low levels of virus in regional communities, is a density quota with an upper cap for a hospitality venue no longer safe?"

Victoria's COVID-19 strategy and policy deputy secretary Nicole Brady spoke about the limits on Thursday.

"It's just in regards to the number of people who come together to locations where they'll take off their masks to eat and drink," she said. "It's taking a very slow careful step forward as we look at how people come together in numbers across the state so we just move slowly, cautiously, carefully because we know that the opportunity for Delta - it'll take any opportunity it can and potentially result in a superspreading event."

Our journalists work hard to provide local, up-to-date news to the community. This is how you can access our trusted content: