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QT Event Management general manager Malcolm Blakey said as the green, which would feature live music, food and drink, was being used, the event was not exclusive to people sitting at the long table to be set up in Buckingham St.
"It's a great addition - being able to cater for people who aren't just sitting at the table."
After last year's lunch, diners all tried to leave at once and had nowhere to continue socialising. The space on the green would resolve this.
There will be live music on the green until 4.30pm.
The 12 participating restaurants are all based in Arrowtown and range from Indian to Thai to French.
This time the lunch was easier to organise because restaurants and diners knew what to expect and resource consents were in place, Mr Blakey said.
Being the second day of the festive month, some "office parties" had booked for the lunch and other groups included "just groups of friends coming out together".
Buckingham St, from Wiltshire St to Berkshire St, would be closed from 11am until 4pm and set-up would begin from 11am in anticipation of the guests' arrival at 1pm, Mr Blakey said.
Mr Blakey was inspired to organise the lunch after seeing a similar event in Australia.
"Arrowtown is just the perfect place to do this because we have a range of restaurants ... and beautiful scenery."
- Tickets are still available for some restaurants; email firstname.lastname@example.org