The covered walkway is included in its liquor licence.
Mr Epplett said people occupying tables when it rained would be asked to move.
Mr Whittaker said the plan would "never work" if there were customers seated.
He wants the licence to occupy, due for renewal in June, to be rescinded.
Mr Whittaker said retail outlets were forced to provide covered walkways for the comfort of the public, yet Hastings District Council reserved the right to reassign the space for the sale of alcohol, he said.
If it charged $250 for the licence "then surely they have control".
The occupied walkway also affected his business, preventing people from seeing his pharmacy and PostShop and presenting a barrier to those averse to getting wet, he said.
Hastings District Council planning and regulatory group manager John O'Shaughnessy said the only restriction to the licence was maintaining fire access.
He said it was granted annually and unless there was a complaint it would likely be renewed.
A licence to occupy a covered walkway was not uncommon, he said.
"They are part of council trying to make streets more interesting and vibrant."
Council staff would monitor the site to ensure 2m of footpath access for push-chairs and mobility scooters was maintained.
Adjoining business Cauliflower Household Goods owner Peter Coulter said he would prefer to see Diva tables on the uncovered footpath extension, opposite Diva. He said many pedestrians did not notice his shop because they were forced to walk past at a distance.
People crossing from the other side of the road "may not come through because of the awkwardness of getting through in the rain".
The occupation also screened Mr Whittaker's business.
"When you look down the street you get this beautiful view and then it is abruptly stopped by their tables."