The Taverna follows the story of Nikos, the owner of a Greek restaurant called The Taverna, located in a small Australian town. Nikos is a traditionalist who believes in keeping the old ways of Greece alive, which includes hiring a belly dancer to entertain his customers every Friday night.
However, when the belly dancer fails to show up one night, Nikos is left with no choice but to substitute her with one of his waitresses, Tara. Chaos ensues as Tara, who has no experience in belly dancing, tries to entertain the customers and ends up offending them instead.
As the situation worsens, Nikos realizes that he needs to adapt to the changing times and find a new way to keep his customers entertained. With the help of Tara and other employees, Nikos begins to introduce new menu items, change the decor of the restaurant, and embrace a more modern approach to running The Taverna.
Despite facing resistance from some of his regular customers, Nikos remains determined to save his restaurant from going under. With the threat of a major catastrophe looming, he learns to let go of his old ways and embrace new ones in order to keep The Taverna alive and thriving.