La Petite Chocolat owners Asli and Sel Gider bought the business two months ago and think the event will be great for the street.
"It brings people to us and allows us to showcase our special Christmas chocolates in a market-style environment.
"This block has a real international feeling. There are lots of backgrounds in the street with everyone bringing something slightly different, it is an artistic but high-quality feeling."
Eilish Rose and Rick Toner will kick off the live music at 4pm and there will also be other live performances at the Warren St multi-use carpark and behind Funbuns.
Santa will be making the trip so kids can meet him at Albert Square and there will also be family activities such as face painting and balloon art.