The Oasis Cafe takeaway, which is nestled into the foreshore on Royal Albert Drive, has applied to transform the first floor into a self-contained holiday let and create a mezzanine for two new bedrooms.
Applicant and owner Ron Ford said although the business has been "very successful", the upstairs restaurant has struggled to be financially viable and has been closed for years.
During the consultation period, the plans received just one objection which questioned the precedent set if the application is allowed to proceed.
The objector said the site "is part of open public gardens and not the right place for such a development".
They added: "There should be no accommodation built on Marine Drive – holiday or residential. This could be the start of many applications. Where would it end?"
However, a report prepared by Scarborough Council's planning officers recommends that the plans are approved when councillors meet tomorrow at the Spa's Grand Hall.
The Highway Authority raised no objections to the plans, which adds that one of the cafe's existing three staff car parking spaces will be specifically designated for the new holiday let, with no wider impact on the seafront's parking.
Scarborough Council's Environmental Health team raised no objections in principle.
The application also states that any new developments will fit within the existing footprint of the building with no extension or exterior alterations.
As part of the work, the existing ground-floor cafe and seating areas will be retained.
The officer's report said the Oasis Cafe makes "a positive contribution to the character and appearance of the North Bay area" and that the change of use would not affect the conservation area as the building would not be altered externally.
North Bay's illustrious cafe history
The Oasis Cafe in its two iterations has been an institution in Scarborough’s North Bay for more than 40 years and was one of the first eateries as part of the area’s original cafe culture.
When the 'new' cafe – with its distinctive sloping roof – opened in July 2010 it featured a children's play area and changing rooms for surfers. The two-storey venue cost £400,000 and took two years to build – next to the original cafe, which was later demolished to make way for a picnic area.
The project was the brainchild of the town's well-established Ford family. At the time Ron Ford said it was was "like a dream come true" after encountering numerous setbacks during the building process at the height of a recession in the wake of the 2008 financial crisis.
A seafood restaurant initially operated on the venue's first floor.