Cavendish and Gloucester Properties PLC has lodged the proposal for the site in Royal Albert Drive, which was formerly home to a cafe until it was demolished in 2017.
The London-based firm says it was attracted to the property as its “CEO’s nephew lives and develops property in Scarborough” and they often work together on projects in the town.
Scarborough Council has had the site out to tender since the demolition and this summer placed temporary toilets at the location following pressure from residents and holidaymakers.
The new building, designed by Mick Paxton Architects, will bring permanent public toilets back to the seafront, one of the requirements of the council for development.
In its submission, Cavendish and Gloucester PLC states that there will be 20 individual rooms, which will be operated by the restaurant in the building.
Though not named in the planning documents, it states that the restaurant has been designed to meet the requirements of “a national chain”.
The restaurant/café will be situated on first-floor level so that it has views that are not obscured by the parked cars below.
There would also be a bar on the ground floor.
There will be steps and lift access to the restaurant and up to the roof of the restaurant which has a glazed balustrade.
The plans are now out to consultation.