Neighbours concerned about noise and disturbance objected when a new restaurant applied for a drinks licence.
Elate Restaurant, in Marine Drive, Rottingdean, currently operates as a coffee shop and café during the day.
Owner Isufaj Dritan, 48, applied to Brighton and Hove City for an alcohol licence from 11am to 10.30pm daily.
Rottingdean Parish Council objected, as did Brighton and Hove Independent councillor Bridget Fishleigh and people living in the flats above.
But Sussex Police and the council’s licensing team did not object because the proposed hours complied with the policy of licensing restaurants until midnight.
Councillor Fishleigh told a council licensing panel the business was a curtain and blinds shop before it was turned into a café earlier this year, which did not require planning permission.
She said: “This is a quiet residential area. The outdoor area, where people have their windows directly above, they are going to be disturbed.
“Then there is smoking outside. It says there will be a smoking policy but, in reality, people who are smoking will choose to sit outside directly below people’s windows.”
Sam Buni, whose home is directly above the restaurant, was concerned about noise and vibrations, saying the building lacked soundproofing.
He said: “They originally opened up as a coffee shop so, for me, it’s a bit disingenuous. They should have told us their intentions from the start.
“Mostly, there are people having lunch outside and it is empty at 3pm. I am concerned when it turns into a restaurant with music. I’m absolutely positive there will be vibrations from downstairs.”
Mr Buni and neighbours Shelley Carroll and Gillian Horwood were also concerned about deliveries because they are mostly currently at the front of the building, blocking the A259.
Mr Dritan’s agent Derya Teke said the business was set up to receive deliveries at the back but residents said this area was their private car park and had a narrow entrance.
Ms Teke said: “The main aim for this application is not to sell alcohol off the premises or to become a bar or drinking establishment.
“As the licence is for on-sales only, to allow customers sitting at a table having a meal to order drinks from the alcohol menu, it does overcome any hesitation that this venue would become a drinking establishment.”
Restricting delivery times, earlier closing for the outside area and shorter hours on a Sunday were proposed as potential conditions.
Draft conditions already agreed with Sussex Police included for alcohol only to be served to customers who were seated and having a meal.
No rubbish or bottles for recycling can be placed outside the business between 9pm and 7am.
Speakers playing music are not permitted outside the building or at the entrance.
The panel retired to make its decision which should be made public within five working days.
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