The move was set to considerably change the complexion of Brighton Square.
Coppa Club, a chain restaurant, had hoped to migrate into Brighton.
However, the move hinged on their bid to get a pavilion at Brighton Square in The Lanes.
Councillors have shot down the restaurants hopes though.
They resoundingly voted against the motion, with 7 against and 3 in support of the move.
A report issued to Brighton and Hove City Council had previously warned against approving the move.
The dominant reason cited for this was that the restaurant would be “disproportionately over-dominant in a valuable open space”.
The result has evoked frustration in Regency ward Green councillor Tom Druitt, who had been outspoken in his support of the plans.
In reference to the scheme, he said that: “The whole area is run down. It is a real shame within the centre of Brighton’s old town we have an area of decay.”
And, following the rejection of the proposal, Druitt subsequently tweeted that this was “a huge wasted opportunity to breathe life into the area and a big let down to residents and traders”.
It is unclear what Coppa Club will do in the wake of the rejection.
However, Councillor Lynda Hyde, a supporter of the scheme, said that: “The company is successful and has pods at a restaurant in London, which is very attractive.”
Also, those against the plan still appreciated the design itself.
Councillor Phélim Mac Cafferty stated that: “This is quite a good scheme but the challenge to some of this was location”.
Perhaps Coppa Club can see through their plans with a compromise on location.