The Sawley Arms near Ripon has been granted planning permission for a café and shop to be added onto the site.
The plans, submitted by Leeds-based NJ-Architects, were approved by Harrogate Borough Council last week.
The building will be extended to create a village shop and coffee shop, and the current conservatory will be replaced with a new seating area.
The shop will include household essentials, as well as fresh morning goods and takeaway sandwiches.
The deli-style shop will feature ready-to-go food which can be reheated at home, and a coffee shop will also be added.
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The plans will create new jobs roles for the local community.
Steve Harryman, project manager of The Sawley Arms, said:
“We wanted to expand the number of covers and create more space for our guests.
“The plans will increase the viability of the pub.”
The proposals have been under discussion for eight years and are finally coming to fruition. The pub said Sawley is “a delicate area for development, as it is part of an AONB”.
The completion date is not yet certain and “depends on builder availability”, Mr Harryman said.

The sketch outlines the hopes for the pub’s transformation
He added:
“This is a great opportunity to expand the pub’s offerings to the local community. Those in nearby accommodation will be able to pick something up from us for convenience.
“It is great the locals are supportive of the pub, so we would like to give something back.”
The Sawley Arms currently offers all-day dining, as well as on-site accommodation for guests.
Sawley Arms submits cafe and shop extension planA pub near Ripon has submitted plans to extend in order to create a cafe and village shop.
The Sawley Arms, which has eight bedrooms and is popular with diners, has applied to Harrogate Borough Council for the extension.
It would see a ground floor and first floor extension built at the pub on Lowgate Lane.
In documents submitted to the council by Leeds-based NJ-Architects on behalf of the pub, it said the extension would also provide more jobs for the local area.
It said:
“The proposed extensions incorporate our client’s criteria regarding the provision of additional local employment, providing a village shop, a café to serve the many visitors and locals, and environmental awareness whilst re-evaluating the local vernacular.
“We believe the design results in a extension that respects the character of the site, the village, the AONB and also achieves a contemporary, comfortable and understated destination.”
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The authority will make a decision on the extension plans at a later date.
The move comes as the pub was recently granted an extension to its licensing hours.
In October, Steve Manton, owner of the Sawley Arms, applied for an extension until 1am, seven days a week.
But Harrogate Borough Council’s licensing committee decided on Friday that alcohol could only be served until midnight.