Greggs has come to an agreement with Westminster City Council after it was granted permission to extend trading hours at its Leicester Square bakery.
The Newcastle-based bakery chain had been in “mediation talks” with the council after it was barred from selling hot food and drinks overnight at its flagship London site, which opened last July.
Greggs had applied for a premises license that would allow the sale of late night refreshments from Monday to Sunday between 11pm and 5am, but this was rejected by the licensing sub-committee on the grounds that it could contribute to an "increase in criminal activities and anti-social behaviour”.
A three-day appeal scheduled to start on 16 May has now been dropped.
Greggs will now be able to sell hot drinks, as well as its selection of hot food that is left to cool, including sausage rolls and bakes, on Sunday to Wednesday from 11pm until 12am and Thursday to Saturday from 11pm until 2am.
The extended licence is subject to additional conditions, including the installation of CCTV on premises, the use of door supervisors and the clearing of litter outside the site.
The bakery did not receive permission to sell hot food, such as chicken goujons or potato wedges.
Councillor Aicha Less, deputy leader of Westminster City Council, said: “Greggs had originally applied for a licence in Leicester Square to sell hot food and hot drinks for 24 hours, Mondays to Sundays. This was refused by Westminster’s licensing sub-committee and Greggs appealed that decision.
“Based on the merits of this case, Westminster have come to an agreement with Greggs that works for everyone. We are pleased to continue to support local businesses and look forward to working with the company going forward.”