Greggs has won its fight to sell sausage rolls and steak bakes until 2am from its branch in London’s Leicester Square.
The bakery chain had been gearing up for a court battle against Westminster City Council after it was refused an extended licence to sell late night food in the square, which is considered the centre of the capital’s nightlife.
Greggs had planned to appeal against the decision, with a three-day hearing due to start on Tuesday.
But the bakery withdrew the appeal after reaching an agreement with the council.
The agreement means it can sell pasties and sausage rolls until 2am, but items from its hot food menu – including pizzas, chicken goujons and hot baguettes – cannot be sold past 11pm.
The shop must also have bouncers on the door, install CCTV and make sure rubbish is cleared from outside the shop.
Greggs had hoped to start opening its Leicester Square store 24 hours a day from last July to serve hot food throughout the day and night.
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But the licence application was blocked by the council over concerns the store would cause “late-night disturbances and antisocial behaviour”.
Councillor Aicha Less, deputy leader of Westminster City Council, said: “Based on the merits of this case, Westminster have come to an agreement with Greggs that works for everyone.”
The agreement means it can stay open until midnight on Sunday to Wednesday, and until 2am on Thursday to Saturday.
“We are pleased to continue to support local businesses and look forward to working with the company going forward,” the council said.