Greggs has won the right to late-night trading at its flagship Leicester Square store.
The high street baker will now be able to sell some backed goods and hot drinks until 2am from Thursday to Saturday.
While pasties and sausage rolls can be sold until this extended time, hot items such as pizzas, chicken goujons and baguettes are not allowed to be sold past 11pm.
Although Greggs initially wanted to sell at the branch 24 hours a day, Westminster City Council refused the idea.
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Deputy leader councillor Aicha Less previously expressed fears that it could “become a hot-spot for late night disturbances and anti-social behaviour”.
While the bakery retailer was to appeal the decision with a three-day hearing due to begin this week, it has since withdrawn this after reaching an agreement with the council.
However, the shop is required to install CCTV, have bouncers on the door and ensure no rubbish is left outside of the shop.
Less added: “We are pleased to continue to support local businesses and look forward to working with the company going forward.”