Last week Worthing Borough Council’s licensing sub-committee discussed application from Manuka Bar & Kitchen, in Portland Road, to open until 2am.
The venue also sought permission to sell alcohol between 10am and 1.30am and to extend its opening hours from 10am until 2am, seven days a week.
Manuka also wanted to allow last entries to the venue at 1am instead of midnight.
But following objections from residents and surrounding businesses over noise, the council has agreed a compromise with the business.
Manuka can now sell alcohol for consumption on and off its premises between 10 am and 1 am, Monday to Sunday.
The bar can now open until 1.30 am, rather than the 2 am it was seeking permission for, 7 days a week.
Manuka will be allowed to open until 2.30 am on Christmas Eve and New Year’s Eve.
Last entry will now be at half past midnight, Monday to Sunday, and outside seating can open between 6 pm and 10.30 pm, Sunday to Friday, and between 4 pm and 10.30 pm on Saturdays.
The licensing sub-committee said it had ‘listened carefully and considered all written and oral representations’, including from Manuka and members of the public, and it welcomed the offer of reduced opening hours for the seating area.