Greggs the bakers are set to move into a large Accrington town centre unit and open a cafe.
The takeaway shop, on Broadway, will relocate to the nearby empty Shoe Zone unit and will provide seating for customers.
Work has begun refitting the unit in preparation for the opening early next month.
No jobs will be lost as part of the scheme.
A Greggs spokesperson said: “We are relocating our Broadway shop to a larger unit a short distance from our existing shop.
“The new shop will be fitted out in Greggs’ new food-on-the-go format and will include seating for customers.
“All employees will relocate when the new shop opens in early September.”
Shoe Zone left the unit at the end of last year and moved across the street into the Arndale Centre.