Indigo Yard, a bar and bistro in Edinburgh's West End, is set to become the third outlet in the fast-growing Montpeliers Partnership.
The 150-seat bar-restaurant, which opens on 5 July, has a glassed-in courtyard and is built on two levels, incorporating a mezzanine.
Food will be served from breakfast through to dinner, with an average spend per head of £4-£7 for lunch and £15-£20 at dinner.
The group's first Edinburgh restaurant, Montpeliers, opened in Bruntsfield Place in 1992 and has a weekly turnover of £30,000. Food sales account for £10,000 and drink £20,000.
Its second - a café-bar concept called Iguana - opened in November 1995 near the university. It has drink sales of £18,000 and food sales of £6,000.
Development director Gordon Fuller said the group, which now employs about 200 people, was looking for further opportunities which may take it outside Edinburgh.