Father-and-son team John and Jim Cocklin have bought the Beach Café Bar in the Somerset market town of Yeovil.
The property, which is located on the edge of the town's pedestrianised shopping precinct, operates as a daytime café bar and late-night entertainment venue.
Up to 400 customers can be accommodated in the ground floor trading area, and another 80 in a newly-created outside seating area.
The property also incorporates a three-bedroom manager's apartment.
The Cocklins, from London, have operated hotels and pubs for the past 10 years and sold their last pub, the Royal Oak in Oakwood Fitzpaine, North Dorset, to Enterprise Inns.
The Bristol office of Christie + Co sold the freehold off an asking price of £1.1m on behalf of the Chapman Group.
By Angela Frewin