The City of Busselton said MRHG had been successful in a tender process which began last year to be the preferred leaseholder for the cafe, which will be located on crown land.
MRHG owns and operates two venues in the South West, the White Elephant Beach Café on Gnarabup Beach in Prevelly and the Morries Anytime restaurant in Margaret River.
“This location is particularly precious from both a social and environmental perspective,” Mr Stubbs said.
“Council felt the proposal put forward by the Margaret River Hospitality Group best meets community expectations.”
Construction of the cafe will take around 12 months, after site surveys are completed.
MHRG partner Anthony Jansenn said the new venue would be similar to the White Elephant Café.
“The cafe footprint will be quite small, 200 square metres, which will seat about 90 people inside and about 40 people outside,” Mr Janssen said.
“Just like the White Elephant, the environment is top of mind when it comes to the design and construction of the new cafe.
Mr Janssen said the cafe would be built using as many natural materials as possible.
“Given the small footprint, the building will blend into the natural surrounds and have as little visual and environmental impact as possible – the emphasis will be on the location and the design will take advantage of the northerly aspect,” he said.