The owner of a former seafront pub has dismissed speculation linking coffee giants Costa Coffee with a move to the site.

Dean Tevfik took over the derelict Bun Penny last summer and has planning permission to turn it into 14 flats and a restaurant.

He has previously said he hopes to attract a national franchise to the ground-floor plot, but this week denied talks had been held with Costa.

He said: “Nothing has been discussed yet, my mind is still open about what it could be.

"I am just concentrating on getting the building up, then I will see what I can get with a big franchise.

“Progress is continuing and we hope by Christmas this year you will be able to see the outline of the new building.

“We’re going as quickly as we can and so far it has been going very well.”

Demolition of the seafront eyesore is complete, and work to put in footings and foundations for the new building has started.

Zizzi, ASK, and Subway have also been linked with the vacant spot, but Mr Tefvik suggests the vacant restaurant spot may even be kept in the family.

“My sister also runs The Lounge in Tankerton, and she is in discussions about whether she would like to open a second place or not,” he said. “So we are still talking about our options.”

Independent business adviser Nigel Hancock previously led a petition calling for action to be taken to improve the derelict pub, but said he would be disappointed if Costa opened at the new site.

He said: “They are one of those chains that nobody really wants in their town. We have already got a lot of good independent cafes and coffee shops to suit every pocket.

“So while we need to attract new things into town, they need to be able to add some value rather than just be another cafe.

“A big-name family restaurant like Zizzi or ASK would add some value as it is putting something in that is not there already.

“We need a mix of chains and independents. It’s a fine balance but a big name on the seafront would help to bring in the footfall.”

Mr Tevfik says the project should be nearing completion next summer.