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DOMINO Pizza plans to appeal after Gravesham councillors turned down its application to join forces with Blockbuster Video.
The pizza company wants to use part of the video store in West Street, Gravesend, as a takeaway.
Planning officers had recommended approval but councillors rejected the proposal on highway, planning and environmental health grounds.
Chartered surveyor, Richard Unwin, acting for Domino Pizza, said: "We will be taking the case to appeal. We were very disappointed with the decision as we had spent two months negotiating with council officers, who recommended approval, and who warned councillors they could incur costs if the case went to appeal.
"We're a home delivery business so we wouldn't cause traffic congestion. We work in co-operation with Blockbuster in many of their stores and have 200 units operating without causing any problems."
Local residents and parishioners at nearby St George's Church said they were concerned about the extra traffic and the smells the takeaway would generate.
Cllr Elizabeth Colley said: "I think our grounds for refusal are absolutely watertight. We cannot afford to have any more commercial intrusion."
West Street is close to a conservation area and councillors felt this kind of development was inappropriate. They also raised concerns about parking and claimed Blockbuster's customers already caused congestion when picking up and returning videos.