CLOUD Nine caf on the Malvern Hills is to be knocked down and replaced with a three-bedroom house.
The caf, on Jubilee Drive, Upper Colwall, has been closed since April. Owners Martin and Andrea Searby blamed a downturn in trade for the closure.
They cited the foot-and-mouth crisis and the introduction of double yellow lines in front of the building as some of the reasons for the loss of custom.
They also claimed the decision by Malvern Hills Conservators to allow mobile refreshment outlets to operate on the Hills had had an adverse impact on their trade.
But objectors to the proposals said the caf should be retained because it was a community feature.
Objectors also criticised the design of the new home - neighbours said the two-storey house would lead to a loss of their privacy.
The Conservators refused to support the application because they claimed the new development would be an eyesore. However, planners from Herefordshire Council agreed with the Searbys that the business was no longer a going concern.
At a meeting of the council's planning committee, the plan was approved subject to a number of conditions.
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