RM Designs was granted consent for the development, which included an outdoor dining area and rooftop drinking space, in December last year, after a hearing in July.
The application attracted 27 submissions, 13 of which opposed the development, and is the second project in the fire station that has raised the ire of residents.
A boutique day spa and massage therapy business was granted consent earlier last year to move into the former fire station, a development also opposed by some residents, who raised concerns about car parking, among other matters.
The appeal has been brought by Brent George, a resident of City Rd, who was a submitter at the hearing.
His concerns, raised at that time, were about parking, privacy and noise.
The hearing committee, of Crs Colin Weatherall, Paul Hudson and Fliss Butcher, noted in their decision public car parking had reached saturation point at peak times, and that car parking for the restaurant must not be reliant on existing on-street parks.
To achieve that, they placed a condition on the consent 20 parks be available at all times, and those may be located off-site, provided they were on private property within 200m.
Mr George's appeal, which lists the Dunedin City Council as respondent, was against the decision in its entirety, and noted the land to be used for car parking had not been specified, an issue listed as one of 19 reasons behind the appeal.
Other reasons included that the number and range of conditions in the consent highlighted the undesirability of the site for such a purpose, the car parking condition was impractical, conditions relating to noise were deficient, music played on the deck would be a nuisance, and the consent set an inappropriate precedent.
An Environment Court spokesman said it was too early to say when the case might be heard, as there was the possibility of mediation, but the matter would go before a judge, and would be set down for a pre-hearing conference.
The court had a goal of having cases heard within six moths.
Planning consultant Keith Hovell, who is acting for Mr George, said mediation was seen as a "desirable first step".
