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Romeeco Bakery hopes to open its new Knox Cafe and Bakery at the old Capers Cafe site, opposite Knox Church, in about a month.
"I [had been] waiting for a long time to get a bigger place," Romeeco Bakery owner Anesly Joy Samuel said.
"Most of my customers ... really love to have food, sit and eat. But there is not enough room."
He admitted it was not the best time to open a new cafe, but he was confident he could sustain the expanded cafe and bakery.
"Yes it’s a critically bad time, but still I have confidence. I always believe in my skill and strength."
Once Knox Cafe and Bakery was open, he would close the Romeeco Bakery.
Renovation work is now under way at the old Capers site and Mr Samuel was having the kitchen replaced with what he calls "the best kitchen in Dunedin".
Mr Samuel was confident his new cafe would provide about 10 new jobs.