The franchise food chain, started more than 17 years ago by Andrew and Denise Lane with the Regent Night 'n Day on the corner of George and Regent Sts, will grow to 28 outlets with the opening of the Octagon premises.
Owner-operators Murray (32) and Katie (30) Devereux said the central location was one of the best features of their new venture.
"It's attractive because it's the heart of Dunedin; with New Year and Chinese New Year celebrations, cruise ships, tourists and the local business environment," said Mrs Devereux, an accountant for a Dunedin law firm.
Mr Devereux said the focus at the large Octagon site was fitting out the interior of the 350sq m leased premises in time for opening.
Several options were being considered for a downstairs leased space, which might include other commercial operations in the future, while a mezzanine floor in the street-level space would be remade into an office and staff room during the fitting-out.
Mr Devereux had worked at the Regent Night 'n Day 15 years ago while a University of Otago student and for the past seven years had worked in the franchise's Dunedin head office, the past three as office manager.
The new dairy would have 15 staff, be open 24 hours a day, seven days a week, and be licensed.
He said it was a bonus a nearby supermarket had recently indicated it was changing from 24/7 operation to 6am-midnight.
The Night 'n Day Foodstores franchises operate in five Dunedin dairies, and 22 others in Central Otago, Southland, Canterbury and the Nelson-Marlborough regions.