The Dunedin District Licensing Committee issued its decision yesterday, effective immediately.
The Crawford St venue has been owned and operated by the Chin family for more than 30 years.
"When the committee members reviewed the evidence put to us we have no option but to find the applicant unsuitable to hold an on-licence,'' committee secretary Kevin Mechen said in the formal decision.
"We have no confidence that the applicant is capable of making the necessary changes to make the premises compliant with the [Sale and Supply of Alcohol] Act.''
Despite promises from owner, Sam Chin, in April to run the premises in accordance with the Act a series of transgressions were identified at a Katchafire last month.
It followed an ongoing trend of issues with the venue and its compliance and its owner's understanding of the requirements of the Act.
"The Committee is aware of the need for the city to have venues such as this available for large events and functions,'' Mr Mechen said.
"Unfortunately, for it to be successful and fulfil the needs of the community, the licensee needs to understand his obligations under the Act and to demonstrate to the reporting agencies, and this committee, that he has that understanding.
"Mr Chin has been given more opportunities than most to get his business in order.
"We have heard that similar issues as those that have been discussed were evident at the last renewal and at that time the applicant made an undertaking with the agencies to make changes.
"The agencies have told the committee that they found the same issues three years later at this renewal. There have been no changes made to the business.
"The expectations of the agencies and this committee were emphasised at the hearing in April and he was given three months to put in place appropriate processes. Unfortunately he still has not made the changes expected of him.''
The renewal of the venue's liquor licence was opposed by police and Public Health South.
The committee said the venue remained suitable for functions and could continue to operate by way of special licence with each application being assessed on its merits.
Mr Chin can appeal the decision if he desires and has 10 working days to do so.
