The Tip Top was an institution in the Octagon for more than 70 years before the lease on the site was sold in 2007.
But this week it was reopened just a couple of doors up Princes St from its old home.
Owner Barry Timmings said the Tip Top Coffee and Milk Bar was opened in 1936 by Albert Hayman and Len Malaghan, founders of Tip Top Ice Cream.
Because of its history and status in Dunedin, Mr Timmings said there was never a plan to close it permanently in 2007.
The Octagon site lease was sold because it was too big for the business's operations, and he had been looking for a smaller site in "fairly close proximity" to re-establish the business.
"It was never dead. It was just sleeping while we got organised."
The reopening of the business - now known as Tip Top Cafe - heralded the return of some of its well-known delights, such as lamingtons, cheese rolls, club sandwiches, savouries and a strong cup of tea.
"This is the return of a Dunedin icon - it's the return of comfort food."
Mr Timmings said the Tip Top had brought a unique atmosphere to Dunedin residents for more than 70 years, and now he hoped to be able to share that experience with other cities.
"We've got aspirations of growing the business. We would like to start a chain of Tip Top stores in other places around New Zealand."