The hotel had been run for about 20 years by Jude and Mike Kavanagh, and was put up for sale in December last year.
A sale didn’t come about, and instead four local residents have agreed to lease the property on a short-term basis.
Chef Brendan Richards and his partner Vanessa Anthony, alongside Cambrian farmer Peter Shaw and his wife Sarah Shaw, began their three-month lease this week.
Mr Richards said he was a part owner of the Vulcan Hotel building, although he was not part of the previous business.
A separate cafe space had been created and further plans included relocating the toilets for a larger cafe area that could be partitioned from the bar to create distinctive areas, he said.
There were plans to refurbish the outside beer garden with schist stones, and discussions were under way to allow the neighbouring hall to be used for functions such as weddings.
The Vulcan Hotel name would be maintained but the new business would be called St Bathans Cafe and Bar, Mr Richards said.
They would "see how it goes" and evaluate a long-term lease after the three months had ended, he said.
