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Fermain Kiosk will pass into the hands of the owner of Coco and Lola cafes after they were selected as the preferred bidder by the States.
Detailed negotiations will now happen on the terms and conditions of a new lease.
It means the end of the successful 21 year tenancy of Bel and Manuela de Frietas, who had been attempting to renew.
A petition attracted nearly 2,700 signatures to keep the current tenants in place as people not only felt their hard work deserved it, but also feared how the site might change after it was advertised as having the potential for a three story development.
States Property Unit went out to tender with the current lease due to expire at the end of October and brought in a director from Watts Property Consultants to sit on the panel that chose between four bids.
They unanimously backed a bid by Pearl Oyster Ltd, who own Coco and Lola.
"We are delighted our submission has been selected for the Fermain Kiosk and are looking forward to the opportunity of taking it on and bringing to the area a new offering that builds not only what we do at Coco and Lola, but also respects the beautiful setting of the kiosk and the bay," a spokesperson for Pearl Oyster said.
"Fermain is a picturesque location loved by many islanders and visitors alike, and represents an exciting opportunity for us to deliver a fantastic service to the community."
Pictured: The petition arguing the current tenants should be allowed to renew their lease.
Mark Ogier, Director of Estates, States Property Unit, said: "The applicant is a well-established and successful operator, with an excellent reputation and significant following at their other outlets, and their plans for the Fermain Kiosk gave a clear vision for continued development, with the customer being the constant focus.
"While we are looking forward to seeing the new leaseholder's plan come to fruition, I would also like to acknowledge the time and effort the incumbent tenant has put into the beach cafe. The result of the tender shows there is room for further development and growth to maximise this unique and sought-after location."
The company's plan for the area includes introducing new offerings for customers, such as online order for beach users, creating a new sun lounger area near the cafe, increased opening times in the summer months, along with the potential to host private events.
The bid also "included substantial investment plans to improve the offering for the community".
No details of what that means have yet been released.
Bertrand and Marine Doury are listed as the directors of Pearl Oyster Ltd.
Fermain cafe questions answered
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