The Tickethall, at the historic railway station in Douglas, will begin offering restaurant-style dining this month.
The cafe, which was taken over by local restaurateur Dave Paramor at the start of this year, has welcomed thousands of people by offering light meals, snacks, and drinks.
The Tickethall will now expand its offering with a new restaurant service, operating in the mezzanine space.
The restaurant's menu includes locally sourced meat, fish, vegetables and fruit as well as vegetarian, vegan, and gluten-free options.
On Sundays, The Tickethall restaurant will offer brunch-style meals as well as a traditional Sunday roast.
The café will remain open as normal with a separate menu.
Mr Paramor explained: 'It was always our plan to offer a combination of restaurant and café-style services. I’m delighted the restaurant menu will be available soon, giving diners more choice.
'The restaurant will offer good food in casual surroundings and is ideal for lunches and evening meals. The menu will reflect our style of reasonably priced, freshly prepared dishes featuring local produce as much as possible.
'Thanks to our location, in the heart of Douglas, this will give people a new choice of where to eat out or entertain. We’re within easy walking distance of many offices and workplaces, plus there is ample parking for anyone travelling into the city.'
Dave has been overwhelmed by the community support for The Tickethall since it re-opened in March, and said the team wanted to give something back.
He explained: 'We all wanted to do something to say thank you to our island community for the amazing support we’ve received this year. We all agreed that finding a way to assist the crucial work of Hospice Isle of Man would be ideal.
'So, we have decided that throughout December we will donate 50% of the price of every dessert ordered to Hospice, to support the vital services it provides to people across the Isle of Man.
The Tickethall is open every day except Tuesday during November and the restaurant will open on November 17. Bookings are now open by calling 627888.
The restaurant space is also available for events, such as Christmas parties and office outings, and enquiries are welcome.