Developer Shanly Homes has confirmed it has abandoned plans to convert the former Chef Peking Restaurant in Maidenhead into a Sainsbury's supermarket after being given the go-ahead to turn the empty site into housing.
Royal Borough councillors voted in favour of demolishing the Ray Mead Road restaurant and building eight two-bedroom apartments in its place at a planning meeting on Wednesday last week.
Reacting to the decision, Cllr Adam Smith (Con, Riverside), of Ray Mead Road, said: "It is a good outcome."
"It is definitely a positive development which will very much please the residents.
"I think it will generally improve the area."
At the same planning meeting, the supermarket giant submitted an application to install two of its signs on the restaurant but was refused permission.
Concerns were raised about the impact a new supermarket would have on the amenity and character of the riverside area which is listed as a conservation area.
Speaking at the town hall meeting Cllr Geoff Hill (Con, Oldfield), cabinet member for highways and transport, said: "To have Sainsbury's colours illuminated day and night streaming out from the Chef Peking site would completely destroy part of the amenity of the area and make a mockery of the conservation area."
A statement from Shanly Group said it was pleased planning permission had been given for its housing plans and looked forward to transforming the site into something residents would be proud off.
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