It has long been rumored that a developer would snap up the hillside location of Nikki's Drive Inn and build condos there, ending the iconic North Chattanooga gathering spot.
A developer is now planning 52 condos at the site.
A Nikki's employee said on Saturday he does not know if the restaurant will relocate or go out of business.
Nikki's, located at 899 Cherokee Blvd. just below the tunnel to Red Bank, has long drawn customers for its fried Gulf shrimp, hamburgers and onion rings.
It has been serving those up for over seven decades.
It was long owned by the colorful Charlie Jones, who died in 2009.