Mathers Bar on Queensferry Street has appealed a decision by city roads services officials to refuse its plan to introduce a small area with pavement tables and chairs.
A council report said that the bar is situated in a "very busy main arterial traffic route" with the potential for tables to get in the way of people.
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Hide AdGrant MacDonald, director of Mathers owner Landmark Pub Company, said: "Is this council not keen to help small businesses, especially those in the West End who have witnessed great changes in trade by the work created in building the tram network?"